Media growth to stay flat in 2007: Universal

<P>The growth rate of Asia-Pacific's media market will remain flat in 2007 as concerns over high oil prices and rising inflation will apply the brakes to rising advertising spend in the region, according to projections from Universal McCann.</P> <P>Despite double-digit growth in China and India and a resurgent Japan, media spend growth across the region will dip fractionally from 5.7 per cent in 2006 to 5.6 per cent in 2007, predicts the Interpublic media agency.</P> <P>South Korea, Hong Kong, Singapore, Malaysia and New Zealand are expected to experience slower growth next year, while Indonesia, the region's fastest grower, will remain the same as in 2006 at 15 per cent, due to political instability and a stubborn recession. </P> <P>The overall outlook, however, is said to be positive. </P> <P>"The bigger picture for Asia-Pacific is extremely bright - there's no way you could call the region a declining market," said Jonathan Thurlow, deputy regional director of Universal McCann Asia-Pacific. </P> <P>"If you were in Europe, you'd be very jealous of these kinds of numbers. Bullish expectations for China in 2007 and 2008, driven by preparations for the 2008 Beijing Olympics taking effect in the second half of next year, will push the region ahead of the rest of the world in growth terms," he added.</P> <P>The Olympics, combined with efforts to prevent China's economy from overheating, will mean that advertisers will see the benefits of investing in China outweighing the risks, claimed the report: growth of 13 per cent over 2006 will be followed by a 13.5 per cent rise in 2007.</P> <P>Japan, Asia's largest media market, continues to show signs that a lengthy advertising downturn is over. <BR>Recovering corporate profits and emerging ad sectors - particularly in information technology and digital communications - is expected to see growth of 2.1 per cent over 2006 followed by a 2.4 per cent lift in 2007. <BR>Projections for India remain positive, with 13 per cent growth expected in 2007, despite lingering concerns over interest rates hikes and global oil price increases. </P> <P>The country's media market recorded 12 per cent growth in 2005, driven by strong domestic and global investment and continued rise in the purchasing power of Indian consumers. </P> <P> </P>