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The Asia-Pacific region is home to the world’s largest and fastest-growing online advertising market. In 2023, online advertising revenue in APAC is expected to reach US$175.5 billion, accounting for over 40% of global online ad spending.
In this article, we will explore the driving forces behind the rapid growth of APAC’s advertising market and its major players.
The APAC online advertising market is growing thanks to several factors, including:
– Rapid Internet adoption: The APAC region is home to over half of the world’s Internet users. In 2023, there are expected to be over 3.3 billion internet users in APAC, accounting for over 50% of global internet users.
– Growing smartphone penetration: The APAC region is also home to the world’s highest smartphone penetration rate. In 2023, over 85% of the APAC population will own a smartphone.
– Rising incomes: The APAC region has a growing middle class. As incomes rise, consumers in APAC are spending more on online goods and services, driving demand for online advertising.
China dominates the APAC online advertising market. In 2023, China will account for over 60% of all online advertising revenue in APAC. Other major online advertising markets in APAC include Japan, South Korea, and Taiwan.
China is the largest online advertising market in the world. In 2023, online advertising revenue in China is expected to reach US$105.4 billion.
Mobile advertising dominates the Chinese online advertising market, accounting for over 80% of online ad spending in China.
The major players in the Chinese online advertising market include Alibaba, Baidu, and Tencent.
Japan is the second-largest online advertising market in APAC, after China. In 2023, online advertising revenue in Japan is expected to reach US$25.5 billion.
Search and display advertising dominates the Japanese online advertising marketa. Search advertising accounts for over 50% of online ad spending in Japan, while display advertising accounts for around 30% of spending.
The major players in the Japanese online advertising market include Yahoo! JAPAN, and LINE.
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The South Korean digital advertising market is mature and sophisticated. One of the key trends in the South Korean digital advertising market is the rise of programmatic advertising. Ad spending in South Korea is expected to reach US$15.26 billion in 2023.
Another key trend in the South Korean digital advertising market is the use of data-driven marketing. Data-driven marketing is a type of marketing that uses data to understand and target consumers more effectively.
Taiwan is a relatively small online advertising market, but it is growing rapidly. In 2023, online advertising revenue in Taiwan is expected to reach US$7.7 billion.
Search and display advertising dominates the Taiwanese online advertising market, similar to Japan. Search advertising accounts for over 50% of online ad spending in Taiwan, while display advertising accounts for around 30% of spending.
The major players in the Taiwanese online advertising market include Yahoo! Taiwan, and LINE.
The Thai digital advertising market is also growing rapidly. One of the key trends in the Thai digital advertising market is the rise of social media advertising, which accounts for over 60% of digital ad spending in the country. According to Statista, ad spend in Thailand is expected to reach US$3.6 billion in 2023.
Another key trend in the Thai digital advertising market is the use of native advertising. Native advertising has grown in popularity in Thailand as it is less intrusive than traditional forms of advertising.
Marketers who are preparing for digital advertising in the APAC region in 2024 should look out for the following trends:
– The rise of e-commerce advertising: E-commerce is growing rapidly in the APAC region, and so is e-commerce advertising. Marketers should focus on developing e-commerce advertising campaigns that are relevant to their target audience and that drive sales.
– The growth of mobile advertising: Mobile advertising is the fastest-growing segment of the APAC digital advertising market. Marketers need to make sure that their digital advertising campaigns are mobile-friendly and that they are targeting mobile users effectively.
– Artificial intelligence (AI) and machine learning (ML): AI and ML are improving the effectiveness of digital advertising campaigns. Marketers should consider using AI and ML to target their ads more accurately and to measure the results of their campaigns more effectively.
– The importance of data-driven marketing: Data-driven marketing is essential for success in the APAC digital advertising market. Marketers need to collect and analyze data about their target audience to understand them better and to develop more effective marketing campaigns.
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