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Thailand sponsorship market grows by 19%

Thailand sponsorship market grows by 19%

PHUKET: Calendar year 2018 was a robust year for Thailand’s sponsorship market, growing 19% year-on-year to US$223.4mn (B6,994 billion) – compared with US$188.2mn (B5,892bn) total investment in 2017, reports Asia Sponsorship News (ASN).

economics
By The Phuket News

Monday 25 February 2019, 01:04PM


Toyota was the leading spending brand in the sponsorship market for 2018 with a total investment of US$11,749,000 for the year. Photo: ASN

Toyota was the leading spending brand in the sponsorship market for 2018 with a total investment of US$11,749,000 for the year. Photo: ASN

The total investment for 2018 also made grounds on the previous outlier market peak of US$247.8m (B7.758bn) in 2015.

Since 2015, the market had been creeping backwards to a recent low of US$187.2mn (B5.864bn), ASN announced in its recently released Sponsorship market overview on Thailand for 2018, which includes commentary from local agencies on the performance of the Southeast Asian marketplace. (See report here.)

 General market health -in GDP terms – for Thailand was positive in H1-2018 but Q3 was oddly flat, noted ASN. In November, the country forecast a slightly reduced GDP forecast in the mid-4% range for itself for the year (Q4 2018 has not yet been reported by the Thai government), the report adds.

The Top 10 leading spending brands in the sponsorship market for 2018 included the usual major players, but also some newcomers since ASN last analysed the market in 2016, the report notes.

The leading spending brands in the sponsorship market for 2018 were listed as follows

  1. Toyota – US$11,749,000
  2. Chang – US$10,347,050
  3. PTT Petroleum – US$ 7,372,000
  4. Singha – US$6,935,525
  5. PTT Group – US$5,573,000
  6. Tourism Authority of Thailand – US$5,532,000
  7. Thai Beverage Plc – US$5,173,050
  8. Adidas – US$5,075,000
  9. Pepsi – US$5,065,000
  10. Carabao – US$4,389,000

These 10 brands contributed almost 30% of the total investment in this Southeast Asian market, the ASN report points out.

In terms of the biggest movers and shakers within the Top 10 for 2018, versus 2016 when ASN last review the market were:

  • Chang was 1st with US$14.4mn
  • AIA was 2nd, Its dramatic fall caused by the cessation of its Thai Umbrella Football Club partnership, with the FAT, in 2017
  • Toyota was 4th spending US$6.8mn
  • Carabao and Adidas were newcomers for 2018

Other major highlights affecting the broader market dynamics were cited as:

• Platforms: Motorsports and Multi-sports outperformed (+98% and +103% respectively); while platform leaders Football (US$90m in 2018) and Athletics (US$32m) gained a healthy 23% and 15% respectively

• Categories: Two of the Top 10 categories – Petrochemicals and Conglomerates – dipped into their budgets significantly in 2018 (+119% and +590% (!) respectively

• Genres: Content was the biggest mover with a 114% uplift. Events, the perennial Genre leader, gained 33% as well

Commenting on the market movements, Paul Poole, Founder of Paul Poole (South East Asia) Co., Ltd. – a marketing consultancy specialising in commercial sponsorship in Thailand – said, “The 19% year-on-year increase in Sponsorship spending in 2018 is testament to a strong industry.

“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.”

Mr Poole added, “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.” (See McKinsey report here.)

Mr 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!” he noted.

“So the Thai market is in good health: let’s see if 2019 can sustain the growth,” Mr Poole concluded.

 

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