Regional advertising expenditure nears $30b

Regional advertising expenditure nears $30b

HONG KONG (AFP): The advertising market in the Asia-Pacific region broke the US$29 billion mark amid strong growth in 2000, but several markets are showing signs of a slowdown this year, ACNielsen Media International said Tuesday.

"Eleven markets reported double-digit growth and nine experienced faster growth in 2000 than in 1999," said Frank Martell, ACNielsen president for Asia Pacific.

"The year has been a good one but the outlook for 2001 is less certain as a result of the dot-com bubble bursting and the U.S. economy softening," he said.

China remained the biggest and fastest-growing market, with $9.692 billion spent on advertising in 2000, and growth of 57 percent, ACNielsen said in its latest advertising expenditure report.

South Korea came next rising 24 percent to $5.15 billion, followed by Hong Kong, up 17 percent to $3.539 billion, and Australia, up 18 percent to $3.37 billion.

India was fifth with $1.651 billion, and then the Philippines with $1.234 billion and Thailand with $1.151 billion.

Singapore followed with $854 million and then Malaysia with 810 million, Indonesia ($751 million), New Zealand ($701 million) and Vietnam ($101 million).

Meanwhile, ACNielsen said dot-com advertising in offline media had a mixed year in 2000.

It said while total expenditures went up, the market lost momentum following the Nasdaq crash last April that triggered worldwide skepticism towards the dot-com business model.

The report cited Hong Kong where dot-com advertising expenditures increased nine-fold to 176 million dollars, but took a sharp turn in the June quarter and saw the second half of the year finishing one-third lower than the first.

"Because dot-coms in Hong Kong accounted for five percent of total advertising expenditures in comparison to the less than one percent share in most other markets, we believe it is significant indicator of things to come in the region," said Martell.