Singapore – Ad spend across the Asia Pacific region is projected to rise by 5.8% in 2025, outpacing both global GDP and ad investment forecasts, while EMEA and the Americas are set for slower growth, according to a report by Dentsu.
The report revealed a slight acceleration in APAC ad spend, rising from a 5.4% growth rate in 2024. This momentum is fueled by the region’s expanding digital landscape, with Southeast Asia emerging as a key driver. SEA is set to outpace the rest of APAC, with ad spend projected to grow by 6.8%—more than double its 2024 growth rate.
The report further highlighted that while India (6.5%) and China (4.5%) will see slower growth in 2025, key markets like the Philippines (15.4%) and Malaysia (5.1%) are set to perform strongly. Meanwhile, Australia is set for a steady 3.8% rise in ad spend, driven by its digital-first market.
Prerna Mehrotra, chief client officer and practice president of media at dentsu APAC, explained, “Two engines of growth, the dynamism of China and India and the unrelenting modernisation of Southeast Asia, are driving the region’s robust advertising investment. Amidst diverse market development profiles, one constant stands true: digital dominance. As it barrels towards digital maturity, the APAC region will shape the momentum of connected commerce, retail media, and AI-powered programmatic. Brands that master the balance between automation and strategic oversight will be the ones to lead the next wave of innovation.”
Matt Farrington, president of investment & trading at Dentsu APAC, added, “We are seeing a rapid transformation of Asia-Pacific’s advertising landscape and a shift in the platforms advertisers are choosing to invest in. This is reflected through growing ad spends year-on-year, with Southeast Asia emerging as a sub-regional powerhouse, outpacing other parts of the region. The greatest growth is coming through continued spend migration into digital and connected media, which now accounts for 70% of the total spend across Asia-Pacific.”
The report also highlighted the ongoing disruption in search and retail media, which is expected to grow at a 10% CAGR through 2031, driven by e-commerce giants like Tmall, Shopee, Lazada, and Flipkart.
Dentsu reports that India is experiencing an ad boom, with digital media ad spend set to grow by 20% in 2025—three times the industry’s overall growth rate. In China, ad spend across the “Big 6” platforms—Tencent, ByteDance, Baidu, Alibaba, Douyin/TikTok, and Xiaohongshu—is also expected to rise by 6.7% year-over-year, with Douyin/TikTok leading at 11%. These platforms continue to dominate the market, driven by AI-powered media buying.
“Brands are increasingly turning to mega-app environments—think Douyin/TikTok, Xiahongshu, and the Meta family of apps—that cater to all moments of the customer journey and that are completely reshaping how customers discover, search, and purchase,” Farrington explained.
“Additionally, brands are seeing more opportunity in retail media to unlock new, commerce-driven solutions. This is particularly prevalent in the largest and fastest-growing markets, such as India, China, and Southeast Asia, where we continue to see a proliferation of retailers becoming ad networks in their own right,” he added.
Dentsu also highlighted Australia’s ongoing digital ad growth, with video ad spend expected to rise 8.7% year-on-year, driven by key events like the 2025 national elections.
“Australia is facing slower growth relative to its regional peers but is still positioned for a modest 3.7% increase in spend, driven by the accelerated digitisation of channels such as TV, OOH, and audio,” Farrington said.
