In 2012, media companies around the world saw their advertising revenues grow 3.8% to a total of US$479.9 billion, with that in Asia Pacific growing by an average 5.5% despite a slowdown in emerging Asia markets, especially China (9.2%) and India (2.6%).
This is according to Magna Global Advertising Forecast 2013, which forecasts media owners advertising revenues to grow 3.1% in 2013.
The study forecasts that in 2013, India’s advertising growth will re-accelerate to 8.7% while Chinese advertising will grow 9.5% in 2013 before going back to double-digit growth starting from 2014. This is driven by two factors – a very low ad-per-capita ratio and the need for global advertisers to reach the rising middle classes.
Most other markets in Emerging Asia will experience explosive growth – Malaysia (+9.7%) and Vietnam (+13.4%).
On a global basis, 2013 will see an increase in ad revenues for out-of-home (including cinema) (by 3.4%) and radio (1.5%), while television and magazines will see a decrease by -3.4% and -4.3%, respectively.
Digital media will see the largest increase in revenue in 2013 with 13.5%, as more investment shifts towards online video and mobile-based formats and paid search (+14%).
“Marketers are gradually embracing the new marketing and branding opportunities: mobile advertising already represents US$6 billion globally, i.e. 6% of digital advertising and 1% of total advertising. This format will grow to US$24 billion by 2017, reaching 14% of global digital advertising and 4% of overall advertising revenues,” said Vincent Letang, EVP, director of global forecasting and author of the report.