APAC CMOs set sights on bigger budgets as AI scrutiny rises

Asia Pacific CMOs are planning bigger marketing budgets for the year ahead, while raising expectations for agencies to show how AI investment translates into business impact, according to dentsu Creative's 2026 CMO Report.

The report, "Making it real", found that 26% of APAC CMOs expect their marketing budgets to increase by 10-20% over the next 12 months - the highest proportion among the regions surveyed. Overall, 63% expect budgets to grow by at least 5%, including 6% anticipating increases of more than 20%.

The report is based on a survey of 1,950 senior marketing decision-makers across 14 markets, including Australia, China and India, conducted in April 2026.

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With more investment on the table, APAC marketers are also putting greater scrutiny on how new capabilities are used. Some 85% want innovation to be directed towards their most urgent business challenges, compared with 80% globally.

AI is a particular area of focus. While marketers are moving beyond the initial excitement around the technology, 93% of APAC CMOs expect agencies to demonstrate improvements in marketing impact and effectiveness, while 92% want greater transparency around how their agency partners use AI.

Practical applications are also gaining ground. Some 59% are prioritising AI influencers and customer service agents for 2026/27, while 52% are backing dynamic creative optimisation, ahead of North America at 47% and EMEA at 45%. Meanwhile, 92% believe AI will transform search.

“Asia Pacific marketers are heading into 2027 with confidence and a clear appetite for growth. They’re investing, embracing new technology and looking for agencies that can turn those capabilities into measurable business outcomes,” said Yuichi Toyoda, CEO of dentsu APAC.

Human creativity remains central

Despite the appetite for AI, APAC CMOs are not positioning technology as a replacement for people.

Ninety per cent believe AI should empower talent rather than replace it, seven percentage points higher than the global result. Meanwhile, 89% believe empathetic human truth will become more important in a world of perfect information, while the same proportion say hearing directly from customers matters more than ever.

“AI will make much of the middle of the value creation chain dramatically faster and more efficient. But that makes the human role at either end even more critical - defining the right problem and setting the bold vision and direction at the beginning and exercising judgement and turning ideas into action at the end,” Toyoda added.

"The agencies that create the greatest value will be those that know where each creates the most value and bringing them together effectively.” 

The findings also point to a greater role for creators and communities in brand strategy. Some 87% of APAC CMOs believe relatable creators, including nano influencers, can outperform celebrities, compared with 81% globally. Fifty-seven per cent are prioritising talent and influencer collaborations for 2026/27.

At the same time, 85% believe brands should start conversations rather than finish them, suggesting a role for creators and communities beyond simply amplifying completed campaigns.

Experiences regain ground

The report also points to renewed investment in physical brand experiences as marketing becomes increasingly digital and automated.

Some 85% of APAC CMOs plan to invest more in real-world experiences, compared with 82% globally. A further 86% see sport and entertainment as important opportunities to build brands at scale as audiences become increasingly fragmented.

“Real-world experiences are becoming more valuable as marketing becomes more digital and automated. The opportunity is to connect those moments across content, media and customer experience, extending their impact beyond the event itself and turning engagement into measurable growth,” said Toyoda.

The findings come as APAC marketers report fewer pressures across several areas than their peers in North America and EMEA. Thirty-nine per cent cite unrelenting pressure to grow and perform as a significant challenge, compared with 48% in North America and 42% in EMEA.

Meanwhile, 41% say understanding and responding to changing consumer behaviour remains difficult. Only 30% cite keeping pace with culture as a significant challenge, compared with 41% in North America and 42% in EMEA.

Just 33% identify marketing to Gen Z and Gen Alpha as a significant challenge, versus 41% in North America and 42% in EMEA.

Beyond marketing budgets, 82% of APAC respondents expect their domestic economy to improve over the next 12 months, adding to the region's overall confidence heading into 2027.

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