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APAC ad spend to hit US$8.1 bn surge: Dentsu Aegis

Dentsu Aegis forecasts improved ad spend for 2018

Dentsu Aegis Network’s latest Ad Spend Forecasts have announced that AsiaPacific spend will hit US$8.1 billion increase as growth accelerates to 4.2%, while digital media channels will continue to disrupt ad spend in 2018.

The Network’s forecasts, based on data received from 59 markets, puts global growth at 3.6% in 2018, up from 3.1% in 2017.

Asia Pacific ad spend growth is forecast to accelerate to +4.2% in 2018, up from +3.5% in 2017. The region is forecast to be the leading contributor to global ad spend growth in 2018, contributing 39.7%, US$8.1 billion of the total US$20.3 billion incremental global increase, led by markets China, Japan, India and the Philippines.

Events will play an important role in 2018: Winter Olympics, Commonwealth Games, Asian games and state elections are all expected to stimulate ad spend growth.

However, a slowing of growth in markets like Australia and China can be attributed to multiple contributing factors such as a naturally maturing market, ad fraud and data accuracy issues on top of a general economic slowdown.

The forecasts further state that digital media channels will continue to power ad spend growth, growing globally by 12.6% in 2018, versus 15% in 2017, to reach US$220.3 billion

Mobile will go from strength to strength, reaching US$121.1 billion having overtaken desktop as a share of total digital spend in 2017. Desktop will continue to lose global share (-1.5% since 2016), versus mobile’s gains (8.2% since 2016)

Digital overtakes TV, by a margin now exceeding previous forecasts. Digital ad spend will account for 38.3% share of total ad spend, TV 35.5%. Video (24.5%) and social (23.5%) will also drive growth within digital ad spend, powered by smartphone take-up and mobile-video in particular.

Commenting on the latest forecasts, Jerry Buhlmann, CEO of Dentsu Aegis Network, said, “The latest ad spend forecasts show a market in transformation, but not recession. The challenge for brands is to navigate an uneven economic outlook alongside a rapidly evolving tech and innovation landscape.

In many markets, disruptive innovation – from mobile, voice activation and new ad tech players – is still providing new sources of growth and we forecast this trend will continue into 2018.”

Nick Waters, CEO of Dentsu Aegis Network Asia Pacific, said, “Asia Pacific continues to lead the growth in digital ad spend. With the region’s fast adoption of technology and innovation, there will be a substantial shift towards mobile and smart devices.Consequently, mobile online video ads will be the main drivers of growth within digital ad spend across the region.”

“Data continues to be central to our business in Asia Pacific and with better understanding of new technologies, structures and models for business growth, agencies must help brands move from being disrupted to disruptor.”

 

 

 

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