Study: TV Ads Remain The Bulk Of Ad Spends (And Why It’s Good News For Seven)

Study: TV Ads Remain The Bulk Of Ad Spends (And Why It’s Good News For Seven)
SHARE
THIS



Revenue generated from advertisements in the Asia Pacific increased by 4.5 percent in 2016 compared to a year ago, reaching to $US139 billion. The revenue is expected to expand to $US182 billion in 2021, according to analytics firm IHS Markit.

The latest IHS Markit analysis covering Asia Pacific includes Australia, China, India, Indonesia, Japan, Malaysia, New Zealand, Philippines, Singapore and South Korea. The Asia Pacific region collectively contributes to revenues amounting to one third of the total global advertising market last year. 

According to the research, ad revenues grew in Australia by 4.3 per cent in 2016.

Screen Shot 2017-04-03 at 10.53.46 am

Analysis shows traditional TV media had dominated the Asia Pacific ad market in 2016, accounting for 39.0 percent of the total ad revenue. Still, TV commercials are expected to grow steadily with a compound annual growth rate (CAGR) of 2.2 percent between 2016 and 2021 for the ten aforementioned Asia Pacific countries studied. However, IHS Markit expects its share to decline to 34.0 percent by 2021 as stronger online media takes up a larger slice of the pie.

According to the research, Seven West Media was the eighth biggest revenue earner of all the media companies in the APAC region for 2016.

Screen Shot 2017-04-03 at 10.56.00 am

Commenting on the study, Qingzhen Chen, senior analyst at IHS Markit, said: “The Asia Pacific ad market last year, bolstered by robust performance of traditional TV media and rapid online growth, saw stronger growth that was underpinned by structural drivers, such as rising consumerism, the emerging middle class, as well as rapid mobile device adoption by a younger demographic in the developing markets,” he said.

“These factors will continue to propel the growth of advertising in the longer term. In contrast, growth for mature ad markets like Australia and Japan continues to be predominantly driven by innovation, better audience measurement, and digital adoption of traditional media via ‘out-of-home’ access.”

The latest IHS Markit analysis shows traditional TV media had dominated the Asia Pacific ad market in 2016, accounting for 39 per cent of the total ad revenue. Still, TV commercials are expected to grow steadily with a compound annual growth rate (CAGR) of 2.2 per cent between 2016 and 2021 for the 10 aforementioned Asia Pacific countries studied. However, IHS Markit expects its share to decline to 34 per cent by 2021 as stronger online media takes up a larger slice of the pie.

“While traditional TV media still remains an important revenue generator in Asia Pacific, print ads are expected to see imminent change over the next few years. Print ad has been growing in India, for instance, and it remained the dominant advertising medium in Singapore in 2016. However, we expect publishers to further trim their newspaper business moving forward, which has already taken place in Australia, New Zealand and Malaysia,” said Kia Ling Teoh, analyst at IHS Markit.

“Despite the double-digit rate, online ad revenue is still small compared to traditional TV media. Structural factors such as poor connectivity and broadband infrastructure cap the level of growth possible in Asia Pacific’s online ad markets,” Teoh said. 

By country, China continues to lead online ad market in the region, taking 63.1 percent of the total online ad revenue of the ten Asia Pacific ad markets collectively by 2021. China’s 650 million online users — twice the size of the US population — only accounts for half of China’s population, making it one of the region’s most attractive ad markets. “Domestic online companies continue to invest aggressively into digital advertising, and foreign publishers show no sign of retreat from trying to enter the market, notwithstanding tightening content and ad regulations,” Chen said.

Please login with linkedin to comment

Latest News

Image lead story UnLtd’s ‘Big Clash’ Raises Over $120K, With Media Owners & Media Agencies Crowned Champions
  • Advertising
  • Media
  • Technology

UnLtd’s ‘Big Clash’ Raises Over $120K, With Media Owners & Media Agencies Crowned Champions

With over 50 companies taking part, the fourth annual Big Clash cricket tournament has been the biggest yet, raising $124,000. The event once again brought the industry together for a great afternoon of cricket, drinks, music, and charity activations. This year, the event was expanded to have Media Owners, Media Agencies, Techies and Creatives all […]

SCA’s Profit Drops 21% Due To “Years Of Heavy Lifting”
  • Media

SCA’s Profit Drops 21% Due To “Years Of Heavy Lifting”

Southern Cross Austereo (SCA) has experienced a negative first half of the 2018 financial year, posting a dramatic drop in overall profit and a slight drop in revenue. The group’s net profit after tax fell 21.2 per cent to $48.5 million in the six months to 31 December 2017 (compared to the previous corresponding period), […]

by B&T Magazine

B&T Magazine
Lord Of The Fries Pays Homage To Kanye West & Kendrick Lamar In Clever Ads Via Milkman
  • Advertising
  • Campaigns

Lord Of The Fries Pays Homage To Kanye West & Kendrick Lamar In Clever Ads Via Milkman

Creative digital agency Milkman has helped Lord of the Fries (LOTF) pay homage to two of the fast food outlet’s favourite artists through a series of clever art poster adverts. Milkman re-created the latest album covers of Kanye West and Kendrick Lamar with a LOTR vibe to highlight the brand’s hip-hop roots and its favourite albums […]

Keep Left Wins PR Account For Greening Australia
  • Marketing

Keep Left Wins PR Account For Greening Australia

PR and content marketing agency Keep Left has been selected by proactive conservation organisation Greening Australia to raise public awareness of its flagship programs and national footprint. The relationship began in 2017 when Greening Australia engaged Keep Left in support of Reef Aid, a project launched with corporate partner Virgin Australia to improve water quality […]

Now Screen Repositions Organic Care Brand With New Campaign
  • Advertising
  • Campaigns

Now Screen Repositions Organic Care Brand With New Campaign

Aussie agency Now Screen has teamed up with Organic Care to reposition the brand in what has become one of the most competitive FMCG spaces. The new campaign, ‘Caring Comes Naturally’, celebrates what Organic Care has created since its inception: products that are as good for your body as they are for the environment. In […]

Can You Speak Data?
  • Marketing
  • Opinion

Can You Speak Data?

We're certainly fluent in gibberish, balderdash and claptrap here at B&T, but sadly data isn't part of the lexicon.

Opinion

by B&T Magazine

B&T Magazine
Social Change Maker Profile: Emma Heath
  • Advertising
  • Marketing
  • Media

Social Change Maker Profile: Emma Heath

B&T has partnered with UnLtd to showcase industry heroes! Well, it's arguably more heroine in the case of Emma Heath.

by B&T Magazine

B&T Magazine
Ad Fraud: A Problem We Can Solve
  • Advertising
  • Opinion
  • Technology

Ad Fraud: A Problem We Can Solve

Unlike B&T's mystery office farter, this columnist argues ad fraud is a problem that can possibly be solved.

Opinion

by B&T Magazine

B&T Magazine
Why We Pivoted Our ‘Specialist’ Agency Five Times In 15 Years
  • Marketing
  • Opinion

Why We Pivoted Our ‘Specialist’ Agency Five Times In 15 Years

In this opinion piece, Gavin McDonough (pictured above, co-founder and managing partner of Urban, shares through his own experience some valuable advice for independent specialist agencies. In November 2017, my brother Ryan and I celebrated 15 years in business. We started business out of my front room in Melbourne in 2002 – not with any grand […]

Opinion

by B&T Magazine

B&T Magazine
W+K’s Susan Hoffman Chosen As 39th AWARD Awards Chair Of Judges
  • Advertising

W+K’s Susan Hoffman Chosen As 39th AWARD Awards Chair Of Judges

Susan Hoffman, co-chief creative officer at Wieden+Kennedy (W+K), has been appointed chair of judges for the 39th AWARD Awards. Known to challenge the status quo, Hoffman is behind some of W+K’s most memorable and game-changing ads, including Nike’s ‘Revolution’, Old Spice’s ‘The Man Your Man Could Smell Like’ and Chrysler’s Super Bowl spots starring Eminem and Clint […]

Experiential Agency Kreate Gets Bought Out By Staffers
  • Marketing

Experiential Agency Kreate Gets Bought Out By Staffers

Leading experiential marketing agency, Kreate Australia is embarking on an exciting growth strategy following its purchase by three of the agency’s existing management team from its UK founder, Steve Evans.

Hurry! B&T 30 Under 30 Entries Closing Friday!
  • Advertising
  • Marketing
  • Media

Hurry! B&T 30 Under 30 Entries Closing Friday!

This is a clarion call for B&T 30 Under 30 entries, although it's probably more mariachi band than angelic harbinger.

by B&T Magazine

B&T Magazine
The Hit Network Chooses Comedian Tanya Hennessy To Host Weekend Breakfast
  • Media

The Hit Network Chooses Comedian Tanya Hennessy To Host Weekend Breakfast

Southern Cross Austereo’s Hit Network has announced that rising radio star and comedian Tanya Hennessy will take over hosting duties for its weekend breakfast slot in 2018. Hennessy will bring content to the airwaves each Saturday and Sunday morning from 7am to 9am with a regular rotation of guest co-hosts. The self-described talker, not walker […]

Straight Up PR Wins Five New Clients
  • Marketing

Straight Up PR Wins Five New Clients

Health, wellbeing and lifestyle PR agency Straight Up PR has welcomed Changing Habits, Unichi Wellness, enerGi, SleepX, and Healthie Hampers to its client portfolio. Straight Up PR’s projects will include bespoke PR services and influencer marketing packages specifically focusing on communications strategy and execution, media and influencer relations, PR launch events, product seeding and gifting, […]

March One Creates ‘Cheese For Change’ Fundraising Campaign For White Ribbon Australia
  • Advertising
  • Campaigns
  • Marketing

March One Creates ‘Cheese For Change’ Fundraising Campaign For White Ribbon Australia

Independent creative agency March One has developed a new fundraising event for White Ribbon Australia that turns a social moment into a social movement. Starting on Thursday 22 March and going until Sunday 25 March, Cheese for Change will ask Aussies to create a cheese platter that matters by gathering friends, family or co-workers together […]

Sixth Annual IGN Select Awards Winners Announced
  • Marketing

Sixth Annual IGN Select Awards Winners Announced

The winners of IGN Australia’s sixth annual Select Awards were revealed during a huge special event at the Australian National Maritime Museum in Sydney on Friday, February 16. Some 225 Media & Game Publishers alongside 320 IGN Community Gamers attended the annual event. 2017 was absolutely crammed with terrific games and several categories were extremely tightly-contested. The top […]

Meet Your Mentors For B&T Bootcamp 2018!
  • Advertising
  • Marketing
  • Media

Meet Your Mentors For B&T Bootcamp 2018!

When it comes to an industry "who's who", you'll find there won't be too much who-ing with this impressionable lot.

by B&T Magazine

B&T Magazine
ANZ Unveils Its 2018 GAYTMs
  • Marketing

ANZ Unveils Its 2018 GAYTMs

Mardi Gras is only weeks away and B&T has already hoisted the mirror ball and donned the hotpants to bring you this.