Ad revenue for Asia-Pacific to grow 8.1% in 2011

Tuesday, 21 June 2011 00:23 - - {{hitsCtrl.values.hits}}

Growth for Asia Pacific’s advertising revenue is expected to slow to 8.1 per cent this year. That’s down from a previous forecast of 10.2 per cent, IPG’s insights arm Magnaglobal has revealed.

The agency forecasts Asia Pacific ad revenue growth for the next five years (2012-2016) at 9.5 per cent on average, slightly higher than a previous estimate of 9.4 per cent.

China and India are expected to remain key drivers of the global economy this year. China’s advertising market should grow 20.4 per cent to US$ 28.1 billion (RMB188.7 billion) this year and will be the world’s second largest market by 2012, worth US$ 33.6 billion on a constant currency basis. Magnaglobal expects China’s advertising economy to have nearly doubled by 2016.

India’s advertising economy is expected to rise by 21.6 per cent in constant currency terms during 2011, generating US$5.3 billion a year. Over the next five years, the research firm predicts growth rates of 18.6 per cent on average. Paired with currency appreciation, India’s advertising economy should grow to US$ 16.5 billion by 2016, said the forecast.

Globally, Magnaglobal estimates worldwide ad revenues to grow by 5.2 per cent this year to a total of US$ 428.3 billion.

Over the next five years, the global ad market is expected to grow at a compounded annual growth rate of 6.8 per cent, up from previous expectations of 6.3 per cent in late 2010, bringing the global ad market value to around US$ 600 billion a year.