SEA ad spending up 16% on quarter

Corporate December 20, 2011 00:00

By The Nation

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Advertising spending throughout Southeast Asia has recorded healthy growth across mainstream media, exceeding US$5 billion in the third quarter of 2011, according to new analysis released today by global media and information company Nielsen.



 According to Nielsen’s Southeast Asia Quarterly Advertising Index, Thailand with actual spending of US$726 million in the quarter showed the lowest growth rate, at 6 per cent from the previous last year, while the growth rates at other SEA are much higher - 9 per cent in Malaysia, 10 per cent in Singapore, 15 per cent in the Philippines, and 24 per cent in Indonesia. The region's average expanded 16 per cent on quarter and 15 per cent on year.

 Total ad spending across the region jumped by 3 per cent in the quarter, compared to the previous quarter.

 

“The growth in advertising spend coupled with strong consumer confidence within the region are promising signs for Southeast Asia” notes David Webb, Nielsen’s APMEA Region, managing director of Advertising Solutions. “Strong advertising growth in Southeast Asia over the past year underlines the region’s resilience amidst global economic uncertainty and increasing spend in markets such as Indonesia and the Philippines echoes sentiment within the region that local economies are still thriving and capable of withstanding external shocks.”

 According to the Nielsen Index, growth was driven largely by television and newspapers. Television ad spending increased 5 per cent in the third quarter and 17 per cent compared to the third quarter 2010, whilst newspapers, which remained flat in the third quarter, experienced 14 per cent growth quarter-on-quarter.

Unilever topped the list of the region’s highest spending advertisers during the third quarter. Haircare, Telecommunications and Government Department categories lead as the major contributors across the region. However, in Thailand, government units came first in the list, followed by passenger cars and life insurance.

“Whilst marketers throughout the region grapple with the challenge of spreading advertising budgets across a growing number of media platforms, television continues to demonstrate its un-matched ability to reach the masses, and technological developments such as HDTV, IPTV, TV on-demand and time-shifted viewing are all contributing to the ongoing appeal of television,” observes Webb. 

 

“As we look to the year ahead, the common challenge of allocation of advertising spend will again be at the forefront of marketers’ minds and all media, traditional and emerging, must look for ways to maintain audiences and demonstrate ROI in order to earn their share of advertising dollars.”

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