China's digital spend is forecast to grow fueled by video, search, and mobile - continues to be major driver for growth in Asia Pacific region.
Increased investments of up to 50 percent in online video, search, and mobile will help digital media spend in China grow by more than 44.5 percent year-on-year, according to Carat's global ad spend forecast for 2013 and 2014.
Overall media spend for China is forecast to grow by 6.9 percent this year and is expected to increase 7.9 percent in 2014.
China's ad market growth, while more modest compared to previous years, trails only Russia among key advertising markets for 2013. China remains one of the leading markets for ad spend growth in the Asia Pacific region.
Japan is seeing a steady recovery of the ad market, with digital media spend forecast to rise by 7 percent.
In the rest of Asia Pacific, Indonesia (17.1 percent), Philippines (12.3 percent), and Vietnam (29.1 percent) are expected to see the highest ad spend growth rates.
However, the report did not break down on the digital media spends for each of these markets.
"We can expect more moderate rates of growth in China in line with slowing of the GDP growth, but the market continues to be the major player in driving growth in Asia Pacific," Nick Waters, CEO for Aegis Media Asia Pacific, said in a prepared statement on the global ad spend forecast for the region. "South East Asian markets continue to show significant and rapid growth".
Globally, digital media spend is expected to grab the second highest share of total ad spend at 18.3 percent this year, trailing behind TV at 43.8 percent.
Display spend growth is expected to climb up to 14 percent driven by online video and real-time bidding.
Paid search is forecast to grow by 16 percent. While Carat is optimistic that mobile will continue to grow exponentially, overall spend will "remain somewhat modest."
Double-digit growth rates for digital media spend are expected to continue through to next year with the media agency predicting year-on-year growth at 14.3 percent for 2014.
On the heels of a fantastic event in New York City, ClickZ Live is taking the fun and learning to Toronto, June 23-25. With over 15 years' experience delivering industry-leading events, ClickZ Live offers an action-packed, educationally-focused agenda covering all aspects of digital marketing. Register today!
Want to learn more? Join us at ClickZ Live San Francisco, Aug 10-12!
Educating marketers for over 15 years, ClickZ Live brings together industry thought leaders from the largest brands and agencies to deliver the most advanced, educational digital marketing agenda. Register today and save $500!
Adaline Lau, ClickZ Asia editor, oversees day-to-day editorial operations covering digital marketing from search to social media, mobile to analytics in the region. Before ClickZ, she was senior reporter at Marketing Magazine and has worked as a journalist for The Singapore Marketer and Asia Pacific Broadcasting. Connect with her @adalinelau or Google+.
Gartner Magic Quadrant for Digital Commerce
This Magic Quadrant examines leading digital commerce platforms that enable organizations to build digital commerce sites. These commerce platforms facilitate purchasing transactions over the Web, and support the creation and continuing development of an online relationship with a consumer.
Paid Search in the Mobile Era
Google reports that paid search ads are currently driving 40+ million calls per month. Cost per click is increasing, paid search budgets are growing, and mobile continues to dominate. It's time to revamp old search strategies, reimagine stale best practices, and add new layers data to your analytics.
June 10, 2015
12:00pm ET/9:00am PT