Grab, one of Southeast Asia’s prominent superapps, is embarking on an expansion journey to broaden its client base in Thailand’s advertising business. The objective? To bolster its revenue streams within the online service providers industry.
Chantsuda Thananitayaudom, the Senior Director of Commercial and Marketing at Grab Thailand, made this strategic announcement during a recent press conference. She emphasized that this decision is well-timed because contemporary consumer behaviors and lifestyles are intricately intertwined between the online and offline realms.
In this evolving landscape, advertisers and marketers must adapt by crafting strategies that align seamlessly with consumers’ lifestyles while facilitating a harmonious connection between their online and offline experiences.
Grab Thailand initiated its foray into providing advertising solutions to partners back in 2018, initially offering an additional income stream to its drivers. Over time, the company expanded its horizons into in-app advertising media, thereby enabling merchants and brands to tap into a larger user base within the app. This expansion gave birth to a comprehensive retail media network now known as “GrabAds.”
As part of this year’s expansion plans, Grab Thailand aims to diversify its client base across various business sectors. Beyond the food and beverage sector, Grab will actively expand its footprint in three pivotal areas: fast-moving consumer goods, automotive, and finance and banking. These three sectors have consistently upped their marketing spending to engage actively with consumers, according to Chantsuda.
“Our goal is to establish GrabAds as Thailand’s leading Retail Media Network (RMN),” she asserted. RMNs are typically operated by retail entities or online marketplaces, leveraging customer data, shopping behavior insights, and digital infrastructure to offer robust advertising and marketing opportunities.
In an encouraging sign, GroupM’s global mid-year forecast for 2023 predicts RMN as the third-fastest growing media, with a global total value poised to reach an impressive US$127.5 million. It’s anticipated to outpace television revenue by 2028.
Furthermore, GrabAds has earned its stripes as one of Southeast Asia’s top three online advertising platforms for Advertising Equity, according to Kantar Media Reactions 2022. This positioning augurs well for Grab’s continued success in promoting its advertising service solutions, according to Chantsuda.
She went on to underscore three key strengths of GrabAds’ advertising business:
The first strength lies in Grab’s ecosystem, seamlessly bridging the gap between online and offline. This translates into comprehensive marketing solutions encompassing brand awareness and conversion, employing various media formats, both in-app and offline.
The second strength stems from GrabAds’ access to a captive high-value customer base. Notably, around 60% of all Thai users who access the Grab app in a given month go on to complete transactions within it. Consequently, the ad click-through rate on GrabAds is three to five times higher compared to other Thai platforms.
The final strength lies in GrabAds’ access to first-party data insights. This treasure trove of data, derived from the actual spending habits of Grab app users, offers brands rich insights for pinpoint targeting. These insights unveil critical aspects of daily life, such as favorite foods, frequently purchased products, preferred places, and travel plans.
In summary, Grab’s strategic push into the advertising realm in Thailand is poised to tap into the evolving consumer landscape, offering tailored advertising solutions and leveraging its impressive strengths to create a compelling proposition for businesses and marketers alike.
