Research firm Forrester has recently released two reports tracking the social advertising and video spending trends in Asia Pacific.
Global social advertising spend is forecast to reach $165.6 billion in 2023 from $75 billion in 2018 — a CAGR of 17.1 percent.
The Forrester report indicates that the investigation by the U.S. Justice Department on anticompetitive practices of technology companies including Google, Amazon, Facebook, among others, will not hurt the spending on social media platform.
In July Reuters reported that the U.S. Justice Department said it was opening an antitrust investigation of major digital tech firms and whether they engage in anticompetitive practices. Google, Amazon and Facebook will be facing the probe.
Asia Pacific’s share of global social advertising spend will rise from 30 percent in 2018 to 35 percent in 2023, mostly thanks to growth in China, Forrester report said.
Facebook’s customer base in Asia Pacific will increase 13.4 percent — nearly double the rate of worldwide gains — reaching 663 million users in 2018, eMarketer report said.
Facebook earlier said mobile represented approximately 93 percent of its advertising revenue during the first quarter of 2019 against approximately 91 percent of advertising revenue in the first quarter of 2018.
Social video advertising spend will grow from $17.6 billion in 2018 to $56.5 billion in 2023 — a compound annual growth rate (CAGR) of 26.3 percent, Forrester said.
The report said China’s social advertising spend will triple by 2023. Asia Pacific will replace North America in terms of the highest social advertising spend. China already accounts for 44 percent of Asia Pacific’s social advertising spend.
China’s social advertising spend will grow from $9.9 billion in 2018 to $27.6 billion in 2023 — a CAGR of 22.8 percent.
Japan, the largest market for Twitter outside the US, registered 35.1 percent growth in its revenue per user in 2018.
Players like Tencent, Twitter, and Weibo are also growing their video advertising revenues as they created an environment for the distribution of video content on their platforms.
Asia Pacific’s video ad spending will increase from $21.3 billion in 2018 to $53.7 billion in 2023, growing at a CAGR of 20.3 percent. The video share in digital marketing in Asia Pacific is also expected to increase from 25 percent in 2018 to 38 percent in 2023, another research report from Forrester said.
The display share of online video ad spending is forecast to dip from 68 percent in 2018 to 54 percent in 2023 due to the influence of short video and social media companies’ investment on video ad products. Mobile accounts for 69 percent of video ad spending. China accounts for 75 percent of the total online video ad spending in Asia Pacific.
Short video ad spending will reach $6.5 billion in 2020 from $2.1 billion in 2018, growing at a CAGR of 25.5 percent – mainly due to the growing popularity of TikTok and other short video apps.