Asia Pacific is the leading contributor to the global increase of US$20.9 billion in 2019 compared to the previous year, contributing 39% of the global increase, closely followed by North America 34%.
Dentsu Aegis Network’s latest advertising spend forecast, based on data from 59 markets, predicts global growth will reach +3.6% in 2019, following growth of 4.3% in 2018, taking total investment to US$609.9 billion. In Asia Pacific, there is a predicted +4.0% growth in 2019, following +5.3% in 2018, taking total investment to US$216 billion.
• Digital continues to power ad spend growth and is forecast to grow 11.9% in 2019, increasing to a nearly 52.4% share in 2020.
Geographically, Asia Pacific is the leading contributor to the global increase of US$20.9 billion in 2019 compared to the previous year, contributing 39% of the global increase, closely followed byNorth America 34%.
Comparatively,Western Europe is forecast to contribute 14% to new ad dollars with Latin America at 11% and Central and Eastern Europe at 3%.
In Asia Pacific, forecasts have been revised downwards (-0.5%) from January following market softness at the beginning of the year particularly for TV, the lack of major events scheduled was also a contributory factor. China continues to be the leading contributor to Asia Pacific and global ad spend and will continueto grow in 2019by +5.4% to reach RMB 671 billion, a surprisingly healthy and stable growth rate, which remains on track despite the headwinds from trade tensions with the U.S.
The global forecast reflects softening growth across 9 of the top 13 advertising markets worldwide, with India and Brazil bucking the trend with accelerating growth in 2019. Some markets saw downward revisions from January 2019 forecasts including Italy and Russia with both markets seeing GDP slow alongside adspend.
Takaki Hibino, Executive Chairman, Dentsu Aegis Network Asia Pacific said “Asia Pacific has long been the melting pot of digital and technology developments. Though we have been facing a tougher economic environment, our ad spend forecast has shown that digital connectivity in APAC remains at its peak and consumer adoption rates have leapfrogged.
Our business is built for the digital economy and we’re at the forefront of this growth, working alongside our clients to provide integrated solutions and build long-term sustainable growth for their brands.”
Global media trends
• Digital continues to power ad spend growth and is forecast to grow 11.5% in 2019 to reach US$249.7 billion and 41.8% of global share. Growth is steady into 2020 putting digital’s share of ad spend at nearly 45% by the end of the year.
• Mobile is the fastest growing platform within digital and is forecast to grow 21.4% in 2019. Powering this growth is the increasing consumption of video on mobile – from Instagram Stories, TikTok and Snapchat to YouTube and VOD–with online video in general set to grow 20.5% in 2019.
• TV ad-spend is forecast to shrink slightly in 2019 (-0.1%)with a return to modest growth in 2020 of 0.6%. Into 2020 growth will be driven by more dynamic TV opportunities and innovation as the penetration of smart TVs continues.
• The decline of traditional print has accelerated from our January 2019 forecasts (Newspapers -7.7% and Magazines -7.4%) as digital continues to dominate.
• Out of Home sees continued growth and an upwards revision from January to 4.3% in 2019 to reach 6.3% share. Growth is driven by innovations in DOOH.