Asia Pacific’s ad market is set for a strong recovery in 2021, with growth of 8.1% to reach $175 billion, the latest Magna Advertising Forecast predicts.
However, the rebound will come after ad revenue in the region shrinks this year by as much as 8.5% to a total of $163 billion, worse than the global average fall of 7.2% ($42 billion in revenue loss), Magna says.
As reported in Marketing Interactive, Magna forecasts linear ad revenue in the region will see falls of 16.5%, while digital ad revenue streams will be flat year-on-year.
Although the revenue drop this year is dramatic, the region is forecast to remain the second largest for revenue after the United States, with APAC well ahead of the Europe, Middle East and Africa region (EMEA), which will see revenue of just $131 billion this year. Magna forecasts this gap between APAC and EMEA will carry on growing in the future.
Within Asia Pacific, Hong Kong will see ad revenue fall the most (-24%), as the economic effects of the pandemic come in addition to the negative economic effects of the prolonged political protests there. Malaysia will be second hardest hit, says Magna, with a fall of 18%, followed by the Philippines (-17%) and Japan (-14%).
In contrast, the ad market in India will experience growth of 2%, with a fall of only -2% in Pakistan.
Ad revenue in China is likely to fall by 6% this year, to $75 billion, making China the second largest country for revenue after the US, says Magna.
In the APAC region, digital formats will continue to drive ad revenue growth this year and beyond, the agency says, with social (+10%) and video (+4%), the strongest performers. While search is likely to see a decline of -2%, significant revenue declines will only be seen for banner display (-11%) and other digital (-16%). Mobile ad spend, however is expected to see growth of 6%, even in 2020.
However, paid search remains by far the biggest portion of digital ad spending in the region, Magna says, and accounts for nearly half of total digital budgets.
Sourced from Marketing Interactive