The media network now predicts APAC growth of 5.6 per cent in 2014, up from a forecast of 5.2 per cent in September last year. For 2015, the company expects growth of nearly 6 per cent. The 2014 forecast for Australia has more than doubled, Japan's number rose by 3/4 of a percentage point and the figure for India increased more than a full point (see chart below).
“Asia Pacific now commands 35 per cent of global media spend, which is largely down to significant growth in digital, strength in China and Japan, and rapid growth in Southeast Asian markets," Nick Waters, CEO of Dentsu Aegis Network Asia-Pacific, told Campaign Asia-Pacific. “Southeast Asia continues to grow at a significant rate, with the Philippines and Vietnam leading the way. This provides a great opportunity for agencies to grow as the market strengthens."
China also remains a major driver of growth, albeit more moderately than in previous years, Waters said, adding that Japan’s digital spend will rise significantly, with growth in new media in all other markets across the region.
"Companies who are agile and provide innovative and integrated solutions will be able to unlock those budgets and work with clients to grow their businesses with their own,” he said.
Globally, Carat raised its 2014 prediction from 4.5 per cent growth to 4.8 per cent, and put its money on 5 per cent global growth in 2015.
Looking to other regions, the 2014 forecasts for both North America and Western Europe rose—from 3 per cent to 4.3 per cent for North America and from 1.4 per cent to 1.8 per cent for Western Europe.
However, the agency is now more pessimistic about Cental and Eastern Europe, where the 2014 prediction has fallen from 7.4 to 5.0 per cent, and Latin America, where the growth expectation has dropped from 14.5 per cent but still stands at a robust 12.8 per cent.