Over 50% of APAC marketers plan to cut ad spend in 2025: Nielsen

Nielsen’s 2025 Annual Marketing Report paints a picture of a marketing industry in transition. Marketers in APAC and around the globe are adapting to tighter budgets, rapid advances in AI, and the growing influence of new channels like connected TV (CTV) and retail media networks (RMNs). Based on a survey of 1,400 leading marketers worldwide, the report highlights how APAC marketers are reshaping their strategies to cope with economic uncertainty, supply chain disruptions, and evolving consumer behaviours.

Adapting to leaner budgets

Over half of marketers globally (54%) expect to cut ad spend in 2025, with APAC closely mirroring this trend at 53%. Despite smaller budgets, expectations for results remain high, pushing marketers to do more with less. Many are shifting to less expensive channels, increasing their digital mix, and focusing more on performance campaigns. However, industry variations persist: retail brands are doubling down on digital, while auto and pharma brands still invest in traditional media like TV but are starting to explore newer platforms such as CTV.

 

Digital continues to capture ad spend
 

Digital channels, especially social media, display, video, and search, remain top priorities for new ad budgets. However, the pace of digital budget increases has slowed compared to last year. Interestingly, more marketers are planning substantial increases in traditional media spend, particularly out-of-home advertising, with 16% globally planning to boost their out-of-home budget by over 50%, a three-point increase from 2024.

 

 

Connected TV (CTV) is transforming television

 

CTV and streaming platforms are becoming essential parts of the media mix. Globally, 56% of marketers plan to increase OTT/CTV spend in 2025, up from 53% in 2024. In APAC, however, enthusiasm has cooled: only 52% of marketers plan to increase OTT/CTV spend this year, down from 74% last year. This suggests a regional recalibration as streaming matures and marketers weigh its effectiveness.

 

 

Retail media networks: From buzzword to full-funnel channel

 

RMNs are no longer just a trend, they’re a staple of modern media strategies. Two-thirds (65%) of marketers globally, and a higher 68% in APAC, say RMNs are growing in importance for 2025. While APAC marketers tend to use RMNs for bottom-funnel activities, there’s a shift towards leveraging them across the entire customer journey, mirroring trends in other regions.

 

 

AI’s big impact on campaigns

 

AI is the most-watched trend for 2025, especially among brands with large ad budgets. Nearly three-quarters of big brands see AI-driven personalisation and optimisation as key to future success. Marketers expect AI to help with content creation, campaign personalisation, media optimisation, and predictive analytics. While large brands pursue automation, smaller brands are focusing on authenticity, sustainability, and influencer content to stand out.

 

 

The sweet spot: Balancing brand and performance

 

Marketers are carefully balancing top-of-funnel brand awareness with bottom-of-funnel revenue growth. In APAC, there’s a near-even split, with a slight tilt toward revenue growth (52% vs 50% for brand awareness). Customer acquisition remains a higher priority than retention. More APAC marketers are allocating specific budgets for brand-building and using hybrid metrics that measure performance across the full funnel. 

 

 

Digital vs traditional: Striking the right balance

 

The divide between digital and traditional media is narrowing. While digital still commands a large share of ad budgets, the majority of marketers (44% globally) now prefer a balanced allocation (40%-60% split) between digital and traditional channels. In APAC, this balancing act is especially pronounced. Some industries, like healthcare and pharma, still rely on traditional media for complex, regulated products, while sectors such as entertainment and travel are more digital-forward.

 

 

Measurement, ROI, and data challenges

 

Marketers are under pressure to prove ROI and effectiveness across channels. In APAC, 61% consider ROI a key metric, not just reach and frequency. Yet, holistic measurement across digital and traditional channels remains a challenge—only 32% of marketers globally say they measure media spending holistically, and the figure is even lower in some regions. Data fragmentation, weak tools, and lack of transparency, especially with new channels like RMNs, complicate the measurement landscape.

 

 

Navigating uncertainty with data and agility

 

Amid ongoing uncertainty, APAC marketers are prioritising accuracy, cost-efficiency, and actionable insights. They’re experimenting with new touchpoints like RMNs and CTV, fine-tuning their media mixes, and leveraging AI to streamline operations. The ability to adapt quickly, backed by robust data and measurement tools, will be key to navigating the complexities of 2025.