Market Insights Advertising & Media Advertising

Search Advertising - Asia

Asia

Ad spending in the Search Advertising market in Asia is forecasted to reach €84.91bn in 2024.
The ad spending is anticipated to demonstrate an annual growth rate (CAGR 2024-2029) of 8.30%, leading to a projected market volume of €126.50bn by 2029.
When compared globally, the United States is expected to contribute the most to ad spending, with €127.10bn in 2024.
Within the Search Advertising market, 68% of total ad spending is estimated to come from mobile in 2029.
The average ad spending per internet user in the Search Advertising market in Asia is projected to be €24.78 in 2024.
In Asia, China's dominance in Search Advertising market is evident, with tech giants like Baidu leading innovations and shaping industry trends.

Key regions: Australia, Japan, United States, Europe, Asia

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Analyst Opinion

The Search Advertising market in Asia has been experiencing significant growth in recent years, driven by changing customer preferences, emerging trends, and local special circumstances. Customer preferences in Asia have shifted towards online platforms and digital media, leading to an increased demand for search advertising. With the rise of internet penetration and smartphone usage in the region, consumers are increasingly relying on search engines to find information, products, and services. This has created a lucrative market for advertisers to reach their target audience through search advertising. Trends in the market indicate a growing emphasis on mobile search advertising in Asia. As more people access the internet through their smartphones, advertisers are adapting their strategies to target mobile users effectively. This includes optimizing their websites and advertisements for mobile devices, as well as utilizing location-based targeting to reach consumers in specific geographical areas. Additionally, the integration of voice search technology has also gained popularity, with consumers using voice commands to search for information and make purchases. Advertisers are capitalizing on this trend by optimizing their search advertising campaigns for voice search queries. Local special circumstances in Asia also contribute to the development of the search advertising market. The region is home to diverse cultures, languages, and preferences, which necessitates localized advertising campaigns. Advertisers are tailoring their search advertising strategies to target specific countries and regions within Asia, taking into account local languages, cultural nuances, and consumer behaviors. This localization approach allows advertisers to effectively engage with their target audience and drive conversions. Underlying macroeconomic factors play a crucial role in the growth of the search advertising market in Asia. The region has witnessed rapid economic growth and urbanization, resulting in an expanding middle class with increased purchasing power. This has led to a higher demand for products and services, prompting advertisers to invest in search advertising to capture the attention of potential customers. Furthermore, the increasing internet penetration rates and improving infrastructure in many Asian countries have created a favorable environment for digital advertising, including search advertising. In conclusion, the Search Advertising market in Asia is experiencing growth due to changing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors. Advertisers are adapting their strategies to target mobile users, utilizing voice search technology, and tailoring their campaigns to local preferences. The region's rapid economic growth and increasing internet penetration rates further contribute to the expansion of the search advertising market in Asia.

Methodology

Data coverage:

Data encompasses enterprises (B2B). Figures are based on search advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers search advertising that is displayed on search result pages or next to organic search results.

Modeling approach:

A combined top-down and bottom-up approach determines the market size. Starting with the top-down approach, we calculate global search advertising by aggregating advertising revenues from key players (Alphabet (Google), Microsoft (Bing), Baidu, Amazon, Alibaba, etc.). Followed by the bottom-up approach, we justify global, country, and region results using web traffic and the number of app downloads. Lastly, we distribute the results to each country individually with relevant indicators such as GDP, internet users, and digital consumer spending by country.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market. For instance, the S-curve function is well suited to forecast digital products due to the non-linear growth of technology adoption, whereas exponential trend smoothing (ETS) is more suited for projecting steady growth in traditional advertising markets.

Additional notes:

Data is modeled using current exchange rates. The impacts of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice per year in case market dynamics change.