Digital ad spend to increase by double digits in SEA: eMarketer
With mobile investment on the rise in the region, digital ad spending is set to grow in Southeast Asia, according to eMarketer’s latest forecast. Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam will see digital ad expenditures increase by double digits in 2017 and 2018.
eMarketer’s report highlights that mobile ad spending will also grow in these markets in 2017 and 2018 and is predicted to surpass USD 2.20 billion and account for nearly 69 per cent of digital ad expenditures by 2021.
Indonesia, Philippines and Vietnam will see the strongest growth markets for mobile ad spending in the region. Philippines and Vietnam will double their mobile ad spend this year due to heavy smartphone adoption. Indonesia will increase outlays by 80 per cent, the study found.
“The developing economies of Southeast Asia are well placed to become Asia’s next top-ranking digital advertising growth markets as these economies reap the gains from a ‘development catch-up’ with favorable demographics, increasing smartphone adoption, expanding internet access and declining data prices. Undoubtedly, ecommerce will be a key driver in the years to come as investments from global giants pour in to shape Southeast Asia’s ecommerce scene and merchants determine how best to win the attention of a new generation of digital shoppers,” said eMarketer senior forecasting analyst Shelleen Shum.
With companies such as Alibaba and JD.com investing in Thailand, eMarketer expects ecommerce to rise rapidly in the market, thus increasing digital ad expenditure. This year, digital will account for 18.5 per cent of all media ad spend in the country but eMarketer forecasts that this share will climb to 28.7 per cent by 2021.
Singapore’s overall media growth slowed down slightly in recent years due to weak consumer spending. However, as the economy recovers, eMarketer expects to see increased outlays on digital, which will account for almost a quarter (23.8 per cent) of total ad spend in the market in 2017. By 2021, eMarketer forecasts digital ad spend will total roughly $520 million, and mobile will account for 81.7 per cent of all of Singapore’s digital spend.
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