In Asia-Pacific, Carat predicts ad expenditure will grow 4.7 per cent in 2013, a decline from the 5.3 per cent growth stated earlier.
“Predictions for 2013 are lower than previously forecast due to a slower upturn of the global economy; however the expectation of market recovery to positive growth in all regions in 2014 is predicted,” Carat said in a detailed press statement.
Within Asia Pacific, Indonesia, Philippines and Vietnam have registered the highest growth rates so far. These markets have vast and growing domestic demand, coupled with increased foreign and domestic investment, Carat said. The Indonesian ad market is forecast to grow 17.1 per cent in 2013, the Philippines by 12.3 per cent and Vietnam by 29.1 per cent.
India also sees healthy growth in advertising expenditure at 7 per cent in 2013 and is expected to show a slight increase to 7.6 per cent in 2014.
Carat predicts China will grow 6.9 per cent in 2013. According to Carat, this is more modest than the stellar growth rates seen earlier. Still, China’s advertising marketing growth is still the second highest of the key ad markets in 2013, next to only Russia, which is growing at 11.2 per cent. Newspapers in China are seeing a decline in spend (down 6.7 per cent) and TV growth is in single digits (3.1 per cent). Digital media spends are skyrocketing with growth at 44.5 per cent fuelled by online video, search and mobile growth. The media agency forecasts a 7.9 per cent growth for China in 2014.
Japan is seeing a steady recovery particularly for TV and digital with growths of 2 per cent and 7 per cent respectively. While the first two quarters saw steady recovery, Carat predicts accelerated growth in second half of 2013 (1.3 per cent).
Australia is likely to remain flat after the ad market witnessed negative growth in the first half of 2013. Advertising spend is expected to return to peak 2010 levels in 2015.