Telecommunications lead Singapore ad expenditure

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SINGAPORE -- Research by ACNielsen Singapore shows the telecommunications industry continues to outperform other industry segments for ad spend in that market.

According to ADEX results, advertising in the telecommunications category edged up from fourth position in 1997 to become the most advertised category in the first quarter of 1998. Telecommunications posted "an impressive 67% increase over the same quarter last year," according to Hoe Chin Fee, managing director of ACNielsen Singapore.

Singapore witnessed an overall 150% increase in ad spend in the telecommunications industry in 1997 to "a staggering $70 million and ACNielsen ADEX results for the first quarter of 1998 show no sign of this trend abating," says Mrs. Hoe.

Among the biggest spenders were SingTel and Mobile 1, which spent $9 million and $3 million respectively last year.

Other sectors are also showing growth, including banking/finance and travel, with both registering 16% increases in the first quarter of 1998 compared to the same period last year, while cosmetics, skin care and toiletries each enjoyed 23% growth.

But other industry segments have started the year more cautiously, adds Mrs. Hoe. Advertising by real estate companies declined by 35% over the corresponding period last year, and retail advertising expenditure declined by 20%.

Overall advertising expenditure in Singapore grew by only 0.4% in the first quarter of 1998, compared to the same period last year. Spending on television and outdoor media, including bus and taxi advertising and posters, increased, but newspaper and radio spending declined.

"In spite of certain areas of growth in ad spend, we're unlikely to see the same double-digit growth of 12% witnessed last year," says Mrs. Hoe.

Copyright June 1998, Crain Communications Inc.

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