Asia-Pacific advertising revenues are set to rise by 5.8 percent in 2016, up from the 5.3 percent growth rate recorded this year, according to Media Partners Asia (MPA).
The 5.3 percent growth rate this year was the slowest recorded since 2009, MPA notes. The industry analysis firm predicts “stable but more moderate economic growth across both mature and emerging markets” for 2015 to 2020, with a 5.5 percent CAGR.
For this year, India was the fastest-growing market at 10.8 percent, followed by China at 8.5 percent and Vietnam at 8.1 percent. Indonesia saw a slower growth rate, while ad revenues were down in Singapore, Malaysia and Hong Kong. Australia posted a 2.8 percent increase, as did Japan.
For the next five years, India will continue to lead growth rates (10.7 percent), followed by China (8.4 percent), Indonesia (8.2 percent), the Philippines (7.7 percent) and Vietnam (7.3 percent). China will remain the region’s biggest ad market, generating revenues of more than $85 billion in 2020. Japan is the second-largest ad market in AsiaPac, with Australia third and then India, Korea and Indonesia.
In terms of share of ad revenues, digital will overtake TV by 2017, rising to 44.2 percent by 2020 as compared with 30.7 percent in 2015. Australia, China, Korea, Japan and Taiwan will lead the charge in terms of digital advertising. TV will maintain its dominance in India, Japan and Korea. TV’s share of total advertising will decline from 36.5 percent in 2015 to 30.7 percent by 2020.