Southeast Asia’s mobile-first habits are heading towards a major shift in 2025, driven by the rapid rise of Smart TV adoption and ad-supported streaming. Similar to India’s adoption of Connected TV (CTV), Southeast Asia is expected to outpace more mature markets, such as Australia, in the next few years.
CTV blends the premium storytelling of linear TV with digital precision, capturing audience attention on immersive, large screens. As its growing popularity scales the opportunity for co-viewing environments marketers are beginning to understand the untapped impact of the big-screen experience. Not just in terms of reach and brand awareness but for driving measurable outcomes.
Growing interest from both local advertisers and global brands looking to reach Southeast Asian audiences has supercharged CTV growth potential. The region is already experiencing rising CTV ad spend – with open programmatic CTV ad spend up 43% in Q1 of this year, compared with 2023 – and this is only set to continue into 2025. What really makes it interesting, though, is where that spend will come from.
In many other countries, we’ve seen a sizable shift in ad dollars from linear to Connected TV. But here, in a predominantly mobile-first region, we also expect to see it flow from social and digital video, setting a bold new course for digital advertising in Southeast Asia.
Smart TVs: The Gateway to Growing OTT Audiences
In Southeast Asia, we’re seeing a significant shift to streaming. With the region’s OTT market expected to reach $4.5 billion next year and APAC representing almost half of all global Smart TV shipments by 2027, Connected TV is set to take on the role as hub of the home. But it’s still going to take time for streaming to become the norm.
Skyrocketing Smart TV penetration in Southeast Asia is being driven by affordability, the growth of streaming apps and the rise of ad-supported models, like FAST and AVOD. As these formats gain traction, they provide an opportunity for marketers to connect with cost-conscious audiences that increasingly prefer streaming.
This significant shift in audience behaviour means advertisers relying solely on free-to-air TV to get their brand seen are at risk of missing audiences – particularly younger demographics. As advertising capabilities are being fueled by the growth of Smart TV, it’s now essential for brands to rethink their media mix and consider how Connected TV (CTV) can play a role in reaching untapped audiences.
Rise of Ad-Supported Streaming: Getting in the FAST lane
According to reports, Southeast Asia’s Subscription – or Premium – Video On Demand sector (SVOD) bounced back this year after a tough period, representing 1.6 million new subscriptions year-on-year. At the same time, as more Smart TVs have been switched on, consumers have also increasingly embraced ads in exchange for quality content. As a result, the region is now on track to contribute a significant US $796 million to global FAST revenues by 2027.
FAST, or Free Ad-Supported Streaming TV, is not trying to replace SVOD. Just like every other country, consumers ultimately gravitate towards the content they want to watch regardless of format. TV is just TV in the eyes of viewers.
FAST is still the new kid on the block in many countries, including Southeast Asia, but here seven in ten TV viewers already consume ad-supported streaming. What makes it attractive isn’t a complete reinvention of the viewing experience: it’s the welcome reprieve to the paradox of choice. FAST allows consumers to simply tune into a channel, lean back and relax for free, all in a streaming environment.
FAST also goes one step further by providing viewers with a short-cut to content. Unlike traditional TV, which requires substantial scale to break even, FAST offers a new format that enables single channel shows, nostalgic favourites and genre-based channels, as well as general entertainment, to be set up more easily. It’s easy to understand the consumer appeal of quality content that audiences can effortlessly dip into.
Local Stories, Global Platforms: The Power of Regional Content on FAST
Southeast Asia might be an emerging FAST market, but this places it at a significant advantage compared to more mature and developed markets like the UK and US. With a successful blueprint already available to work from, Southeast Asia has the unique potential to leapfrog FAST generations, drive faster adoption rates and scale at speed with offerings unique to its diverse region.
Home to almost 700 million people, Southeast Asia is a region where global content providers can achieve massive scale by tailoring content to highly specific, local preferences. With research showing local, culturally-reflective content drives repeat usage, it’s no surprise we’re already seeing platforms tap into nuances and language variations. For advertisers, this approach offers a powerful mechanism to address highly-engaged yet varied audience segments across markets like Indonesia, Thailand, and Vietnam through premium ad placement opportunities.
Looking ahead, the lower entry cost of FAST services will also create even more opportunity for localised offerings, both at home and abroad. For instance, sophisticated dubbing can enhance news channels, making them accessible in various languages and dialects across Southeast Asia. On the flip side, it can also help local content find new audiences globally, such as K-Content.
This thought leadership is written by Alex Spurzem, Managing Director, Samsung Ads Southeast Asia and Oceania (SEAO)
The insight is published as part of MARKETECH APAC’s thought leadership series under What’s NEXT in Marketing 2024-2025, a multi-platform industry initiative which features marketing and industry leaders in APAC sharing their marketing insights and predictions for the upcoming year.
