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Resources / Blog

The Rise of Programmatic Advertising in the Asia Pacific (APAC) Region

4th October 2023

Topic: Data, Programmatic
  • Overview of the Programmatic Advertising Industry in APAC
  • Growth of Programmatic Advertising in APAC
  • Programmatic Advertising Market Size in APAC
  • Top Countries of Programmatic Advertising spend in APAC region
  • Future trends of Programmatic Advertising in APAC
  • Wrapping up 

In the face of the global economic situation and the soon to come decline of third-party identifiers, programmatic advertising in the Asia-Pacific (APAC) region is experiencing a strong upward trend. The advertising economy in the Asia-Pacific (APAC) region is expected to grow by 7%, surpassing the global average of 5%. Moreover, the programmatic advertising spending in the APAC region has shown no sign of slowing down and accounts for 18.46% of YoY growth rate between 2017 to 2026. 

Overview of the Programmatic Advertising Industry in APAC

The biggest countries in the APAC region are China, Australia, India, Indonesia and Magnolia. However, if there comes about the biggest opportunity for digital users, the countries with the highest number of people are China, with about 1.44 billion people, followed by India with 1.39 billion people and the third-most populated country in the region, Indonesia with 276.3 million people

The numbers speak for themselves, the population of a country has a substantial impact on the amount of money spent on programmatic advertising. Countries with larger populations tend to have a larger consumer base, which makes them attractive markets for advertisers. China, India, and Indonesia, which have the highest populations in the APAC region, are known for significant programmatic ad spend. The larger the population, the greater the potential reach and impact of advertising campaigns, leading to increased spending on programmatic advertising. 

Growth of Programmatic Advertising in APAC

The growth of programmatic advertising in the Asia-Pacific (APAC) region has been remarkable in recent years, with programmatic ad spend worth 61$43 in 2017 and reach $185.4 billion in 2022. 

This substantial growth can be attributed to the expanding digital landscape, advancements in technology and data analytics, the rise of e-commerce and digital platforms, the shift in advertising budgets towards digital channels, and the impact of the COVID-19 pandemic.

As APAC continues to embrace digitalization and advertisers seek enhanced targeting capabilities, the growth of programmatic advertising is projected to remain strong, with a projected value of $275.51 billion by 2026, which accounts for a YoY growth rate of 18.46%. 

Programmatic Advertising Market Size in APAC

The Asia-Pacific programmatic advertising market was valued at USD 16.92 billion in 2022, and it is expected to reach USD 44.27 billion by 2028, registering a compound annual growth rate (CAGR) of 17.61%. 

The exponential growth can be attributed to several factors, including the increasing adoption of digital advertising, advancements in technology, and the rising number of internet users in the region. 

As businesses strive to optimize their advertising strategies and target specific audiences, programmatic advertising offers a highly efficient and automated solution. The APAC region, with its vast population and expanding digital infrastructure, presents immense opportunities for advertisers to leverage programmatic advertising to enhance their reach and engagement.

Check Data Audiences in APAC

Top Countries of Programmatic Advertising spend in APAC region

There are 40 countries in the Asia Pacific (APAC) region, but the top nations that spend the most on programmatic advertising are China, Australia and India. 

China

China plays a dominant role in the programmatic advertising landscape of the Asia-Pacific (APAC) region. The country’s strong economic growth and large population amounts to 1.42 billion  people which contributes to its prominence. China’s advancements in artificial intelligence and machine learning have fueled the adoption of programmatic advertising strategies, leading to increased investments in this sector.  

Ad Spending in China 2017-2027

According to a Statista report, ad spending in China has been steadily increasing, with a growth rate of 16.47% year-over-year from 2017 to 2027.

In 2017, the ad spend amounted to $52.59 billion. By 2023, it had risen to $173.35 billion, and it is projected to reach $231.83 billion by 2027.

If there comes about the growth of specific forms of advertising in China over 2017-2027, the statistics present this way: 

  • Audio advertising – 36.60% 
  • Banner advertising – 14.40%
  • Classifieds – 6.58%
  • Influencer marketing – 23.49%
  • Search advertising – 13,15%
  • Video advertising – 28.62% 

Industries

Industries that spend the most on programmatic advertising in China: 

India

In India, with a population of 1.43 billion people, the advertising spend in 2023 reached $18 billion. Projections indicate that this figure is set to increase further, reaching $21 billion by 2028. The growth of programmatic advertising in India can be attributed to factors such as the increasing adoption of smartphones and internet connectivity. 

According to the Redseer Strategy Consultants report, India’s advertising expenditure is expected to rise due to the country’s projected growth in per capita final consumption expenditure (PCFE) of 6-7% over the next five years. 

Currently, India spends 0.5% of its GDP on advertising, with 53% of that going towards digital ads. However, as India’s economy continues to develop and consumer spending increases, there is great potential for growth in the advertising industry. 

This presents significant opportunities for programmatic advertising, as marketers in India recognize the benefits of this form of advertising and are allocating a larger portion of their budgets. 

Australia

In Australia, with a population of 25.5 million people, it stands as the third largest ad spending market in the APAC region. In 2017, programmatic advertising spending in Australia reached an impressive $4.8 billion. Projections show that this figure is set to increase substantially, reaching $11.8 billion by 2026. This significant growth of approximately 11.75% YoY reflects the ever-increasing importance and effectiveness of programmatic advertising in the dynamic marketing landscape of Australia.

Reach Top APAC markets

Future trends of Programmatic Advertising in APAC

Digital transformation 

The Asia-Pacific (APAC) region is the most populated region in the world, having the largest number of internet users globally. The number accelerated to over 2.6 billion in 2022 and is predicted to grow in coming years. 

The APAC region stands out for its advanced digitalization of both the economy and society, surpassing other parts of the world in this aspect.  Moreover, Asian countries are at the forefront of emerging technologies and trends, including artificial intelligence. 

Increased digitization across APAC has driven significant growth in digital marketing. With the advancement of technology, programmatic advertising has been enhanced by generative AI, which enables hyper-personalization and optimization of ad creatives. As digital transformation continues, we can expect to see further changes in programmatic advertising, such as increased automation and improved targeting capabilities.

Mobile growth 

The ongoing digitalization and access to the increasing amount of mobile devices is said to reach 2.11 billion by 2030 which accounts for 94% of market adoption. 

According to a report from GSMA, the mobile market in APAC is projected to be worth $1 trillion by 2030. The region currently has 1.73 billion mobile subscribers, and mobile technologies and services contribute 5% to the region’s GDP. Mature markets like Australia, Japan, Singapore, and South Korea are leading in 5G innovation. 

5G Wireless technology

According to the GSMA, the Asia-Pacific (APAC) region is expected to experience exponential growth in 5G technology. It is projected that by 2030, APAC will account for 41% of all mobile connections, with approximately 1.4 billion 5G connections and an opportunity of gaining $130 billion to the region’s economy.

This growth is driven by factors such as the fall in the average price of 5G devices and rapid network expansion in many countries. The advancements in 5G technology contribute to the potential for programmatic advertising in APAC, as it enables faster and more efficient data transmission, leading to improved targeting and personalized advertising experiences for consumers.

Consumption expenditure

India’s projected growth in per capita final consumption expenditure (PCFE) of 6-7% over the next five years is expected to lead to a rise in advertising expenditure in the country. As the economy develops and consumer spending increases, there is significant potential for growth in the advertising industry, including programmatic advertising. 

Programmatic advertising

The APAC region has witnessed a significant increase in the acceptance of digital advertising in recent years. Marketers are recognizing the benefits of digital ads and allocating a larger portion of their ad spend to this form of advertising. This acceptance has paved the way for the growth of programmatic advertising in the region. 

The fastest growing programmatic markets in the APAC region in 2022 are the following:

  • 21.72% Thailand
  • 19.61% China 
  • 19.41 Vietnam 
  • 19.1% Singapore 

Wrapping up 

Programmatic advertising in the APAC region is witnessing significant growth and holds immense potential for the future. With the rise of 5G wireless technology, advancements in AI and Machine Learning, and the growing acceptance of digital advertising, programmatic advertising is set to thrive. 

The market size of programmatic advertising in APAC is expected to expand, providing businesses with opportunities to effectively reach their target audience. As a result, future trends and predictions for programmatic advertising in APAC look promising, making it an attractive market for businesses in the region.

Leverage APAC Region for Business Opportunities

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