As for this year, the company said APAC total advertising spend will record growth of 6.3 per cent for 2013 when all is said and done, reaching $148.7 billion. The previous forecast in June had predicted 5.4 per cent growth in 2013.
In addition, the research company reported the following regarding Asia-Pacific:
- Television, which remains the largest media category in APAC, will finish 2013 with growth of 5.1 per cent, up from 4.3 per cent in 2012.
- TV will account for 42.3 per cent of 2013 spend in the region, but Magna Global expects this to fall below 40 per cent over the next five years.
- Digital grew by 22.4 per cent in 2013 to reach $33.6 billion.
- Digital media will exhibit annual growth of 17.3 per cent through 2018, increasing its share from 22.6 per cent in 2013 to 34.0 per cent in 2018.
- Spending on newspaper and magazine advertising will contract 1.4 per cent and 3.1 per cent annually through 2018, respectively.
- Print represented only 21.8 per cent of total spend in 2013, down from 32.2 per cent as recently as 2008.
- APAC now represents approximately 30 per cent of total global spend.
- China and Japan represent nearly two thirds of total APAC advertising revenues.
- China will pass Japan for the top spot in APAC as soon as 2015.
- The strongest growth markets in APAC are Vietnam (27 per cent growth in 2013), Indonesia (16 per cent) and the Philippines (13 per cent).
Turning to China, the ad market grew by 12.0 per cent this year to RMB278 billion (about US$46 billion), following 12.1 per cent growth in 2012. Magna Global predicts 13.1 per cent annual growth through 2018, reaching RMB515 billion (about US$85 billion).
- Television and digital dominate in China, representing approximately 75 per cent of total ad spend in 2013.
- Television grew by 7.3 per cent in 2013 and will grow by 8.3 per cent in 2014 thanks to World Cup spend.
- However, television is losing share to digital, which increased by more than 30 per cent in 2013 and will surpass television in 2014.
- Within digital, mobile only represents 10 per cent of 2013 spend, but is growing by 81 per cent, versus 28 per cent for "desktop" forms of digital.
- Mobile will represent nearly 28 per cent of total spend by 2018.
- Ad spend per capita in 2013 increased to $29 in China. This is steadily improving but remains significantly below the global average of $84 per capita.
- China will pass the $50 per capita level by 2018.
- Newspaper shrank by 9.2 per cent this year and magazines by 10.9 per cent.
- Print will make up only 5.5 per cent of total spend by 2018, down from this year’s expected 14.1 per cent share.
- Radio grew 13.0 per cent this year and will see 8.2 per cent annual growth through 2018, but only accounts for 5 per cent of total spend.
Globally, advertising revenues grew by 3.2 per cent in 2013 to $489.6 billion, a hair above the company's previous forecast of 3.0 per cent in June 2013. In 2014, the researcher expects an improving world economy to drive adspend growth of 6.5 per cent to $521.6 billion. That would represent the strongest year-on-year growth since 2010.
- Digital media was the fastest-growing media category in 2013, increasing 16 per cent to $118 billion and reaching a 24 per cent market share globally.
- Within digital media, social networks generated more than $9 billion of spend in 2013, growing by 58 per cent.
- Social-media and search spending drove a jump in mobile revenues, which grew 85 per cent to $16 billion, representing 14 per cent of global internet advertising.
- Programmatic spending, including real-time bidding and other automated platforms for video and display inventory buying, reached $12 billion globally in 2013.
- $7.4 billion of that programmatic spend took place in the US.
- Real-time bidding grow 60 per cent versus 2012 and accounted for $3.9 billion.