Asia-Pacific ad spending growth will decelerate in 2025 amid tariff pressures, with digital and mobile driving growth. China faces headwinds, India enjoys rapid growth, and retail media expands and reshapes ad strategies across the region.

The news: Baidu has launched MuseSteamer, an enterprise-only AI tool that converts images into 10-second videos using three output modes—Turbo, Pro, and Lite—while upgrading its core search engine to support multimodal inputs. The tool targets businesses looking for scalable, automated creative output. Our take: With nearly half of marketers and creators now using AI for video daily, Baidu is doubling down on the enterprise market. MuseSteamer distinguishes itself from consumer-facing tools by offering speed, reliability, and tight workflow integration. As video becomes the default for content, the winners will be platforms that deliver pro-grade output without creative friction.

Digital’s share of total media ad spending in Asia-Pacific will reach a milestone in 2025, surpassing $200 billion for the first time. The region’s digital ad spending will increase 8.6%, led by India, while China’s growth will slip noticeably amid the country’s economic struggles before a rebound the following year.

DeepSeek, a genAI chatbot that originated from China, astonished the world with its capability to match ChatGPT while costing significantly less to build and using less powerful GPUs. The launch has triggered an industry soul search that could potentially accelerate AI adoption worldwide.

With iPhone sales tied to AI, Apple’s partnership with Alibaba could be the key to staying competitive against Huawei and other rising local brands.

China’s retail sector will grow from government stimulus, retail’s genAI revolution will have a far-reaching impact, India’s quick commerce will heat up, China’s retailers will face pushback in the region, and Xiaohongshu will further establish itself.

AI will become deeply woven into daily life in 2025. Autonomous agents, smart devices, AR glasses, search engines, and digital twins are making AI an ambient presence in how we work, shop, browse, and interact with the world.

The rapid growth of genAI has the potential to remake marketing and customer experiences in Asia-Pacific. Here’s how surging investment, consumer enthusiasm, and the evolving regulatory landscape are reshaping digital marketing.

From the rise of sophisticated AI-driven tools to new policies reshaping data privacy and competition, 2025 promises to be a year of relentless change. Companies that adapt will thrive, while others risk being left behind in a swiftly moving market.

Despite a slow start, foreign sanctions, and tight digital regulations, generative AI is emerging as a significant force in China.

As China’s retail media advertising market begins to mature, off-site channels—including WeChat and Douyin, TikTok's sister app in China—will increasingly drive growth.

Digital, traditional, and total media ad spending growth will all accelerate in 2024, although only modestly. The outlook has stabilized for most countries and regions, even if spectacular growth is harder than ever to find.

The ad spending winter of 2022 and early 2023 was mild and short-lived, as we predicted. And after a solid H2 2023, things are looking up across the board for 2024.

In China, ecommerce channel ad spending represents over 38% of total digital ad spending, and ecommerce search spending accounts for 64.0% of total search. Could the US figures reach similar heights?

Digital ad spending will increase slightly faster this year than in 2022, but the bump will be minimal. Total media ad spending growth will roughly hold steady. But there are parts of the world where spending is surging.

The buzz around generative AI has reached a fever pitch, but the technology is being developed and deployed at different rates in various parts of the world. Here’s a guide to how mature it is in key regions, and what’s next for generative AI.

Is AI-powered search profitable and sustainable? Scaling up commercial generative AI comes with high energy and environmental costs, adding to social concerns. Half-measures on the issue could damage market reception.

Slowing growth forces Beijing to capitulate to Big Tech: Facing the weakest growth in decades, China seeks cooperation with the EU and will loosen its iron grip on tech monoliths to spur the economy.

A jarring deceleration in ad spending growth has shaken the advertising industry in many parts of the world. However, this softness is not universal, and it is likely to be short-lived.