By The FINANCIAL

Copyright finchannel

Thailand’s advertising industry is in the midst of structural change, shaped by digital adoption, urbanisation and shifting consumer habits. Worth an estimated ฿130–140 billion ($3.5–4bn) annually, the sector is rebounding after the pandemic while drawing global brands keen to reach one of Southeast Asia’s most dynamic middle classes.

Television still commands the largest share of ad budgets, but its influence is waning as digital platforms — from TikTok to Shopee — capture more spending. Yet out-of-home (OOH) retains unusual strength, accounting for roughly 15 per cent of total advertising, thanks to Bangkok’s dense urban environment and heavily used transport systems.

VGI’s platform advantage

No company is better positioned in this segment than VGI Public Company Limited, the exclusive advertising partner of Bangkok’s BTS Skytrain since 1995. The company has built a powerful network of billboards, train wraps and digital screens that reach millions of commuters daily.

But VGI’s strategy now extends well beyond visibility in the capital. It has invested in digitalisation, analytics and mobile payments, linking offline audiences to online campaigns through its offline-to-online (O2O) model. The approach enables advertisers to convert brand exposure into measurable consumer action, addressing one of the OOH sector’s long-standing challenges.

A strategic move into finance

The company’s most striking evolution lies in its decision to move into financial services. Thailand’s central bank is preparing to issue the country’s first virtual banking licences, creating opportunities for new players to target the country’s large underbanked population. VGI has signalled its intention to participate, raising capital and engaging partners to support an application.

Strategically, the move is consistent with the group’s O2O vision. VGI controls high-traffic environments that generate behavioural data on millions of urban consumers. By adding financial products — from payments to micro-loans and insurance — the company can transform its media audience into a base of active customers. This not only diversifies revenue but also deepens engagement, giving advertisers and investors a more integrated ecosystem.

Regional context

The expansion reflects broader currents in Southeast Asia, where the boundaries between media, technology and finance are increasingly blurred. Super-apps such as Grab, Gojek and Shopee have demonstrated how consumer attention and payments can converge in a single platform. In markets with high smartphone penetration and large unbanked populations, linking media reach to financial access is seen as both commercially promising and socially relevant.

For VGI, the pivot is therefore less a departure than a natural extension of its business model. By combining advertising assets, consumer data and ESG credentials with fintech ambitions, it mirrors regional trends and positions itself at the forefront of convergence in Thailand’s consumer economy.

Thailand’s advertising market is at once resilient and under pressure: resilient because OOH retains visibility in Bangkok’s urban fabric, pressured because digital giants dominate online ad spend. VGI’s response — consolidation in media and expansion into finance — shows how a domestic group can reinvent itself in real time.

If its virtual banking initiative succeeds, VGI will not only remain Thailand’s leading out-of-home operator but could also become an emblem of how Southeast Asian companies leverage media assets to enter new industries. The transition underscores a broader shift in the region: growth lies not in choosing between billboards and banking, but in combining them.