Asia-Pac advertising declines in 2020 | Media Analysis | Business | News

Pandemic-induced uncertainty and advertiser pullback in the first half of the year saw advertising in the Asia-Pacific region fall in 2020, leading to a net advertising expenditure of US$188 billion according to research from Media Partners Asia (MPA).
The Bridge ASia viu hbo 28 August 2019
The Asia Pacific Advertising Trends report found that digital advertising proved most resilient to soft advertiser demand in 2020, netting growth in most markets. It was the largest medium, contributing 59% of ad spend, followed by television (23%), out-of-home (9%), print (6%), radio (3%) and cinema (0.5%).

MPA’s study revealed TV advertising faced further pressure in 2020 as advertisers accelerated their transition to digital, declining 15% on an annual basis to US$43.3 billion. For mature markets such as Australia and Japan, MPA expects that dips in TV ad spend are expected to be permanent, with a return to pre-pandemic spend unlikely. The medium remains important in key markets where it retains its position as the largest ad segment as of end-2020, including India, Indonesia, the Philippines and Thailand.

Overall, the study showed TV advertising is expected to rebound in 2021, growing 4.6% year-on-year, before secular decline sets in again in 2023. MPA projects total Asia Pacific TV advertising spend to grow at a CAGR of 0.7% from 2020-2025 to reach US$44.8 billion in 2025.

TV broadcasters were also found to be growing online video ad market share through catch-up and dedicated AVOD streaming services, particularly in connected TV markets such as Australia, Japan and Korea. MPA calulate online video advertising, led by YouTube, contributed 16% to APAC digital ad revenue in 2020.

Taking into account local and regional AVOD and freemium platforms, including broadcaster-led platforms driving growth, MPA forecasts online video advertising to grow to US$33.3 billion in 2025, representing 20% of the APAC digital ad pie while topping 40% in emerging markets such as India and Indonesia.

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