SINGAPORE, Jan 20 (Bernama) — Online advertising is gaining popularity among large brand advertisers in Singapore as marketing budgets shrink in the current dour economy.
A growing number of advertisers are embracing online advertising to achieve precise targets, measurable returns on investment over traditional advertising and it was a cost-effective medium, according to Frost & Sullivan today.
The market was worth US$142.1 million in 2007 and this has been forecast to reach US$413.5 million by the end of 2013.
Frost & Sullivan said advertisers and media agencies alike were cashing-in on online advertising as the youth had become the biggest online consumers.
“The youth of Singapore are hooked on the internet. They form the largest chunk of active internet users and have been a primary driver of online advertising in recent years,” said Frost & Sullivan industry analyst Kamlesh Kalwar.
Last year, Singapore’s online advertising industry was estimated to have raked in US$190 million in revenue, representing a year-on-year growth of 33.7 percent.
Paid search advertising, by far the largest online advertising segment, accounted for 44 percent (US$62.5 million) of Singapore’s online advertising revenue in 2007.
Kalwar said companies had not only started to see the value of online campaigns but also recognised the importance of tracking it, which was driving the growth of paid search.
Display advertising was the second biggest segment, accounting for 25 percent (US$35.5 million) of revenue, with banner ads and email marketing being the two most popular forms of display ads.
Job classifieds had been the main source of revenue for online classifieds in the past two years with the other key revenue earners being online auctions, real estate and automotive or car sites, the research company added.
The smallest segment was the online directory services which accounted for the remaining 12 percent (US$17.1 million) of revenue in 2007.
January 20, 2009