Market Data

Mobile Ad Spending To Heat Up Singapore

Recent mobile ad spending research performed by the IAB reveals Singapore is among the few Southeast Asian countries with an emerging digital region. Ad Spending In Southeast Asia provides forecasts for digital growth in this region, and some that may come as a surprise for mobile marketers. Having an accurate picture of each region with compelling insights is critical to us at Snakk, and crucial for marketers making well-guided decisions for their mobile ad spending. The IAB forecasts Singapore’s total media ad spend to reach $1.58 billion in 2017. We’ve summarised the findings below:

  • Digital ad spending in Singapore will reach $376.5 million this year, and account for a 23.8% share of overall ad expenditure, a percentage that’s expected to grow to 30.8% by 2020.
  • Mobile internet ad spending will more than double from $194.3 million in 2017 to $404.6 million in 2020.
  • More than three in four Singaporeans will use the internet regularly this year.
  • Singapore has the highest smartphone penetration in the world at 73% in 2017, but only 23.8% of total media ad spend will be devoted to digital channels this year.
  • In 2016, mobile accounted for 35.8% of all of Singapore’s digital ad expenditures.

According to IAB research, while traditional media ad spend held a large share in Singapore, digital is projected to register strong gains over the next few years. This is moreso due to the concentration of the market and the dominance of a small number of media companies, not necessarily geographic location. Singapore’s advertisers have been slow to push mobile web advertising, but as opportunities grow, mobile ad spending will too. The growth of ecommerce and mcommerce in Singapore, combined with the increasing use of smartphones, will push advertisers to embrace digital faster in this area. In fact, the IAB states that by 2020, mobile will account for four of every five digital ad dollars in this region. The weight of mobile numbers will surpass the regional average of 73.2% to account for 80.9% of digital ad spend.
Similarly, a ICLP marketing study found Singapore millennials wanting personal recognition from brands, and claimed brands lacked emotional engagement. Alongside emotion-centric ads, millennials also put an emphasis on personalisation and consistency, all three of which strengthen brand loyalty by connecting via mobile. Investment in Singapore’s digital channels will see double-digit growth in 2017, as consumer usage of video, mobile, and social drives up mobile ad spending. As digital ad spend increases, brands that have strong ties with Singaporean consumers must now race to champion mobile ads, or fight the increasing noise later on.

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