Market Insights Advertising & Media Advertising

Influencer Advertising - Southeast Asia

Southeast Asia

Ad spending in the Influencer Advertising market in Southeast Asia is forecasted to reach US$693.70m in 2024.
The market is expected to demonstrate an annual growth rate (CAGR 2024-2029) of 10.83%, leading to a projected market volume of US$1,160.00m by 2029.
The average ad spending per internet user in the Influencer Advertising market is estimated to be US$1.22 in 2024.
When compared globally, China is anticipated to generate the highest ad spending, amounting to US$19,160.00m in 2024.
In Singapore, Influencer Advertising is booming, with brands leveraging social media personalities to reach a tech-savvy and engaged audience.

Key regions: Australia, Germany, France, Europe, United States

Market

Region

Region comparison

Currency

Analyst Opinion

The Influencer Advertising market in Southeast Asia is experiencing significant growth and development, driven by changing customer preferences and the increasing popularity of social media platforms.

Customer preferences: Influencer Advertising has gained immense popularity among customers in Southeast Asia due to its ability to create authentic and relatable content. Customers are increasingly seeking recommendations and advice from influencers who they perceive as trustworthy and knowledgeable. Influencers are seen as experts in their respective fields and their endorsements are highly valued by customers. Additionally, customers in Southeast Asia are avid users of social media platforms, making it an ideal channel for influencer marketing.

Trends in the market: One of the key trends in the Influencer Advertising market in Southeast Asia is the rise of micro-influencers. These are individuals with a smaller following but a highly engaged audience. Micro-influencers are seen as more authentic and relatable, as they often have a niche focus and a close connection with their followers. Brands are increasingly partnering with micro-influencers to reach specific target markets and drive higher engagement. Another trend in the market is the growing use of video content. Video platforms such as YouTube and TikTok have gained immense popularity in Southeast Asia, and influencers are leveraging these platforms to create engaging and entertaining content. Brands are recognizing the power of video content in capturing the attention of customers and are investing in influencer partnerships that incorporate video elements.

Local special circumstances: Southeast Asia is a diverse region with multiple languages and cultures. Influencer Advertising in this region requires a localized approach to effectively reach and engage with customers. Brands need to partner with influencers who have a deep understanding of the local culture and can create content that resonates with the target audience. Additionally, influencers who are fluent in the local language are often more effective in conveying the brand message and building trust with customers.

Underlying macroeconomic factors: The growing middle class in Southeast Asia is a key driver of the Influencer Advertising market. As disposable incomes rise, customers are increasingly willing to spend on products and services recommended by influencers. Additionally, the rapid growth of e-commerce in the region has created new opportunities for influencer marketing. Customers are turning to influencers for product recommendations and reviews before making online purchases. In conclusion, the Influencer Advertising market in Southeast Asia is thriving due to changing customer preferences, the rise of micro-influencers, the popularity of video content, the need for localized approaches, and the underlying macroeconomic factors of a growing middle class and the rise of e-commerce. Brands that effectively leverage influencer partnerships and tailor their strategies to the unique characteristics of the Southeast Asian market are well-positioned to succeed in this growing industry.

Methodology

Data coverage:

Data encompasses enterprises (B2B). Figures are based on influencer advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers advertising fees paid directly to influencers to post sponsored content.

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. We use market data from independent databases, influencer marketing platforms, and third-party reports to analyze and estimate global influencer advertising spending. We start by researching on the average cost per content post on each social media platform, the number of influencers available on advertising platforms (breakdown by tier: nano, micro, macro, and mega), and the average number of posts per year. Then we estimate the market size for each country individually. We use relevant key market indicators and data from country-specific industry associations, such as GDP, social media users, and digital consumer spending. Lastly, we benchmark key countries or regions (global, United States, China, etc.) with external sources.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market. For instance, the S-curve function is well suited to forecast digital products due to the non-linear growth of technology adoption, whereas exponential trend smoothing (ETS) is more suited for projecting steady growth in traditional advertising markets.

Additional notes:

Data is modeled using current exchange rates. The impacts of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice per year in case market dynamics change.