Market Insights Advertising & Media Advertising

Social Media Advertising - Singapore

Singapore

In Singapore, ad spending in the Social Media Advertising market is projected to reach US$0.51bn in 2024.
The ad spending in this market is expected to exhibit an annual growth rate (CAGR 2024-2029) of 12.03%, resulting in a projected market volume of US$0.90bn by 2029.
In a global context, the majority of ad spending will be generated China, with a forecast of US$84,650.00m in 2024.
Within the Social Media Advertising market in Singapore, it is anticipated that 59% of total ad spending will be generated through mobile by 2029.
Furthermore, the number of users in the Social Media Advertising market in Singapore is expected to reach 5,962.0k users by 2029.
In Singapore, social media advertising is increasingly favored by brands seeking to engage the tech-savvy population through innovative digital campaigns and influencer partnerships.

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

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Analyst Opinion

The Social Media Advertising market in Singapore has been experiencing significant growth in recent years.

Customer preferences: Singaporeans are increasingly relying on social media platforms for information, entertainment, and social interaction. As a result, businesses are recognizing the importance of advertising on these platforms to reach their target audience. Social media advertising allows businesses to target specific demographics and interests, ensuring that their ads are seen by the right people at the right time. This targeted approach has proven to be highly effective in driving customer engagement and increasing brand awareness.

Trends in the market: One of the key trends in the Social Media Advertising market in Singapore is the rise of mobile advertising. With the widespread use of smartphones and the availability of high-speed internet, more Singaporeans are accessing social media platforms on their mobile devices. This shift in consumer behavior has led to an increase in mobile advertising, as businesses seek to reach their audience on the platforms they use most frequently. Mobile advertising offers a unique opportunity for businesses to engage with consumers in a more personalized and interactive way. Another trend in the market is the growing popularity of influencer marketing. Singaporeans are increasingly turning to social media influencers for product recommendations and lifestyle inspiration. As a result, businesses are partnering with influencers to promote their products or services. Influencer marketing allows businesses to tap into the trust and credibility that influencers have built with their followers, resulting in higher conversion rates and increased brand loyalty.

Local special circumstances: Singapore's small geographical size and highly urbanized population make it an ideal market for social media advertising. The high internet penetration rate and tech-savvy population further contribute to the growth of the market. Additionally, Singapore has a strong digital infrastructure and a supportive regulatory environment, which encourages businesses to invest in social media advertising.

Underlying macroeconomic factors: Singapore's strong economy and high disposable income levels also contribute to the growth of the Social Media Advertising market. With a high standard of living and a culture that values consumption, Singaporeans are willing to spend on products and services they discover through social media advertising. Furthermore, the government's push for digital transformation and the development of a Smart Nation initiative provide further impetus for businesses to invest in social media advertising. In conclusion, the Social Media Advertising market in Singapore is experiencing significant growth due to customer preferences for social media platforms, the rise of mobile advertising, the popularity of influencer marketing, Singapore's unique market characteristics, and the underlying macroeconomic factors. As businesses continue to recognize the importance of social media advertising in reaching their target audience, the market is expected to continue its upward trajectory.

Methodology

Data coverage:

Data encompasses enterprises (B2B). Figures are based on social media advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers social media advertising generated by social networks or business networks such as Facebook, Tiktok, Instragram, Pinterest, and LinkedIn.

Modeling approach:

A combined top-down and bottom-up approach determines the market size. Starting with the top-down approach, we calculate global social media advertising by aggregating revenues from key players (Meta Platforms (Facebook and Instagram), ByteDance (Tiktok and Douyin), Twitter, Snapchat, and Microsoft (LinkedIn)). Followed by the bottom-up approach, we justify global, country, and region results using web traffic and the number of app downloads. Lastly, we distribute the results to each country individually with relevant indicators such as GDP, internet users, social media users, and digital consumer spending by country.

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.