Despite the distrust, digital spend in SEA shows double digit growth in 2017

Despite all the murkiness the world of digital presents, we know modern marketing cannot exist without it.

eMarketer, a market research company, in collaboration with IAB Singapore released a digital spend forecast for Southeast Asia, Hong Kong and Taiwan, which predicted a double digit growth in 2017. This is a result of growing the consumer demand for mobile, video and social.

Digital ad spend, however, varies significantly across various regions in Southeast Asia.

For instance, in Singapore, ad spend on traditional media has been dominant but in 2017, digital will account for 23.8% of media budgets climbing by 18% to reach SG$376.5 million. The report also predicted that investment on digital channels in Singapore will see strong growth in the coming years with mobile accounting for SG$404.6 million, or four out of every five digital ad dollars by 2020.

On the other hand, advertisers in Indonesia, Thailand, the Philippines, Malaysia and Vietnam, have a lower digital share of total ad spend compared to the other countries forecasted. The report stated that the  digital ad spending will account for less than 20% of overall media investment in 2017 in these markets. By 2020, however, digital ad spend in these markets is expected to account for up to 25% of overall media spend. The growth trajectory is representative of government dedication to connectivity locally and globally.

“Internet and smartphone penetration rates are still relatively low in developing parts of Southeast Asia – leading to a relatively lower digital share of total media spending,” Shelleen Shum, senior forecasting analyst at eMarketer said. She explained that the development of internet and mobile connectivity in Southeast Asia will present advertisers an opportunity to tap into a new market of fast urbanising middle class consumers.

Meanwhile, an earlier report by Zenith also predicted that programmatic will grow “comfortably faster” than social media. Social media is currently set to grow at 25%, and online video at 20%. Meanwhile programmatic advertising is set to grow 31% in the year 2017.

Programmatic is now being used in conjunction with valuable data segments to target individuals and identifying who is the most likely to be receptive to brand messages, often in premium environments. Previously, programmatic marketing used a way to reach target audiences as cheaply as possible.

Meanwhile last June, Marketing also reported that Internet advertising growth in Singapore exceeded the equivalent global rate of growth which is 11.1% CAGR. Total worldwide entertainment and media revenues will rise at a compound annual growth rate (CAGR) of 4.4% in nominal terms over the coming five years, from US$1.72 trillion in 2015 to US$2.14 trillion in 2020, according to PwC’s Global entertainment and media outlook 2016–2020.


(Photo courtesy: 123 RF)