Retail Platform Advertising - Taiwan

In Taiwan, ad spending in the Retail Platform Advertising market market is projected to reach US$641.30m in 2024.
Ad spending in Taiwan is expected to show an annual growth rate (CAGR 2024-2030) of 11.73%, resulting in a projected market volume of US$1.25bn by 2030.
The average ad spending per user in the Retail Platform Advertising market market in Taiwan is projected to amount to US$135.40 in 2024.
In global comparison, most ad spending will be generated the United States (US$57.63bn in 2024).
In Taiwan, the retail platform advertising sector is increasingly integrating AI-driven solutions to enhance personalized consumer experiences and optimize ad placements.

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 Taiwan has seen mild growth, influenced by the increasing shift towards e-commerce, evolving consumer preferences, and the need for brands to enhance their visibility in a competitive online landscape.

Customer preferences: In Taiwan, consumers are increasingly gravitating towards personalized shopping experiences, influenced by cultural values that emphasize individualism and self-expression. This shift has led brands to leverage data analytics for targeted advertising, enhancing engagement through customized promotions. Additionally, the rise of social commerce reflects a demand for authenticity, as consumers favor platforms that integrate social interaction with shopping. Furthermore, younger demographics are prioritizing sustainability, prompting brands to showcase eco-friendly products and practices in their advertising strategies.

Trends in the market: In Taiwan, the Retail Platform Advertising Market is experiencing a surge in the integration of AI-driven personalization, allowing brands to tailor advertisements to individual consumer preferences. This trend is significant as it not only boosts engagement but also enhances conversion rates, making advertising efforts more effective. Additionally, social media platforms are increasingly becoming vital retail channels, blurring the lines between social interaction and e-commerce. The emphasis on sustainability is also reshaping advertising strategies, compelling brands to highlight eco-friendly initiatives and products. This evolution presents opportunities and challenges for industry stakeholders, as they must navigate consumer expectations while innovating to remain competitive.

Local special circumstances: In Taiwan, the Retail Platform Advertising Market is uniquely shaped by its vibrant tech-savvy culture and strong social media presence, where over 80% of the population engages online. The island's dense urban areas foster competitive retail environments, prompting brands to adopt innovative advertising strategies. Additionally, Taiwan's regulatory landscape emphasizes data privacy, affecting how companies utilize consumer data for personalized ads. This combination of cultural engagement and regulatory considerations creates a distinct marketplace that drives both creativity and compliance in advertising efforts.

Underlying macroeconomic factors: The Retail Platform Advertising Market in Taiwan is significantly influenced by macroeconomic factors such as consumer spending trends, technological advancements, and regulatory frameworks. The country's robust economic growth, driven by a strong export sector and a thriving tech industry, boosts disposable income and encourages brands to invest in innovative advertising strategies. Additionally, the government's supportive fiscal policies, including tax incentives for digital businesses, foster an environment conducive to market expansion. However, the focus on data privacy regulations poses challenges, as companies must balance targeted advertising with compliance, ultimately shaping their market strategies and performance.

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.