Page 55 - BTSGroup ONE REPORT 2021/22_EN

BTS Group Holdings Public Company Limited 2.4 MIX 53
Annual Report 2021/22

1.3 Bangkok Payment Solutions The Thai advertising market has been influenced by major developments over

Bangkok Payment Solutions Company Limited (BPS) was established on the past years. Traditional media such as television, newspaper, magazine
30 April 2014 as a joint venture between VIX Group and BTS Group. VIX Group and radio has been in steady decline, while OOH and online/digital media
is the technology development leader for Central Clearing House (CCH) and have become the preferred choice of advertisers. The expansion of OOH and
Automatic Fare Collection (AFC) services. BPS will be the vehicle for developing online/digital media has been encouraged by several factors, including lifestyle
software and providing technology services, for an integrated mass transit and changes – the urban population spending more time outside their homes;
payment systems for Thailand. BPS will have three main revenue streams: the rapid increase in the number of internet users (in 2021, the internet
1) services revenue from payment solution projects (CCH and AFC development), penetration rate in Thailand stood at 77.8% with the average time a consumer
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2) recurring service and maintenance contracts and 3) electronic data capture spends on the internet over 414 minutes per day , a significant increase from
hardware device sales. 300 minutes per day in the past several years) and with the growing recognition
of these media, as an effective and measurable advertising/marketing tools.
2. Industry Analysis and Competition

2.1 Advertising Industry
According to the Bank of Thailand (BOT), the country’s GDP growth turned
positive in 2021 - growing 1.6% compared to the previous year. The growth was
mainly driven by the recovery of the COVID-19 pandemic situation along with
the development of vaccination rates, leading to the ease of the government
restrictions and improving economic activities. With this, the overall advertising
expenditures were slightly increased by 1.1% YoY to THB 107,785mn .
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The digital/online and television media sector, increased by 10.7% and 2.9%
to THB 23,315mn and THB 65,000mn, respectively. Meanwhile, the cinema,
traditional media (newspaper, magazine and radio) and OOH media declined
by 19.1%, 13.6%, and 8.1% YoY to THB 3,398mn, THB 7,652mn and
THB 10,308mn, respectively.

1 Nielsen Company (Thailand) and Digital Advertising Association of Thailand (DAAT)
2 We are social, Hootsuite, Jan 2022