APAC ad market shows resilience, but growth slows in 2025

Magna’s summer update to its global ad forecast for 2025 predicts APAC’s advertising growth will slow to +4.6% in 2025 due to rising geopolitical tensions and trade uncertainties. However, easing inflation in many Asian economies is helping brands maintain or even increase their marketing budgets despite these risks. Still, concerns over trade wars and political instability have made advertisers more cautious, tempering growth expectations.

 

The advertising economy in APAC surged by 7.9% in 2024 to reach a substantial US$288 billion, outpacing regional GDP growth of 5.3%, according to Magna’s report. 

 

On the global stage, the growth slowdown is even more pronounced. Magna forecasts total advertising revenues will reach $979 billion in 2025, a 4.9% increase from 2024, but a pace that is less than half of the previous year’s 10.3% growth. Traditional media worldwide faces continued challenges, with ad revenues expected to decline by 3%, while digital pure players grow 8%, driven by AI innovation, e-commerce, and retail media networks.

 

 

 

Digital advertising dominates region’s ad budgets

 

Digital advertising remains the main growth driver in APAC, reflecting global trends. In 2024, digital pure players captured 76% of the region’s ad budgets, totalling $220 billion, while traditional media held steady at 24% with $68 billion. Television, once dominant, saw a slight decline of 1.4% as viewers shift from linear TV to streaming and digital formats. Although the Paris Olympics gave TV a temporary boost last year, the overall trend points to a continued decline in traditional broadcast advertising.

 

The strong growth in digital advertising will continue to increase its share of APAC’s ad revenues, rising from 76% in 2024 to 82% of total budgets by 2029. 

 

Within digital, search advertising is the largest segment, making up 46% of digital budgets with $100 billion in revenue. Growth in this area is driven largely by retail media platforms in China, such as Alibaba, JD.com, Pinduoduo, and Meituan, alongside strong performances from Google and Baidu. While search growth is expected to slow to 5.3% in 2025 due to economic uncertainties, it will still add over $5 billion in new spending, second only to social media.

 

Social media advertising led APAC’s digital growth in 2024 with a 16.3% increase and is forecast to grow 9% in 2025, adding $7 billion in new spend. Mobile devices are central to this growth, as smartphones remain the primary, and often only way many consumers across Asia access the internet. In China especially, smartphones are used not only for communication and shopping but also for banking, insurance, and work, showing how deeply mobile technology is embedded in daily life.

 

China alone accounts for more than half of the region’s ad revenues. When combined with Japan, Australia, India, and South Korea, these five markets make up 87% of APAC’s total ad spend, showing how concentrated the market is among a few major economies. In 2024, the fastest-growing APAC markets were Taiwan (+12.9%), Sri Lanka (+12.6%), and India (+9.9%), while Singapore (+2.2%), Pakistan (+2.3%), and Thailand (+3.8%) saw slower growth. 

 

 

“The resilience and dynamism of APAC’s advertising economy in 2024, growing nearly 8%, confirms the region’s strategic importance for global brands," says Leigh Terry, CEO of IPG Mediabrands APAC. "As digital platforms become the main gateway to consumers, especially in mobile-first markets, advertisers must adapt to where attention is shifting. APAC’s digital transformation is ongoing, and for brands willing to invest wisely, the region offers significant growth opportunities.”

 

 

Global outlook

 

The US remains the largest advertising market in 2025, accounting for 41% of global ad spend, followed by China (17%), Japan, the UK, and Germany. These five markets together represent 73% of global ad spend.

 

Looking ahead, the global ad market is expected to rebound in 2026 with growth accelerating to 6.3%, helped by major events like the Winter Olympics in Italy, the FIFA World Cup in the US, and US Midterm elections. This could push global ad spend past the $1 trillion mark for the first time.