Recession watch: Far East ad shortfall

04 May 2009

HONG KONG: Advertising in Asia-Pacific will fall by 3% in net terms in 2009, the first decline since the regional financial crisis of 1998, according to consultancy Media Partners Asia.

MPA is forecasting a strong recovery of 5% in 2010 but warns that the recovery could be just 2-3% if the Japanese economy remains in the doldrums. Japan contributes about 40% of the Asian market and Korea 9%.

Advertising in Japan in 2008 fell 4% and is likely to drop a further 10% in 2009 before a modest 1.4% recovery in 2010, the consultancy warns.

“The scale of the downturn in Asia is much greater than anticipated,” says MPA director Vivek Couto. “The advertising fallout in Japan is significant, Australia and Korea continue to weaken and China and India remain soft.

“More deterioration in any of these markets will hurt regional ad growth even more this year.”

MPA expects regional ad growth to centre on China, India and Indonesia with these markets growing at an average annual rate of over 10% in the next five years despite the current slowdown.

Data sourced from The Asia Media Journal. additional content by WARC staff.