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Asian Pacific TV ad market booms

Region's revenue moves past W. Europe

LONDON — The size of the TV advertising market in Asia Pacific overtook Western Europe for the first time last year, propelled by booming economies in China and India.

Total net TV advertising for Asia Pacific was $27.9 billion, while Western Europe lagged behind at $26.7 billion, according to Informa Telecoms and Media.

But North America remained the dominant region by a considerable margin and was worth $38.9 billion.

This year global net TV advertising is expected to climb 3.7% to $116 billion, following an extremely difficult 2009.

Increased consumer and corporate confidence plus World Cup soccer, which kicks off next month, will help boost TV ad spend this year.

But total expenditure will not equal the peak achieved in 2008 until at least 2012.

Simon Murray, principal analyst at Informa Telecoms and Media, said: “The absence of a major international sporting event in 2009 added to the slump, which resulted in global net TV advertising expenditure falling by 8.1%.

“Overall expenditure fell in 39 out of the 53 forecast countries.”

He added: “We will definitely see an improvement this year as spending is set to increase in a number of territories including Argentina (up 16%), China (up 12%), India (up 10%), South Africa (up 15% as World Cup host), Turkey (up 15%) and Vietnam (15%).” “However not every country will record an improvement and TV advertising is forecast to fall in 10 countries (Czech Republic, Finland, Greece, Hungary, Ireland, Netherlands, Norway, Puerto Rico, Romania and Taiwan) in 2010.”

The Informa forecast is roughly in line with recent predictions from Screen Digest that have suggested decent short-term growth in Western markets following a dismal 2009 (Variety, May 7, 2010).

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