APAC digital advertising spending boosted by mobile – overall ad growth still below expectations

Anne Freier

In Mobile Advertising

December 6, 2016

magna global ipg
The Asian Pacific advertising market has been growing steadily this year, reaching 5.3%. That puts it in second place right behind North America, at a 30% share in global ad revenues.
These are the results of a new report from Magna Global and IPG Mediabrands. Though overall growth of $148bn is still below Magna expectations of 6%, a similar rate of 5.4% is expected for 2017.
APAC ad forecast
Source: magnaglobal.com
TV ads still make up the majority of spending (39%). However, digital is catching up fast (18%) accounting for a third or $51bn in total ad spend.
Mobile spending boosted most of digital at a share of 40% to over $26bn. Indeed, it now makes up half of all digital ad spend in APAC. Meanwhile, TV spend grew just 2% and print shrank by 10%.
China continues as the second largest ad market worldwide, trailing the US and now accounting for $61bn in ad sales this year. But a slowdown of the economy may put a damper on growth and it missed initial expectations of 8.4%. As of right now, the forecast for 2017 is even lower at 6.5%. However, China continues its rank as one of the top digital and mobile advertisers. Indeed, mobile increased by 39% and is set to reach $37bn by 2021.
Digital ad spend on the rise
0_0_0_0_70_campaign-asia-content-MAGNA_DIGITAL APAC_2017[2]
Source: magnaglobal.com
The report noted some of the most significant growth rates in APAC came from the less developed markets including the Philippines (17%), Sri Lanka (15%), India (14%) but also Pakistan (13%).
There’s also a slight backward trend for Hong Kong (-2%), Singapore (-4%) and Thailand (-13%), which has been attributed to the ad blackout after King Bhumibol Adjulyadej’s death.
Overall, the Indian market doubled in size over the last six years. In 2016, ad sales reached $8.7bn. The country represents a good opportunity and much room for growth. It has some of the weakest ad intensity rates, but sales are predicted to jump to 1 trillion rupees in 2021 and digital is catching up fast.
In Australia, digital is king. It now represents 48% of total ad expenditure, predicted to grow to 65% by 2021. Overall market growth was 7% to $11bn.