Digital ad spending is growing in Singapore.
In the first half of 2011, companies paid S$60.31million (US$48 million) for digital ads here. This accounts for eight percent of the total advertising expenditure in Singapore.
These figures come from the Interactive Advertising Bureau Southeast Asia's (IAB SE Asia) Singapore Chapter which released a study report today.
Jointly commissioned by the Media Development Authority (MDA) and the IAB SE Asia, Singapore Chapter, the report was compiled by PricewaterhouseCoopers.
"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 percent of total advertising spending. Singapore is definitely one of the best places in the region for businesses to get into the digital space."
The Southeast Asian republic has registered a compound annual growth rate (CAGR) of 19 percent in digital ad spending 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.
While display advertising recorded a CAGR of 15 percent over the 24 months period, search advertising logged in a CAGR of 27 percent over the same period.
According to the study, 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.
Sectors that find online advertising enticing enough for their ad dollars are technology and telecommunications, travel and leisure, financial services, business services, and property.
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