APAC is on a strong growth trajectory in digital advertising, with India playing a pivotal role in driving this expansion, according to a new report by Bain & Company.
As global digital ad spending is projected to significantly outpace traditional advertising (forecasted to make up 80% to 85% of total ad spend by 2029), the APAC region is poised to outpace many others. The growth has largely been driven by rising internet penetration, mobile-first consumer behaviour, and an increasingly sophisticated adtech ecosystem.
Currently, the APAC region accounts for approximately 25% to 30% of global digital ad spend, positioning it as the second-largest market after North America, which commands nearly half of the total. Over the next five years, digital advertising in APAC is forecasted to grow at an annual rate of about 15%, considerably higher than the global average. This momentum is supported by rising smartphone ownership, expanding ecommerce platforms like Shopee in Southeast Asia and Flipkart in India, and favourable consumption trends.
India as the engine of APAC’s digital ad growth
India stands out within the region, with an impressive digital advertising growth rate of around 15% annually between 2024 and 2029, outpacing the country’s GDP growth estimated at 6-7% for the same period. This follows the pattern of other large economies. For example, China’s ad spend as a percentage of its GDP increased from approximately 0.5% to approximately 0.8% between 2015 and 2020, and Japan’s increased from around 0.7% to roughly 1% from 2019 to 2024.
India’s move towards a digital-first ad spend strategy, fuelled by favourable demographics, rising ecommerce adoption, and growing consumption of digital media is anticipated to increase its share of total digital advertising spend from 50-60% in 2024 to 60-70% in 2029.
Mobile devices take centre stage, accounting for nearly 70% of India’s digital ad spend, a figure that mirrors global trends but with even faster adoption. Mobile in-app ads dominate, benefiting from expanded 'non-voice time' (time spent using apps). Connected TV (CTV) is an emerging channel, already capturing about 10% of digital ad spend. The number of CTV households in India more than doubled from roughly 20 million in 2022 to nearly 45 million in 2024, opening premium advertising opportunities. For instance, Indian brands are leveraging contextual ads on CTV to target higher-end consumers.
Video advertising, a standout format, currently accounts for 35% to 40% of digital ad spend and is expected to grow another 6 to 8 percentage points over five years. This is largely being powered by video-first social media formats like Instagram Reels and YouTube Shorts, which have demonstrated much higher engagement rates (1.5%–2% click-through) compared to traditional banners (<0.5%).
Small and medium enterprises (SMEs) are major contributors to India’s digital ad story, increasing their share from about 35% in 2020 to 37% in 2024, with expectations to reach 40%–42% by 2029. This reflects a broader democratisation of the advertising ecosystem.
Changing consumer behaviour and privacy landscape
Across APAC, consumers are increasingly savvy, engaging with multiple devices weekly, often three or more, and using some 25 apps monthly for media consumption. They actively seek personalised content while opting out of irrelevant ads. Strict privacy regulations such as India’s Digital Personal Data Protection Act (DPDP), Europe’s GDPR, and California’s CCPA, alongside platform-level restrictions like Apple’s App Tracking Transparency (ATT), are curbing third-party tracking and reshaping targeting.
Advertisers are pivoting to build robust first-party data (FPD) strategies, leveraging contextual advertising and AI-driven personalisation to maintain marketing effectiveness amid these privacy shifts.
Rapid adtech evolution and publisher innovations
Adtech players in APAC are rapidly evolving, transitioning from backend technology providers to full-stack strategic partners. They now offer enhanced capabilities including real-time bidding, AI-powered analytics, advanced targeting solutions, and valuable services such as cross-channel ROI measurement and frequent testing & learning (T&L) programs. They are increasingly integrating AI and generative AI throughout campaign planning, audience segmentation, and creative content generation, with an aim to boost both efficiency and user experience.
Publishers are adopting mobile-first platform adaptations, AI-driven churn prediction, and innovative, minimally invasive ad formats to improve user engagement while balancing monetisation objectives. They are also building multi-source data engines and leveraging privacy-compliant data-sharing solutions such as clean rooms to provide granular audience insights and better attribution.
The adtech ecosystem structure features 'closed systems' dominated by tech giants such as Google, Meta, and Amazon, controlling about 75% of the market, and 'open systems', which form 25% but are consolidating rapidly due to scale and network advantages. This distinction highlights competitive pressures and opportunities for adtech players to innovate.
Looking ahead
Bain forecasts that by 2029, digital advertising will account for 80% to 85% of global ad spend, with APAC’s share rising significantly. India’s rapid digital ad market expansion is a key driver, influencing media spend patterns and innovation across the region.
To succeed, brands and agencies in APAC are encouraged to embrace mobile-first and platform-tailored content strategies, invest boldly in AI-enhanced marketing, build robust first-party data flywheels, and foster evolving partnerships with publishers and adtech providers.
"The convergence of mobile-led consumption, the rapid rise of video formats, and the integration of AI into every stage of the advertising process is reshaping how brands connect with consumers," says Prabhav Kashyap, partner at Bain & Company. "As audiences spread their attention across more devices and platforms, the leaders will be those who diversify beyond mega platforms, design content for each channel from the ground up, and harness AI and first-party data to deliver personalised, high-impact campaigns. Over the next five years, the ability to combine creativity, data, and technology will be the defining factor in who captures the most value.”
