Digital advertising spend in Singapore exceeded the US$79 million mark, according to the Singapore Online Advertising Revenue Report for the half year ending 31 December 2011 (H2 2011).
Compiled by PricewaterhouseCoopers, the report reflects total online ad spending of US$107 million for the period January to December 2011.
Singapore's total percentage of online spending held at a steady eight percent both for H2 2011 and across the full year as a whole.
The results also reveal a 25 percent increase in revenue numbers for H2 2011 at US$59 million, up from US$47 million in H1 2011.
"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," said Loren Shuster, chairman, IAB Singapore and country director, Singapore & Emerging Markets, Google.
Singapore ahead of Hong Kong
Singapore marches ahead of Hong Kong in terms of total percentage of online spending but it still has to go a long way to catch up with more mature digital markets.
Growth in digital advertising spending in Singapore has been attributed to growing confidence in online advertising as well as 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 percent growth in that category from US$4.3 million in H1 2011 to US$8.9 million in H2 2011," said Ranji David, executive director, IAB Singapore.
Other highlights from the report also show that total online advertising revenues from display advertising grew by 23 percent in H2, 2011; total online advertising revenues from search advertising grew by 11 percent in H1 2011; and financial services was the highest revenue industry category with 15.22 percent share.
"Digital advertising is now firmly embedded in businesses' marketing strategy across industries," said Greg Unsworth, Singapore technology, infocomm and entertainment & media industry leader, PwC LLP Singapore. "The real challenge ahead for advertisers is to find innovative ways to redefine advertising and come up with new ways to expand value proposition to the customer. And ultimately, being able to convert online time and spending to revenue."
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