Regional sporting events like Fifa World Cup and Asian Games are set to power the advertising spend in Asia Pacific by 4.5% in 2018 according to Dentsu Aegis Network.
Asia Pacific, as a result, will now contribute 41% of the global increase (USD 613.5 bn). Comparatively, North America accounts for 32%, Western Europe accounts for 13% with Latin America at 8% and Eastern Europe 5%.
Meanwhile, digital will overtake TV for the first time, to reach 45.5% of Asia Pacific share (TV 33.5%). The report further stated that one quarter (24.9%) of Asia Pacific ad spend will be delivered through mobile devices for the first time.
In Chine, e-commerce platforms like Baidu, Alibaba and Tencent will power the advertising market to grow 6.5%, up from the previous forecast of 5.4%, to reach RMB 630 bn – 16.2% of global ad investment.
Ad spend in Australia will be primarily driven by government and pre-election related advertising at a growth of 2.8% to reach AUD 15.7bn. Investment in India’s ad spend is also expected to grow by 10.5% to reach 624 bn rupees.
Nick Waters, CEO of Dentsu Aegis Network Asia Pacific, said: “The region as a whole displays a positive outlook with increasing growth rates. We are seeing upward revisions in most key markets, with India, the Philippines and Vietnam showing high rates of growth. Spend in China continues to grow at pace, though driven almost entirely by the e-commerce platforms, Alibaba, Tencent and Baidu.
“Digital remains the dominant growth area with a quarter of Asia Pacific advertising spend expected to be delivered through mobile for the first time. Digital will be the leading form of advertising in half of the markets that we track in the region,” Nick added.