Southeast Asia digital ad spend solid as linear TV takes hit

Total advertising expenditure fell 11.8% on average across the Southeast Asian markets of Indonesia, Malaysia, Philippines and Thailand during 2020, according to MAGNA Global's June 2021 advertising forecasts.

Average daily viewing of linear TV returned to growth in Malaysia and Indonesia during 2020 but continued to fall in the Philippines and Thailand, despite the pandemic. Overall, growth prospects for linear viewing in the region are minimal given changing viewing habits among young adults. Thailand in particular epitomizes the demographic's rejection of the format with less than one hour of daily linear TV viewing among young adults.

With linear TV consumption in the region flat for a protracted period, TV's market share of total advertising spending has fallen away. Magna data indicated that in 2020 less than 50% of ad spend was allocated to TV in both Indonesia and Malaysia. Forecasts show that the Philippines and Thailand are also trending toward sub-50% market share for TV. Conversely, the digital space is expected to continue to grow its share of total advertising spend in the region.