Internet advertising trails behind global benchmarks

It accounts for only 14.7% of total ad spend in Singapore.

Internet advertising in Singapore is still trailing behind its global peers, a report from PwC said.

In Singapore, internet advertising still represents only 14.7% of total advertising spend versus 25.9% in Japan and 53.6% in China, for example.

However, it is fast growing, at a rapid pace over the historical period with total Internet advertising revenue more than doubling between 2012 and 2016.

"Although the rate of growth will slow over the next five years, Internet advertising revenue will still see a CAGR of 11.3%. By then the market will be worth US$461mn, up from US$269mn in 2016," PwC said

Here's more from PwC:

Around 12% of Singapore’s Internet advertising market is made up of display advertising. Of this, other display comprised 81.2% and video 18.8% in 2016, but video’s share will increase to 30.9% by 2021.

Video advertising is particularly popular among brands with bigger ad budgets, due to the cost of production and a higher CPC or CPM.

Singapore is an advanced mobile Internet market with a mobile Internet subscriber penetration rate of 81%. This opens up exciting opportunities for brands. By 2021 mobile will account for 51.1% of the total Internet advertising market, with revenue of US$236m.