Social Media Advertising - Southeast Asia

  • Southeast Asia
  • In Southeast Asia, ad spending in the Social Media Advertising market is projected to reach US$3.90bn in 2024.
  • This region is expected to exhibit an annual growth rate (CAGR 2024-2029) of 10.31%, which will result in a projected market volume of US$6.37bn by 2029.
  • In a global context, the majority of ad spending will be generated China, with an expected amount of US$84,650.00m in 2024.
  • Within the Social Media Advertising market, it is anticipated that 68% of total ad spending will be derived from mobile sources by 2029.
  • Furthermore, the number of users in the Social Media Advertising market in Southeast Asia is expected to reach 598.7m users by 2029.
  • In Southeast Asia, Malaysia's social media advertising landscape is rapidly evolving, driven by a surge in mobile internet penetration and youth engagement.

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

 
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Analyst Opinion

The Social Media Advertising market in Southeast Asia is experiencing significant growth and development.

Customer preferences:
Customers in Southeast Asia have shown a strong preference for social media platforms as a means of communication and entertainment. With a large and growing population of internet users in the region, social media has become an integral part of people's daily lives. Users are increasingly spending more time on social media platforms, creating a favorable environment for advertisers to reach their target audience. Additionally, the rise of mobile technology and affordable smartphones has further fueled the popularity of social media in the region.

Trends in the market:
One of the key trends in the Social Media Advertising market in Southeast Asia is the increasing adoption of influencer marketing. Influencers, who have a large following on social media platforms, are being leveraged by brands to promote their products and services. This form of advertising has proven to be effective in reaching and engaging with the target audience, as influencers are seen as trustworthy and relatable figures. As a result, more brands are allocating their advertising budgets towards influencer marketing campaigns. Another trend in the market is the growing importance of video content. Social media platforms have been placing a greater emphasis on video content, with features such as live streaming and short-form videos becoming increasingly popular. Advertisers are capitalizing on this trend by creating engaging and visually appealing video ads to capture the attention of users. The rise of video content consumption has also led to the emergence of video-centric social media platforms, which provide new opportunities for advertisers to connect with their target audience.

Local special circumstances:
Southeast Asia is a diverse region with varying levels of economic development and cultural nuances. This diversity presents both opportunities and challenges for advertisers in the Social Media Advertising market. Advertisers need to take into account the cultural sensitivities and preferences of each country in the region to ensure their campaigns are effective. Additionally, the presence of multiple languages in the region requires advertisers to localize their content to effectively communicate with the target audience.

Underlying macroeconomic factors:
The growing middle class and increasing disposable income in Southeast Asia are key macroeconomic factors driving the growth of the Social Media Advertising market. As more people in the region have access to the internet and smartphones, the potential reach of social media advertising continues to expand. Additionally, the rapid urbanization and infrastructure development in Southeast Asia are contributing to the growth of the market, as more people are becoming connected to the internet. In conclusion, the Social Media Advertising market in Southeast Asia is experiencing significant growth and development due to customer preferences for social media platforms, the adoption of influencer marketing, the importance of video content, local special circumstances, and underlying macroeconomic factors. Advertisers in the region need to understand and adapt to these trends to effectively reach and engage with their target audience.

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.

Overview

  • Ad Spending
  • Key Players
  • Analyst Opinion
  • Reach
  • Global Comparison
  • Methodology
  • Key Market Indicators
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