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Reading: Dentsu Report: APAC Ad Spends To Grow 5.9% In 2022, As Digital’s Share Rises To 9.6%
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B&T > Media > Dentsu Report: APAC Ad Spends To Grow 5.9% In 2022, As Digital’s Share Rises To 9.6%
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Dentsu Report: APAC Ad Spends To Grow 5.9% In 2022, As Digital’s Share Rises To 9.6%

Staff Writers
Published on: 28th January 2022 at 9:48 AM
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Advertising investment is forecast to grow by 9.2 per cent globally in 2022, according to the latest dentsu Global Ad Spend Forecast report. The twice-yearly report which combines data from over 50 markets globally, anticipates $US745 billion will be spent globally.

Ad spend in Asia Pacific is expected to grow by 5.9 per cent, with digital forecast to increase 9.6 per cent to a share of 61.1 per cent of total APAC advertising spend.

Moving towards a second consecutive year of growth following the 5.0% market dip in 2020, 2022 is projected to build on a stronger than expected recovery in 2021 which itself saw a record-high 14.4 per cent growth in APAC, totalling $US241 billion.

When compared to previous global financial and advertising crisis, notably the financial crash of 2008, this rebound is almost three times greater: in 2022 the growth forecast at 9.2 per cent is nearly three times the 3.4 per cent growth in 2011 – second year post global financial crisis. In 2022 the global ad market exceeds the 2019 pre-pandemic level of spend by 18.7 per cent, whereas in 2011 the global ad market continued to be one per cent lower than in 2008.

In APAC, overall ad spend growth is boosted by key sporting events such as Indian Premier League, FIFA World Cup, Winter Olympics, and country elections in Australia and India. Digital and television continue to be the two powerhouses driving global and APAC ad spend, yet with opposite dynamics. Following a 24.8 per cent increase in 2021 (vs 29.1 per cent globally), dentsu forecast digital investment to grow by 9.6 per cent (vs 14.8 per cent globally) in 2022, fuelled by Social and Programmatic in APAC. This will result in the digital share of spend increasing to 61.1 per cent ($US150 billion) of the total ad spend in APAC, over twice as big as the television share of spend (24.5 per cnet) in 2022.

Linear TV ad spend increased by 5.1 per cent in 2021, the highest rate since 2013. In 2022, dentsu forecast linear TV ad spend to grow by 1.4 per cent to reach US$60 billion in APAC. Unlike digital and despite staying in high demand, dentsu is seeing linear TV share of spend on the decline – both globally and in the region – as Connected TV and Video on Demand (VOD) grow.

Out-of-Home (OOH) and cinema will both see encouraging growth in 2022, respectively 12.8 per cent and 23.4 per cent globally (vs 2.8 per cent and 30 per cent in APAC). Radio too is forecast to grow, yet at a slower pace of 1.5 per cent in APAC (vs two per cent globally). As with previous predictions, ad spend in newspapers and magazines will continue to decline globally and in APAC.

Globally, the industries who will see growth in ad spend this year will include the beleaguered travel sector which is forecast to see an 10.3 per cent rise. There is also confidence the automotive advertising spend will grow by 7.6 per cent in 2022. Growth follows a 11.5 per cnet increase in 2021 and steep declines in 2020 of -15.9 per cent. With pent up demand and a trend towards personal vehicles in how people want to travel post pandemic, there is confidence in the recovery of the Automotive sector.

Looking further ahead, APAC ad spend is predicted to grow by 5.6 per cent (vs 4.6 per cent globally) in 2023 and 4.9 per cent (vs 5.8 per cent globally) in 2024 – exceeding growth before the pandemic (4.1 per cent in 2019). Digital is forecast to increase its share of spend domination to 64.6 per cent in APAC (vs 59.4 per cent globally) in 2024. Of course, many factors contributing to the uncertain economic outlook could influence the predictions, from the evolution of the pandemic to supply chain issues, and dentsu recommend the industry keep a close eye on key economic indicators.

Prerna Mehrotra, CEO Media APAC, dentsu international said: “APAC region is expected to post robust growth in ad spend in 2022. India, Hong Kong and Vietnam will drive double-digit growth with rest of the region showing strong growth. The share of digital spends in APAC is set increase to 61.1 per cent up from 50.1 per cent in 2019 (pre-covid), driven by Greater China and ANZ. TV as a platform will continue to play a key role especially in Southeast Asia and South Asia.”

“Marketers will need to be nimble, leaning on technology and maximising opportunities in Video, Social, Connected TV and E-commerce. Use of data to drive business outcomes without compromising privacy or security will continue and we expect data collaboration to be a big focus for 2022. In light of the ongoing global turbulence and recovery, we will continue to work with brands to accelerate efforts to engage consumers and drive attentive reach,” she added.

Peter Huijboom (main photo), Global CEO media and global clients, dentsu international said: “The bounce back from the early pandemic impact continues to be strong, especially in digital. As we spend more time consuming digital media, brands have the opportunity to tap into the increased flexibility in which consumers engage through multiple touchpoints. Businesses who truly understand these developed human behaviours have the best opportunity to build lasting relationships with them.”

“It also comes as no surprise of the increased popularity in gaming. Dentsu launched its global gaming proposition in 2021. Along with the burgeoning Metaverse, there has never been a more exciting time for brands to experiment, innovate and engage with their customers – as all forms of media are increasingly more central to daily life and routine.”

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Staff Writers represent B&T's team of award-winning reporters. Here, you'll find articles crafted with industry experience spanning over 50 years. Our team of specialists brings together a wealth of knowledge and a commitment to delivering insightful, topical, and breaking news. With a deep understanding of advertising and media, our Staff Writers are dedicated to providing industry-leading analysis and reporting, both shaping the conversation and setting the benchmark for excellence.

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