WARC reports that APAC ad spend growth slows down while global market surpasses $1 trillion

The global advertising market is on track for a record-breaking year, with projections indicating a surge of 10.5% in ad spend, 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% in 2024. This trend is attributed to factors such as a strengthening US dollar and China’s economic sluggishness, creating headwinds for the region.

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 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 expected to be the fastest-growing region this year, with an 8.6% increase in ad spend, driven by the US presidential elections. Europe is also on track for a healthy 5% growth in ad investment.

The dominance of tech giants Meta, Amazon, and Alphabet is a key highlight of the report, with these companies expected to capture a significant 43.6% of all global ad spend in 2024. This dominance is fueled by the rise of retail media, social media, and search advertising, where these companies hold significant market share. The report attributes this success to the increasing adoption of AI-driven ad services and the value of first-party data in targeting the right audience effectively.

In the Asia-Pacific region, India emerges as a standout market, with ad spend projected to skyrocket by 11.9% to $12.8 billion. This growth is fueled by a robust economy and increasing consumer demand. On the other hand, Japan, the fourth-largest ad market globally, faces challenges due to a weakening yen, which translates to a decline in ad spend in US dollar terms. Mature markets like Australia are also experiencing modest growth, while Indonesia offers hope with a projected growth rate of 7.8%.

Despite regional disparities, digital advertising continues to dominate the landscape, with online advertising expected to account for a significant 86% of the market in China. However, the growth of social media and retail media advertising in the region is slowing down, indicating a shift in advertising trends.

Overall, the Asia-Pacific advertising market presents a complex and dynamic landscape, with a mix of challenges and opportunities for advertisers and brands. The rise of digital advertising and the increasing importance of data-driven strategies are reshaping the industry, creating new avenues for growth and innovation.