Media agency Carat adjusts APAC advertising spend forecasts with growth set to slow
Advertising spend in Asia Pacific is expected to climb 4.4 per cent in 2016, marginally slower than the global average, according to data released by Dentsu Aegis media agency Carat.
The regional growth is slower than the 4.7 per cent predicted in Carat’s September data with several markets hit by declining business and consumer confidence.
China’s ad spend is forecast to rise 5.8 per cent, down from 6.5 per cent previously forecast, with South Korea, Taiwan and Malaysia also seeing a slowdown in growth.
Ad spend in Taiwan is now expected to fall 0.4 per cent against a 0.3 per cent rise in Carat’s September report.
In Japan, however, the agency has revised its forecast upwards, with anticipated growth of 1.8 per cent, up from 1.6 per cent.
India remains one of the standout countries in Asia Pacific with the market described as “buoyant”. The agency forecast an increase in spend of 12 per cent in 2016, accelerating to almost 14 per cent next year.
Unlike many other markets, newspaper advertising growth “is expected to continue”, according to the data, with a rise of 10.5 per cent in 2016.
TV advertising in India is also “expected to remain dominant for many years to come”, and is forecast to rise 12.3 per cent this year, driven by strong spending from e-commerce companies and FMCG brands.
Despite the continued TV growth, Carat noted advertisers are “increasingly utilising Online Video as an invaluable complement”, although overall digital advertising spend in India remains low at 8.9%.
Globally, Carat expects total ad spend to rise 4.5 per cent to US$538b in 2016. Digital will account for 27 per cent, rising to more than 29 per cent in 2017.
The 15 per cent rise in digital ad spend this year – slowing to 13.6 per cent in 2017 – is being driven by growth in mobile advertising (38 per cent), online video (35 per cent) and social media (30 per cent).
But TV still leads the way, accounting for 42 per cent of global ad spend. Carat said the Olympic Games and US elections will help generate TV ad growth in 2016 of 3.1 per cent.
Steve Jones is regular contributor to Mumbrella in Australia and Asia having held the title of chief reporter for several years. He is a journalist with more than 30 years experience and has worked for a number of consumer and trade titles in the UK and Australia
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