SHANGHAI: Internet adspend in Asia Pacific is set to record a compound annual growth rate of 23% over the period to 2017, when it should stand at $60bn overall, a forecast has predicted.

Forrester, the research firm, said in a new report, entitled "Asia Pacific Online Advertising Forecast 2012 to 2017", that China would account for 58% of the region's online advertising market by the end of this period.

The main contributors to this trend will include marketers competing to reach the expanding online population in the country, and a greater trust of search advertising among Chinese consumers.

While China may be the biggest market, India is forecast to be the fastest growing. Even so, it will remain the smallest market in terms of value in 2017.

Japan is expected to register the slowest growth, while Australia and South Korea will mirror the growth rates seen in the US.

The report noted that marketers in Asia Pacific are maintaining investment levels in traditional media and currently have limited access to digital skills, tools, and proven metrics.

Consequently, advertisers have been "cautiously experimental" about online advertising. But in the future, they are likely to be in the forefront of new mobile marketing formats as they seek to stay ahead of their competitors.

Forrester predicted that by 2017, 38% of consumers across Asia Pacific would own a smartphone, and the region would have a global influence as it led the reshaping of online advertising away from PC to mobile devices.

Data sourced from MIS Asia, Times of India; additional content by Warc staff