Asia Pacific to account for 33.8% of global ad spend in 2020

Mobile is a key driver of ad spend growth globally, according to Zenith's Advertising Expenditure Forecasts

Asia Pacific is now the biggest driver of global ad spend growth with the region set to account for 33.8% of global advertising expenditure in 2020, according to Zenith’s advertising expenditure forecasts.

The report forecasts the APAC region will contribute 43% of all the new ad dollars added to the market between 2017 and 2020, accounting for $32.1bn of a total $75.1bn.

China remains the region’s leading growth market accounting for 22% of global growth, followed by India with 5%, Indonesia (4%), Japan (3%), the Philippines (3%) and South Korea (2%).

Jonathan Barnard, head of forecasting and director of global intelligence at Zenith, said: “Dynamic markets in Asia Pacific are leading the way in global ad spend growth, growing at 5%-6% a year. By the middle of the next decade, it will be the biggest advertising region in the world.”

North America, which is currently the largest advertising region is forecast to decrease its growth, contributing 27% of new ad dollars between 2017 and 2020 while its share of global as spend falls from 37.1% to 36.0%.

Zenith predicts global ad spend will remain steady at 4.5% growth this year. Zenith has adjusted its previous forecasts to predict 4.2% growth for 2019 and 4.3% growth for 2020.

Mobile advertising is expected to overtake TV in 2021 if it maintains the current rate of growth. Zenith forecasts mobile will account for 30.5% of global ad spend in 2020, up from 19.2% in 2017. This will equate to $187bn in 2020, which is just behind the $192bn spent on television advertising, and almost double the $88bn spent on desktop advertising.

The meteoric rise in mobile ad spend is stealing share from other media, as expenditure increases at an average rate of 21% annually.

Meanwhile, television and radio are forecast to grow by 1% a year between 2017 and 2020, out-of-home advertising is expected to increase by 3% a year, however, print advertising continues to decline with ad spend expected to fall 5% a year for newspapers and 6% for magazines.

Cinema advertising is experiencing a significant boost with ad spend growing 16%, which Zenith attributes to investment in new screens, successful movie franchises, international marketing and the China market, where ticket sales increased 22% in 2017.

China overtook the US last year to become the world’s biggest cinema advertising market and is expected to be worth $2.8bn by 2020.

Despite the popularity of mobile, traditional mass media channels, such as TV are more effective at driving brand recall, according to Zenith’s Touchpoints ROI Tracker.

The research revealed mobile ads are least effective at driving recall among potential customers, with 53% as likely to recall television ads as existing customers, compared with just 41% for mobile ads.

Vittorio Bonori, global brand president at Zenith, said, “The mobile device in our pockets is becoming the gateway to our media world, but its brand-building capabilities are still in question – simply applying old practices to new technology may not translate to brand growth. Having a clear understanding of how the entire ecosystem of paid, owned and earned media works together to drive return on investment is vital.”

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