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
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
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.
December 6, 2016