How Alphabet Inc (NASDAQ:GOOGL) Is Attracting SMBs in Thailand?

How Alphabet Inc (NASDAQ:GOOGL) Is Attracting SMBs in Thailand?

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Alphabet Inc (NASDAQ:GOOGL)’s Google appears to be having a plan to attract small and medium-sized businesses (SMBs) in Thailand. Accordingly, the search-engine giant is willing to subsidize mobile-friendly websites of such firms. However, such SMBs should agree for the company’s mobile ad service, according to eMarketer.

Alphabet’s Google assumed significance since Thailand is regarded as the rapidly growing mobile-first market. The research firm estimates that there would about 30 million smartphone users before the current year ends. That would mean representing nearly 44 percent of the country’s population.

Aside from that, eMarketer thinks that the pace of penetration will cross the threshold of 50 percent before the current decade ends. By then, there will be about 35.1 million people using smartphone in the country. This should go well with Google’s core revenue stream, which is moving towards mobile.

Though emarketer expects mobile ad spending to account for only 7.3 percent of all media spending in the current year in Thailand, However, within the digital ad spending, mobile ads would represent 41.8 percent. This is set to jump in the coming years. For instance, the research firm sees mobile ad spending to hit $343 million in 2020 from $168.5 million estimated for the current year.  That would mean 14.3 percent of total media ad spending.

Knowing the potentials of generating sizeable ad revenue, Google is focusing on SMBs in Thailand since they account for 40 percent of the country’s GDP. Alphabet thinks that only ten percent of SMBs have company websites in Thailand that leaves enough scope to promote mobile web pages.

The future lies in mobile website. Therefore, Google’s regional director for Southeast Asia, Ghislain Chatelier, commented that mobile website would be a key factor for marketing tool to boost SMB’s presence in the big community of online. The American firm has been promoting its accelerated mobile pages (AMP) for adoption supporting to prioritize AMP pages in its search results.

Google is pressured to bring back advertisers to its fold since Facebook attracted ad revenue of about $83 million last year compared to YouTube’s $48.6 million.