ASIA Pacific ad spend to grow 8.1% in 2011: GroupM

Asia Pacific: GroupM has released the latest in the ‘This year, next year’ series of marketing spend predictions, forecasting a global spend increase of 5.8 per cent in 2011, compared to 8.1 per cent for the Asia-Pacific region.

At the forecasted rate of growth, Asia-Pacific is expected to overtake North America as the largest ad spending region by 2013, despite the recent upturn in US ad spending.

Asia-Pacific is being fuelled by the continued growth from China, estimated to grow by 10.7 per cent in 2011 (slightly down from 12.8 per cent in 2010), and a revitalised Japan forecast to grow at 3.2 per cent, but contributing an impressive US$ 1.6 billion in media spend.

Next are the two growth powerhouses of India and Indonesia, both contributing increases of around a quarter on already stellar years in 2010.

These four markets combined will contribute 75 per cent of the increase in total for Asia-Pacific advertising spend in 2011.

Not surprisingly, growth in China is expected to be driven primarily through digital channels.  However India is expected to contribute mainly through the return to form of traditional channels, with TV, radio and newspapers enjoying greater than 20 per cent growth. Digital will also be an ever significant driver, estimated to grow by a third.

“While we welcome the return to growth of the Japan and US behemoths, unrelenting consumer demand driven by new segments of prosperity in Asia markets will continue to drive marketing spending in this region” says Jon Wright, regional director of analytics and insight at MEC Asia-Pacific.