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Emerging Asia drives ad spend

News, 11 December 2015

SINGAPORE: Developing markets are leading the ad spend charge in Asia as growth stagnates in wealthier developed markets, new data indicates.

Asia-Pacific currently has the second largest regional ad spend after the US at 29% of the global total, and the fastest year-on-year average growth. But while Asia's ad markets are expected to grow at an average 5.6% in 2015, the pace is expected to slow to 5.2% in 2016.

A report by Magna Global measuring media owner ad sales revenue across the region, reported by Mumbrella, shows two key trends: soaring growth in emerging markets on the back of digital investment, but also the near-stagnation of growth in Asia's wealthier markets.

Singapore is the lone Asian market with declining ad spend for now, but growth was also very low in Malaysia, Taiwan and South Korea which are all forecast to record just 1% increases in 2015.

These more mature ad markets – which have been hyper-connected for several years – have been largely exempt from the mega-trends of increased income and millions of people coming online for the first time which are currently sweeping South East Asia's emerging markets.

Home to the regional headquarters of many agencies, and an Asian brand hub, Singapore's ad market may be an indication of what's to come as Asia's developed economies also begin to feel the crunch of China's slowdown.

In contrast, developing markets are continuing to grow. The Philippines is expected to be the fastest growing market in the region, with soaring 17.9% growth, while India is forecast to post a 16.3% increase. And despite the economic slowdown there, adspend is still likely to grow 9.9% in China.

While TV spend remains relatively consistent – market share is forecast to drop in just three markets – most growth is driven by digital media investment, with the highest digital growth rates in 2015 expected in Indonesia (an extraordinary 74%) and India (49%).

Digital ad revenue should make up 29% of total regional ad sales this year, and is projected to rise to 32% in 2016.

Data sourced from Mumbrella; additional content by Warc staff