APAC to account for 40 per cent of global ad spend in 2018
Despite a previous year filled with talk of uncertainty, Dentsu Aegis Network has said the marketing and communications industry is not undergoing a recession in its latest ad spend report.
The holding company has said global ad spend will increase by 3.6 per cent in 2018, up from 3.1 per cent in 2017. The figure falls marginally short of Zenith’s most recent prediction of a 4.1 per cent rise.
Meanwhile, Asia Pacific ad spend growth is forecast to increase to 4.2 per cent this year, up from 3.5 per cent in 2017, and is said to be the leading contributor to global ad spend, contributing 39.7 per cent to the total US$20.3 billion incremental increase.
Ad spend in India is predicted to soar by 12 per cent in 2018, while China will dip from 6 per cent growth in 2017 to 5.4 per cent this year.
Nevertheless, China, is still expected to contribute the second highest amount of new ad dollars in 2018 behind the US, with its share totalling US$4.6 billion (22.8 per cent).
Alibaba, Baidu and Tencent will continue to dominate and together account for 64.1 per cent of total digital spending in the country, while online video is the fastest-growing medium, increasing by nearly a third this year.
In addition, China’s out-of-home market is predicted to increase by 1.7 per cent, while its traditional TV and print continue to face year-on-year declines.
However, APAC’s growth has been negative affected by the market in Australia. The country’s advertising market is expected to grow by a conservative 2.9 per cent in 2018 – down compared to the growth prediction of 4.8 per cent in the June 2017.
As a result, the APAC region did not meet its forecasted growth of 4.6 per cent predicted by DAN last June.
Meanwhile, as traditional media largely faces a decline across the globe, mobile spend is expected to continue its rise at the expense of the stagnating desktop market.
DAN predicted mobile spend to increase by 23.8 per cent in 2018 to reach US$121.1million, accounting for 62 per cent share of total digital spend. Desktop, on the other hand, will shrink by 0.2 per cent.
In addition, the company said advertisers will become “increasingly empowered” by having their own Data Management Platforms, and as a result will contribute to 23 per cent rise in programmatic spend this year – a drop from 26.2 per cent last year.
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