APAC adex to grow 5.8%, driven by AI-boosted digital adex in markets like India

New Delhi: Dentsu’s latest Global Ad Spend Forecasts reveal a projected 6.8% growth in global advertising spend for 2024, reaching $772.4 billion. 

This growth projection has been revised following the return to double-digit growth (+10.7%) of digital ad spend, the impact of sporting and political events, and improved outlooks across the US, UK, Brazil, and France. 

• The Americas: Expected to lead in 2025 with 6.3% growth, driven by robust US and Brazilian markets where digital and streaming see sustained investments. 
• Asia-Pacific: Forecasted to increase by 5.8%, with AI-driven ad placements contributing to the increase in digital ad spend in markets like India. 
• EMEA: Projected growth of 5.0%, with strong digital performance in key markets including the UK.

As the industry enters what dentsu identifies as the algorithmic era, data-enabled advertising will increasingly shape media strategies, with algorithmically enabled ad spend forecasted to reach 79.0% of total ad spend by 2027.

Will Swayne, Global Practice President - Media, dentsu said: “Our 2025 forecast underscores the pivotal role of media in today’s economy.  Data-driven and digital-first media investment strategies continue to reshape how brands connect with consumers. The surge in algorithmic media capabilities will drive fresh opportunities for brands to engage meaningfully and effectively with existing and new customers.” 

Anita Kotwani, Chief Executive Officer – Media, South Asia, dentsu added: “As digital channels continue to lead the way, the global advertising landscape is entering a new phase of growth and innovation. The projected 9.2% increase in digital ad spend for 2025, driven by segments like retail media and connected TV, underscores the immense value of data-driven strategies. As algorithmic media capabilities take centre stage, brands have an unprecedented opportunity to connect with consumers in more personalised and meaningful ways. The future of advertising is not just digital; it's deeply connected, data-empowered, and poised for transformative growth.”

From a media channel standpoint, the dentsu Global Ad Spend Forecasts report highlights that digital is expected to remain the fastest-growing channel, with a projected increase of 9.2% in 2025 (8.8% three-year CAGR to 2027) to reach $513.0 billion and capture 62.7% of global ad spend. Significant growth is anticipated across key digital segments, with retail media leading the way at +21.9% year-over-year (19.7% three-year CAGR to 2027) as advertisers capitalise on the high value of retailer consumer data and increasingly invest in offsite advertising, including connected TV. 

From a media channel standpoint, the dentsu Global Ad Spend Forecasts report highlights that digital is expected to remain the fastest-growing channel, with a projected increase of 9.2% in 2025 (8.8% three-year CAGR to 2027) to reach $513.0 billion and capture 62.7% of global ad spend. Significant growth is anticipated across key digital segments, with retail media leading the way at +21.9% year-over-year (19.7% three-year CAGR to 2027) as advertisers capitalise on the high value of retailer consumer data and increasingly invest in offsite advertising, including connected TV. 

Paid social is forecast to grow by 8.7% in 2025 (7.8% three-year CAGR to 2027), supported by an integrated ecosystem that blends shopping, video, search, and gaming capabilities. This channel remains critical for engaging younger audiences, with 79.7% of Gen Z using Instagram monthly and 42% of CMOs planning to boost influencer marketing investments. Paid search is expected to increase by 6.7% (6.5% three-year CAGR 2027), driven by continuous advancements in AI-powered features that sustain relevance amid the rise of social and retail search.

Online video advertising is projected to rise by 8.0% as advertisers continue to seek out high attention and trusted environments. Programmatic advertising is set to grow by 11.1% and will account for more than 70% of digital ad spend, with sustained momentum (10.9% three-year CAGR to 2027). 

Television ad spend growth is forecast to show marginal growth of 0.6% in 2025, with connected television rapidly increasing (+18.4%) thanks to ad-supported streaming and broadcast television declining (-2.5%). Meanwhile, print media continues to contract, while cinema and out-of-home (OOH) advertising continue to grow by 3.2% and 3.9%, respectively. 

Significant ad spend increases are anticipated in finance (+6.4%), pharmaceutical (+5.8%), and travel and transport (+5.5%) as these sectors adapt to meet evolving consumer needs.

Swayne continued: “Media investment strategy is key to transformation and growth as brands keep pace with evolving consumer behaviours.”