Dentsu’s latest Ad Spend Report projects a significant growth of 5.8% in ad spend across the Asia Pacific region in 2025, surpassing both global GDP and ad spend projections. This growth rate marks a slight acceleration from the 5.4% seen in 2024, solidifying APAC’s position as the global leader in ad investment. In contrast, EMEA and the Americas are expected to experience slower growth rates.
The driving force behind this momentum in APAC is the region’s expanding digital landscape, with Southeast Asia emerging as a key growth driver. Southeast Asia is expected to outpace other parts of APAC, with ad spend growth forecasted at an impressive 6.8%, more than double the growth rate seen in 2024.
While India and China are projected to experience slower growth rates in 2025 – 6.5% and 4.5% respectively – key markets such as the Philippines and Malaysia are expected to perform exceptionally well, with growth rates of 15.4% and 5.1% respectively. Australia, on the other hand, is positioned for a modest 3.8% increase in ad spend, benefiting from its digital-first market approach.
Prerna Mehrotra, chief client officer and practice president, Media, dentsu APAC, highlighted the region’s robust advertising investment driven by the dynamism of China and India, as well as the modernization of Southeast Asia. She emphasized the importance of digital dominance in shaping the momentum of connected commerce, retail media, and AI-powered programmatic, stating that brands mastering the balance between automation and strategic oversight will lead the next wave of innovation.
The disruption of search and retail media is expected to continue rising, growing at a 10% CAGR through 2031, driven by e-commerce giants such as Tmall, Shopee, Lazada, and Flipkart. India is experiencing an ad boom, with digital media ad spend set to grow by 20% in 2025, three times higher than the overall ad industry’s growth rate. In China, spending across the “Big 6” platforms is expected to grow by 6.7% year-over-year, with Douyin/TikTok alone seeing an 11% rise in ad investment, showcasing the dominance of AI-powered media buying.
Digital ad spend in Australia is projected to see continued growth, with video ad spend expected to rise by 8.7% year-on-year, bolstered by key events such as the 2025 national elections.
Matt Farrington, president, investment and trading, dentsu APAC, noted the rapid transformation of Asia-Pacific’s advertising landscape and the shift in platforms advertisers are choosing to invest in. He highlighted the growing ad spends year-on-year, with Southeast Asia emerging as a sub-regional powerhouse, outpacing other parts of the region. Matt emphasized the significant growth coming from continued spend migration into digital and connected media, which now accounts for 70% of the total spend across Asia-Pacific.
In conclusion, the article sheds light on the evolving advertising landscape in the Asia Pacific region, driven by digital advancements and the rise of e-commerce giants. The region’s diverse market development profiles and the increasing focus on digital dominance are shaping the future of advertising investment, with brands leveraging mega-app environments and retail media to unlock new commerce-driven solutions. Australia, while facing slower growth compared to its regional peers, is still poised for a modest increase in ad spend, driven by the accelerated digitization of various channels.
