David Blecken
Jan 11, 2019

Digital to account for nearly half of APAC adspend in 2019: Dentsu Aegis forecast

Overall spending in the region is set to grow 4.5%. Singapore and Malaysia become predominantly digital for the first time.

Digital makes up 63% of total advertising investment in China (Shutterstock)
Digital makes up 63% of total advertising investment in China (Shutterstock)

Spending on digital media is set to grow nearly 13% to make up 49% of the total investment in Asia-Pacific, according to a forecast by Dentsu Aegis Network (DAN).

The figure means the region continues to lead the world in terms of digital spending. It will also be responsible for 42% of the global increase in digital spending. Globally, digital attracts 41% of the total, and will be the main channel in 26 of the 59 markets DAN surveyed.

Digital will take the lead in Singapore and Malaysia for the first time. The channel is most prominent in China with a 63% share. Australia (52%), New Zealand (49%) and Hong Kong (48%) and Taiwan (43%) have the next-highest level of adoption.

Mobile is digital’s growth engine, making up 58% of total digital spending in the region. In China, it will be as high as 76%, DAN said.

At the same time, overall advertising spend growth is set to slow in most major global markets, the exceptions in Asia being India and Japan, which are set to grow 10.6% and 0.6% year-on-year. Asia-Pacific as a whole is expected to grow at a rate of 4.5%.

Growth in global advertising spend 2018-2020
(Year on year % growth at current prices)

 

2018 2019 (forecast) 2020 (forecast)

GLOBAL

4.1 (3.9) 3.8 (3.8) 4.3

NORTH AMERICA

3.4 (3.4) 3.1 (3.2) 3.6

USA

3.4 (3.4) 3.0 (3.1) 3.6

CANADA

3.7 (2.3) 5.2 (5.1) 5.1

W. EUROPE

3.4 (2.9) 3.2 (2.9) 3.3

UK

6.5 (4.2) 6.1 (4.7) 7.1

GERMANY

1.0 (2.6) 0.5 (2.9) 0.5

FRANCE

3.6 (2.5) 3.1 (2.8) 2.5

ITALY

1.6 (1.4) 0.8 (1.1) 1.6

SPAIN

1.8 (1.5) 1.2 (1.2) 0.8

C&EE

8.6 (7.8) 5.8 (6.6) 6.2

RUSSIA

12.0 (11.7) 6.9 (8.5) 6.7

ASIA PACIFIC

4.6 (4.5) 4.5 (4.4) 4.9

AUSTRALIA

3.7 (2.8) 2.4 (2.4) 2.6

CHINA

7.8 (6.5) 7.0 (6.0) 6.4

INDIA

9.6 (10.5) 10.6 (11.1) 11.6

JAPAN

0.2 (1.5) 0.6 (1.2) 2.4

LATIN AMERICA

9.9 (6.9) 7.9 (7.3) 8.6

BRAZIL

7.1 (2.3) 3.6 (2.6) 6.2
Figures in brackets show previous forecasts from June 2018

Globally, programmatic is set to grow over 19% as marketers apply the technology to more ‘traditional’ formats such as TV and OOH. OOH, TV and radio will grow at 4%, 0.5% and 1.1%, respectively, DAN said, noting that innovations such as voice assistants meant that audio media was becoming more prominent. 

In a statement, DAN’s outgoing regional CEO Nick Waters attributed the growth of digital spending in Asia not just to innovation in technology but the increasing rate at which consumers are adopting it. He pointed to China (the leading market in terms of adoption) as a barometer, noting that the upward trend is likely to continue. 

Growth in global advertising spend by media, 2018-20
(Year on year % growth in current prices)

 

2018 2019 (forecast) 2020 (forecast)

Television

0.8 (1.2) 0.5 (1.1) 1.6

Newspapers

-9.1 (-7.5) -7.2 (-7.4) -6.8

Magazines

-6.8 (-6.5) -7.0 (-6.4) -5.4

Radio

2.7 (2.0) 1.1 (1.2) 1.2

Cinema

3.2 (5.9) 4.5 (5.2) 4.5

OOH

4.7 (2.2) 4.0 (2.1) 3.9

Digital

13.8 (12.6) 12.0 (11.3) 10.8

Figures in brackets show previous forecasts from June 2018

 

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