SINGAPORE: The Philippines was the fastest growing advertising market in Asia-Pacific in 2016, according to a new report which also says the region accounted for one-third of the total global advertising market last year.

Data in Market Monitor: Advertising in APAC, from information and analytics business IHS Markit, shows that ad revenues across ten markets in the region (Australia, China, India, Indonesia, Japan, Malaysia, New Zealand, Philippines, Singapore and South Korea) increased 4.5% in 2016 to reach US$139bn.

And within those, the Philippines performed most strongly, rising by 14%, followed by India at just over 12% and Indonesia at just over 8%.

Qingzhen Chen, senior analyst, IHS Markit, highlighted several factors at work, including rising consumerism, an emerging middle class and rapid mobile device adoption among a younger demographic

"These factors will continue to propel the growth of advertising in the longer term," she said.

"In contrast, growth for mature ad markets like Australia and Japan continues to be predominantly driven by innovation, better audience measurement, and digital adoption of traditional media via 'out-of-home' access," Chen added.

Online advertising has exploded over the past five years, with IHS Market reporting a CAGR of 301% between 2011 and 2016. That will slow to a more modest 11.9% over the next five years between 2016 and 2021, and while online is making inroads into traditional media it remains some way from overtaking it.

"Despite the double-digit rate, online ad revenue is still small compared to traditional TV media," noted IHS Markit analyst Kia Ling Teoh. "Structural factors such as poor connectivity and broadband infrastructure cap the level of growth possible in Asia-Pacific's online ad markets," she explained.

Traditional TV took a 39% share of all ad revenues in 2016 and is expected to continue to grow at a CAGR of 2.2% between 2016 and 2021. Its share is slowly being eroded by online media but it will still account for more than one third (34%) in 2021.

Data sourced from Campaign Asia-Pacific; additional content by WARC staff