Mobile advertising expenditure in Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam is forecast to double between 2017 and 2018 to more than $2.2 billion. According to new eMarketer research, mobile will account for 69% of digital ad spend in these markets.
Whilst mobile is seeing the heaviest investment, overall digital expenditures in the countries are set to increase by double digits during the reporting period.
At the forefront of this growth are Indonesia, the Philippines and Vietnam where smartphone adoption has risen sharply in recent years. The Philippines and Vietnam are predicted to double their mobile ad expenditures in 2017 whilst Indonesia will increase outlays by 80%.
The research firm also updated its forecast for Thailand where eCommerce has seen a significant boost thanks to the likes of Alibaba. This in return should lead to a significant increase in digital ad spend and account for 18.5% of media ad spend. By 2021, this share could climb to 28.7%.
The study also noted that Singapore’s overall media growth had decreased over the last few years driven by weaker consumer spending. However, larger digital investments are expected to account for 23.8% of total ad spend in 2017. By 2021, total digital ad spend in the country is expected to be around $520 with mobile accounting for 81.7% of expenditure.
Malaysia is also seeing slowing growth of overall media spend, according to the forecast (from 1.5% in 2017 to 0.5% in 2021). However, digital ad spend is set to rise from 19.74% in 2017 to 26.31% by 2021 with mobile accounting for 75.21% of ad spend.
“The developing economies of Southeast Asia are well placed to become Asia’s next top-ranking digital advertising growth markets as these economies reap the gains from a ‘development catch-up’ with favorable demographics, increasing smartphone adoption, expanding internet access and declining data prices,” says Shelleen Shum, a senior forecasting analyst at eMarketer. “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.”