Singapore’s online advertising revenue hits US$107M, but still poor compared to other mature markets

A study revealing insights on Singapore’s online ad spend from January to December 2011 has been released earlier this week, and while it reveals that the online ad market has grown significantly year-on-year, online ad spend as a percentage of total spend is only at 8%, much lower than other mature markets.

The Singapore Online Advertising Revenue Report was jointly commissioned by the Media Development Authority (MDA) and the IAB SE Asia, Singapore  Chapter. It was compiled by PricewaterhouseCoopers.

Here are some of its findings:

1. 2011 marks the first Full Year that total Online Advertising Revenue crossed the S$100m mark.
2. 2H 2011 reflects a 25% increase from 1H 2011.
3. Classified & Directory category rebounded after a dip in 1H 2011 from S$5.5m (US$4.37) to S$11.29m (US$9M) in 2H 2011, a growth of 105%.
4. Huge potential for growth within the market — the challenge is to close the gap between digital consumption and digital advertising spend.
5. Total CAGR of 23% for the 24 month period ending 31st December 2011
6. Percentage of online ad spend versus total ad spend in Singapore, at 8%, still lags many developed economies:

Download the executive summary here. Full revenue report is available only for IAB members and revenue report participants.