APAC brands reinvests highest percentage of revenue in media spend

Around 4.6% of the brand revenue of APAC brands was spent on advertising.

Asia Pacific (APAC) brands spend the highest percentage of the revenue in media at an average of 4.6%, higher than the global average of 3.8%, according to a report by Nielsen.

This is followed by North American brands that spend 4.1% of their revenue on advertising, but enjoy a “much stronger payback than the rest of the world,” with a return of investment (ROI) ad spend index of 155.

European and Latin American brands reinvest, 3.7% and 3%, respectively, of their revenue in media.

READ MORE: APAC social media ad spend up 8% YoY in Q1 2022

ROI for ad spend index, which is based on the total of the display, digital video, social and linear TV, for APAC and Latin American brands were 85, below the global average of 100. Europe’s index was only at 75.

Nielsen said media spending needs to be between 1% and 9% of revenue to remain competitive.

“But if an underdog wants to compete with the established players for share, it requires proportionally more resources to match their media spend in absolute terms. Conversely, if you’re a larger brand, you should skew to the lower end of the range,” it said.