Emily Tan
Dec 5, 2011

Asia-Pacific ad spend to grow 7.2 per cent in 2012: Zenith

ASIA-PACIFIC - Despite the global economy's fragile state, ad expenditure in Asia-Pacific is expected to grow 7.2 per cent in 2012, compared with the global forecast of 4.7 per cent, a report by Zenith Optimedia has found.

Asia-Pacific ad spend to grow 7.2 per cent in 2012: Zenith

The region is becoming increasingly more important as a driver of global ad spend growth. This is reflected by the fact that Asia-Pacific’s contribution to total global ad expenditure will rise from 24.8 per cent in 2010, to 28 per cent in 2014, said Zenith.

Over the next three years, the media agency expects the region to grow at an average of 10.4 per cent a year, excluding Japan. The BRIC markets alone are forecast to account for 33 per cent of global growth over the next three years. Zenith also identified six other fast-growing markets, including Indonesia and South Korea, expected to deliver 15 per cent of global growth in the next three years.

In these markets, ad expenditure currently occupies 0.32 per cent of the local gross domestic product, less than half the world average of 0.7 per cent. That demonstrates a huge potential for growth in these markets, the report said.

China's growth rate looks set to increase to 16.4 per cent in 2012, up from 14.6 per cent in 2011. Factors helping to drive this, according to the report, are projected higher domestic consumption for local and international brands, interest in the summer Olympics, and the government promoting growth initiatives in light of the change in Chinese Premier.

Japan's ad expenditure is expected to recover from the dip it took after the earthquake in March this year, with a 3.1 per cent increase in 2012. Meanwhile ad-spending in India, Vietnam and the Philippines are forecast to grow at least five per cent in 2012. 

Overall, the internet continues to remain the standout medium for growth in Asia, with its share of the total ad spend looking to rise from 16.9 per cent in 2011 to 22.8 per cent in 2014. Television however, which takes the lion's share of the advertising pie at 40.7 per cent in 2011, is expected to decline slightly to 39.7 per cent by 2014.

Globally, Zenith believes advertisers will be in a "much stronger position to invest in marketing", compared with the start of the last downturn.
 

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