Singapore set to splurge more on internet advertising

Will print advertisements soon be obsolete?

According to PwC’s annual Global Entertainment and Media Outlook 2012-2016, while digital maturity varies widely at a segment level (in the case of Singapore, at 18.1 percent CAGR to 2016), Singapore’s internet advertising growth is clearly well above global levels at 15.9 percent, and mature markets at 13.4 percent.

Singapore is expected to lead in overall advertising spending growth in segments, including in segments such as video games (at CAGR to 2016 of 14.9 percent), cinema (at CAGR to 2016 of 10.8 percent), as well as in consumer magazines and newspapers.

Advertising in newspaper publishing in Singapore will be positive at compound annual growth rate of more than 2 percent compared to negative growth in other mature markets, but it will be lower than the fast growing emerging markets represented by the BRIC economies.

Consumer spending in video games and music expected to be fastest growing segments in Singapore

Global consumer spending growth will be led by growth in video games (at 7 percent) and TV subscriptions (at 6.8 percent). With video games, growth is driven by online and wireless games and casual gaming. Global spending on online and wireless video games is expected to overtake console and PC games revenues in 2013.

In Singapore, consumer spending in video games will grow at a compound annual rate of 8 percent, and much of its growth will be driven by the double digit online and wireless games outlook for Singapore at a compound annual rate of 10.9 percent to 2016, mirroring global trends. Singapore’s online and wireless games had already overtaken console and PC growth in 2009.

Global spending on music rose 1.3 percent in 2011, the first gain in many years, thanks to growth in the concert and music festival market and a slower decline in recorded music. Singapore’s music industry reflects strong consumer spending at compound annual growth rate of 6.1 percent compared to 3.7 percent globally and 3.3 percent in mature markets.

Consumer spending in Singapore in business to business at compound annual rate of 5.9 percent and in filmed entertainment at 5.5 percent is also significantly higher than global or mature markets levels.