Retail Platform Advertising - Eastern Asia

In Eastern Asia, ad spending in the Retail Platform Advertising market market is projected to reach US$66.59bn in 2024.
The ad spending in this region is expected to exhibit an annual growth rate (CAGR 2024-2030) of 15.93%, leading to a projected market volume of US$161.60bn by 2030.
The average ad spending per user in Eastern Asia's Retail Platform Advertising market market is projected to amount to US$63.43 in 2024.
In global comparison, most ad spending will be generated the United States (US$57.63bn in 2024).
In Eastern Asia, particularly in Japan, retail platform advertising is increasingly leveraging advanced AI technologies to enhance personalized consumer engagement and drive sales.

Definition:

Retail platform advertising (RPA) refers to digital ads displayed on websites and apps dedicated to retail platforms, such as Amazon, Walmart, eBay, Alibaba, and JD.com. This includes all types of advertising across various devices, e.g., PCs, smartphones, and tablets, and covers formats such as sponsored products, banners, and videos. RPA specifically excludes offline retail ads (e.g., in-store displays and billboards), off-site ads (e.g., ads appearing on non-retail websites or apps), ads on social media platforms (e.g., Facebook or Instagram), and ads on search engines (e.g., Google or Bing).

Additional Information:

It is important not to confuse RPA with retail media networks (RMNs). RMNs involve digital ads that are also displayed on retail e-commerce sites or apps, but these ads are purchased through a retailer’s media network or a demand-side platform (DSP). While RMNs include ads on sites such as Amazon and Walmart, they also cover ads bought through networks such as Amazon DSP, Walmart Connect, and Etsy’s Offsite Ads, and these ads may not necessarily appear directly on the retailer’s e-commerce site or app. Unlike RPA, RMNs represent a broader approach that encompasses a range of ad placements, both on and off the retailer’s own platforms.

Digital ads displayed on websites and apps dedicated to retail platforms
All types of advertising across various devices, e.g., PCs, smartphones, and tablets
All types of sponsored ad formats, such as sponsored products, banners, and videos

Offline retail ads (e.g., in-store displays and billboards)
Off-site ads (e.g., ads appearing on non-retail websites or apps)
Ads on social media platforms (e.g., Facebook or Instagram)
Ads on search engines (e.g., Google or Bing)

The Retail Platform Advertising Market in Eastern Asia is experiencing steady growth, influenced by factors such as the expanding e-commerce sector, increased mobile usage, and heightened competition among brands seeking to enhance their online visibility and consumer engagement.

Customer preferences: Consumers in Eastern Asia are increasingly gravitating towards personalized shopping experiences, prompting a surge in demand for targeted advertising on retail platforms. This shift is fueled by the region's diverse cultural preferences and the rise of Gen Z and millennial shoppers who prioritize brand authenticity and social responsibility. Additionally, the integration of augmented reality (AR) in online shopping is enhancing product visualization, making it a favored feature among tech-savvy consumers seeking immersive experiences. This evolving landscape compels brands to adapt their advertising strategies to effectively resonate with these changing consumer behaviors.

Trends in the market: In Eastern Asia, the Retail Platform Advertising Market is experiencing a pronounced shift towards hyper-personalization, as brands leverage data analytics to curate tailored ad experiences that reflect individual consumer preferences. The influence of Gen Z and millennials is paramount, with these demographics demanding authenticity and ethical marketing practices. Additionally, social commerce is on the rise, integrating social media with e-commerce, allowing seamless shopping experiences. The incorporation of AI-driven tools for real-time customer engagement is becoming essential, underscoring the need for brands to innovate continually to maintain relevance in an increasingly competitive landscape.

Local special circumstances: In Eastern Asia, the Retail Platform Advertising Market is distinctly shaped by the region's diverse cultural nuances and rapid technological adoption. Countries like China leverage a unique blend of Confucian values emphasizing community and harmony, influencing consumer trust in brands that demonstrate social responsibility. Regulatory frameworks, particularly in digital advertising, vary significantly, with stringent laws governing data privacy in places like South Korea, compelling brands to prioritize ethical practices. Moreover, the rise of mobile payments and super apps, especially in urban areas, fosters an integrated shopping experience, propelling advertisers to innovate continually.

Underlying macroeconomic factors: The Retail Platform Advertising Market in Eastern Asia is significantly influenced by macroeconomic factors such as economic growth, consumer spending patterns, and technological advancements. Rapid urbanization and rising disposable incomes in countries like China and Japan are fostering increased online shopping, which in turn boosts advertising spend on retail platforms. Additionally, government policies promoting digital innovation and e-commerce further stimulate market dynamics. Fluctuations in global trade and economic uncertainties, particularly those arising from geopolitical tensions, also impact brand strategies and advertising budgets, compelling a greater focus on localized content and adaptive marketing approaches.

Data coverage:

Data encompasses enterprises (B2B). Figures are based on Retail platform ad spending and exclude agency commissions, rebates, production costs, and taxes. The market covers advertising by businesses for digital advertisements.

Modeling approach:

Market sizes are determined by a combined top-down and bottom-up approach, based on a specific rationale for each market. As a basis for evaluating markets, we use annual financial reports of the market-leading companies and industry associations, third-party reports, and survey results from our primary research (e.g., Consumer Insights). Next, we use relevant key market indicators and data from country-specific associations, such as GDP, internet users, and digital consumer spending. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, 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 some cases, the data is updated on an ad-hoc basis (e.g., when new relevant data has been released or significant changes within the market have an impact on the projected development).

This report presents a comprehensive analysis and additional information on the Advertising & Media market, in a PDF format.