Advertising spend forecasts in Asia Pacific show continued growth of +3.9% in 2016 and +4.2% in 2017, marginally revised down from the March 2016 report (+4.4% and +4.7% respectively). Overall, the outlook of the region paints a very mixed picture with variations at a local level.
- Advertising spend in Asia Pacific is expected to grow by 3.9% in 2016, according to Carat, a reduction of the growth rate of 4.4 per cent the media agency predicted six months ago.
- APAC is now growing more slowly than North America, Latin America, and Central and Eastern Europe, but the outlooks is brighter than Brexit-hit Western Europe.
- The region’s fastest growing major market this year will be India, growing by 12%, while China is expected to grow at 5.7% and Japan by 1.8%.
- Asia’s slowest growth markets are Hong Kong (-11.8%), Taiwan (-7.6%) and Thailand (-5.2%), due to lacklustre economic growth and weak demand.
- However, Asia is where three of the world’s highest growth markets are expected to be this year, with India, Vietnam and the Philippines posting 12%, 10.6% and 9% growth respectively.
- Regional market growth is expected to be more brisk in 2017, lifting to 4.2%.
- However in Japan, now Asia’s second largest advertising market and the next host of the Olympic Games, growth is expected to be slower in 2017 than this year.
“Spend forecasts in the region reflect a more conservative growth in China, as the market adjusts to a ‘new normal’ economic landscape,” the report reads. “This trend is expected to continue in 2017, with the Asia Pacific region growing at a healthy, yet moderate growth forecast of +4.2%.”