The APAC leaders
China, Japan, South Korea, Australia, India, and Indonesia all ranked among the world’s largest ad markets. Japan is home to the top two leading advertising agency groups throughout the Asia Pacific region. Although Dentsu was by far the most valuable agency group exhibiting the highest revenue in 2020, Hakudodo came in a respectable second place – cementing the Asia Pacific region’s position in the global ad market. It is not surprising that Japanese agencies lead Asia Pacific’s advertising industry, as the country has demonstrated continuous increasing advertising expenditures from the onset of 2011.
The future of advertising, increasingly digital?
Asia Pacific has experienced significant technological advances throughout recent years. Internet connectivity has increased dramatically, thus, more people have access to the internet. Alongside increased internet access, more citizens own smartphones and tablets. Naturally, the advertising sector has also gone through a technological evolution alongside the region and has turned its attention to digital advertising. This is highlighted by the region having a higher internet advertising expenditure than traditional advertising mediums. Furthermore, digital advertising expenditure was forecasted to increase across the region. This appears to be the next logical step to make given consumers are eager to shop online more frequently. Subsequently, consumers may be influenced by the ads they see while online and could be motivated to make purchases.
The impact of COVID-19
Despite the success of Asia Pacific’s ad economy, expenditures plummeted due to the coronavirus pandemic. The outbreak of the coronavirus shook many vital industries across the Asia Pacific region; the advertising industry was no exception. Hitherto, advertising expenditure throughout the Asia Pacific region had increased annually however, a coronavirus outbreak-induced economic shutdown caused ad spending to lower dramatically. Nevertheless, there are expectations that advertising expenditure across the Asia Pacific region will yet again increase in 2021.