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MEDIA & MARKETING | Staff Reporter, Singapore
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Total advertising revenues to reach $536m in 2021

Terrestrial TV revenue share will start to decline.

The total advertising revenue in Singapore is expected to reach US$388m ($536m) in 2021, following a 0.9% compound annual growth after it rose 1.3% to US$372m last year.

According to PwC Global entertainment and media outlook, terrestrial channels continued to dominate advertising in 2016, taking 84.3% of revenue. But with a strong pay-TV sector attracting advertisers to niche channels and premium content alike, terrestrial TV advertising revenue share will decline in 2021. At this time multichannel advertising revenue will have reached US$66mn, up from US$52mn in 2016.

Meanwhile, online TV advertising revenue is being aided by government investment to make Singapore an “Intelligent Nation”, with extensive infrastructure upgrades.

"The vast majority of households take broadband services and the online video market is growing, with services from broadcasters, pay-TV operators like StarHub and Singtel and stand-alone OTT platforms from the likes of Netflix. The prevalence of subscription-based VOD services will continue to limit advertising revenue, but growth will be strong at a 37.7% CAGR, producing online TV advertising revenue of US$32mn in 2021 – 8.3% of the TV advertising market," PwC said.

Singapore’s Media Development Authority imposes a limit of 25% of total revenue on advertising revenue for national pay-TV operators. The rule does not apply to “niche” services. Pay-TV broadcasters are not permitted to broadcast more than 14 minutes of advertising every hour, although on-demand content is exempt from this ruling.

 

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