In this weekly segment, ExchangeWire sums up key industry updates on ad tech from around the Asia-Pacific region – and in this edition: AU ad market to grow 3% in 2016; McGarryBowen sets up HK outfit; Gravity4 buys out Australia's Ad2One; and GroupM Malaysia hires head of Connect.

AU ad market to grow 3%

The Australian advertising market is projected to expand by 3% in 2016, where strong growth will come from outdoor and online ads.

Newspaper and magazine ad revenue, however, will see dips in the new year, according to ZenithOptimedia's latest predictions. The country's 2016 ad revenue will reach AUD$13.5bn, up from the expected AUD$13.2bn for 2015.

Speaking to Fairfax Media, ZenithOptimedia's trading director Sue-Ellen Osborn noted that Australia's federal election this year, and the Rio Olympics, would drive revenue growth. "We also expect a recent improvement in consumer sentiment to translate into improved advertising spend coming out of the retail and the consumer goods categories", Osborn said. "Digital and OOH (out-of-home) mediums continue to be the mediums that benefit the most from this growth."

Online ads will account for the largest category, growing 12.1% to hit just under AUD$6bn, after a projected 14.1% growth in 2015. Outdoor ads is expected to clock a growth rate of 8.9%, to reach AUD$716m.

"Mobile and online video will continue to drive digital growth into 2016; and ZenithOptimedia is forecasting that, before the end of the year, mobile advertising spend will have overtaken newspapers," Osborn said.

Newspapers and magazines are expected to have a dismal 2016, with revenue dips of 18% and 17.1%, respectively. Newspaper ads will churn AUD$1.3bn in revenue this year, while magazines will generate AUD$319m.

McGarryBowen sets up HK outfit

McGarryBowen's Simone Tam & Jeffry Gamble

The Dentsu Aegis Network creative agency has set up shop in Hong Kong, with an office in North Point that caters to its clientele in food and beverage, consumer products, and financial services.

Led by the agency's Greater China CEO Simone Tam and chief creative officer Jeffry Gamble, McGarryBowen Hong Kong is part of the company's efforts to meet growing client demand and tap the talent pool in one of Asia's key ad markets.

Dentsu Aegis Network Asia-Pacific CEO Nick Waters said: "We aim to build on Simone and Jeffry's strong knowledge of the Hong Kong market and, adding to the agency's Shanghai and Singapore operations, seek to create regional opportunities.

"With high-quality leadership in three strategic Asian cities, we will also look to develop west-to-east and east-to-west opportunities for the growing McGarryBowen global network", Waters added.

Added mcgarrybowen CEO Simone Tam: “Jeffry and I have strong career and industry roots in Hong Kong, and we look forward to continuing the momentum and expanding McGarryBowen’s network and client offering in the APAC region.”

Both Tam and Gamble will continue to head the agency's Shanghai operations.

Gravity4 buys out Australia's Ad2One

The US marketing cloud vendor has acquired Ad2One in Australia and New Zealand, touted to be the largest independent digital marketplaces in their respective markets.

The companies did not provide any financial details transacted in the deal, which is Gravity4's 15th buyout in 2015, said its chairman and CEO Gurbaksh Chahal. "I'm looking forward to continuing our global expansion in new markets, and look forward to merging our premium marketplaces and programmatic offerings for our increased global advertiser demand", Chahal said.

The company's Asia-Pacific managing director, Kevin Huang, added that digital ad spend in the region was predicted to grow 30% and reach US$47bn, driven by mobile, online video, and programmatic advertising.

"Australia and New Zealand represent strategically important markets for Gravity4's continued expansion in Asia-Pacific, with growth in digital expected to account for a total share of ad spend of around 40%", Huang said. "The combined premium marketplaces provided by Ad2One, and recently acquired Pixels, are strong complements to our programmatic offerings for advertisers, agencies, and publishers."

GroupM Malaysia hires head of Connect

The agency group has appointed Robin Bach Kolling as head of its data, operations, and technology business, Connect.

The executive will be responsible for GroupM's paid digital media services, including search, performance, paid social, and programmatic.

GroupM Malaysia CEO Girish Menon said the agency's shared digital services were previously parked under the brand name, Interaction. "We restructured and grouped all paid digital media capabilities under the newly created umbrella of Connect", Menon explained. "As the digital marketing space becomes increasingly complex, we recognise the need to build deep specialisations, but also synergise across these verticals to provide clients with as seamless a digital journey as possible. This is Bach Kolling's key responsibility.”

Moving from Amsterdam to Kuala Lumpur to take on his new role, Bach Kolling added: "By having all biddable digital media consolidated in Connect, we can provide synergy for our clients to fully adapt to the demands and opportunities of the fast-emerging real-time media era."

Before joining GroupM, the executive was head of digital for M2Media, during which time he built the media agency's programmatic business.