ANALYSIS: Singapore adspend shifts to non-traditional media - The Lion City innovates as marketers prepare for the worst. Alfred Hille reports

<p>As the region braces for a possible US-induced economic slowdown, </p><p>advertisers in Singapore have restructured their ad strategy to allow </p><p>them to maintain their share of voice in the market through a more </p><p>efficient use of resources. </p><p><BR><BR> </p><p>They have diverted significant sums of advertising dollars from </p><p>television and newspapers to less costly media options such as outdoor </p><p>and magazines. </p><p><BR><BR> </p><p>According to figures provided by ACNielsen, the Lion City's adspend grew </p><p>a sluggish four per cent in the first quarter to Sdollars 337.3 million </p><p>(about USdollars 191 million), compared with the 28 per cent growth in </p><p>the same period last year. </p><p><BR><BR> </p><p>However, spend in newspapers - the country's biggest medium - expanded a </p><p>paltry 0.7 per cent to Sdollars 167.7 million, while television </p><p>performed even worse, contracting just less than one percentage point to </p><p>Sdollars 106.9 million. </p><p><BR><BR> </p><p>At the same time, bus-back/taxitop advertising soared more than 40 per </p><p>cent, and radio and poster jumped about 26 per cent. Magazines surged 20 </p><p>per cent and cinemas put on 10 per cent. </p><p><BR><BR> </p><p>The restructuring of the adspend strategy is in line with the cautious </p><p>mood currently prevailing across the region, but Singapore is the only </p><p>major Asian market to make such a sizeable shift. </p><p><BR><BR> </p><p>Zenith Media Singapore managing director Kenneth Tsang says part of the </p><p>reason for this is because new media opportunities are becoming </p><p>available to advertisers. </p><p><BR><BR> </p><p>"There are more magazines, more channels like bus shelters, and that </p><p>allows us to be more innovative with print ads. Advertising on taxis and </p><p>buses keep reaching new professional heights and there has even been a </p><p>great deal of improvement in radio content in terms of music and other </p><p>shows. </p><p><BR><BR> </p><p>"So lower cost opportunities abound as the supply of new media channels </p><p>become available. And it's not a case of 'more of the same' but a real </p><p>and tangible qualitative jump," Tsang said. </p><p><BR><BR> </p><p>Compared with Singapore, Hong Kong's first quarter performance was only </p><p>slightly better at 4.8 per cent to HKdollars 6.8 billion (about </p><p>USdollars 0.87 billion), as advertisers adopted a wait-and-see attitude </p><p>on the direction of the US economy. </p><p><BR><BR> </p><p>However, media directors said the lacklustre year-on-year growth rate </p><p>was a reflection of the bursting of the dotcom bubble, which was one of </p><p>the principal drivers of advertising expenditure in 2000. </p><p><BR><BR> </p><p>Starcom Hong Kong managing director Paul Maher said: "In general, the </p><p>Hong Kong market is adjusting to a more realistic growth rate, close to </p><p>the territory's growth rate for the year." </p><p><BR><BR> </p><p>Seen in this light, the first quarter performance isn't bad and the </p><p>consensus is for an adspend growth rate of between three and five per </p><p>cent for the whole of 2001. </p><p><BR><BR> </p><p>Maher also said that given that banking and government authorities in </p><p>New York and Washington have taken serious steps to prevent the US </p><p>economy from plunging into a recession, it appears that confidence is </p><p>slowly returning to the Hong Kong market. </p><p><BR><BR> </p><p>"In January, there was a high degree of uncertainty and budgets were put </p><p>on hold but I expect a resurgence in adspend in the last half of the </p><p>year as the feeling of pessimism recedes." Maher said. </p><p><BR><BR> </p><p>One of the principal drivers of Hong Kong's adspend growth is mainland </p><p>China properties; advertising in this sector climbed 61 per cent to </p><p>HKdollars 343 million in the first quarter, which accounts for about </p><p>five per cent of the total adspend pie. In comparison, local Hong Kong </p><p>real estate advertising tumbled some 12 per cent. </p><p><BR><BR> </p><p>China, meanwhile, continued growing at a double-digit rate, putting on </p><p>17.5 per cent to RMB20.5 billion (about USdollars 2.5 billion). Tonic </p><p>and vitamin was the biggest category, rising 4.5 per cent to RMB2.4 </p><p>billion. The cough and cold remedy sector was the second-fastest </p><p>growing, surging more than 102 per cent to RMB1.1 billion. </p><p><BR><BR> </p>