By the close of the third quarter of 2010, Nielsen reports that all 12 markets across Asia Pacific maintained earlier quarters’ growth momentum in ad spending. Although a number of markets, including China showed a deceleration in growth, there were eight markets registering double digit growth compared to the same quarter last year.
Richard Basil-Jones, Managing Director, Nielsen Media Asia Pacific comments, “Several Asian economies have been tackling rising inflation and introducing a tightening of stimulus spending, including China, which saw ad spend growth decelerate to 7%. However, China’s consumers remain upbeat and the growth engine of Asia still dominated main media ad spending, with 68% share in the region.”
Key Q3 advertising trends in Asia Pacific
- Ad spending in main media* across the region lifted to US$37.1 billion, an increase of 9% on Q3 2009
- Growth in advertising activity across all 12 markets for the second consecutive quarter
- Double digit % increases across 8 markets including strong performances by four of the top 5 markets –Indonesia and Indonesia (both +32%), Hong Kong (+24%) and Australia.
Chart 1. In Q3, media spend lifted 9% as all 12 Asia Pacific markets record growth over Q3 2009.
Chart 2. In Q3, main media spend across eight Asia Pacific markets record double digit growth over the same quarter in 2009 including strong performances by Indonesia, Hong Kong, India, and Australia. Despite some softening in a number of markets the overall growth trend reflected the underlying strength of the regions’ advertising recovery.
|Television, Newspapers & Magazines Across 12 Asia Pacific Markets|
|% Change with Q3 ’09|
|Total for Q3 2010||37,122,111||9%|
|Source: The Nielsen Company.|
“Putting the Q3 decelerating trend across some markets into perspective however, for the year to September 2010, main media ad spends showed a 14% lift over the corresponding period in 2009, and even more impressively, a 34% increase over the same period in 2008. This result reinforces the belief that for most markets, real growth in advertising activity is already well ahead of the period prior to the global financial crisis and suggests that despite some slowdowns in Q3, the region is remaining well ahead of global ad trends,” he added.
Chart 3. Comparing Jan to Sep 2010 ad spend trends, with 2009 and “Pre GFC” 2008.
“Although, consumer confidence in quarter 3 declined in 19 of 53 global markets globally with concerns of a double dip in key markets, the latest Nielsen consumer confidence index indicates that nine of the 10 most optimistic nations globally came from Asia Pacific. This unrivaled optimism is translating to how consumers intend to utilize their spare cash, including: 41% on holidays/vacations, 40% on new clothes, 39% on out of home entertainment, 34% on new technology and 25% on home improvements/decorating” Basil-Jones summarized.
Chart 4. In Q3 2010, despite global confidence slowing, nine of the top 10 most optimistic nations came from Asia Pacific.
Chart 5: Asia Pacific Consumers continued to outperform the global average for purchasing intentions with spare cash.