Magna Global Asia Pacific Estimates

In Asia, we expect India to re-accelerate after the temporary slow-down of 2012, to +8.7%. Amidst an economic “soft landing” (+7% to +8% GDP growth) that might be more durable, Chinese advertising will grow by +9.5% in 2013 before going back to double-digit growth starting from 2014. Two factors will continue to sustain China and India in the long term: a very low ad-per-capita ratio ($28 per year per capita in China, $6 in India compared to the global average of $91); and the need for global advertisers to reach the rising middle classes, seize the window of opportunity and emerge as leading brands, as only few Western brands are likely to remain significant in the long term. The fact that, for instance, car sales growth is temporarily slowing down in China, does not mean automotive manufacturers will reduce the growth of their marketing investment in the mid-term; the fight for leadership will continue.
Elsewhere in Asia we forecast Japan to return to stagnation (+0.2%) when faced with economic slow-down again, and a strong comparison year 2012; Australia will post modest growth (+1%). Most other markets in Emerging Asia will experience explosive growth: for instance Malaysia (+9.7%) and Vietnam (+13.4%).