Asia Pacific to continue to lead global ad spend growth in 2019, but investments growth set to drop

Growth will continue to be dominated by digital (49%), with digital dominating close to half of APAC's share of total ad-spend.

The Asia Pacific will continue to be a leading contributor to global ad spend growth in 2019, contributing 42% of the global increase, according to Dentsu Aegis Network’s latest advertising spend forecast.

In 2018, the holding company forecasted that the region would contribute 39.7%, US$8.1 billion of the total US$20.3bn incremental global increase, led by markets China, Japan, India, and the Philippines. It also predicted that digital will overtake TV and will account for 38.3% share of total ad spend.

This year, Denstu predicts growth will continue to be dominated by digital (49%), with digital dominating close to half of APAC's share of total ad-spend. Digital will be the leading channel in 26 of 59 markets analysed, with Malaysia and Singapore joining this list for the first time.

With China coming in at 63%, followed by Australia (52%), New Zealand (49%) and Hong Kong (48%). Dentsu says this suggests that there is room for further gains for the region.

In addition, mobile will dominate growth as over half of APAC spend (58%) now delivered through mobile devices.

However, as 2019 will not benefit from global events such as the Winter Olympics and Paralympics, and the FIFA World Cup, there will be a slowing of growth in terms of investment across 10 of the top 13 advertising markets worldwide.

This means that there could be a decrease in growth in investments in APAC, with Dentsu predicting a 4.5% growth in 2019, down from 4.6% in 2018, taking total investment to USD $220bn.

“The Asia Pacific continues to see growth through digital connectivity – driven not only by advances in technology but the increasing speed of consumer adoption,” said Nick Waters, the outgoing chief executive officer of Dentsu Aegis Network Asia Pacific.

“This region has been leading the way in the uptake of new technology for quite some years, and the world-leading growth in digital seen in this forecast continues to show the Asia Pacific at the forefront of new developments in this area. In China where digital penetration is highest, the trend shows little sign of slowing down.”

China

Growth forecast at +7% in 2019 to reach RMB682.1bn. Digital dominates (63% of share) and growth will continue at +12.5%, driven by rising consumer affluence.

OOH is forecast to grow +10.0% whilst linear TV is forecast to decline by -4.0% as advertisers shift budgets to online TV.

Australia

Growth forecast at +2.4% to reach AUD16.3 billion in 2019. Growth will be driven by the upcoming state election (NSW) and Federal election during Jan – Apr, and part of Q2 of 2019.

Digital continues to drive advertising revenue growth and digital media is expected to increase by 5.7% in 2019. Online video is expected to reach the AUD2 billion market value by 2019.

Mobile is expected to increase by 28% to a total advertising market value of AUD5.3 billion in 2019, representing 62% of the total digital spend.

India

Growth forecast at +10.6% to reach USD10.1 billion in 2019. Television share continues to dominate ad-spend at 38.7% in 2019 with India being the second largest subscription television market in the Asia Pacific region in terms of number of subscribers.

There will be a slight but gradual improvement in digital forecast at +0.1%, representing 20.9% of total advertising spend with mobile accounting for 52% of total digital spend.

Get The Drum Newsletter

Build your marketing knowledge by choosing from daily news bulletins or a weekly special.