SEA’s retail media ad spend projected to grow 11% by 2030

Advertising spend on Retail Media Networks (RMNs) in Southeast Asia is projected to hit US$4.7 billion by 2030, underscoring the increasing significance of this channel for advertising, according to a report by GrabAds and Kantar.

Why RMNs in SEA matter

Southeast Asia is positioned for RMNs to flourish. With a fast-growing digital economy and increasingly tech-savvy population, it’s primed for brands to “close the loop” and use first-party data to build brand equity, increase share of voice and drive sales growth.

Four types of RMNs in SEA by purchase stage

• Impulse and WOM: Social media RMNs are digital marketplaces within social media platforms. Ads entertain and complement user-generated content to work on building awareness. Examples include TikTok Shop, YouTube Shopping, Facebook Marketplace, LINE Shopping and Instagram Shops.
• Price-motivated: E-commerce RMNs are digital retail marketplaces that offer advertising spaces. Ads here typically feature promotions or discounts to encourage purchase. Examples include Shopee, Lazada, Carousell, Bukalapak, Tokopedia, JD and Amazon.
• Trial and repeat: Large retailer RMNs have a physical retail space. Similar to e-commerce RMNs, ads here typically feature messages that induce consideration or purchase. They are useful to promote trials of new products and include FairPrice, Happy Fresh and Astro as examples.
• Versatile: Superapp RMNs consist of an ecosystem of services that allows curated ads to be served at different purchase stages and types of services. Superapps also boast an integrated payment system that captures offline and online transactions. Examples include Grab and WeChat.

Market breakdown

Indonesia is forecast to lead in RMN ad spend with a projected 13.41% CAGR. Vietnam follows at (12.37%), Thailand (11.76%), Philippines (9.29%), Singapore (8.79%), and Malaysia (7.82%).

Key quote

“The very nature of the RMN ecosystem, which covers the entire customer journey of the funnel, fulfils the goal of tracking and achieving ROAS. This is why RMNs have become a global phenomenon, attracting interest from retailers and marketers worldwide” – Ken Mandel, Regional Managing Director, GrabAds & Brand Insights.