The APAC advertising market is concentrated around China and Japan, which combine to represent 70% of total regional ad spend and ad revenues.
According to new data from Magna’s Global Advertising Forecast, the global economy has recovered in line with expectations (GDP +5.9% vs +6.4% expected in April) and, in most markets, so has marketing activity and advertising spending.
Magna’s said the recovery was particularly strong wherever COVID vaccinations were fast and comprehensive and allowed full business re-opening early in the year: US +6.0%, UK +6.8%, France +6.3%.
“Some other large markets displayed tepid economic recovery by comparison, due to underwhelming vaccination and lingering COVID restrictions and/or a manufacturing sector crippled by supply-chain issues,” said Magna in a release, citing growth in Japan +2.4% and Germany +3.1%.
Asia Pacific advertising growth
The APAC advertising market is concentrated around the two largest markets China and Japan, which combine to represent 70% of total regional ad spend and ad revenues.
This has decreased slightly over the past year, says Magna, because China’s growth in 2021 has been slower than most APAC markets.
“This is due to a combination of factors including a difficult comparison in 2020 (China was one of the few markets that still grew spending in 2020), as well as a government crackdown on digital media owners which has crimped overall advertising revenue growth in digital formats,” said Magna
“In 2022, the strongest growth in APAC will come from India (+15%), the Philippines (+14%), China (+13%), and Malaysia (+12%). The weakest growth, on the other hand, will come from Thailand (+3%), Vietnam (+6%), and Hong Kong (+8%), some of which are still struggling with their worst COVID outbreaks of the crisis.
Overall, the Asia Pacific advertising economy grew by +16.5% in 2021, following the recession of 2020 (-0.8%), according to Magna which forecasts in 2022, the Asia Pacific ad market will expand by +11.2%, close to the global average of +12% and in line with the pre-COVID long-term regional growth.
“As the pandemic continues to impact consumer lifestyle options and choices across many markets, it comes as no surprise that accelerated digital ad revenues continue to take share, growing by +23% in 2021, with a predicted +16% in 2022,” said Leigh Terry, CEO Mediabrands APAC.
“However we can see that APAC consumption is even more significantly skewed towards Ecommerce than it is in mature western markets. Giants like Alibaba, JD.com, Rakuten, and Pinduoduo, have grown to the point where shopping online is just as large as shopping in person, while eCommerce sales account for an average market share of 20% of total retail sales in the West.”
Regional growth is driven by large markets such as China (+16.7% in 2021, +8.0% expected in 2022), and …….
Source: https://www.brandinginasia.com/the-asia-pacific-advertising-economy-grew-by-16-5-in-2021-says-magna/