Singapore's ad spend growth to remain muted: PwC

Much of this growth will come from digital advertising, which is expected to grow from 8 per cent to 13 per cent. Mobile advertising is expected to grow 20 per cent over the next five years even as the importance of display advertising slips.

Display currently accounts for about 44.5 per cent of internet advertising spend, but by 2017 it will make up 37.9 per cent of spend. Mobile advertising spend will climb from 10.2 per cent to 14 per cent. Search remains relatively stable at 29.6 per cent.

PwC projects that TV advertising’s share of advertising spend will remain at 25 per cent while print advertising is expected to drop from 42 per cent to 37 per cent. Out-of-home will see some growth from 9 per cent to 12 per cent thanks to innovative technologies and infrastructure improvements.

“Given the rapid changes with Singapore’s infrastructure, pro-business environment and technology-savvy consumer base, Singapore is already currently recognised as an ideal location for E&M companies to base themselves to address the fast-growing markets in Asia,” said Greg Unsworth, technology, media and telecommunications industry leader, PwC Singapore.  “However to really harness digital growth and to help Singapore develop a vibrant ecosystem will take a concerted, broad-based, multi-year approach.”

Other noteworthy sectors include the digital music segment and online gaming, both of which are expected to grow 15.7 per cent and 14.5 per cent, respectively.

Overall, Singapore’s entertainment and media industry is expected to grow over 20 per cent, to touch US$6.36 billion by 2017, according to PwC’s annual media and entertainment outlook.

Consumer spend across platforms will grow 5.1 per cent during the period. Digital spend will increase from 39 per cent to 48 per cent while spend on print will decline from 17 per cent to 13 per cent. TV spend will remain stable at about 13 per cent.

For a regional view of the PwC report, please see "Mobile devices to propel internet advertising to 2017: PwC".

Globally, spending for media and entertainment will reach $2.2 trillion in 2017, from $1.6 trillion in 2012. China, India and Indonesia (together with Brazil, Russia, Mexico, Argentina, the Middle East and North Africa) will report the highest growth – nearly doubling their share of total E&M revenue during the period.