Even though digital ad spend accounts for only 8 percent of the total advertising expenditure in Singapore, but the growth is steady and the digital ad market is expected to cross the S$100 million mark very soon. According to the Singapore Online Advertising Revenue Report released by The Interactive Advertising Bureau Southeast Asia (IAB SE Asia) Singapore Chapter, the digital ad spend for the period January to June 2011 is S$60.31 million.
“This strong, stable growth is testament to the efforts of the entire industry. 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,” said Ken Mandel, Chairman, IAB SEA, Singapore Chapter. According to the report 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.
In terms of industry focus, technology and telecommunications, travel and leisure, financial services, business services, and property were the sectors identified as focusing on online advertising. However financial services segment was the highest revenue industry category with 16.77% share.
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. 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. The report further shows that 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. 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. However, IAB Executive Director Ranji David explained 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.