According to a study released by Yahoo and Nielsen Online, expenditure on display is estimated to reach US$26 million in Singapore by 2010, up from US$23.9 in 2008. Search spending is also slated to surge from US$17.4 million to $25.4 million in the same period.
As the most mature market in the study - which also features Indonesia, Malaysia, the Philippines, Thailand and Vietnam - Singapore represents the benchmark for online growth within the region, said Stuart Pike, industry solutions director of Nielsen Online in Asia-Pacific. Vietnam, he added, was the most immature market and still exhibits expenditure spikes for display and search at 178 per cent and 512 per cent from 2008 to 2010, respectively.
Vice-president and managing director of Yahoo Southeast Asia Ken Mandel (pictured) said search is often an attractive service for brands because it is a clear measurability of effectiveness. Further projections see search spend overtaking display spending throughout the region within five years.
“We’re using this data to do our plans and we think these numbers are conservative,” Mendel said.
Mandel averred that the news is integral to Yahoo because it creates optimism for its supporters in light of the current economic slump. He added that the company can capitalise on the expanded budgeting to maintain a leading position in Southeast Asia.
“If there wasn’t a global recession I’d be more concerned,” Mandel said of Yahoo’s competition. “Next year is not the time for them to take on Yahoo’s strong position.”
The report comes a month-and-a-half after Yahoo released disappointing third-quarter results that included a 64-per cent drop in net income. In a cost-cutting measure, the company announced it would release 10 per cent of its international workforce.
Yahoo has not commented on how the decision will affect operations in Asia-Pacific.
