Online advertising in Singapore has reached a milestone. It has hit the hundred million dollar mark. Interactive Advertising Bureau Southeast Asia (IAB SE Asia) Singapore Chapter has released the Singapore Online Advertising Revenue Report which shows that SGD 135.91 million (USD 107 million) was spent on online ads for the period January to December 2011.
Talking about this achievement for the industry, Loren Shuster, chairman, IAB Singapore and country director, Singapore & Emerging Markets, Google, said, “This is a watershed moment. It is the first time the revenue has moved out of the double digits and crossed S$100m since we set out to measure online advertising spend three years ago.”
The report was jointly commissioned by the Media Development Authority (MDA) and IAB Singapore and was compiled by PricewaterhouseCoopers LLP to provide an analysis of the online and interactive advertising market growth and trends. The results also reveal a strong close to the year with a 25 percent increase in revenue numbers for second half of 2011 at SGD 75.6 million, up from SGD 60.3 million in first half of 2011.
These figures put Singapore ahead of Hong Kong in digital marketing space. The total percentage of online spend has been holding steady at 8 percent both for second half of 2011 and across the full year. “This reinforces our firm belief that there is tremendous growth potential for online advertising within the Singapore market, and we look forward to closing the gap,” says Shuster. However, there is still some ways to go in catching up with more mature digital markets in the region.
The biggest growth in online advertising in Singapore was driven by Search and Display advertising. It helped the industry register a 23 percent CAGR for the 24-month period ended 31st December 2011. In fact the share of Search has continued to increase over the past three years at the expense of Display, as is consistent with more mature digital markets. And while CPM and Performance continue as the dominant revenue type, Tenancy has experienced a remarkable increase in market share – influenced by the increase in Classifieds and Display.
While the growth was certainly buoyed by an increased confidence in online advertising with positive sentiments across the board, the rise in numbers was also encouraged by significant contributions from new participants Tribal Fusion, Clozette and Job Street. “The inclusion of Job Street alongside consistently strong showings by other players in the Classified and Directories space reflected a whopping 105% growth in that category from S$5.5m in 1H 2011 to S$11.3m in 2H 2011,” explained Ranji David, executive director, IAB Singapore.