Asia-Pacific will remain the fastest-growing region of the global economy over the next two years, according to the International Monetary Fund, driven by expanding manufacturing sectors that serve international markets, as well as a burgeoning middle class that has helped to increase domestic consumption. Despite differences in economic growth projections among Asia-Pacific’s constituent countries, the overall trend in ad spending for the region is a positive one. eMarketer expects that spending on all measured media in Asia-Pacific will reach $152.00 billion in 2014—a 6.3% year-over-year increase. Overall, the region will account for more than one-quarter (27.9%) of global ad spend this year, behind only North America’s 35.6%.
Our fifth annual “Global Media Intelligence Report” outlines how media and device usage trends are playing out in Asia-Pacific, along with how those trends are shaping up in regions throughout the world.
eMarketer estimates that Indonesia, India and China will boast Asia-Pacific’s highest growth rates in ad spending, led by Indonesia with 22.0%. All three countries are expected to sustain rates higher than the regional average through 2018. ZenithOptimedia’s “Advertising Expenditure Forecasts,” updated in June 2014, was in general accordance with eMarketer’s projections, estimating that ad spending in the region would increase by 6.5% year over year in 2014.
ZenithOptimedia also predicted an increase in the growth rate each year through 2016, noting that an “economic recovery in Western Europe leads to better trading conditions and higher corporate confidence.” The firm projected that annual ad spending growth for the region would increase to 7.4% in 2015 and 8.1% in 2016.
China will remain Asia-Pacific’s leader in digital advertising this year, accounting for 45.9% of all regional expenditures, worth $18.96 billion. Despite its economic concerns, Japan will spend the second-highest amount on digital advertising in the region, at $9.19 billion. Overall, digital ad spending in Asia-Pacific will reach $41.33 billion this year—an 18.3% increase over 2013. Of the core countries covered by eMarketer in the region, Indonesia will remain the least developed market for digital advertising through 2016 but is expected to surpass India in 2017 and then pull away from that country rapidly in 2018.
Digital advertising outlays in many of these markets are constrained by low internet penetration in many areas across Asia-Pacific. There are wide differences in web access among these countries, and sometimes even within them. For instance, the internet is more commonly accessed in large cities in China, India and Indonesia than in rural areas that lack the requisite infrastructure. Despite these limitations, eMarketer estimates that there will be 1.33 billion people in Asia-Pacific who access the internet at least once per month in 2014.