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Asia overtakes western markets for online video consumption- report

April 12, 2012

Asia (excluding Japan) and BRIC nations (Brazil, Russia, India and China) have overtaken Europe and western markets on television viewing and video consumption via Internet or mobiles, according to a new report.

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The findings, from Nielsen’s global media consumption index also shows that globally, 14% of advertising expenditure goes towards digital.
The Asia-Pacific region is trailing behind and, with increasing consumer eyeballs turning to digital media, allocation of marketing budgets needs to reflect the new reality.
Ad spend accounts for less than one percent of total spend in markets such as Singapore, Malaysia and Thailand, the report found.
The high take-up rate of consumers to the platform suggests that marketers are missing key opportunities for reaching target customers.
Niesen predicts that revenues will grow at a compound annual growth rate (CAGR) of 18 per cent from US$11.2bn in 2010.
This growth rate is a healthy 2 per cent ahead of the global average, and retail sales in the region comprised over half of global retails sales in 2011. This figure is expected to grow to nearly 60 per cent by 2016. Asia-Pacific is already vital in terms of digital gaming retail sales, and will grow in importance in future.
There is a considerable split between Asia-Pacific’s developed and emerging regions. This results in a higher level of ARPU in South-Korea and Japan than in China, for example, which has lower ARPU due to a large gamer base and the relatively low cost of games.
“In this dynamic media environment marketers in Asia-Pacific need to move quickly,” the report stated, further noting that the region so far lags global levels on digital advertising spending.
“With many markets in the region restricted by broadband infrastructure limitations and low access to computers, the ubiquitous mobile phone is predicted to change the game,” Nielsen said.
“Latin American and Asia-Pacific consumers demonstrate the highest inclination to possess smartphones and use mobile phones for transactions,” it added.
The market research firm went on to assure firms of high returns from digital advertising spending.
“For every marketing dollar spent in Asia-Pacific, return on digital was $1.78, higher than other options excluding return on trade,” it said. “These changes present endless opportunities for marketers, the key is staying one step ahead.”
Source: www.nielsen.com

Uncategorized advertising, Brazil, broadband, China, Europe

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