The ad economy in the Asia Pacific is forecast to grow +8.5% in 2024 to reach $289 billion. This follows growth in 2023 of +9.5%.
MAGNA’s “Global Ad Forecast” has released its summer update and is predicting net advertising revenues (NAR) will reach $927 billion this year, growing +10.0% over 2023.
This forecast marks a significant acceleration in the +6.4% global growth recorded in 2023 said MAGNA. Neutralizing the impact of cyclical events in 2023 and 2024, the normalized acceleration is still real but more modest: non-cyclical ad revenues grew by +7.5% in 2023 and will grow by +8.7% in 2024.
The APAC outlook – 8.5% Growth
The advertising economy in Asia Pacific will grow by +8.5% in 2024 to reach $289 billion. This follows 2023 growth of +9.5% to reach $266 billion. This is taking place in a slightly slowing, but stable, economic environment where real GDP is expected to grow by +5.2% in 2024 according to the IMF. Inflation in APAC has continued to decline and while some economies are still seeing sustained price pressures, others are facing deflationary risks. Global disinflation and the prospect of monetary easing have increased the likelihood of a soft landing.
Overall APAC growth of +8.5% in 2024 consists of traditional media owners seeing +0.8% growth to reach $68 billion (24% of budgets), and digital pure player publishers seeing growth of +11.1% to reach $220 billion (76% of budgets). Television budgets are stabilizing in 2024 and are expected to be up by +0.2% following 2023’s -2.3% performance. This increase in growth is primarily driven by the tailwinds of sporting events – primarily the Paris Olympics. The UEFA Euro 2024 tournament and other sporting events typically have only a minor impact in APAC markets.
“The digital dominance in APAC is expected to persist, with digital revenues forecast to account for 81% of total budgets by 2028, up from 76% in 2024,” said Leigh Terry, CEO IPG Mediabrands APAC,.
“This shift underscores the growing importance of digital channels in reaching and engaging consumers in the region. Sri Lanka, India, and Japan are poised for significant growth in 2024, with mature markets in the region also showing signs of recovery, and contributing to the overall positive outlook for APAC.”
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