AD SPENDING

IN SOUTHEAST
ASIA
eMarketer’s Estimates and Forecast
for 2016–2021
OCTOBER 2017
Corey McNair
Contributor: Shelleen Shum

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eMarketer for iPad
 AD SPENDING IN SOUTHEAST ASIA: EMARKETER’S ESTIMATES AND
FORECAST FOR 2016–2021
This report covers eMarketer’s latest estimates for ad spending in select Southeast Asia markets including
Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam. Together, digital ad spending in those
countries will total $2.05 billion by the end of 2017, an increase of 21.8%, driven by expanding ecommerce and
mobile activity.

■■ All countries covered in this forecast will experience

Digital Ad Spending Share of Total Media Ad Spending
total media ad spend growth this year—the first time in Select Countries in Southeast Asia, 2016-2021
since 2013. Several of the markets are reliant on % of total media ad spending
exports and have benefited from the global recovery 2016 2017 2018 2019 2020 2021
in export demand. With rising consumer confidence, Singapore 20.3% 23.8% 27.2% 29.6% 30.8% 31.8%
marketers have been encouraged to invest more in Malaysia 17.0% 19.7% 22.3% 23.9% 25.2% 26.3%
advertising. Indonesia and Vietnam will be the biggest Philippines 16.2% 18.7% 21.0% 22.9% 24.2% 25.4%
benefactors of this, with ad spend rising 8.8% and Thailand 15.1% 18.5% 21.9% 24.8% 27.0% 28.7%

7.0%, respectively, in 2017. Vietnam 16.0% 18.4% 20.6% 22.5% 23.6% 24.2%
Indonesia 14.9% 17.1% 18.8% 20.2% 21.7% 23.1%
■■ Digital advertising—especially mobile—will be primarily Southeast Asia 16.3% 19.1% 21.6% 23.5% 25.0% 26.1%
responsible for overall ad growth, since mobile is Note: includes advertising that appears on desktop and laptop computers
as well as mobile phones, tablets and other internet-connected devices,
the point of entry for internet access across most of and includes all the various formats of advertising on those platforms;
excludes SMS, MMS and P2P messaging-based advertising
Southeast Asia. eMarketer expects digital ad spend to Source: eMarketer, Sep 2017
increase “nearly 22.0% and mobile to increase 77.0%. 231145 www.eMarketer.com

■■ Mobile’s share of digital advertising in Singapore,
Indonesia, Thailand, the Philippines, Malaysia and
Vietnam will range from 36.6% to 51.6% this year.
Mobile will continue to gain in significance throughout
the forecast period, accounting for at least 60% of
digital ad spend in each market by 2021.
■■ Ecommerce’s success in Southeast Asia has influenced
digital ad spend budgets in these countries. This is
especially true in Thailand, where ecommerce giants
like JD.com and Alibaba compete with each other. By
2019, Thailand’s digital share of total paid media will
surpass that of Malaysia, Vietnam and the Philippines.
WHAT’S IN THIS REPORT? This report includes forecasts
for total media ad spending, digital ad spending and
mobile ad spending for six Southeast Asia markets. The
full data set for this forecast can be found in this report’s
accompanying spreadsheet.
KEY STAT: In these six Southeast Asian countries, digital
will account for nearly 20% of total ad spending this year.
By the end of the forecast period, digital will represent at
least one-quarter of paid media.
Behind the Numbers
eMarketer’s forecasts and estimates are based on
an analysis of quantitative and qualitative data from
research firms, government agencies, media firms and
public companies, plus interviews with top executives
at publishers, ad buyers and agencies. Data is weighted
based on methodology and soundness. Each eMarketer
forecast fits within the larger matrix of all its forecasts,
with the same assumptions and general framework used
to project figures in a wide variety of areas. Regular re-
evaluation of available data means the forecasts reflect
the latest business developments, technology trends and
economic changes.

[Note: eMarketer’s previous December 2016 forecast was

developed in conjunction with IAB Singapore, with input CONTENTS
from members of the organization. Those projections
were considered during the creation of eMarketer’s 2 Ad Spending in Southeast Asia: eMarketer’s Estimates and
current forecast.] Forecast for 2016–2021
3 Southeast Asia Overview
9 Editorial and Production Contributors

AD SPENDING IN SOUTHEAST ASIA: EMARKETER’S ESTIMATES AND FORECAST FOR 2016–2021 ©2017 EMARKETER INC. ALL RIGHTS RESERVED 2
 SOUTHEAST ASIA OVERVIEW the country will spur double-digit growth throughout
the forecast period. Come 2019, digital’s share will
reach 24.8%—higher than in Malaysia, Vietnam or
Government investment in mobile broadband
the Philippines.
infrastructure across Southeast Asia has helped to
drive smartphone adoption over the past few years.
Digital Ad Spending in Select Countries in Southeast
With this leap in usage, advertisers have started to Asia, 2016-2021
concentrate digital ad spending on mobile devices. millions and % change
2016 2017 2018 2019 2020 2021
However, all countries covered in the region will Digital ad spending (millions)
experience total media ad spend growth this year, Indonesia $385.0 $481.3 $567.9 $653.1 $751.1 $844.9
eMarketer estimates. As a whole, paid media ad Thailand $331.5 $414.4 $497.3 $571.9 $629.1 $673.1
spending in Southeast Asia will rise 4.3% in 2017 to reach Singapore $317.6 $374.7 $431.0 $474.0 $497.8 $517.7

$10.76 billion. Philippines $275.9 $331.1 $385.7 $432.0 $466.6 $499.3

Malaysia $205.2 $242.2 $276.1 $298.2 $316.0 $331.8
Vietnam $171.2 $210.6 $250.6 $288.2 $317.0 $339.2
Total Media Ad Spending in Select Countries in Southeast Asia $1,686.5 $2,054.3 $2,408.6 $2,717.4 $2,977.6 $3,206.0
Southeast Asia, 2016-2021 Digital ad spending growth (% change)
billions and % change
Indonesia 30.0% 25.0% 18.0% 15.0% 15.0% 12.5%
2016 2017 2018 2019 2020 2021
Thailand 21.0% 25.0% 20.0% 15.0% 10.0% 7.0%
Total media ad spending (billions) Vietnam 33.0% 23.0% 19.0% 15.0% 10.0% 7.0%
Indonesia $2.59 $2.81 $3.02 $3.24 $3.46 $3.67 Philippines 30.0% 20.0% 16.5% 12.0% 8.0% 7.0%
Thailand $2.19 $2.23 $2.27 $2.31 $2.33 $2.35 Malaysia 20.0% 18.0% 14.0% 8.0% 6.0% 5.0%
Philippines $1.70 $1.77 $1.83 $1.89 $1.93 $1.96 Singapore 19.0% 18.0% 15.0% 10.0% 5.0% 4.0%
Singapore $1.56 $1.57 $1.58 $1.60 $1.61 $1.63 Southeast Asia 25.0% 21.8% 17.2% 12.8% 9.6% 7.7%
Malaysia $1.21 $1.23 $1.24 $1.25 $1.26 $1.26 Note: includes advertising that appears on desktop and laptop computers
Vietnam $1.07 $1.15 $1.21 $1.28 $1.35 $1.40 as well as mobile phones, tablets and other internet-connected devices,
and includes all the various formats of advertising on those platforms;
Southeast Asia $10.32 $10.76 $11.17 $11.57 $11.93 $12.27 excludes SMS, MMS and P2P messaging-based advertising
Total media ad spending growth (% change) Source: eMarketer, Sep 2017
231101 www.eMarketer.com
Indonesia 9.0% 8.8% 7.5% 7.2% 6.8% 6.0%
Vietnam 8.0% 7.0% 6.0% 5.5% 5.0% 4.0% Indonesia and Thailand will rank first and second in terms
Philippines 5.5% 4.0% 3.5% 3.0% 2.0% 2.0% of the absolute amount of money being spent on digital
Thailand 1.5% 2.1% 1.7% 1.5% 1.0% 0.8%
ads in Southeast Asia. Singapore will be third with $374.7
Malaysia 1.0% 1.5% 1.0% 0.8% 0.5% 0.5%
million, enough to give it the highest digital share of total
Singapore -1.0% 0.5% 0.8% 1.0% 0.8% 0.8%
ad spend, at 23.8%. While Singapore is a smaller market,
Southeast Asia 4.1% 4.3% 3.7% 3.6% 3.1% 2.8%
Note: includes digital (desktop/laptop, mobile and other internet-connected
it’s more digitally savvy than its neighbors. By 2021,
devices), directories, magazines, newspapers, out-of-home, radio and TV 31.8% of the city-state’s ad spend will go to digital.
Source: eMarketer, Sep 2017
231100 www.eMarketer.com
Across Southeast Asia, mobile ad spending will total
Traditional media still dominates the advertising landscape $859.0 million this year, eMarketer estimates, and will
in Southeast Asia and will continue to for at least the next account for 41.8% of digital advertising. Improving
few years. Only 19.1% of ad spending is expected to go mobile internet access and smartphone adoption will be
toward digital channels in 2017, though this will grow to responsible for growth; mobile’s share will swell to 68.7%
26.1% by 2021. by 2021.

Indonesia will grab the largest share of traditional media

ad spending, as free-to-air TV in the country is widely
viewed and has an abundance of ad inventory. Digital will
account for 17.1% of total ad spend budget in Indonesia,
equating to $481.3 million.

Thailand’s share will be comparable to Indonesia’s, with

digital accounting for 18.5% of paid media outlays,
or $414.4 million. Booming ecommerce activity in

AD SPENDING IN SOUTHEAST ASIA: EMARKETER’S ESTIMATES AND FORECAST FOR 2016–2021 ©2017 EMARKETER INC. ALL RIGHTS RESERVED 3
Mobile Ad Spending in Select Countries in Southeast Singapore will see low, single-digit gains as they’re helped
Asia, 2016-2021 by global recovery in export demand, improving the
millions and % change economy as a whole.
2016 2017 2018 2019 2020 2021
Mobile ad spending (millions)
Singapore
Indonesia
$113.8 $193.4
$102.7 $184.9
$299.8
$295.9
$362.8
$378.7
$402.7
$454.5
$422.8
$527.2 INDONESIA
Thailand $105.6 $173.1 $277.0 $387.8 $430.5 $464.9
Demand for Indonesia’s leading export—coal—slowed
Philippines $61.9 $123.8 $198.1 $247.6 $277.3 $305.1
during Q2 2017, but overall demand has been strong.
Malaysia $62.7 $106.6 $159.9 $207.9 $233.9 $249.6
Investments in infrastructure, reduced government
Vietnam $38.5 $77.1 $138.7 $194.2 $215.5 $231.7
Southeast Asia $485.2 $859.0 $1,369.4 $1,779.0 $2,014.4 $2,201.2
regulation and improving consumer confidence in general
Mobile ad spending growth (% change)
have also been responsible for the economy’s growth.
Philippines 150.0% 100.0% 60.0% 25.0% 12.0% 10.0%
Vietnam 128.0% 100.0% 80.0% 40.0% 11.0% 7.5% Indonesia remains the largest ad market in Southeast
Indonesia 150.0% 80.0% 60.0% 28.0% 20.0% 16.0% Asia, with paid media outlays reaching an estimated $2.81
Malaysia 75.0% 70.0% 50.0% 30.0% 12.5% 6.7% billion in 2017, or 26.1% of the region. Primarily due to
Singapore 80.0% 70.0% 55.0% 21.0% 11.0% 5.0% its improving economy, Indonesia’s total media ad spend
Thailand 79.0% 64.0% 60.0% 40.0% 11.0% 8.0% growth will be 8.8% in 2017—the highest of any country
Southeast Asia 101.5% 77.0% 59.4% 29.9% 13.2% 9.3% included in eMarketer’s forecast for Southeast Asia.
Note: includes display (banners, video and rich media) and search; excludes
SMS, MMS and P2P messaging-based advertising; includes ad spending on
tablets
Source: eMarketer, Sep 2017 Total Media, Digital and Mobile Ad Spending in
231102 www.eMarketer.com Indonesia, 2016-2021
2016 2017 2018 2019 2020 2021
Growth will be most pronounced during the forecast in
Total media ad $2.59 $2.81 $3.02 $3.24 $3.46 $3.67
Vietnam and the Philippines: In those countries, mobile’s spending* (billions)
share of digital ad spend between 2017 and 2021 will jump —% change 9.0% 8.8% 7.5% 7.2% 6.8% 6.0%
from 36.6% to 68.3% and 27.4% to 61.1%, respectively. Digital ad spending** $385.0 $481.3 $567.9 $653.1 $751.1 $844.9
(millions)
—% change 30.0% 25.0% 18.0% 15.0% 15.0% 12.5%
Investment in mobile ad formats is driving digital
—% of total media 14.9% 17.1% 18.8% 20.2% 21.7% 23.1%
advertising growth in Singapore. This year, more than ad spending
half (51.6%) of digital ad spend will come from mobile— Mobile ad spending*** $102.7 $184.9 $295.9 $378.7 $454.4 $527.2
the highest share in the region. This coincides with (millions)
—% change 150.0% 80.0% 60.0% 28.0% 20.0% 16.0%
Singapore’s mobile phone penetration of 83.7%.
—% of digital 26.7% 38.4% 52.1% 58.0% 60.5% 62.4%
ad spending
—% of total media 4.0% 6.6% 9.8% 11.7% 13.1% 14.4%
Mobile Ad Spending Share in Select Countries in ad spending
Southeast Asia, 2016-2021
Note: converted at the exchange rate of US$1=IDR13,302.70; *includes
% of digital ad spending digital (desktop/laptop, mobile and other internet-connected devices),
2016 2017 2018 2019 2020 2021 directories, magazines, newspapers, out-of-home, radio and TV; **includes
advertising that appears on desktop and laptop computers as well as
Singapore 35.8% 51.6% 69.6% 76.5% 80.9% 81.7% mobile phones, tablets and other internet-connected devices, and includes
all the various formats of advertising on those platforms; excludes SMS,
Malaysia 30.6% 44.0% 57.9% 69.7% 74.0% 75.2% MMS and P2P messaging-based advertising; ***includes display (banners,
Thailand 31.8% 41.8% 55.7% 67.8% 68.4% 69.1% video and rich media) and search; excludes SMS, MMS and P2P
messaging-based advertising; includes ad spending on tablets
Indonesia 26.7% 38.4% 52.1% 58.0% 60.5% 62.4% Source: eMarketer, Sep 2017
Vietnam 22.5% 36.6% 55.3% 67.4% 68.0% 68.3% 231150 www.eMarketer.com
Philippines 22.4% 27.4% 51.4% 57.3% 59.4% 61.1%
Note: includes display (banners, video and rich media) and search; excludes
Free-to-air TV will be the largest contributor to Indonesia’s
SMS, MMS and P2P messaging-based advertising; includes ad spending on ad spend market. By the end of this year, it will account
tablets
Source: eMarketer, Sep 2017 for an estimated 61.0% of ad investment, equating to
231103 www.eMarketer.com $1.72 billion. Though the cost of TV ads in Indonesia is
Mobile and digital formats will continue to propel paid among the lowest in the world—primarily due to an
media ad spending growth across Southeast Asia abundance of inventory—TV ad spend will grow 7.5%
over the next few years. Healthy growth of paid media in 2017. Indonesia’s TV market continues to benefit
advertising in Indonesia will also propel this increase. from wide reach and high viewership of popular
Meanwhile, export-heavy economies like Malaysia and homegrown shows.

AD SPENDING IN SOUTHEAST ASIA: EMARKETER’S ESTIMATES AND FORECAST FOR 2016–2021 ©2017 EMARKETER INC. ALL RIGHTS RESERVED 4
Spending in digital ads will remain far behind that of TV, Total Media, Digital and Mobile Ad Spending in
capturing 17.1% of the ad market, or $481.3 million. This is Malaysia, 2016-2021
primarily due to slow connection speeds and low internet 2016 2017 2018 2019 2020 2021
penetration, estimated at just 38.7% of the population Total media ad $1.21 $1.23 $1.24 $1.25 $1.26 $1.26
spending* (billions)
this year. However, the government has pledged to
—% change 1.0% 1.5% 1.0% 0.8% 0.5% 0.5%
invest $1.5 billion toward building high-speed internet
Digital ad spending** $205.2 $242.2 $276.1 $298.1 $316.0 $331.8
connections, which would encourage further smartphone (millions)
uptake and mobile ad opportunities. As a result, digital ad —% change 20.0% 18.0% 14.0% 8.0% 6.0% 5.0%
growth will climb throughout the forecast, rising to 23.1% —% of total media 17.0% 19.7% 22.3% 23.9% 25.2% 26.3%
ad spending
by 2021.
Mobile ad spending*** $62.7 $106.6 $159.9 $207.9 $233.9 $249.6
(millions)
Digital advertising in the country has also been stymied —% change 75.0% 70.0% 50.0% 30.0% 12.5% 6.7%
by a lack of inventory, especially for video, outside of —% of digital 30.6% 44.0% 57.9% 69.7% 74.0% 75.2%
Facebook and Google. What inventory is available carries ad spending
—% of total media 5.2% 8.7% 12.9% 16.6% 18.6% 19.8%
concerns for advertisers due to a lack of viewability ad spending
guidelines. It is worth noting that Instagram has seen Note: converted at the exchange rate of US$1=MYR4.14; *includes digital
significant growth in Indonesia—its largest market in (desktop/laptop, mobile and other internet-connected devices), directories,
magazines, newspapers, out-of-home, radio and TV; **includes advertising
Asia-Pacific—with 45 million active monthly users, that appears on desktop and laptop computers as well as mobile phones,
tablets and other internet-connected devices, and includes all the various
according to the company. formats of advertising on those platforms; excludes SMS, MMS and P2P
messaging-based advertising; ***includes display (banners, video and rich
media) and search; excludes SMS, MMS and P2P messaging-based
Print newspapers, the second largest ad channel in advertising; includes ad spending on tablets
Indonesia, will represent 18.1% of total ad spending this Source: eMarketer, Sep 2017
231151 www.eMarketer.com
year. However, recent data suggests that digital is eating
into newspaper’s traditional share. Come 2018, all digital eMarketer estimates digital ad spending in Malaysia
formats together will overtake newspapers as the No. 2 will rise 18.0% to $242.2 million by the end of this
ad category. For magazines, the format is essentially flat, year, representing nearly one-fifth of total ad spend.
with a share of 1.9% in 2017 that will taper off to 1.3% Improved broadband connections have enabled regular
in 2020. video viewing among a growing digital video audience.
According to the Kantar TNS “Connected Life” study
published in late 2016, around 80% of internet users said
MALAYSIA they watch free digital video and social media video every
day. By 2021, more than one-quarter of ad investments
Malaysia’s export business experienced solid growth will be dedicated to digital formats, eMarketer estimates.
in 2017, driving overall economic improvement and
consumer confidence. This year, the country also hosted In response to the shift to digital, traditional media
the Southeast Asian Games and is now prepping for a advertisers are reconfiguring their business models. For
potential 2018 election. These and other factors were example, digital out-of-home (DOOH) advertising has
expected to spur total media ad spending to $1.23 billion seen rising interest. Billboards, posters and theaters’
in 2017, a 1.5% increase. wide reach, along with the ability to insert multiple
ads per location for short periods of time, has made
them increasingly viable for reaching Malaysia’s dense
urban population.

The proliferation of smartphone adoption has also

driven growing interest in digital. eMarketer estimates
that 90.9% of internet users in Malaysia own and use
a smartphone at least monthly. As smartphone usage
grows, web users are replacing time spent on desktop/
laptops with time on mobile devices. According to
Google Malaysia, smartphones surpassed PCs for online
searches this year.

AD SPENDING IN SOUTHEAST ASIA: EMARKETER’S ESTIMATES AND FORECAST FOR 2016–2021 ©2017 EMARKETER INC. ALL RIGHTS RESERVED 5
Advertisers in Malaysia will increase mobile spend 70.0%
in 2017, reaching $106.6 million. As a share of digital
advertising, mobile will account for 44.0%, up from
30.6% in 2016. By 2021, mobile alone will represent
19.8% of total media ad spending.
Video viewing is becoming increasingly popular among
residents in the Philippines, but limited internet access
has stymied its potential impact on TV watching. Because
of this, digital has affected print more than TV.
Mobile is an increasingly large influence in digital
advertising across the country. Spending will double in

PHILIPPINES 2017 to $123.8 million, accounting for 37.4% of digital

media outlays. By next year, mobile will take up more
The Philippines’ economy is on the rebound. Ongoing than half of digital ad spend (51.4%).
infrastructure projects, increased consumer and
government spending, and recovering agriculture have The popularity of social networks in the Philippines is
reduced unemployment in the country to a low 5.6% encouraging consumers to stay connected via mobile
as of July 2017. eMarketer estimates that total media ad devices. eMarketer estimates that nearly half (46.1%) the
spending in the country will reach $1.77 billion in 2017, a population will use social networks regularly by the end of
4.0% increase over last year. 2017; of those, 89.5% will use a mobile phone for access.
Because of this heavy usage, advertisers are directing
greater investment toward mobile social networks to
Total Media, Digital and Mobile Ad Spending in the
Philippines, 2016-2021 target consumers.
2016 2017 2018 2019 2020 2021
Total media ad $1.70 $1.77 $1.83 $1.89 $1.93 $1.96
spending* (billions)
—% change 5.5% 4.0% 3.5% 3.0% 2.0% 2.0%
SINGAPORE
Digital ad spending** $275.9 $331.1 $385.7 $432.0 $466.6 $499.3 Singapore’s economy is growing, thanks to increasing
(millions)
manufacturing and construction exports—a byproduct of
—% change 30.0% 20.0% 16.5% 12.0% 8.0% 7.0%
recovering global demand. However, consumer spending
—% of total media 16.2% 18.7% 21.0% 22.9% 24.2% 25.4%
ad spending remains suppressed by a weak labor market and slowing
Mobile ad spending*** $61.9 $123.8 $198.1 $247.6 $277.3 $305.1 wage growth. As of June 2017, consumer spending in
(millions)
Singapore had contracted for the past two quarters.
—% change 150.0% 100.0% 60.0% 25.0% 12.0% 10.0%
—% of digital ad 22.4% 37.4% 51.4% 57.3% 59.4% 61.1%
spending eMarketer expects total ad spending to advance just
—% of total media 3.6% 7.0% 10.8% 13.1% 14.4% 15.5% 0.5% to $1.57 billion this year. Growth is not expected to
ad spending exceed 1.0% throughout the forecast period. By 2021,
Note: converted at the exchange rate of US$1=PHP47.49; *includes digital
(desktop/laptop, mobile and other internet-connected devices), directories, total paid media advertising will be $1.63 billion.
magazines, newspapers, out-of-home, radio and TV; **includes advertising
that appears on desktop and laptop computers as well as mobile phones,
tablets and other internet-connected devices, and includes all the various
formats of advertising on those platforms; excludes SMS, MMS and P2P
messaging-based advertising; ***includes display (banners, video and rich
media) and search; excludes SMS, MMS and P2P messaging-based
advertising; includes ad spending on tablets
Source: eMarketer, Sep 2017
231152 www.eMarketer.com

This growth is slightly lower than in 2016, when one of

the most expensive presidential elections in Philippines’
history took place. TV was the primary ad channel used
during the election cycle because of its broad reach,
which included the rural areas that make up nearly half of
the country.

TV’s dominance in the Philippines has staved off rising

investments in digital advertising. This year, digital ad
spending will reach $331.1 million—18.7% of total
ad outlays.

AD SPENDING IN SOUTHEAST ASIA: EMARKETER’S ESTIMATES AND FORECAST FOR 2016–2021 ©2017 EMARKETER INC. ALL RIGHTS RESERVED 6
Total Media, Digital and Mobile Ad Spending in However, traditional media is ceding some ad spend
Singapore, 2016-2021 to digital. A September 2017 survey from Cable and
2016 2017 2018 2019 2020 2021 Satellite Broadcasting Association of Asia (CASBAA)
Total media ad $1.56 $1.57 $1.58 $1.60 $1.61 $1.63 found that 39% of respondents illegally stream or
spending* (billions) download movies, TV shows or live sports. Another
—% change -1.0% 0.5% 0.8% 1.0% 0.8% 0.8% 14% indicated that they use a TV box to stream such
Digital ad spending** $317.6 $374.7 $430.9 $474.0 $497.7 $517.7
(millions)
content. With online streaming becoming so common
—% change 19.0% 18.0% 15.0% 10.0% 5.0% 4.0%
in Singapore, TV companies are attempting to jump in
—% of total media 20.3% 23.8% 27.2% 29.6% 30.8% 31.8% with video-on-demand (VOD) services. Last year, for
ad spending example, Mediacorp launched over-the-top (OTT) video
Mobile ad spending*** $113.8 $193.4 $299.8 $362.8 $402.7 $422.8 service Toggle.
(millions)
—% change 80.0% 70.0% 55.0% 21.0% 11.0% 5.0%
—% of digital 35.8% 51.6% 69.6% 76.5% 80.9% 81.7%
ad spending
—% of total media 7.3% 12.3% 18.9% 22.7% 25.0% 26.0%
THAILAND
ad spending
According to the National Economic and Social
Note: converted at the exchange rate of US$1=SGD 1.38; *includes digital
(desktop/laptop, mobile and other internet-connected devices), directories, Development Board, Thailand had its fastest economic
magazines, newspapers, out-of-home, radio and TV; **includes advertising
that appears on desktop and laptop computers as well as mobile phones, growth in four years during Q2 2017, with GDP rising
tablets and other internet-connected devices, and includes all the various 3.7%. Like other countries in Southeast Asia, Thailand is
formats of advertising on those platforms; excludes SMS, MMS and P2P
messaging-based advertising; ***includes display (banners, video and rich benefiting from the global recovery in trade.
media) and search; excludes SMS, MMS and P2P messaging-based
advertising; includes ad spending on tablets
Source: eMarketer, Sep 2017 eMarketer estimates that total media ad spending in
231158 www.eMarketer.com
the country will approach $2.23 billion by the end of this
Digital ad formats will increase 18.0% in 2017 to reach year, growing 2.1%. The November 2016 death of King
$374.7 million, accounting for 23.8% of total advertising. Bhumibol Adulyadej and a 30-day national moratorium
Programmatic ad development and mobile investment are on state events were responsible for the slightly higher
primarily responsible for digital’s growth in the market. growth compared with the prior year (1.5%).

Both Alibaba and Amazon (which launched in Singapore in

July 2017) offer programmatic ad inventory to marketers Total Media, Digital and Mobile Ad Spending in
Thailand, 2016-2021
in the country. In addition, two of the largest media
2016 2017 2018 2019 2020 2021
companies in Singapore—Mediacorp and Singapore
Total media ad $2.19 $2.23 $2.27 $2.31 $2.33 $2.35
Press Holdings (SPH)—announced in August 2017 that spending* (billions)
they would be collaborating on creating a programmatic —% change 1.5% 2.1% 1.7% 1.5% 1.0% 0.8%
advertising trade desk set to launch in 2018. Digital ad spending** $331.5 $414.4 $497.3 $571.9 $629.1 $673.1
(millions)
Mobile now accounts for at least half of digital ad spend —% change 21.0% 25.0% 20.0% 15.0% 10.0% 7.0%
in Singapore—totaling $193.4 million—a 70.0% increase —% of total media 15.1% 18.5% 21.9% 24.8% 27.0% 28.7%
ad spending
over 2016. Consumers in Singapore continue to adopt
Mobile ad spending*** $105.6 $173.1 $277.0 $387.8 $430.5 $464.9
electronic goods, especially smartphones, despite (millions)
overall weakened spending. Approximately 83.7% of —% change 79.0% 64.0% 60.0% 40.0% 11.0% 8.0%
Singapore’s population will own a mobile phone this —% of digital 31.8% 41.8% 55.7% 67.8% 68.4% 69.1%
year, of which 65.6% will use the handset to access ad spending
—% of total media 4.8% 7.7% 12.2% 16.8% 18.5% 19.8%
Facebook. Widespread use of the platform via the device ad spending
is a motivating factor for advertisers shifting their budgets Note: converted at the exchange rate of US$1=THB35.28; *includes digital
to mobile formats. By 2021, digital ad spending will (desktop/laptop, mobile and other internet-connected devices), directories,
magazines, newspapers, out-of-home, radio and TV; **includes advertising
approach one-third (31.8%) of total ad spending, which is that appears on desktop and laptop computers as well as mobile phones,
tablets and other internet-connected devices, and includes all the various
comparable to the rates in developed countries like Japan. formats of advertising on those platforms; excludes SMS, MMS and P2P
messaging-based advertising; ***includes display (banners, video and rich
TV and print media continue to dominate paid ad outlays media) and search; excludes SMS, MMS and P2P messaging-based
advertising; includes ad spending on tablets
in Singapore due to their wide reach. The formats are also Source: eMarketer, Sep 2017
convenient; with only a handful of publications and TV 231160 www.eMarketer.com

stations, ad buying is relatively simple.

AD SPENDING IN SOUTHEAST ASIA: EMARKETER’S ESTIMATES AND FORECAST FOR 2016–2021 ©2017 EMARKETER INC. ALL RIGHTS RESERVED 7
Thailand is seeing positive returns from the government’s eMarketer estimates that total media ad spend in Vietnam
2016 fiscal stimulus package, launched to fund will reach $1.15 billion in 2017, a 7.0% increase over 2016
infrastructure projects—primarily in rural areas—and and well above the average regional growth of 4.3%.
spur domestic consumption. In addition, Thailand’s daily Digital advertising is adding to that strong growth, rising
minimum wages increased as of January 2017, the first 23.0% to $210.6 million.
such increase in four years.
Total Media, Digital and Mobile Ad Spending in
The stimulus and wage growth are occurring as Vietnam, 2016-2021
ecommerce is taking off in Thailand. JD.com, the second 2016 2017 2018 2019 2020 2021
largest ecommerce platform in China, plans to launch
Total media ad $1.07 $1.15 $1.21 $1.28 $1.35 $1.40
in the country by the end of 2017. In September, the spending* (billions)
ecommerce giant agreed to a joint venture with top —% change 8.0% 7.0% 6.0% 5.5% 5.0% 4.0%
homegrown retailer Central Group to increase its potential Digital ad spending** $171.2 $210.6 $250.6 $288.2 $317.0 $339.2
(millions)
reach. Likewise, Tencent has identified Thailand as a
—% change 33.0% 23.0% 19.0% 15.0% 10.0% 7.0%
market for sales growth, based on the large number of
—% of total media 16.0% 18.4% 20.6% 22.5% 23.6% 24.2%
high-spending Chinese tourists and Chinese-speaking ad spending
transplants. Even outside of Bangkok, ecommerce Mobile ad spending*** $38.5 $77.1 $138.7 $194.2 $215.5 $231.7
(millions)
shipment centers have been built to reach provinces like
—% change 128.0% 100.0% 80.0% 40.0% 11.0% 7.5%
Nonthaburi and Chonburi.
—% of digital spending 22.5% 36.6% 55.% 67.4% 68.0% 68.3%
—% of total media 3.6% 6.7% 11.4% 15.2% 16.0% 16.6%
Social commerce’s success in Thailand is primarily ad spending
responsible for the high interest in ecommerce overall. Note: converted at the exchange rate of US$1=VND22,369.12; *includes
digital (desktop/laptop, mobile and other internet-connected devices),
According to a May 2017 Electronics Transaction directories, magazines, newspapers, out-of-home, radio and TV; **includes
Development Agency study, nearly half of social media advertising that appears on desktop and laptop computers as well as
mobile phones, tablets and other internet-connected devices, and includes
users (estimated at 32.6 million by eMarketer, or all the various formats of advertising on those platforms; excludes SMS,
MMS and P2P messaging-based advertising; ***includes display (banners,
46.1% of the population) have purchased an item via video and rich media) and search; excludes SMS, MMS and P2P
social platforms. messaging-based advertising; includes ad spending on tablets
Source: eMarketer, Sep 2017
231161 www.eMarketer.com
The ecommerce boom is expected to drive digital ad
spend growth of 25.0%—the fastest in the region—to As in Thailand, ecommerce has become incredibly
reach $414.4 million, or 18.5% of total advertising. By popular in Vietnam, one byproduct of improving internet
2021, digital’s share of total media will be larger than in connection and consumer confidence. Digital buyers are
Malaysia, Vietnam or the Philippines. purchasing primarily via the ecommerce platform Lazada
and social networks like Facebook.
Mobile will account for 41.8% of digital ad dollars,
equating to $173.1 million. Thailand has some of the To target these consumers, brands have spent millions
fastest broadband speeds in the region, and this is toward digital platforms like Facebook and YouTube.
especially true of mobile. In addition, since mobile devices However, earlier this year the country’s communist
tend to be the point of entry for internet access in the government called for YouTube to take down several
country, mobile ad spending will increase 64.0%. videos it said were slanderous and “distorted historical
facts about Vietnam that could stir public unrest.” Later,
Vietnam asked that all companies doing business in the

VIETNAM country stop advertising on such platforms—several

Vietnam’s economy is performing reasonably well in
2017, based on rising foreign demand for exports (among
them Samsung products, manufactured in Vietnam)
and growing tourism from China. Inflation is low, and
consumer spending has improved due to a growing
middle and upper class. These positive trends are
expected to carry over into 2018, when the minimum
salary is expected to rise by 6.5%, according to the
country’s National Salary Council.
major brands, including Vinamilk and Vietnam Airways,
suspended such ads. Since this incident, and several
others around the world, Facebook and YouTube have
attempted to moderate which content is posted and then
receives advertising.
eMarketer estimates double-digital growth in digital
advertising in Vietnam through 2020, when it will reach
10.0%. Most digital ads will still be served via desktop/
laptop over the forecast period; this year, 36.6% of ad

AD SPENDING IN SOUTHEAST ASIA: EMARKETER’S ESTIMATES AND FORECAST FOR 2016–2021 ©2017 EMARKETER INC. ALL RIGHTS RESERVED 8
spend will go to mobile. This is not too surprising, given
that Vietnam is still developing its infrastructure to support
extensive mobile internet access. Mobile advertising will
reach $77.1 million in 2017, representing a 100% increase
over the year prior, albeit from a small base.
AD SPENDING IN SOUTHEAST ASIA: EMARKETER’S ESTIMATES AND FORECAST FOR 2016–2021 ©2017 EMARKETER INC. ALL RIGHTS RESERVED 9
EDITORIAL AND
PRODUCTION CONTRIBUTORS
Michael Balletti Copy Editor
Katie Hamblin Chart Editorial Manager
Dana Hill Director of Production
Eden Kelley Senior Chart Editor
Stephanie Meyer Senior Production Artist
Heather Price Managing Editor, Reports
John Rambow Executive Editor, Reports
Erica Walker Copy Editor
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