A New Playbook for Revenue in APAC

regionalized content ecosystems, global platforms entering Asia are being forced to rethink how they turn engagement into revenue. In the Asia-Pacific region, digital ad spend continues to rise rapidly, but the monetization gap is widening. According to GroupM, APAC accounts for over 35% of global digital ad spend, yet yields per user remain significantly lower than in Western markets. This is not due to a lack of engagement, but due to an inefficient and fragmented monetization landscape.

Understanding the Monetization Gap

Let us start with the numbers:

• Digital Ad Spend in APAC (2024): $104 billion (excluding China) (Source: GroupM Global Mid-Year Forecast, 2024)

• Average revenue per internet user (ARPU): $31 in APAC vs $108 in North America (Source: Statista Digital Market Outlook, 2024)

• Mobile usage share in APAC: 71% of total digital time (Source: App Annie State of Mobile, 2024)

• Ad fraud and viewability loss: 19% average wastage across display inventory (Source: IAS Media Quality Report, 2023)

The core issue lies in misaligned models. Monetization strategies built for unified, high-ARPU markets do not translate into APAC, where advertisers are fragmented by region, language, and maturity level.

Key Challenges in APAC Monetization

1. Fragmented Supply and Demand: Ad inventory is scattered across open exchanges, direct deals, native integrations, and affiliate networks. Advertisers operate at very different scales. While some seek advanced performance tracking, others still prioritize visibility and reach.

   
   

2. Over-Reliance on Display and Static Formats: Banner fatigue is real. The highest growth formats in APAC are video, commerce-linked ads, and native placements. Static display formats deliver lower CTRs and higher bounce rates.

   
   

3. Mismatch Between Engagement and Attribution: Users in APAC are highly engaged on short video apps, OTT platforms, and regional content platforms, but attribution models struggle to connect these high-funnel engagements to lower-funnel actions.

   
   

4. Limited Monetization of Long-Tail Audiences: Many global platforms focus on Tier 1 cities and large advertisers, ignoring mid-market and regional brands that are growing fast. Without localized onboarding, credit terms, or vernacular content support, this segment remains untapped.

Growth Opportunities in Monetization 2.0

1. Video and CTV Acceleration
   Short-form and OTT video continue to drive strong CPMs and high engagement rates. In India alone, video ad spend grew 28% YoY in 2023 and is expected to surpass $4.5 billion by 2025 (Source: FICCI-EY Media and Entertainment Report, 2024). Platforms with native video ad integrations outperform static formats by 3.2x in CTR (Source: Unmetric/APAC Ad Format Benchmarking Study, 2023).

   
   

2. Commerce Media and Retail Media Networks
   Retailers like Flipkart, Shopee, and Tokopedia are building powerful monetization ecosystems. Integrating commerce data into ad formats increases relevance and conversion rates (Source: eMarketer Southeast Asia Retail Media Trends, 2024).

   
   

3. Programmatic + Performance Hybrids
   There is growing demand for buying models that blend branding and performance. Programmatic native, cost-per-engagement, and dynamic creative optimization (DCO) are gaining traction. These formats improve ROI while offering scalable reach (Source: IAB APAC State of Programmatic, 2023).

   
   

4. Local Tier 2 and 3 Advertiser Enablement
   This remains one of the biggest untapped opportunities. In India, more than 60% of online retailers now operate from Tier 2 and Tier 3 cities (Source: RedSeer D2C & E-commerce Report, 2024). They want access to digital media, but need tailored onboarding, flexible pricing, and vernacular support.

APAC Video Ad Spend Growth (2021–2025)

CTR Comparison – Static vs Video vs Native (2023)

Strategies for Effective Monetization in APAC

• Invest in outcome-based buying models: Shift from CPM to CPC, CPL, or hybrid models that reflect advertiser goals.

  
  

• Enable local billing and tax support: Offer GST-ready invoices, flexible credit, and regional pricing to increase advertiser onboarding.

  
  

• Simplify creative production: Use AI tools, templates, and regional language support to help brands go live quickly.

  
  

• Strengthen attribution models: Build integrations with commerce platforms, CRMs, and regional last-click sources to improve tracking.

Conclusion: A Region That Demands a Different Approach

Monetization in APAC is not about copying what works in the West. It is about creating frameworks that understand user behavior, advertiser expectations, and platform fragmentation. Monetization 2.0 is dynamic, flexible, and deeply local. At Unpromptd, we work with global and regional platforms to build scalable monetization strategies that unlock the true value of attention in APAC.

Note: The ARPU and digital ad spend data excludes China to provide a clearer view of the broader APAC region.