WARC reports cooling growth in APAC ad spend as global market surpasses $1 trillion

The global advertising market is on track for a record-breaking year, with ad spend projected to surge by 10.5% in 2024, reaching an unprecedented $1.07 trillion. However, the Asia-Pacific region is experiencing a slowdown in growth, with ad spend expected to cool to just 2% this year. This trend is attributed to a strengthening US dollar and China’s economic sluggishness, creating headwinds for the region.

According to a report from marketing effectiveness analysis firm WARC, China, the largest market in the APAC region, is projected to see ad market growth of 6.4% this year, reaching RMB1.32 trillion ($181.2 billion). This growth rate represents a slowdown from the 9.3% rise recorded in 2023, as consumer demand remains soft and economic expansion lags behind targets.

In contrast, North America is projected to be the fastest-growing region in terms of ad spend, with an 8.6% increase fueled by the US presidential elections. Europe is also expected to see healthy growth of 5% in ad investment.

The report highlights the continued dominance of tech giants Meta, Amazon, and Alphabet, which are expected to capture a significant share of global ad spend in 2024. These companies are benefiting from the rise of retail media, social media, and search advertising, where they hold significant market share. The increasing adoption of AI-driven ad services and the value of first-party data are contributing to the success of these platforms.

In the Asia-Pacific region, India emerges as a standout market, with ad spend projected to skyrocket by 11.9% to $12.8 billion. Japan, on the other hand, faces challenges due to a weakening yen, which translates to a decline in ad spend in US dollar terms. Mature markets like Australia are expected to see modest growth, while Indonesia offers a glimmer of hope with a projected growth rate of 7.8%.

Despite regional disparities, digital advertising remains dominant in the Asia-Pacific region. In China, online advertising is expected to account for a significant portion of the market, although the growth of social media and retail media advertising is slowing down.

Overall, the Asia-Pacific advertising landscape is complex, with rapid growth in emerging markets contrasting with challenges faced by established players. As the global ad market approaches the trillion-dollar milestone, the battle for dominance in the region continues to evolve, driven by technological advancements and shifting economic conditions.