23 May 2019 – YDM Thailand is making another bold move in the advertising agency industry with the launch of a new “Revenue Sharing” model, charging service fees based on actual sales. This breaks away from the traditional fee structure and offers brands a new alternative. The company is targeting revenue of more than 850 million baht this year, representing 50% growth.

Mr. Tanapon Subsomboon, Chief Executive Officer of YDM Thailand Co., Ltd., said, “Rapid technological progress in both Thailand and abroad has caused consumer behavior to change quickly. As a result, most brands and entrepreneurs have not been able to adapt in time. Some still remain attached to traditional forms and methods of marketing and have not fully applied digital technology and digital tools to their advantage, causing them to miss valuable opportunities.”

This may be due to a lack of knowledge, understanding, and experience in Digital Marketing. Many brands are concerned about whether the results will be as good as the traditional marketing methods they have used before.

“Normally, advertising agencies charge for strategic planning, creative work, and media placement fees, while the KPIs for each assignment or campaign do not guarantee sales. After a campaign ends, whether the brand can actually sell its products is a risk borne entirely by the brand,” Mr. Tanapon said. This limitation is a key obstacle that makes brands hesitant to try new marketing approaches. This led YDM Thailand to introduce a new pricing model, “Revenue Sharing,” changing from fixed service fees to payment based on a share of actual sales generated instead.

Mr. Tanapon added, “This service arose because we saw and understood the client’s limitations. Clients no longer need to bear the full risk of marketing budgets. Lower sales mean lower payment; higher sales mean higher payment. It is therefore a win-win model for all parties.”

As for why YDM Thailand is bold enough to offer this new model, Mr. Tanapon revealed that YDM Thailand already has strong capabilities in performance-driven marketing. Every solution we present to clients has always been developed with the client’s return on investment (ROI) as the key consideration.

In addition, YDM Thailand is ready to support almost every form of marketing through its nine subsidiary companies.

• FCB Bangkok and Nawin Consultant specialize in brand building, brand communication, media planning, as well as creative design and production.

• Adyim provides comprehensive Digital Marketing Solutions.

• Gottimize specializes in online media planning and buying.

• Alternate65, owner of the REVU platform, specializes in product reviews through micro influencers.

• ADPOCKET provides Mobile Advertising services.

• Jamjaras provides comprehensive upcountry marketing services.

• AVG Thailand provides Digital Marketing services focused specifically on the China market.

• Doer is a platform for freelancers providing services such as website and mobile application development, etc.

All nine companies in our group work together to develop Marketing Solutions that truly address our clients’ business needs.

Launching BuyZabuy.com & SellZabuy.com to Bring Clients into the E-commerce System with an Affiliate Sales Network

Mr. Tanapon added, “Most brands normally sell products through a variety of channels and conduct marketing in many areas. This sometimes makes it difficult to determine whether the sales generated are the result of YDM Thailand’s work. Therefore, we developed an e-commerce system called BuyZabuy.com so that brands can list their products for sale and track the sales generated from our marketing efforts. The brand’s responsibility is only to deliver the products, while YDM Thailand handles all marketing and advertising through the professional teams across our group companies as appropriate. The brand pays only the share generated from actual sales.”

Moreover, YDM Thailand has also developed an affiliate system called SellZabuy.com, which allows tens of thousands of Digital Marketers and Influencers within YDM Thailand’s network to help promote clients’ products. The Digital Marketers or Influencers receive commission based on actual sales generated.

“On Revu.net alone, the product review platform that we own, we already have more than ten thousand bloggers in our network. In addition, we have more than 200 artists, actors, and singers under Jamjaras who are ready to help promote our clients’ products as well.”

Interesting, But Not for Every Client!

Because the new “Revenue Sharing” model charges based on sales, the agency side, or YDM Thailand, must bear a considerable amount of risk, since YDM Thailand has to invest both personnel and media costs in the marketing. Therefore, YDM Thailand must select clients carefully.

“In principle, we want good-quality products, with product owners who are ready to cooperate and work with us as partners, willing to move forward together and open to our new marketing approaches.”

Continuous Growth

After the investments from Intouch, the Stock Exchange, and Government Savings Bank, together with the official launch of YDM Thailand last year and the acquisition of FCB Bangkok earlier this year, YDM Thailand has become one of Thailand’s leading marketing groups, covering both offline and online services, with more than 200 employees in total.

In 2018, YDM Thailand exceeded its sales target with revenue of 565 million baht. For 2019, it has set a target of 850 million baht, representing approximately 50% growth, and is preparing to be listed on the stock exchange in 2021.