#digitalspend

With the total percentage of Online Spend holding at a steady 8% both for 2H 2011 and across the full year as a whole, Singapore continues ahead of Hong Kong, although there is still some ways to go in catching up with more mature digital markets  “This reinforces our firm belief that there is tremendous growth potential for online advertising within the Singapore market, and we look forward to closing the gap,” says Shuster.

While the growth of 2H 2011 was certainly buoyed by an increased confidence in online advertising with positive sentiments across the board, the rise in numbers was also encouraged by significant contributions from new participants Tribal Fusion, Clozette and Job Street. “The inclusion of Job Street alongside consistently strong showings by other players in the Classified and Directories space reflected a whopping 105% growth in that category from S$5.5m in 1H 2011 to S$11.3m in 2H 2011,” explains Ranji David, Executive Director, IAB Singapore.

On the whole, however, the 23% CAGR for the 24-month period ended 31st December 2011 remains driven by Search and Display; the share of Search has continued to increase over the past three years at the expense of Display, as is consistent with more mature digital markets. And while CPM and Performance continue as the dominant revenue type, Tenancy has experienced a remarkable increase in market share – influenced by the increase in Classifieds and Display.

Financial Services, Travel & Leisure, Technology & Communications and Business Services and Property were most dominant sectors online, although special mention must be made of Government and Public Sector spend increasing by 74% from 1H 2011 and outspending Automotive, Health Care and Pharmaceuticals & Food & Beverages.

Other highlights from the report include:

Total online advertising revenues from Display Advertising grew by 23% in H2, 2011.

Total online advertising revenues from Search Advertising grew by 11% in H1 2011.

Financial Services was the highest revenue industry category with 15.22% share.

“Digital advertising is now firmly embedded in businesses' marketing strategy across industries. With faster broadband speeds and growth of mobile penetration, consumers' engagement with connected digital experiences is rising, and with it, the importance of digital advertising will only continue to grow. People's time is currency that can be monetised. The real challenge ahead for advertisers is to find innovative ways to redefine advertising and come up with new ways to expand value proposition to the customer. And ultimately, being able to convert online time and spending to revenue,” said Greg Unsworth, Singapore Technology, InfoComm and Entertainment & Media Industry Leader, PwC LLP Singapore.

“The IAB Singapore continues to forge ahead around the three central pillars of Research & Insights, Education & Training and Creative with a ‘4-Point Plan’ to Educate, Enable, Inspire and Elevate the industry, says Ranji David, Executive Director, IAB Singapore. “To this end we are focused on increased initiatives and programs to deliver on our desire to develop and build Singapore as a world-class digital hub.”

IAB Contact:

IAB SE Asia, Singapore Chapter Ranji David, Executive Director Email: [email protected]

Press Contact:

Rice Communications for IAB Donna Garcia, Account Director Email:[email protected]

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