Adspend set to fall in Asia Pacific

16 July 2009

HONG KONG: Adspend levels will decline by 4.2% in Asia Pacific this year, before the region returns to growth of 3.7% in 2010, Media Partners Asia predicts.

The research firm has predicted that ad revenues will fall by 10% in Japan, Hong Kong and Singapore in 2009, with Australia also off by 5.3%, and Taiwan by 6.9%.

China, India, Indonesia, the Philippines and Vietnam are expected be among the few countries in the area that will enjoy an upturn in advertising expenditure this year.

In 2010, China is also expected to see an improvement in marketing spend of 11.6%, a figure that falls to 8.3% in Indonesia, and 8.2% in India.

By contrast, the Japanese ad market will post a further decline of 1.5% year-on-year in 2010, and will continue to contract during 2011 and 2012.

The advertising environment in Taiwan, Australia and Korea will also "remain fragile", with growth rates of between 0.5%and 3.5% next year.

Despite the impact of the downturn, the web is expected to record growth of 10% across the Asia Pacific region in 2009, and the medium will also take a market share of 15% by the end of 2010, up from just 6% in 2005.

Vivek Couto, director of Media Partners Asia, argued there has "been a distinct slowdown in internet advertising in China in particular."

Despite this, he added, the medium's "fundamentals remain robust, anchored to growing eyeballs, audience shift and more investment in better content and contextual applications."

Data sourced from Media Partners Asia; additional content by WARC staff