The balance of power in advertising markets is changing as consumers in developing nations begin to come online and on mobile in ever-increasing numbers.It’s not much of a surprise that the UK was the biggest advertising spender in Europe last year. “According to the AdEx Benchmark 2014 report, by IHS Technology and the Internet Advertising Bureau, €8.9 billion was spent on online advertising in the UK in the 2014 calendar year (or £7.19 billion, using average exchange rates in 2014).” But the UK will lose its position as a significant spender before the next five years are up.
In Europe, France and Germany are the next biggest spenders. But Asia-Pacific is the fastest growth market, “Digital advertising spend in Asia-Pacific is expected to rise 30.3% to total $46.59 billion this year, according to eMarketer’s latest estimates of digital ad spending worldwide.” And in fact, Asia-Pacific is, after North America, the second largest digital ad spender worldwide.
Part of this is simply the billions of Chinese coming online. China now has the largest share of spending of any single country at about 50%. But Indonesia is growing the most quickly, expected to grow by 98% this year. Advertisers in Indonesia are still investing in print, but the arrival of users on smart phones is going to change that. Indonesia will be an example of how emerging countries leapfrog steps still being executed by their more developed neighbors. Indonesia will pass India in 2016 and pass South Korea in 2018. China, of course, will still post impressive growth. By 2017, digital ad spend in Asia is expected to surpass that of the North American market.
We Are Social and IAB collaborated on an intensive study of mobile digital growth in APAC, and the SlideShare of the report is here. To the left we list the most important growth numbers since 2014. You can see where this will take us very quickly.
To prepare for our customers’ response to this growth opportunity, we recently opened a Singapore office, and are about to open one in Australia. Since we have always been a big presence in India, we feel we have APAC covered. We’ve got the publishers, the market, and the mobile formats.