Digitalization

• South East Asia is on track to becoming the fourth-largest economy by 2030, with an increasing percentage of GDP driven by the digital economy.
• Despite the uptake on digital channels due to the COVID-19 pandemic, the global digital remittance market in 2020 will still decline by 13.5% as the remittance value will be lower.
• Computing products and consumer electronics companies will spend $11.64 billion on digital ads in 2020, up 18.0% from 2019.
• By the end of 2020, eMarketer expects companies in the U.S. to spend over US$ 150 billion on digital ads versus US$ 107 billion on traditional ads, with two-thirds of the ads targeting mobile devices.
• Philippines House Bill No. 6765, otherwise known as the Digital Economy Taxation Act of 2020 (Digital Tax) seeks to collect tax on digital services and is expected to raise an estimated PhP29 billion (US$ 580 million) annual revenue.
• Zenith forecasts the digital market share of auto advertising to rise in India from 15% in 2019 to 23% in 2022, in Switzerland from 27% to 33% and in the US from 31% to 38%.
• Digital media will surpass direct mail to become the second largest political advertising format, generating close to a billion dollar in 2020 almost three times the 2016 spending.
• 2020 will be the year that digital advertising spend overtakes that of traditional advertising.
• It's clear that COVID-19 has accelerated consumers' transition to digital consumption and triggered disruptive change - both positive and negative - across many forms of media.
• If Amazon's ad revenue grows in line with estimates, it will represent 8% of global digital ad spend by the year 2023, up from 3% in 2018.
• With a sizeable young population having access to smartphones, digital payments are rising and expected to form 80% of the transactions in India by 2025.
• The number of digital consumers in South East Asia would reach 310 million by 2025.
• In 2024, the value of digital commerce sales will exceed $4.11 trillion while mobile POS payment will jump to $4.15 trillion.
• Spending on digital transformation is expected to reach $2.3 trillion in 2023, accounting for the majority of IT spending for the first time.
• The Indian digital payment market is expected to more than double in value to $135 billion within the next four years.
• US B2Bs will spend $8.14 billion on digital ads in 2020, up 22.6% from 2019 when spending was $6.64 billion.
• In the coming years, China hopes to have mastered national defense big data sufficiently to control or even dominate the informationized warfare environment against great powers.
• Retail will spend $8.61 billion more on digital ads in 2020 than its next-closest vertical, financial services, and nearly $25 billion more than the lowest-spending industry, travel.
• By 2025, banks will lose out on $280 billion in payment revenue due to competition from digital payments and non-banks.
• The average spend per digital consumer will be around US$390 by 2025, over three times more than last year.
• The number of Southeast Asian digital consumers has grown exponentially and their consumption habits are shaping today's new norm and looking forward, online spending is expected to triple by 2025 and reach close to US$ 150 billion.
• The impact of digital adoption on businesses has never been more apparent with five years of digital acceleration condensed into one year and in Malaysia we are expecting approximately four million new digital consumers in 2020.

Last updated: 04 October 2020