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Indian advertising market to grow fastest at +10.7% in APAC: MPA

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MUMBAI: The Indian advertising market is poised to grow fastest over the next five years in the Asia Pacific region at a rate of 10.7 per cent.

According to report by Media Partners Asia (MPA), in spite of an overall slow rate of growth in advertising revenue in APAC at 5.3 per cent in 2015, India emerged as one of the fastest growing markets with a growth rate of 10.8 per cent. The report shows that India has taken over China, which stands at a growth of 8.5 per cent of advertising revenue, followed by Vietnam with 8.1 per cent.

Over the next five years, after India, the fastest growing market in the APAC region will be China at 8.4 per cent followed by Indonesia at 8.2 per cent; the Philippines at 7.7 per cent, and Vietnam at 7.3 per cent.

By 2020, China’s net advertising revenues will total more than $85 billion and Japan will remain the region’s second-largest ad market, followed by Australia, India, Korea and Indonesia.

DIGITAL ADVERTISING TO OVERTAKE TV

Staying in line with other industry predictions, MPA also foresees digital advertising taking over television advertising by 2017. Digital’s share of the advertising market in APAC is projected to overtake that of TV by 2017 and grow to 44.2 per cent by 2020 from 30.7 per cent in 2015. The biggest drivers will be Australia, China, Korea, Japan and Taiwan.

Although the rapidly growing markets of India and Indonesia will also contribute, TV will continue to be the biggest ad medium in key markets such as India, Japan and Korea by 2020.

Furthermore in Southeast Asia, TV will incrementally grow its share of advertising from 54 per cent in 2015 to 54.9 per cent by 2020, driven by the launch of digital terrestrial TV (DTT) in the Philippines and Thailand and a rebound in free-to-air (FTA) TV demand across Indonesia. In Asia Pacific, on average, MPA projects that TV’s share of total advertising will decline from 36.5 per cent in 2015 to 30.7 per cent by 2020.

MPA projects an increase to 5.8 per cent growth in 2016 and a CAGR of 5.5 per cent for 2015-20, reflecting stable but more moderate economic growth across both mature and emerging markets.

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