Distinguished guests,
Ladies and gentlemen,
Good afternoon
1. It gives me great pleasure to join you here today to witness the launch of the Digital Advertising Alliance. This alliance comprises of five key trade associations in Singapore – the Association of Accredited Advertising Agents Singapore, the Interactive Advertising Bureau, the Institute of Advertising Singapore, the Mobile Marketing Association and the Singapore Infocomm Technology Federation.
2. The Alliance collectively encompasses the wide spectrum of print, broadcast, mobile, web, outdoor and direct advertising and leverages on the years of experience and unique strengths that each trade association brings. Supported by the Media Development Authority and the DesignSingapore Council, the Digital Advertising Alliance will lend support to various initiatives, such as the development of talent, enterprise and innovation, as well as promote and uphold standards and guidelines that will contribute to a vibrant digital advertising ecosystem.
Singapore’s Digital Media Sector
3. With the growth in the digital media sector around the globe, digital advertising is a potential new growth area for Singapore’s advertising industry.
4. According to the Interactive Advertising Bureau, Singapore’s total advertising expenditure was estimated at S$1.4 billion in 2008 and S$1.2 billion in 2009. Of this, the digital advertising spending increased from $51.3 million to $64.6 million, registering a 26% growth, notwithstanding the economic downturn last year. With the global economy on the mend, overall spending on advertising and marketing is on track to rise in 2010, and is expected to enjoy sustained growth in the digital advertising sector.
5. Singapore’s digital advertising industry is at a nascent stage compared to countries such as the United States, United Kingdom and Japan. In these countries, digital advertising revenue forms some 10% to 20% of their total advertising revenue. Hence, the industry believes there is strong growth potential in Singapore’s digital advertising industry. The Government aims to promote investments in digital advertising, and shares the vision of the Digital Advertising Alliance’s goal for advertising to contribute 20% towards total advertising spending in Singapore by 2020.
6. Digital advertising is also a key driver for growth in the Interactive Digital Media sector. The growth trajectory of Singapore’s digital advertising industry bodes well for the development of the IDM sector. For the last 3 years, Singapore’s IDM sector registered a compounded annual growth rate of 20%. According to the latest figures from Deloitte, the IDM sector’s value-added grew 15.1% in 2009 to a value-added of some $867 million.
7. With this, I am pleased to announce the first joint call by the Singapore Infocomm Technology Federation and the MDA to encourage the development and use of innovative technologies in this space such as the use of analytics to measure the success of a digital advertising campaign. The joint call targets innovation technology and R&D efforts in digital advertising for both the local and international markets. Over the next three years, MDA and the IDMPO will be collectively supporting collaborations estimated at S$30 million to support innovation and R&D in digital advertising.
Capability Development Efforts
8. To meet the rapidly evolving needs of the industry, talent development and upgrading of capabilities is vital in ensuring the growth of the industry.
9. I am pleased to note that the Singapore Workforce Development Agency (WDA), in consultation with members of the Alliance, has rolled out Singapore Workforce Skills Qualifications courses (WSQ) in new media. Conducted by training providers such as the Singapore Media Academy, media professionals can upgrade their skills and gain knowledge in new media by attending these WSQ courses. Concurrently, Nanyang Polytechnic and Temasek Polytechnic are gearing up their abilities to provide pre-employment training in this area to young media professionals. The DesignSingapore Council has also set aside capability development funds to support industry players and associations for upgrading programmes in digital media design and exposure in relevant foreign markets and festivals.
Conclusion
10. In closing, I am confident that the establishment of the Digital Advertising Alliance will further propel the growth of the digital advertising sector in Singapore and the region. I look forward to the Alliance’s contribution to the growth of Singapore’s media industry.
11. Thank you.
.webp)