The internet in Asia is booming, with over 2.6 billion users. That’s more than half the world’s online population! It’s unsurprising then that businesses in the region are prioritising building their online presence, with 91% of all businesses leveraging digital marketing to advertise their products or services. Savvy SMBs are leading the charge, with a significant portion dedicating a growing portion of their budget to digital marketing.
Globally, spend on digital channels is on the rise, with brands spending up to 70% of their marketing budget on digital channels in 2023. Despite the importance of digital channels, only 31% of businesses in Asia are spending more than 40% of their marketing budgets on digital channels, online content, and tools, with investment averaging USD$5,000 per month on digital marketing.
This highlights a major opportunity for businesses to shift their focus and reallocate their budgets online, and presents an avenue to grow awareness, with opportunities to optimise and drive conversions.
SMBs are not always afforded the larger budgets that enterprises typically have, and being smart about where they invest and focus is key. It's a tough ask to win with print ads (or traditional out of home media) if SMBs can afford just a few ad insertions per year, while enterprises run weekly or ongoing campaigns.
"In my experience, clients are prioritising digital social channels like LinkedIn for their measurable ROI and ability to reach vast, diverse audiences efficiently. Asia's dynamic marketing strategies not only highlight its economic vigor but also reinforce its leadership in global growth and innovation," observes Pooja K Dhanothia, Director, Head of Asia - Marketing Solutions at LinkedIn.
India is now a digitally empowered nation. The Digital India program, spearheaded by the Union government since July 1, 2015, has played a significant role in leveraging technology to empower citizens, drive economic growth, and enhance governance across the country.
By 2024, it is predicted that in India, there will be more than 650 million internet users - a massive number and a huge potential for businesses to leverage this audience to drive business impact.
The Philippines presents a unique case in the region. While Philippine SMBs are embracing digital marketing, only 20% of businesses currently spend over USD$5,000 monthly. Currency exchange headwinds may contribute to some businesses leveraging cost-effective freelancers and focusing on organic channels to maximise available investments. With almost 87 million social identities online, and each user using 8 social media platforms on average, it is not surprising then that Philippine businesses choose social media as a point of focus, where they can control the content and grow organically.
Compared to the other markets surveyed, Singapore lags behind on investment, with only 61% of businesses intending to increase the amount spent on digital marketing. “Every penny pinches for small businesses, where limited budgets and resources demand higher efficiency. This need to maximise ROI extends beyond marketing, to ensure cost-efficiency throughout other business operations as highlighted in the YouBiz Business Spend Insights survey,” shares Kelvin Lam, Chief Operating Officer of YouBiz (Product of YouTrip).
But Singapore SMBs are increasingly looking to spend more online, as Kelvin observes: "Recognising the ROI from digital marketing, businesses are compelled to continue their investment in digital to accelerate their business growth through targeted marketing campaigns. And we anticipate this trend to continue – with businesses surveyed allocating approximately 10% of their revenue towards boosting online efforts over the next five years.”
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“Businesses in Asia are navigating a new reality where keeping pace with technological disruption and innovation is critical to business success. It is no surprise then, that businesses in Asia are looking to increase their digital marketing to stay ahead of industry trends, which requires incorporating the right technologies into outreach strategies,” observes Kat Warboys, Senior Marketing Director, APAC at HubSpot.
However, even though nearly all businesses (98%) agree that a well-defined digital marketing plan can significantly impact your bottom line, almost half (41%) of businesses are struggling with tracking revenue from their digital marketing activities. This could point to an opportunity for businesses to invest in and focus on ongoing training and upskilling in marketing measurement to ensure marketers are confident in tracking and reporting on their work.
Matt Tindale, Head of LinkedIn Marketing Solutions, APAC emphasises the crucial role of training for businesses as they look to demonstrate the impact of marketing's efforts on business growth. "Upskilling will not only help professionals adapt to changes, but leverage new technology for increased productivity and enhanced outcomes. HubSpot's research shows that while the majority of local companies focus on brand awareness, the real challenge is converting that awareness into actionable growth. With the integration of AI into digital marketing strategies — as indicated by 60% of companies in our survey — Singapore is on the brink of a transformative era in digital marketing. Effective measurement frameworks and data-driven decisions are essential for maximising ROI."
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