New research into global advertising expenditure has forecast that the Asia Pacific region, which includes China, will be the biggest driver of global ad spend growth.
According to the report by Zenith, 33.8 per cent of global advertising expenditure in 2020 will be spent in this region and that it will contribute 43 per cent of all the new ad dollars added to the market between 2017 and 2020 – accounting for $32.1 billion of a total $75.1 billion of new global ad spending.
When breaking down the region by country, China remains the region’s leading growth market accounting for 22 per cent of global growth, followed by India with five per cent, Indonesia (four per cent), Japan (three per cent), the Philippines (three per cent) and South Korea (two per cent).
Jonathan Barnard, Head of Forecasting and Director of Global Intelligence at Zenith, said: “Dynamic markets in Asia Pacific are leading the way in global ad spend growth, growing at five to six per cent a year. By the middle of the next decade, it will be the biggest advertising region in the world.”
The world’s largest spender at the moment, the North American region, is forecast to experience a reduction in growth.
Mobile advertising is expected to overtake TV in 2021 if it maintains the current rate of growth.
Mobile will account for 30.5 per cent of global ad spend in 2020, according to Zenith, up from 19.2 per cent in 2017 – equating to a $187 billion spend in 2020. In comparison, $192 billion is forecast to be spent on television advertising – almost double the $88 billion spent on desktop advertising.
Vittorio Bonori, Global Brand President at Zenith, said, “The mobile device in our pockets is becoming the gateway to our media world, but its brand-building capabilities are still in question – simply applying old practices to new technology may not translate to brand growth.
“Having a clear understanding of how the entire ecosystem of paid, owned and earned media works together to drive return on investment is vital.”
At Grunberg & Co we are fortunate to have strong connections to the Asia Pacific region via our membership of Reanda International – a leading global accountancy network – and our dedicated China desk. If you are looking to tap into this market contact us to find out how we can help.