Growth in India and China helped region become world’s second biggest TV advertising market last year, report finds
TV advertising revenue in the Asia Pacific region overtook that in western Europe for the first time last year, as India and China grew and established markets suffered. Total net TV advertising for Asia Pacific, minus factors including agency commission and client discounts, was USD 27.9bn, according to a report from the media analysts Informa. The value of the western European TV ad market was USD 26.7bn. North America remained by some margin the biggest TV ad market globally, at USD 38.9bn. Earlier this week WPP chief executive Sir Martin Sorrell, addressing the International Advertising Association Conference in Moscow, said that the growth of advertising markets in Asia Pacific was a “shift geographically that is extremely fundamental to us”. He added that while the US had seen a strong recovery this year the situation in Europe remained “depressing”. Western Europe had been expected to stay ahead of the Asia Pacific region in terms of total ad revenue for several more years. This was because of major sports events such as the London Olympics in 2012 and football World Cups in South Africa this year and Brazil in 2014 – both held in countries compatible with European time zones, and therefore attractive to TV advertisers. However, Asia Pacific is now expected to stay ahead, although the gap between it and western Europe is forecast to narrow from more than USD 750m to USD 539m by 2012.