New Delhi: India is all set to become the third largest advertising market across Asia Pacific region, after China and Japan to touch $17.1 billion by 2022 from the current $9.2 billion in 2017, according to a report ‘Asia Pacific Advertising Trends’ published by global media research and consulting firm Media Partners Asia.
India will replace Australia which is projected to touch $13.2 billion by 2022 from $11.8 billion in 2017, according to the report.
Not just that. Over the next five years, India is expected to be the fastest growing ad market with the net ad revenue expanding at a compound annual growth rate (CAGR) of 13.1% between 2017 and 2022.
The report measures advertising revenues (after discounts) across 14 different markets of Asia Pacific on the basis of historical and projected data (between 2008 and 2022), net advertising revenues across different platforms like TV, Internet (search, display and online video), print (newspapers and magazines), out-of-home, radio and cinema, macroeconomic analysis and impact, and analysis of key drivers and challenges faced by markets.
These 14 markets include Australia, China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, New Zealand, the Philippines, Singapore, Taiwan, Thailand and Vietnam.
Overall, the net ad revenue in these markets is expected to touch $230 billion by 2022 from $180 billion in 2017, growing at a CAGR of 4.9%. “Future growth is becoming more challenged, as markets mature and working populations stagnate or decline. This leaves China and India as the main dynamos of advertising growth," said Vivek Couto, executive director at MPA.
Additionally, television will continue to be the largest advertising medium across India, Indonesia, the Philippines, Thailand and Vietnam till 2022, while Internet is expected to become the second largest ad medium over the next five years, according to the report.
“Consumers are spending more time on mobile, social and online video platforms, driving demand for Internet advertising. In most places, Google, including YouTube, and Facebook are dominant. In some markets, however, especially in India, Japan and Korea, local digital players, as well as key incumbents in TV and print, are beginning to grab a bigger slice of the pie. China, meanwhile, is entirely dominated by a local ecosystem." Couto added.
In 2016, Internet ad revenue across Asia Pacific rose 20.8% to reach $66 billion. Internet was the biggest medium for advertising in Australia, China, Korea, New Zealand and Taiwan in 2016. By 2022, Hong Kong, Japan and Singapore are expected to join their ranks, according to the report.