ArrowArtboardCreated with Sketch.Title ChevronCrossEye IconIcon FacebookIcon LinkedinShapeCreated with Sketch.Icon Mail ContactPath LayerIcon MailMenu BurgerPositive ArrowIcon PrintIcon SearchSite TitleTitle ChevronIcon Twitter
Business

Digital ad spending expected to surge in Southeast Asia

Rapid internet adoption, especially via smartphones, will drive growth

SINGAPORE -- Southeast Asia's digital ad spending is expected to see double-digit gains in 2017, driven by increased demand for mobile, video and social media advertising, according to a report by eMarketer and IAB Singapore.

The report provides forecasts about total media, digital and mobile internet ad spending in Southeast Asia and other Asian regions including Singapore, Malaysia and Taiwan. Estimates were based on data including macro-level economic conditions in the region and information from other research firms.

Indonesia took the top spot as the fastest-growing overall media market in Southeast Asia for 2017, with 8.4% growth. While TV remains the dominant media category with a 60.1% share worth $1.68 billion of total ad spending in Indonesia, digital spending such as mobile will continue to grow as more consumers use smartphones. Indonesia's digital advertising is expected to increase 25% in 2017, and the annual growth rate will likely remain in double digits through 2020.

Other rising Southeast Asian countries such as the Philippines and Vietnam are also expected to see the pattern in which more smartphone adoption leads to more digital ad spending.

The report notes that the Philippines will see "solid growth," with a compound annual growth rate of 17.1% from 2015 to 2020, to $486.7 million. This will be "driven by rising internet connectivity and increasing mobile penetration rates."

Like the Philippines, Vietnam's smartphone penetration rate is also set to increase. It should grow from 38.3% in 2016 to 59.2% in 2020. The country's digital spending is expected to grow by 23% to $215 million in 2017, despite having the smallest advertising market among the countries listed in the report.

While digital spending is also expected to grow in other Asian regions, their weakened economies have affected overall media spending. Hong Kong has the largest advertising market, at $3.02 billion in 2017, among the countries in the report, but the "slowing economy in China, weak tourism and falling retail sales" were some of the factors that affected Hong Kong's overall media spending. "The sustained weakness in the market has prompted advertisers to act cautiously and cut budgets," the report notes.

Get unique insights on Asia, the most dynamic market in the world.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Get Unlimited access

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends January 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media