ASN has just released its sponsorship market overview on Thailand for 2018 with commentary from local agencies on the performance of the Southeast Asian marketplace.
2018 was a robust year for Thailand’s Sponsorship market, growing 19% year-on-year to US$223.4m (2017’s total investment was US$188.2m) and making grounds on reaching its previous (outlier) market peak of US$247.8m in 2015. Since 2015, the market had been creeping backwards to a recent low of US$187.2m.
General market health – in GDP terms – for Thailand was positive in H1-2018 but Q3 was oddly flat. In November, the country forecast a slightly reduced GDP forecast in the mid-4% range for itself for the year (Q4-18 has not yet been reported by the Thai government).
Back to the Sponsorship market and the leading spending brands are as follows; the Top 10 includes the usual major players, but also some newcomers since ASN last analysed the market in 2016:
|Tourism Authority of Thailand||5,532,000|
|Thai Beverage Plc||5,173,050|
These 10 brands contributed almost 30% of the total investment in this Southeast Asian market.
In terms of the movers and shakers within the Top 10, versus 2016:
Then there are the broader market dynamics that moved the needle – across the various ways to slice ASN’s market data:
Commenting on the market movements is eponymous Founder of Paul Poole (South East Asia) Co., Ltd. – a marketing consultancy specialising in commercial sponsorship in Thailand – Paul Poole, “The 19% year-on-year increase in Sponsorship spending in 2018 is testament to a strong industry.” He continued, “To see big brands and organisations such as AIA, King Power, Sports Authority of Thailand (SAT), Honda and Siam Cement Group falling off the list is somewhat of a surprise given their visibility in the marketplace and their sponsorship history. However, it is refreshing to see new additions to the list such as Adidas. It speaks of a dynamic and ever-changing market.”
Poole went further, “Sponsorships have the potential to reach beyond short-term sales to build a brand’s identity. Brand strength contributes 60 to 80% to overall sales, making this benefit critical for sustained, long-term sales growth.”
Poole is convinced consistency is key to building brand awareness and companies like Toyota and Adidas are good examples of companies pushing through content on all platforms, especially social media. Since brand ambassadors are now typically anyone sharing content – especially online via video content – brands are getting leverage from the increasing use of social media platforms across the world… and Thailand is one of the most gluttonous consumers of online content!
So the Thai market is in good health: let’s see if 2019 can sustain the growth.