Singapore – The APAC ad market will see growth by 8.5% this year to US$289b with traditional media owners (TMO) ad sales will grow by 0.8% to US$68b while digital pure players (DPP) ad revenues will expand by 11.1% to US$220b. This is according to the latest forecast from IPG Mediabrands’ resource arm MAGNA.
According to the report, television budgets are stabilising in 2024 and are expected to be up by 0.2% following 2023’s – 2.3% performance. This increase in growth is primarily driven by the tailwinds of sporting events – primarily the Paris Olympics. The UEFA Euro 2024 tournament and other sporting events typically have only a minor impact in APAC markets.
Meanwhile, digital advertising revenues are the driver of growth. Search remains the largest portion of digital advertising revenues and will represent US$103b in 2024. This is 47% of total digital advertising budgets. Search advertising in APAC is substantially driven by retail media platforms, especially in China where Alibaba, JD.com, Pinduoduo, and Meituan all drive search advertising revenues. Core search is also spiking around the world as traditional search platforms like Google and Baidu also see strong performance relative to recent results.
In addition, social media advertising revenues also remain strong in 2024. While social media was already surging ahead in 2023 in APAC (+19% growth to reach US$65b), growth will again be robust in 2024 (+15% to reach US$74b). This means social media budgets will represent 34% of total digital advertising budgets. Both search and social media revenues are driven by mobile devices. Smartphones are not just the dominant way that most consumers access the internet; in many APAC markets they are the only way consumers access the internet.
“Many consumers skipped the desktop hardware generation and conduct their digital lives solely on their smartphones. Furthermore, in China consumers don’t just do shopping and communication on smartphones, but also banking, insurance, and many work functions. Because of this, 76% of total digital advertising revenues in APAC are on mobile devices,” the report noted.
The digital strength driving APAC advertising revenues will translate to continued share gains for digital advertising revenues in APAC. Digital revenues will represent 81% of total budgets in 2028, up from 76% of total advertising revenues in 2024. In 2024, the strongest growth in APAC is expected to come from Sri Lanka (+12%), India (+11.8%), and Japan (+11.8%). This represents a significant jump in growth for Japan, following 2023’s +5.6% growth rate. Growth in many traditionally mature markets is rebounding in 2024. APAC as a region is still dominated by China, which represents approximately 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 2028, the share of total revenues that are represented by linear advertising formats will have fallen to just 19%, representing about the same number of dollars (US$65b) as they do today (US$68b). Digital pure players, on the other hand, will represent 81% of total budgets and US$286b, significantly higher than their 2024 total (US$220b). The largest absolute increases in advertising revenues will come from search advertising (+US$28b) and social media (+US$27b) by 2028 compared to this year in 2024.
Leigh Terry, CEO at IPG Mediabrands APAC, said, “The advertising industry in APAC is poised for continued growth in 2024, with an 8.5% projected increase, reaching US$289b. This follows a 9.5% growth in 2023. Despite economic fluctuations, digital advertising remains the driving force, with search and social media leading the way. The digital dominance in APAC is expected to persist, with digital revenues forecast to account for 81% of total budgets by 2028, up from 76% in 2024.”
He added, “This shift underscores the growing importance of digital channels in reaching and engaging consumers in the region. Sri Lanka, India, and Japan are poised for significant growth in 2024, with mature markets in the region also showing signs of recovery, and contributing to the overall positive outlook for APAC.”
Meanwhile, Paul Waller, chief investment officer at MAGNA APAC, commented, “Despite economic uncertainties, the global and APAC advertising market continues to expand. With digital ad spend leading the charge and projected to reach unprecedented heights in the coming years. Now that inflation in commodity costs and consumer prices are under control, marketers are returning to previous levels of advertising budgets and taking advantage of the investment opportunities offered. With a heightened focus towards more targeted and data-driven marketing strategies.”
