The advertising market in the Asia-Pacific region is undergoing a fundamental transformation. Digital platforms are absorbing budgets that previously belonged to television, and new giants, led by Chinese e-commerce leaders, are coming to the fore. According to the latest data from Media Partners Asia (MPA), net advertising revenues in the region will reach $276.1 billion this year.
This result represents a year-on-year increase of 5.3%. An analysis of 14 key markets confirms that digital advertising is no longer just a supplement but a dominant force, currently accounting for 75% of all expenditures. Traditional formats, such as linear television, print, or classic search, are steadily losing their market share to technologies that can connect content directly with purchases.
Retail media in Asia-Pacific will generate $75.5 billion this year, double the revenue of linear television.
The Rise of Retail Media and the Decline of Television
While traditional TV broadcasting faces existential challenges in many countries, the segment of so-called retail media (advertising directly on sales platforms) is experiencing steep growth. This year, the sector is expected to reach $75.5 billion, representing 36.7% of digital advertising when China is included. Without the Chinese market, retail media accounts for a fifth of digital spending in the region.
The dominance of this format is evident from a simple comparison: retail media is already 1.5 times larger than all online video and five times larger than premium AVOD (ad-supported video on demand) services. MPA predicts that between 2028 and 2029, retail media will become the absolute largest standalone advertising medium in the region, definitively pushing linear television to the sidelines.
Key factors driving long-term market growth until 2031:
- Increasing commissions — rising take-rates for commerce-media in Southeast Asia.
- Artificial Intelligence — reducing the cost of creating and managing advertising campaigns.
- Economic growth — increasing GDP in India, Vietnam, the Philippines, and Indonesia.
- Social shopping — transformation of platforms like Shopee and TikTok Shop into video content.
Regional Differences and Chinese Dominance
China remains the largest player, generating $152.6 billion in advertising revenue this year. Retail media here accounts for almost half of all digital spending. In contrast, India is the fastest-growing market, strengthening by 9.3% this year to $17.5 billion, and is expected to grow to $25.8 billion by 2031.
An interesting perspective is offered by comparing tech giants. The American trio of Meta, ByteDance, and Google will likely control 44% of net advertising expenditures in the region by 2026. However, if we look at local strength, the nine largest Chinese platforms collectively hold 43.8% of the market, significantly more than the 31.5% share of the three American platforms.
Linear television in South Korea is experiencing a structural collapse with a year-on-year decline of 10.4 percent.
The Future of Video and Out-of-Home Advertising
Online video advertising will reach $51 billion this year, with social networks and user-generated content (70%) playing a major role. By 2031, this figure is expected to climb to $70.7 billion. Attention is also drawn to advertising in so-called micro-dramas, which will bring in $6.4 billion this year, and spending on smart TV (CTV) advertising, which is expected to almost double to $20.6 billion by 2031.
The only representative of traditional media that maintains a positive outlook is out-of-home (OOH) advertising. Its revenues are expected to grow to $25.3 billion by 2031. On the opposite side of the spectrum is linear television, which is weakening across the region. While MPA speaks of “managed erosion” in Japan, the situation in South Korea is much more dramatic, and the market there faces a complete breakdown of existing structures.
For media managers over the next five years, a key question will be whether they can convert their audience into measurable business results at the speed that e-commerce platforms do. Projections for 2031 anticipate a total market volume of $335.5 billion, but the outlook could be affected by currency fluctuations, US tariffs, or companies cutting budgets in cosmetics and fast-moving consumer goods due to rising production costs.