Digital to account for half of APAC’s ad spend in 2019

Digital is expected to account for just under half of APAC's ad spend this year (Image metamorworks / iStockPhoto)

Digital is predicted to account for almost half of Asia Pacific’s US$220 billion ad spend share in 2019 and the region will also lead digital growth globally, says Dentsu Aegis Network.

The prediction comes from Dentsu Aegis Network’s latest Advertising Spend Forecast, which is on based on data from 59 markets. Global ad spend growth is forecast to reach 3.8% in 2019 (compared to 4.1% in 2018) taking total investment to US$625 billion.

Growth continues to be dominated by digital channels, with digital dominating close to half of Asia Pacific’s share of total ad-spend. Digital will be the leading channel in 26 of 59 markets analyzed, with Malaysia and Singapore joining this list for the first time.

APAC is expected to be a major growth region for digital in 2019, contributing 42% of the global increase with growth of 4.5% (4.6% in 2018) for a total investment of US$220 billion. Digital advertising is projected to grow 12.7% to reach 49% share of total Asia Pacific ad spend.

Expect strong growth on mobile to continue with particularly strong demand for video, the company said. This is driven by viewing on mobile devices and the growing popularity of catch up content. And despite safety and privacy concerns, social media growth forecast is expected to remain strong in 2019 with growth of 18.4%.

In addition, programmatic is expected to grow by 19.2% in 2019 as the model starts to be adopted across other media such as television and digital out-of-home (DOOH). With the focus shifting to digital, traditional print will continue to decline, with newspaper projected to shrink by 7.2% and magazines by 7%.

“Asia Pacific continues to see growth through digital connectivity – driven not only by advances in technology, but the increasing speed of consumer adoption,” said Nick Waters, CEO of Dentsu Aegis Network Asia Pacific.

“This region has been leading the way in the uptake of new technology for quite some years, and the world leading growth in digital seen in this forecast continues to show Asia Pacific at the forefront of new developments in this area. In China where digital penetration is highest, the trend shows little sign of slowing down,” he said.

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