SEA markets to post double-digit digital growth: eMarketer

Robust growth expected for Indonesia, Malaysia, Philippines, Singapore,Thailand and Vietnam, the next 'it' markets for digital.

SEA markets to post double-digit digital growth: eMarketer

Mobile ad spend in Indonesia, Malaysia, Philippines, Singapore,Thailand and Vietnam will more than double from 2016 to 2021, surpassing $2.20 billion and accounting for 69 percent of digital ad spend by 2021, according to eMarketer’s digital ad spending forecast for APAC. All six markets are projected to achieve double-digit growth in digital ad spend for 2017 and 2018.

Philippines and Vietnam are expected to double their mobile ad spend in this year alone. Indonesia, will increase outlays by 80 percent. Heavy smartphone adoption is cited for the strong growth of mobile ad spend in these markets.

Shelleen Shum, eMarketer senior forecasting analyst, said the developing economies in Southeast Asia are potentially Asia's top-ranking digital advertising growth markets, thanks to favourable demographics, heavy smartphone adoption, expanding internet access and declining data prices. “Undoubtedly, ecommerce will be a key driver in the years to come as investments from global giants pour in to shape Southeast Asia’s ecommerce scene and merchants determine how best to win the attention of a new generation of digital shoppers," said Shum in a release. 

In fact, Thailand receives an upgraded on its projection due to investment from Chinese ecommerce firms Alibaba and JD.com since expansion in this area will directly lead to increased digital ad spending. Digital is expected to account for 18.5 percent of all media spend in Thailand this year, the figure will climb to 28.7 percent by 2021. 

Growth is of course more modest in developed Singapore, which has also seen weaker consumer spending in recent years. However, increased outlays on digital, which already accounts for 23.8 percent of total ad spend this year, are expected as the economy recovers. By 2021, Singapore digital ad expenditure is expected to reach $520 million, with mobile accounting for 81.7 percent of that total. 

 

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