Growth in the advertising market in APAC will slow to 4.5% in 2025, after lifting 7.9% last year, according to estimates by MAGNA.
This year the market has the threat of trade wars and geopolitical uncertainty versus a stable economic environment in 2024.
“While the outlook for 2025 is tempered by macroeconomic and geopolitical uncertainty, the underlying fundamentals remain strong,” said Leigh Terry, CEO IPG Mediabrands APAC.
“APAC’s digital transformation is far from complete, and for brands willing to invest smartly, the region still offers outsized growth opportunities.”
Paul Waller, chief investment officer, IPG Mediabrands APAC, said the projected global growth of +4.9% in 2025 is still noteworthy.
“As MAGNA reports, digital continues to be the engine of expansion and in APAC will represent 82% of total budgets in by 2029,” Waller said.
“Powered by mobile-first consumers and retail media innovation, especially in China, strategic allocation to these dynamic channels will be critical for brands navigating future complexities, ensuring sustained ROI and market relevance in an increasingly digital first APAC.”
MAGNA analysts say the digital strength driving APAC advertising revenues will translate to continued share gains for digital advertising revenues in APAC.
Digital revenues will represent 82% of total budgets in 2029, up from 76% of total advertising revenues in 2024.
In 2024, the strongest growth in APAC came from Taiwan (+12.9%), Sri Lanka (+12.6%), and India (+9.9%). Weak advertising revenue growth came from Singapore (+2.2%), Pakistan (+2.3%), and Thailand (+3.8%).
APAC as a region is still dominated by China, which represents more than half of total ad revenues. When combined with Japan, Australia, India, and South Korea, those five large markets represent 87% of total APAC revenues.
By 2029, the share of total revenues that are represented by linear advertising formats will have fallen to just 18%, representing just slightly fewer dollars ($64 billion) as they do today ($68 billion).
MAGNA’s Global Ad Forecast projects global advertising revenues for media owners to increase 4.9% to $969 billion in 2025.
The advertising revenues of traditional media owners, including TV, radio, publishing, and out-of-home, are expected to erode by 3% to $261 billion, due to economic uncertainty. Digital pure players ad sales will grow 8% to $709 billion (73% of total ad sales). DPP growth is driven by rising usage, AI innovation, e-commerce competition, and retail media networks.
Search and retail media ads (such as Google, Amazon, Walmart) will rise 8% to $359 billion
The global ad market will re-accelerate in 2026 as the economy stabilises and major events return, including the Winter Olympics (Italy), FIFA World Cup (US) and US Midterms. Global ad sales are projected to rise 6.3%, surpassing one trillion dollars for the first time.
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