MUMBAI: Advertising revenues in the Asia-Pacific region are set to pass $121bn by the end of this year according to a new report which sees the market growing at 5% in 2014 and at 5.7% in 2015 and China taking the top spot in 2016.
Media Partners Asia (MPA), a provider of information services, made the predictions in Asia Pacific Advertising Trends & Database 2014-15 and offered a longer term projection, suggesting that net advertising would increase at an average rate of 4.5% a year out to 2019.
The top six advertising countries in the region will be Japan, China, Australia, Korea, India and Indonesia, although the order will change, as China is expected to overtake Japan in 2016 and India to move ahead of Korea by 2017.
MPA executive director Vivek Couto noted that "ad spends from large multinational advertisers softened through much of 2014, partially offset by spends from domestic advertisers but this has dampened growth across Southeast Asia and other key markets".
Malaysia, Singapore and Thailand all reported reductions in adspend, helping to slow Southeast Asia to 1.2% in 2014, although spending here is forecast to come back strongly next year, at 7.5%.
"Multinational advertising demand may return but weakness across global emerging and developed ad markets may exert downward pressure on Asia," Couto said in remarks reported by Indiantelevision.com.
MPA suggested that TV's share of the advertising market had peaked in 2011 at 42.9% and was now on a slow downward trend. It anticipated TV would account for 41.6% of adspend this year and 40.7% by 2019.
If foresaw an especially challenging future for the medium in certain markets, notably Japan, Singapore and Korea.
Digital, meanwhile, will continue on its inexorable upward trajectory, as its share is forecast to increase from 23% in 2014 to 31% in 2019.
The report noted that digital had already overtaken TV to be the largest advertising medium in Australia; by 2019, this situation would be replicated in China, Korea and New Zealand. Other markets – India, Indonesia, Malaysia and Thailand for example – would see digital's share rise double or treble from the current figure of between 6% and 8%.
Data sourced from Indiantelevision.com; additional content by Warc staff