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Singapore is only ad market in APAC to decline in 2015 as regional growth slows

Singapore is the only country in Asia to see a contraction of its advertising market over the last year, according to media owner ad sales revenue figures measured by Magna Global.

Of the 16 markets measured, Singapore’s ad market declined by 1.6 per cent, while the region overall grew by 5.6 per cent, to total $146 billion. Next year, the region is expected to slow to 5.2 per cent growth, largely due to the slowdown of China’s economy.

Source: Magna Global

Source: Magna Global

Neighbouring Malaysia has seen very modest market growth in 2015, with just a one per cent increase in media owner advertising revenue, according to the IPG media agency’s data.

Taiwan (1.1 per cent) and South Korea (1.1 per cent) also grew timidly.

By contrast, China and India grew faster than expected in 2015, growing by 9.9 per cent and 16.3 per cent, respectively. The Philippines was the fastest growing market in the region, up 17.9 per cent.

APAC the second largest region in the world after the US, with 29 per cent of global spend.

Despite signs that online video and mobile have started to take share from traditional television in Asia, only three APAC markets saw shrinking TV spend.

But the lion’s share of growth came from digital media, with the highest digital growth rates in Indonesia (74 per cent) and India (49 per cent).

Maturer markets such as Korea (+6.8 per cent), Japan (+10.9 per cent) and Australia (13.1 per cent) saw slower digital growth.

Digital ad revenue in APAC grew by 22.4 per cent to $43m, which Magna Global reckons makes up 29 per cent of total regional ad sales this year. That percentage is expected to rise to 32 per cent in 2016.

The drivers of digital growth are social media (up 42.8 per cent in 2015) and video (up 41.8 per cent). Social and video together now represent nearly one fifth of total digital spend, up from just 12 per cent three years ago.

Mobile is the main driver of growth across the region. Mobile-centric campaigns were up by 71.4 per cent, while desktop-based impressions are now stagnating (+2.8 per cent).

Globally, media owner ad revenue grew by 3.2 per cent, a stark contrast to the 4.9 per cent growth seen in 2014.

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