GrabAds and Kantar have published a joint forecast study on the potential advertising spend within retail media networks (RMNs) in Southeast Asia. According to the study, ad spend in Southeast Asia will reach $4.7 billion by 2030, the marketing-centric media company Marketech reports.
According to the study, Southeast Asian RMN ad spend will grow by 73% over the next seven years. Year-on-year growth is forecast to increase from 8% in 2024 to 11% in 2030, will match or even surpass the global growth rate.
The research also indicates that the growth in RMN ad spend in each of the Southeast Asian countries will exceed the global growth index. Indonesia is predicted to become the regional leader with a projected growth of 219% between 2023 and 2030.
RMN’s growing share of marketers’ media mix will also be driven by the unique market dynamics in Southeast Asia over the next seven years. The study revealed that two out of three Southeast Asians believe it is important to have on-demand products and services, while 61% of respondents said that it is very important for them to have products or services that can anticipate their needs.
The study also identified four main types of RMNs in Southeast Asia:
- Social media RMNs, which are digital marketplaces within social media platforms;
- E-commerce RMNs, digital retail marketplaces offering advertising space;
- Large retailer RMNs, which differ from e-commerce RMNs by the nature of their physical retail spaces;
- Super app RMNs, which consist of an ecosystem of services.
Katie McClintock, regional managing director at Kantar, commented: “RMNs allow marketers to serve highly relevant ads to consumers by showcasing products and brands that cater to their immediate needs and behaviour across the buying journey. This approach to advertising adds value to consumers rather than disrupting the browsing experience. Keeping up with consumer habits and behaviour is the only way for brands to be meaningfully different, and we at Kantar believe that RMNs, with first-party data informed by real consumer transactions, can give brands the tools they need to provide greater value for consumers and build strong brand differentiation.”
With increasing internet penetration and smartphone adoption, retailers in the region are leveraging data-driven advertising platforms to target consumers effectively and create revenue streams. The dynamic market landscape in Southeast Asia offers many opportunities for RMN innovation, putting the region at the forefront of retail media networks globally.