Survey: Over 80% of APAC CMOs expect an increase in budget allocations for 2025

Over 80% of APAC CMOs are expecting an increase in budget allocations for 2025, with Japan showing the most significant increase from 50% to 87%, according to a study by dentsu. 

Dentsu has unveiled its global study titled 2024 CMO Navigator, media edition, involving over 1,900 CMOs in 13 countries. This latest instalment in the Navigator series follows the creative and CX editions and features a significant focus on APAC, with 29% of respondents representing Australia, China, India and Japan. The study reveals regional insights that highlight how APAC CMOs are redefining the media landscape in the algorithmic era. 

Conducted during August 2024, the study showed that throughout the year, the share of CMOs expecting budget increases has grown across most regions, with APAC increasing from 75% to 86%.

40% of global CMOs expect their marketing budget will increase up to 5% in H2, whereas 31% believe the budget will increase between 5 and 10% in H2. Meanwhile, 18% expect there will be a 10% increase in marketing budget in H2 2025. Less than 10% of global CMOs expect their marketing budget will stay flat or decline in H2 2025.

On the other hand, global CMOs will prioritise a new growth agenda in the allocation of their resources, according to the report. This is reflected in their focus on product and demand initiatives above all, with 38% of global CMOs focusing on the area in H2 2025.  

Business transformation is also a significant area of focus, being elevated as the second focus area above brand, which had garnered more preferences in H1 2025. 

The report also showed that media is undeniably seen as a strategic lever to drive business growth by an overwhelming majority of global CMOs with 88% seeing it as very important or critical.  

They are readying their organisations to seize new opportunities in a world where algorithms increasingly connect culture to commerce, evidenced by priority investment areas aimed at standing out in consumers’ busy feeds, said the report.   

In APAC, these include increased investments in original content production, short-form video and social commerce, as well as retail media networks. However, APAC CMOs are adopting a more measured approach toward livestream integrations. 

Compared to other regions, APAC CMOs demonstrate the strongest optimism about economic recovery, with 90% projecting revenue growth, and Japan making the biggest improvement in economy outlook, jumping from 34% in H1 to 86% in H2. 

With AI becoming increasingly influential across the marketing landscape, 34% of global CMOs see it having broad applicability when it comes to media, from strategy to planning to prospects of new partnerships next year. However, 39% agree that their biggest priority will be truly understanding use cases, opportunities and risks of AI in 2025. 

While there is an optimistic outlook for increased investment across the board in 2025, a number of key challenges were outlined by CMOs, with 29% agreeing their biggest concern was the tightening of data privacy regulations, whereas 29% were anxious about planning media for both business performance and sustainability goals.  

Meanwhile, 28% see that a lack of transparency or visibility from closed tech platforms such as Amazon, X, or WeChat may cause issues, and a further 28% worry about integrating emerging tech solutions.   

Prerna Mehrotra, chief client officer & practice president, dentsu Media APAC, commented: “We continue to see APAC lead in the new era of media transformation, where personalisation, shoppable formats and creative storytelling are redefining how brands connect with consumers.” 

“Marketers are embracing new strategies and differentiating products to capture audience demand. They continue to invest in delivering innovative experiences by prioritising fit-for-purpose content, integrating emerging tech and deploying Media++ strategies to stand out while navigating regulatory challenges,” Mehrotra added. 

“Media is undeniably a strategic lever for business growth. Our CMO Navigator Media Edition showcases that the APAC region is well positioned to drive future-ready approaches," Prerna added. 

“This view of CMO priorities going into 2025 shows a clear determination to dig deep into the craft of media at a time when the industry is hurtling into a new era – one in which algorithms and AI will more closely govern the brand-to-consumer experience and in which the brute force of spend and scale is not enough,” said Will Swayne, global practice president, media, dentsu.  

“The opportunities of the modern nuanced media mix must be tempered by the various challenges that new technology brings, but by balancing brand and performance, progressive CMOs will wield a new level of influence in determining the success of organisational transformation,” Swayne added.

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