Byravee Iyer
Sep 13, 2013

Carat lowers ad outlook globally and in APAC

ASIA-PACIFIC – According to Carat’s updated advertising expenditure (ADEX) forecast, global advertising budgets are likely to come in lower than expected, growing 3 per cent versus the 3.7 per cent predicted in March 2013.

Carat lowers its ad outlook for 2013
Carat lowers its ad outlook for 2013

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. 


Related Articles

Just Published

5 hours ago

Mother's first H&M work is a love letter to young ...

From what you reach for on bloated period days, to the joy of compliments from other women on a night out, the campaign uses insight gathered over hours of conversations with young women across the UK.

5 hours ago

Lego Group invites adults to play as it launches ...

The toy production company has teamed up with Bafta Masterclass, Universal Music Group and fashion designer Grace Chen.

5 hours ago

The industry’s two-faced stance on climate change

Agencies are working to make their own operations sustainable but they remain committed to working for fossil fuel clients.

2 days ago

Asia-Pacific Power List 2022: Yves Briantais, ...

The 15-year company veteran is keen to keep his brand’s messaging fresh, drive premiumisation, and surge ahead with digital transformation.