Thailand’s marketing industry is truly exceptional. Advertising focuses more on the subtle qualities of the product and brand than the obvious ones.
Local culture forces traditional advertisers to think outside the box. Meanwhile, rapid urbanization and sensory overload in Bangkok requires more eye-catching and memorable ads to reach customer’s eyes.
A Brief Introduction to Marketing in Thailand
Thailand has strong cultural values and they’ve shaped people in more ways than one. Most grew up in a society which frowns upon things such as sex appeal. As such, Thais adapted their advertising approach to comply with both culture and politics.
Furthermore, Thailand’s urban cities are becoming more advertising-heavy. A ride on the capital’s public transportation system reveals how much advertising Bangkok has.
Commuters are bombarded by ads on LCD screens with audio playing at distracting volumes. This pressures content creators to come up with increasingly bizarre, cunning, and unique ads to imprint onto viewer’s minds and lead to more sales.
However, these limits haven’t stopped content creators from making unique ads which have earned a place in people’s hearts.
One of the most famous ads to date was the Tourism Authority of Thailand’s “I Hate Thailand” video, which was a great success. The video attracted tourists back into the country after a period of political strife.
Some more popular but less mentioned ads include ones which target the audience’s feelings and attempt to create an emotional connection. They show examples of struggling people instead of the typical product they offer. Some ads such as these are from Thai Life Insurance.
With that short introduction to Thai advertising finished, our stock pick today is VGI Global Media. It’s one of the top two marketing agencies in Thailand.
VGI Global Media Stock: A Play on Thai Advertising
VGI Global Media (BKK:VGI) has three main business activities: mass transit, modern trade, and multimedia.
Mass transit media consists of ads on Bangkok’s transportation systems. These include shops on the the city’s skytrain stations along with advertising on the trains themselves. In addition, VGI’s ads on buses and bus stations throughout the capital are included in this category.
Modern trade includes sales floor media, which consists of ads at the point of purchase or nearby. For example, a mall might have interactive directories which also display ads.
Multimedia includes billboards and large LCD screens across the country. These might be plastered on office towers or displayed on billboards next to the expressway.
VGI Media’s great operating metrics and solid foundation allow InvestAsian to recommend this firm for those wanting to invest in Thailand.
The company offers great returns to investors with a net profit margin projected at 44% this year. High net profit margin also leads to strong ROI and ROE of over 40% each.
More importantly, advertisers are always in demand. VGI Global Media stock should survive any financial shocks in a generally weak Thai economy.
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