China and India fall under “Fast-track Asia,” where ad revenues rose 9.3: percent last year. With a slowing Chinese economy, Zenith expects an average of 7.9 percent a year between 2016 and 2019.
Advertising spend across Asia is predicted to shrink in growth by more than two per cent due to the knock-on effect of China’s slowing economy.
Media agency Zenith’s Advertising Expenditure Forecast has forecast 7.9 per cent growth for China, India, Indonesia, Malaysia, Pakistan, Philippines, Taiwan, Thailand and Vietnam – markets known as fast-track Asia – over the next three years. The figure marks a drop from the 11 per cent average between 2011 and 2016.
The Zenith report states: “The Chinese economy – the main engine of growth in fast-track Asia – is slowing down after years of blistering growth, and the ad market is slowing alongside it. China accounts for 74 per cent of ad spend in fast-track Asia, so its slowdown naturally has a large effect on the region as a whole.”
Meanwhile, growth in ‘advanced’ Asian markets such as Hong Kong, Singapore and South Korea, dropped from 5.3 per cent in 2015 – the best year since 2011 – down to just 1.4 per cent last year. Hong Kong in particular has suffered from a fall in shoppers visiting from mainland China, according to Zenith. The markets are now expected to average a growth rate of 2.8 per cent a year through to 2019.
However, despite a gloomy period for its economy, China is still expected to come second behind the United States in the number of new advertising dollars injected into the global market over the next three years.
Between 2016 and 2019, global ad spend is expected to reach US$74 billion in total: the US will make up 28 per cent of this, while China will contribute 24 per cent. Indonesia and India will form joint third place with the United Kingdom, contributing four per cent to the total.
The cities Jakarta, Shanghai, Manila and Beijing also sat alongside New York, London, Tokyo and Los Angeles in the top 10 cities for advertising expenditure.