Digital Advertising Spend in Singapore Grows To Over S$60m in H1 2011: IAB
Steady climb shows digital spend on track to cross S$100million mark
Singapore, March 19, 2012 -- The Interactive Advertising Bureau Southeast Asia (IAB SE Asia) Singapore Chapter today released the Singapore Online Advertising Revenue Report reflecting Digital Ad Spend at S$60.31m for the period January to June 2011. The figures account for 8%of the total advertising expenditure in Singapore. Jointly commissioned by the Media Development Authority (MDA) and the IAB SE Asia, Singapore Chapter, the report was compiled by PricewaterhouseCoopers LLP to provide an analysis of the online and interactive advertising market growth and trends.
"This strong, stable growth is testament to the efforts of the entire industry," says Ken Mandel, Chairman, IAB SEA, Singapore Chapter. “Digital advertising continues to have a bigger share of an increasing pie, and we are moving closer to our ultimate vision where Online Advertising constitutes 20% of total advertising spend. Singapore is definitely one of the best places in the region for businesses to get into the digital space.”
Commenting on the announcement, Loren Shuster, Country Director-Singapore and Emerging Markets, Google says: "This positive momentum demonstrates the significant potential within the Singapore market as companies of all sizes discover the reach, impact and measurability of digital with headroom for more continued growth. Google looks forward to working with the IAB to continue to educate and partner with key industry stakeholders to ensure that Singapore reaches its potential as a leading digital marketing hub in Asia Pacific.”
Singapore has registered a Compound Annual Growth Rate (CAGR) of 19% for the 24-month period ending 30 June 2011. This trend continues to reflect a confidence in online channels, and is encouraged by more stable economic conditions following unsettled markets in 2009 and 2010. IAB Executive Director Ranji David explains that while the figures appear to have declined from the impressive CAGR of 36.5% recorded in the 2010 year-end report, those numbers were buoyed by the inclusion of Google’s revenues from the network’s websites (“AdNetwork revenues”) into the report for the first time.
Display Advertising recorded a CAGR of 15% over the 24 months period ended 30 June 2011, while Search Advertising logged in a CAGR of 27% over the same period. Search Advertising expenditure remains lower compared to other more mature digital advertising markets with continued potential for growth. Meanwhile, CPM (cost per thousand impressions) and Performance-based pricing continue to dominate at the expense of Tenancy-based pricing.
Technology and Telecommunications, Travel and Leisure, Financial Services, Business Services, and Property were the sectors identified as focusing on online advertising.
Other highlights from the report include:
· Total online advertising revenues from Display Advertising grew by 7% in H1, 2011.
· Total online advertising revenues from Search Advertising grew by 22% in H1 2011.
· CPM and Performance-based pricing continue to be the dominant revenue model holding 48% and 44% of the market share, respectively.
· Financial Services was the highest revenue industry category with 16.77% share.
“Industries have crossed both a psychological and behavioural tipping point where digital technologies are the drivers of operating models and revenue growth. Monetisation is still the key challenge for the industry and digital advertising will play a key role in sustaining the growth. The growth in digital advertising in Singapore underscores this trend. Going forward, we expect to see more creative ways to engage with customers online leading to improved monetisation of digital content,” said Greg Unsworth, Singapore Technology, InfoComm and Entertainment & Media Industry Leader, PwC LLP Singapore.
Singapore remains as top choice for Online businesses looking to establish a foothold in the regional digital scene with the introduction of exciting new players in the area of platforms, technology and services, and across newer areas of Digital such as Social, Mobile and Video advertising.
With the development of a more mature, complex and increasingly diverse Digital Advertising ecosystem, the IAB is well positioned as a platform for members to connect, communicate, collaborate and ‘cross-pollinate’, leveraging each other’s strengths for greater success. “We will be rolling out several new programs and initiatives over the next two quarters that we believe will allow the IAB to galvanize the industry and come together in a cohesive effort to raise the level of digital investment in this market,” David says.
THE DETAILED, 20-PAGE REPORT IS AVAILABLE TO ALL IAB MEMBERS & CONTRIBUTORS TO THE REPORT WITH COMPLIMENTS OF THE IAB.
NON-IAB MEMBERS CAN ENJOY A SNAPSHOT OF THE RESULTS IN THE 7-PAGE EXECUTIVE SUMMARY.
IAB SE Asia, Singapore Chapter
Ranji David, Executive Director
Rice Communications for IAB
Donna Garcia, Account Director
About the IAB
The Interactive Advertising Bureau Southeast Asia; Singapore Chapter is established and supported by leading digital advertising companies operating in Singapore and Southeast Asia and acts to educate marketers, agencies, media companies and the wider business community about the value of interactive advertising, evaluate and recommend standards and practices, and develop and distribute research on interactive advertising. Visit www.iab.sg
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