Digital advertising is expected to benefit from India’s expanding digital economy across online gaming, edtech, food and delivery platforms
Following a 27% plunge in 2020, ad revenue in India is forecast to rebound over 2020-25 with a CAGR of 13%, according to a new report titled Asia Pacific Advertising Trends 2021 from Media Partners Asia (MPA). Furthermore, digital advertising is expected to benefit from India’s expanding digital economy across online gaming, edtech, food and delivery platforms, outgrowing television to become the largest advertising segment by 2024. Asia Pacific Advertising Trends, published annually by Media Partners Asia (MPA), contains detailed analysis of advertising media across 14 markets in Asia Pacific with a focus on TV and digital sectors.
According to the report, net advertising expenditure in Asia Pacific, calculated after discounts, declined 4.3% year-on-year in 2020. As economies rebound, recovery is underway with ad spend forecast to exceed US$200 billion by end 2021, topping pre-pandemic levels for the region largely due to China, which will account for 56% of
total Asia Pacific advertising expenditure in 2021. Ad markets in Korea and Vietnam will also return to pre-pandemic net ad spend levels by end-2021. Most other countries will follow in 2022, bolstered by the growth of digital advertising; TV advertising will return to pre-pandemic levels in India, Thailand and Vietnam.
The Asia Pacific Advertising Trends 2021 report found digital ad revenue to be most resilient through the pandemic, with consumers across APAC spending more time online and brands accelerating digitalisation efforts. The role of e-commerce in advertising surged in 2020, with e-commerce contributing an estimated 39% of China’s ad revenues, while growing significantly, albeit from a small base, in India, Indonesia, Japan and Korea. Search and social advertising benefited as well. MPA has projected digital advertising’s share of net advertising spend to grow from 59% in 2020 to 67% in 2025.
Interestingly, TV advertising, which saw a decline by 15% year-on-year to US$43.3 billion, is expected to rebound in 2021, growing 4.6% year-on-year, before secular decline sets in again in 2023. MPA has projected total Asia Pacific TV advertising spend to grow at a CAGR of 0.7% over 2020-2025 to reach US$44.8 billion in 2025. The medium remains important in key markets where it retains its position as the largest ad segment as of end-2020, including India, Indonesia, the Philippines and Thailand.
The report also stated that TV broadcasters are growing online video ad market share through catch up and dedicated AVOD streaming services, particularly in connected TV markets such as Australia, Japan and Korea. MPA estimates online video advertising, led by YouTube, contributed 16% to APAC digital ad revenue in 2020. With various local and regional AVOD and freemium platforms, including broadcaster-led platforms driving growth, online video advertising is forecast to grow to US$33.3 billion in 2025, representing 20% of the APAC digital ad pie while topping 40% in emerging markets such as India and Indonesia.