Despite COVID-19 crimping prospects, mobile is forecast to make up for overall reductions in adspend in China as Dentsu Aegis Network (DAN) revised its predictions for the year.
DAN now foretells total growth of 3.9% in 2020, a higher rate than the 3% observed in 2019, but a sharp revision from the 6.9% the network predicted previously. Out-Of-Home (OOH) adspend especially faces a difficult year compounded by the impact of the Coronavirus pandemic with an expected decline (-6%).
Instead, in China, mobile continues to be the growth driver. It will grow by 17.6%, taking 77.5% share of total digital adspend with further growth powered by the expansion of 5G.
This year's months-long pandemic that China battles has also influenced e-commerce. It is expected to capture a 42.4% share of all digital adspend in 2020, boosted as consumers have moved online to make essential purchases.
The network is quick to add a caveat to its forecast. “Forecasting the impact of the Coronavirus outbreak into the rest of 2020 remains fluid but we are confident in the continued resilience of Chinese consumers and businesses," said Michelle Lau, CEO of Dentsu Aegis Network China, while forecasting a decelerating pace of growth in the country as 2021 forecasts reach 5.4%.
The Asia-Pacific (APAC) region has been revised down by -0.7%. Globally, adspend is assumed to decrease in some key markets including Germany, Spain and Italy both in 2020 and in 2021, indicating caution even prior to the COVID-19 outbreak as global economic forecasts in these troubled markets reach their lowest level in ten years.
Sourced from Dentsu Aegis Network China