China will lead Asia’s contribution of adspend to the global market: ZenithOptimedia

The report said advertising expenditure in Asia-Pacific in 2012 was around US$140 billion, which will increase by 5.5 per cent in 2013, up to nearly $148 billion (excluding Japan).

Japan is recovering from last year’s earthquake and tsunami, but due to its low-growth economy, its adspend growth is expected to be just 1.4 per cent.

'Advanced Asia', which includes Australia, New Zealand, Hong Kong, Singapore and South Korea, is expected to grow 2.3 per cent in 2012, partly because of a slowdown in trade with China and global uncertainty that has encouraged advertisers to devote more of their resources to developing markets.

These markets are expected to return to 4 per cent growth in 2013, followed by 4.7 per cent in 2014 and 5 per cent in 2015.

The developing markets in the rest of Asia are growing rapidly as they adopt Western technology and practices, while benefiting from the increasing funds from investors hoping to tap into this growth.

Ad expenditure in the rest of Asia is expected to be 10.8 per cent in 2012, with 10 to 11 per cent annual growth in 2013 to 2015.

As China's economy is seen as on track for a modest rebound, it is expected to be Asia’s biggest contributor of new ad dollars to the global market, with adspend growth of more than $12 billion between 2012 and 2015. Indonesia is expected to follow, with adspend growth of US$4.5 billion.

Internet advertising is supplying most of the growth in expenditure by medium, driven by rapid development in social media and online video. It’s expected to grow by 14.6 per cent in 2013, with traditional media growing by 1.7 per cent.

Between 2012 and 2015, internet advertising is expected to account for 59 per cent of the growth in total expenditure, followed by television, which will contribute around 39 per cent of growth. 

However, because of the growth of online video, video formats overall (television plus online video) are increasing their share of global adspend, from 41.5 per cent in 2010 to 42.6 per cent in 2015.

“We are seeing a shift of ad dollars from the other mediums, especially TV, to the internet,” said Steven Chang, CEO of ZenithOptimedia Greater China. “Advertisers are looking to the alternative medium due to the expensive ad rate of TV advertising and the increasing popularity of the internet.”

However, advertisers are facing challenges in light of this shift. “Research on the measurement of internet advertising isn’t perfect, as its market coverage isn't fully covered compared to the offline media."