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State of Digital Ad Spends in Singapore – A Report

singapore ad spends report

Singapore boasts of a very huge percentage of the total population using the internet.  Almost 84% of the population in this small island nation is using the internet, right now. 

With so many people being active and present online, you need to tap into digital for marketing your brand. Out of the 4.9 million internet users in Singapore, about 4.6 million of them are present on social media.

Build a digital and social media presence, spread the word about your brand and establish connections with your audience. While social media and various other digital platforms allow you to get free access to such a large audience, targeting anyone and everyone who’s online is not really a smart move. 

Instead of blindly pushing out content to all audience segments, you need to follow a well-targeted approach to your strategy. In order to get the maximum ROI on your efforts, you need to build an active social media presence, push out organic as well as paid content and then track your performance using a social intelligence tool. Make ads an integral part of your digital marketing strategy. 

The ad marketing space offers a lot of scope for getting your brand and content in front of your target audience. While organic content marketing allows you free, and convenient access to your target audience, with paid marketing, you can be more specific. 

If you want to leverage the power of digital media, you need to get a good grasp of the state of the ad marketing industry in Singapore. In particular, you should be well-versed with the state of the digital ad spends in the country. 

In this blog, we will quickly take you through the most relevant statistics and trends driving the state of Digital Ad Spends in Singapore. At the end of the blog, we will also cover some important tips on how you can leverage these trends.

Ad Spending in the Digital Marketing Industry

In the digital advertising market, the ad spends, for 2019 amount to be 470 million SGD. These account for search advertising, social media ad, banner ad, classifieds, and video ad. Out of these, search ads lead with the maximum spending amount, while video ads stand at the lowest amongst the lot. By 2020, these digital ad spends are expected to touch 523 million SGD.

With the roll-out of 5G network, slated to be launched in 2020, there is good scope for these numbers to go up. The 5G ecosystem is expected to open up new opportunities for brands. According to Statista, the digital Ad spends are going to touch 523 million SGD by 2020. 

The introduction of the 5G network will increase the internet speed by almost 20 times and lower the latency rate. High-speed internet access will push up the demand for content from the audience, in terms of both quality and quantity. To top it off, the internet penetration in the country continues to go up. 

Industry-wise Ad Spending 

The industry-wise bifurcation shows the services & others’ sector stands leading with the maximum proportion of ad spending, accounting for 41% of the digital ad spend. Following this is the retail sector where the digital ad spends amounts to 21% of the total ad spends in the digital ad marketing space. 

Here’s a snapshot of the digital ad spends accounted by different sectors-

Digital Media Ad Spends

Average Digital Ad Spending Per Internet User 

Growing internet penetration and evolutions in the digital space are expected to lead the audience to spend more time, consuming content online. As such, the average ad spending per internet user is likely to go up in the future. In 2019, the average digital ad spending per internet user amounts to 99 SGD. By 2020, this number is expected to touch 108 SGD, and this amount is only predicted to go up in the coming years. 

Average Digital Ad Spends in Singapore

Quick Tips For Digital Marketers

Understand Your Target Audience 

Power up your digital marketing strategy by keeping track of what your audience has to say about your brand. Your audience plays an important role in framing your marketing strategy. 

It is important that your digital marketing strategy accounts for who your audience is as well as what their opinion about your brand is. 

With a social listening tool, you can capture authentic audience opinions and sentiment. Social listening allows you to get a grasp on what your audiences are saying about your brand, and accordingly inculcate practices to enhance the experience for them. Insights derived from social listening can help you frame strategies that are in tandem with your audience’s sentiments. 

Develop A Rigorous ad’ Marketing Strategy

As internet penetration goes up, further complemented by the launch of the 5G ecosystem, you need to brace yourself and come up with a rigorous ad marketing strategy. A higher internet speed, lower latency rate, and increasing online presence will mean higher content consumption from your audience. 

Ads targeting, today, is all about blending ad with organic content. Sales-y content does not appeal to your target audience and in fact, may turn off your potential customers. You need to come up with a steady stream of content that stands out and gets your audience to take action. After all, a lot goes into building your ad marketing strategy, in terms of time, money and efforts. 

Look Out For Lucrative Platforms 

Google shows maximum user penetration amongst the different platforms for ad penetration. Following right behind Google are social media platforms including Facebook, Instagram, and YouTube. Each of these social media channels offers sophisticated channels to advertising your brand, powered by multi-level targeting, a variety of ad formats and various other features. 

Learn to leverage these platforms to the fullest, in order to run fruitful campaigns for your brand. 

Use Social Intelligence Tools 

Take cues from your organic social media content. Use social media intelligence tools to understand audience psychology. 

With the help of a reliable social media analytics tool, for instance, you can understand which kind of content is getting more appreciation from the audience and which ones aren’t drawing as much traction. This saves you the unnecessary time, money and efforts spent in creating an unfruitful campaign. Track audience demographics and other important social media KPIs to drive your campaigns effectively. 

CPA and CPM as Upcoming Price Models For Advertising

Cost per click is one of the most frequently used pricing models for digital ads. Trends in the industry show that CPA – cost per action and CPM- cost per mile, are also gaining popularity. CPA, where the advertiser is charged as per the desired action, is a highly-result driven approach that digital marketers may want to consider. Cost per mile is the cost charged for every thousand clicks. CPM is also drawing audience attention as one of the cheapest pricing models in advertising. 

Good Scope For Video ad 

The 5G network will make it easier and quicker to buffer videos. Here’s another fact- the audience loves videos. Video has the power to grab audience attention and get them to take the desired action. Make sure to inculcate videos as a part of your ad’ marketing strategy. 

Use the right set of video marketing tools to not only create videos, and edit them, but also to monitor their performance, so that you can generate the maximum ROI. 

Summing It Up 

The ad market in Singapore is undergoing evolutions and shifts owing to the impending 5G launch and growing internet penetration. As a digital marketer, you need to be well-versed with the trends in the industry in order to make the most of your online presence. So, what are you waiting for? Start working on your ad marketing strategy, now!


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