Matthew Miller
Sep 11, 2014

Regional ad spending to grow 5.4 per cent this year: DAN

ASIA-PACIFIC - Dentsu Aegis Network has reduced its 2014 adspend prediction for Asia-Pacific, but only slightly; the company now predicts 5.4 per cent APAC growth, second only to Latin America in an overall positive global forecast.

Regional ad spending to grow 5.4 per cent this year: DAN

The media network had in March predicted 5.6 per cent 2014 growth for the Asia-Pacific region. The lastest forecast revises that figure down to 5.4 per cent, but predicts the region will chart 5.9 per cent growth in 2015.

Asia-Pacific's performance, according to the forecast, will come in second only to Latin America (12.1 per cent this year and 11.8 per cent next year) and stands slightly ahead of the overall global growth prediction (5.0 per cent this year and next year).

The company provided some region-specific comments from Nick Waters, CEO of Dentsu Aegis Network Asia Pacific.

"With relative political stability across the region supporting solid economic growth, large numbers of emerging consumers, and increasing access to digital communications the advertising market retains a positive outlook in Asia," Waters said.

He cited growing disposable income in Southeast Asia, particularly Indonesia and Vietnam, as positive factors, along with optimism in Indonesia following the election of Joko Widodo as president.

In China, Waters said, digital growth above 30 per cent continues despite the slowing economy and despite the fact that the "large beverage, food, and real estate categories have all been negatively impacted by regulation, scandal, and cooling markets, respectively."

Japan and India will both see low growth or flat conditions, he said, citing Japan's sales tax increase and economic uncertainty "brought on by the Liberal Federal Government" in Australia.

"Conversely, in India business and consumer sentiment is improving following Nahendra Mohdi’s election success," Waters said. "The rate of advertising growth will pick up to high single digits again following a couple of years of relatively slower growth linked to the previous government’s policy paralysis."
 

 

 

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