Asia Pacific Advertising In Full Upswing

Asia Pacific Advertising In Full Upswing

Double Digit Growth In First Half 2000

Auckland, October 19, 2000 – Advertising expenditure figures released by ACNielsen AdEx for the first six months this year show the Asia Pacific advertising industry in full upswing. With the exception of New Zealand, all 11 countries measured returned double-digit growth, peaking at 44% in China and 46% in Indonesia.

“Growth so far this year has been outstanding - the advertising market in Asia Pacific continues to outpace economic growth. In the first six months, the Asia Pacific market earned close to US$13 billion, with key markets like China, South Korea, Hong Kong and Australia all showing strong gains,” said Steven Yung, president, ACNielsen Media International.

“The outlook is bright for the rest of the year. The regional economy is on its course of a steady recovery, and we expect to see more dot.com advertising as the new economy takes shape, giving added momentum to the industry,” Yung said.

"The focus of ACNielsen Media International on the dynamics of the advertising economy continues to facilitate the strong growth of this exciting industry. We help our clients identify business opportunities by showing them where the money flows.”

North Asia

In North Asia, the US$4 billion (RMB33 billion) China market, the biggest in Asia Pacific outside Japan, led the region with 44% growth, while South Korea, the distant second with US$2.7 billion (2,969 billion Won), returned an impressive 35% growth. Hong Kong grew 20% to US$1.6 billion (HK$12.9 billion).

Healthcare products led the growth impetus in China, where TV advertising continues to command the lion’s share of the fast growing market. In the first six months, TV has attracted an equivalent of US$3 billion (RMB24 billion) advertising, taking up an overwhelming 73% share of the advertising pie and making TV in China the biggest medium in Asia Pacific, three times bigger than South Korea or Australia.

Southeast Asia

Thailand became the biggest advertising market in Southeast Asia with a 27% gain to US$723 million (Bt$28 billion), surpassing the Philippines which reported US$635 million (Peso 28 billion) after a 17% growth. Singapore ranked third with a turnaround of 28% growth to US$414 million (S$715 million).

However, it was Indonesia that stood out from the pack with a 46% growth to reach US$360 million (RP$3.6 billion). Despite the political instability, the consumer economy has picked up with the launch of a number of new, economy, brands into the market, taking advantage of adjustments in consumption patterns arising from the mid-1997 economic crisis.

Malaysia grew 29% to US$357 million (Rt$1.4 billion) while Vietnam grew 38% to US$47 million.
Pacific

Both Australia and New Zealand returned strong gains in the first half over full year 1999. Australia grew 15%, three times the annual growth in 1999, reaching US$1.8 billion (A$2.9 billion) at half year. New Zealand gained 9%, in comparison to a mere 2% growth in full 1999, to reach US$383 million (NZ$814 million).

ACNielsen AdEx gives gross advertising expenditures based on published rate cards and is a valuable reference to the advertising industry. In most countries, discounts are not taken into account when compiling ACNielsen AdEx. Australian figures are based on adjusted rate cards that take into account acknowledged market discounts available to advertisers, but confidential negotiations are not reflected. Growth rates are based on local currencies to reflect the level of activity, while foreign exchanges are converted at end of June rates to give a region-wide comparison of market values.

ACNielsen, with 1999 revenue of US$1.5 billion, is the world’s leading market research firm, offering measurement and analysis of marketplace dynamics, consumer attitudes and behaviour, and new and traditional media in more than 100 countries. Clients include leading consumer product manufacturers, retailers and service firms, media and entertainment companies and the Internet community.

Asia Pacific advertising growth, Jan-June 2000

US$ million Year-on-year Growth
(based on local currencies)
North Asia
China 3,978 44%
South Korea 2,672 35%
Hong Kong 1,646 20%
Southeast Asia
Thailand 723 27%
Philippines 634 17%
Singapore 414 28%
Indonesia 361 46%
Malaysia 357 29%
Vietnam 47 38%
Pacific
Australia 1,775 15%
New Zealand 383 9%
TOTAL 12,990
Source: ACNielsen Media International

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