MAGNA: APAC ad market to grow 4.6% in 2025 as digital dominance deepens

Asia Pacific’s advertising economy is projected to grow by 4.6% in 2025, according to MAGNA’s latest Global Ad Forecast. This marks a slowdown from the robust 7.9% growth recorded in 2024, as macroeconomic uncertainty and geopolitical tensions weigh on business confidence.

The region’s ad revenues are expected to reach US$301 billion next year, powered largely by digital media. In 2024, digital accounted for 76% of all APAC ad spend (US$220 billion), compared to just US$68 billion from traditional formats. That digital share is set to climb to 82% by 2029.

Meanwhile, search remains the top-performing format in APAC, generating US$100 billion in 2024, largely driven by China’s retail media platforms such as Alibaba, JD.com and Meituan. Social media was the fastest-growing channel in 2024, rising 16.3%, and is expected to expand another 9% this year.

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Mobile continues to be the core digital touchpoint across much of the region, as many consumers skipped the desktop generation entirely. In markets such as China, mobile usage now spans shopping, banking, insurance and even work—intensifying digital ad engagement.

Overall, APAC’s growth remains concentrated, with China, Japan, Australia, India and South Korea accounting for 87% of total regional ad revenues. India was among the fastest-growing markets in 2024 (+9.9%), while growth was softer in Singapore (+2.2%) and Thailand (+3.8%).

“APAC’s digital transformation is far from complete. For brands willing to invest smartly, the region still offers outsized growth opportunities," said Leigh Terry, CEO of IPG Mediabrands APAC. “

“Strategic allocation to these dynamic channels will be critical for brands navigating future complexities,” added Paul Waller, chief investment officer at IPG Mediabrands APAC. “Especially in China, mobile-first consumers and retail media innovation will drive continued returns.”

Global advertising growth forecast

Global advertising revenues are projected to reach US$979 billion in 2025, growing 4.9% year-on-year. The tempered growth follows an exceptional 2024 (+10.3%) fuelled by major events such as the US elections and the Olympics. Stripping out these cyclical boosts, the underlying market remains resilient, with non-cyclical spend slowing more modestly from 8.9% in 2024 to 6.2% this year.

Traditional media owners (TMOs) are expected to bear the brunt of economic uncertainty, with ad revenues forecast to shrink 3% to US$261 billion as TV, print, and radio continue to lose ground.

In contrast, digital pure players (DPPs) such as Google, Meta, and Amazon are set to grow 8% to US$709 billion, now commanding 73% of global ad spend.

Search and retail media will remain the largest slice of DPP spend, rising 8% to US$359 billion, followed by social media (+11% to US$239 billion) and short-form video platforms (+7% to US$80 billion). Retail media alone is projected to generate US$163 billion globally.

Globally, trade-exposed markets such as Japan and Germany are expected to post below-average growth due to rising tariffs and supply chain instability. Germany is projected to grow 3%, Japan 4%, while markets such as India (+8%) and Brazil (+12%) will outpace the global average.

The report also found that the automotive sector is one of the most vulnerable verticals this year, with global auto ad spend predicted to fall 2%, and 3% in the US, as brands pull back on traditional media amid weakening exports and potential tariff impacts. In contrast, CPG, finance, telecoms and travel are expected to remain relatively stable.

Looking ahead to 2026, MAGNA forecasts a 6.3% rise in global ad revenues, pushing the market past the US$1 trillion mark for the first time, driven by major events such as the Winter Olympics in Italy, the FIFA World Cup in the US, and US midterm elections.

MAGNA’s EVP of global market research Vincent Létang said the slowdown was expected, but recent economic softness prompted a downward revision from the previous +6.1% forecast. “So far, the slowdown has been relatively modest. Digital media, in particular, performed better than expected in the first quarter,” said Létang, noting that marketers are more disciplined post-COVID, balancing short-term performance with long-term brand presence.

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