Market Insights Advertising & Media AR & VR

VR Advertising - Asia

Asia

The VR Advertising market in Asia is expected to achieve a revenue of US$62.6m by 2024.
It is projected to display an annual growth rate (CAGR 2024-2028) of 1.55%, leading to a market volume of US$66.6m by 2028.
The United States, with a projected market volume of US$47.4m in 2024, remains the largest contributor to the overall revenue.
In Japan, VR advertising is gaining traction, with major brands using immersive technology to create engaging and interactive campaigns.

Market

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Region comparison

Currency

Analyst Opinion

The VR Advertising market in Asia is experiencing significant growth and development due to several key factors.

Customer preferences: Customers in Asia are increasingly showing a preference for immersive and interactive advertising experiences. VR Advertising allows brands to engage with consumers in a more personal and memorable way, creating a deeper connection and leaving a lasting impression. With the rise of social media and digital platforms, customers are seeking unique and innovative content that stands out from the crowd. VR Advertising provides an opportunity for brands to differentiate themselves and capture the attention of their target audience.

Trends in the market: One of the key trends in the VR Advertising market in Asia is the increasing adoption of VR technology by major brands and advertisers. Companies are recognizing the potential of VR Advertising to enhance their marketing campaigns and reach a wider audience. This trend is particularly evident in countries like China and Japan, where there is a strong culture of technological innovation and a large consumer base for VR products. Another trend in the market is the integration of VR Advertising with e-commerce platforms. Companies are leveraging VR technology to create virtual shopping experiences, allowing customers to explore products and make purchases in a virtual environment. This trend is driven by the growing popularity of online shopping in Asia and the desire for a more immersive and interactive shopping experience.

Local special circumstances: Asia is a diverse region with varying levels of technological infrastructure and consumer behavior. In countries like China and South Korea, where internet penetration is high and consumers are tech-savvy, the adoption of VR Advertising is more widespread. On the other hand, in countries with less developed infrastructure and a more traditional consumer base, the growth of VR Advertising may be slower.

Underlying macroeconomic factors: The rapid economic growth in Asia has led to an increase in disposable income and consumer spending. As a result, companies are investing more in advertising and marketing to capture the attention of the growing middle class. VR Advertising offers a unique and innovative way for brands to engage with consumers and differentiate themselves in a competitive market. Furthermore, the increasing penetration of smartphones and affordable VR devices in Asia has made VR Advertising more accessible to a larger audience. This has created new opportunities for advertisers to reach consumers through mobile apps and social media platforms, further driving the growth of the VR Advertising market in Asia. In conclusion, the VR Advertising market in Asia is experiencing significant growth and development due to customer preferences for immersive and interactive experiences, the increasing adoption of VR technology by major brands, the integration of VR Advertising with e-commerce platforms, and the underlying macroeconomic factors of rapid economic growth and increasing smartphone penetration. These factors are driving the growth of the VR Advertising market in Asia and creating new opportunities for advertisers to engage with consumers in innovative ways.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on VR advertising revenue, which includes advertising that is integrated into the virtual world within video games and videos.

Modeling approach / market size:

The market size is determined through a top-down approach. We use annual financial reports of the market-leading companies and industry associations, as well as third-party studies and reports to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as consumer spending, internet penetration, 4G coverage, and historical developments.

Forecasts:

We apply a variety of forecasting techniques, depending on the behavior of the relevant market. For instance, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption. The main drivers are level of digitalization, adoption of technology, GDP per capita, and internet penetration.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. 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).