Media agency Carat adjusts APAC advertising spend forecasts due to slowing growth
Advertising spend in Asia Pacific is expected to climb 4.4% 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% predicted in Carat’s September data, with several markets hit by declining business and consumer confidence.
In Australia, 5h3 +2.5% growth in advertising spend seen last year is forecast to continue in 2016 to reach $13.7b by the end of the year.
China’s ad spend is forecast to rise 5.8%, down from 6.5% previously forecast, with South Korea, Taiwan and Malaysia also seeing a slow down in growth.
Ad spend in Taiwan is now expected to fall 0.4% against a 0.3% rise in Carat’s September report.
In Japan, however, the agency has revised its forecast upwards, with anticipated growth of 1.8%, up from 1.6%.
India remains one of the stand-out countries in Asia Pacific with the market described as “buoyant”. The agency forecast an increase in spend of 12% in 2016, accelerating to almost 14% next year.
Unlike many other markets, newspaper advertising growth “is expected to continue”, according to the data, with a rise of 10.5% in 2016.
TV advertising in India is also “expected to remain dominant for many years to come”, and is forecast to rise 12.3% 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% to US$538b in 2016. Digital will account for 27% – rising to more than 29% in 2017.
The 15% rise in digital ad spend this year – slowing to 13.6% in 2017 – is being driven by growth in mobile advertising (38%), online video (35%) and social media (30%).
But TV still leads the way, accounting for 42% of global ad spend. Carat said the Olympic Games and US elections will help generate TV ad growth in 2016 of 3.1%.
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