China and India set for digital growth

16 November 2009

BEIJING: China and India will be among the markets which deliver the highest levels of digital adspend growth in Asia Pacific next year, Carat, the media agency network, has predicted.

According to the company, total advertising expenditure will be flat in Japan in 2010, at $48.3 billion (€32.5bn; £28.9bn), with China up by 7.9%, to $47.9bn, and Australia, the region's third-biggest market, largely static, at $10.6bn.

South Korea will generate growth of 5.8%, to $5.7bn, in the same period, with the Philippines recording an expansion of 9.7%, to $5.3bn, and India by 5.2%, to $4.3bn.

However, Indonesia is said be the fastest-growing nation on this measure, up by 16.4%, to $3.5bn, while New Zealand will be the only country to see a decline, down by 1.1%, to $1.1bn.

By medium, television ad revenues are set to increase by 12% across the region as a whole, giving it a market share of 52% in all.

Newspapers will also register an improvement of 2.4%, to a share of 20%, while magazines will grow by 0.3%, taking 5.3% of all spending as a result.

Outdoor will receive 8.5% of marketing budgets, with digital formats helping drive growth in the out-of-home segment, but radio and cinema will be responsible for a combined total of just 3.2%.

This will compare with the 11% share enjoyed by online, with ad sales through this channel climbing by 26% in India, 25% in China, and 20% in Thailand and Hong Kong, over the course of next year as a whole.

Across the 13 markets assessed, total spending will reach $136.9bn, up 4.1% on an annual basis, with media costs also set to rise by 4% year-on-year in the same timeframe.

Excluding Japan, which has suffered particularly heavily during the financial crisis, this latter figure is likely to be within the 8% to 10% range, Carat said.

The media agency further predicted that television ad rates will rise by 5% in Asia Pacific in 2010, compared with an uptick of 3% for print, 4% for outdoor, and 5% for the web.

By country, Indonesia will see prices surge by 13%, with India up by 12%, China by 10%, and the Philippines by 9%.

At the other end of the spectrum, Japan will record a contraction of 3%, with New Zealand also off by 5% year-on-year.

Data sourced from Exchange4Media; additional content by Warc staff