Advertising - Japan

Japan

Ad spending in Japan's Advertising market is forecasted to reach €50.33bn in 2024.
The largest market in Japan is TV & Video Advertising with a market volume of €17.67bn in 2024.
When compared globally, the United States is expected to generate the most ad spending with €394.90bn in 2024.
Within the Advertising market in Japan, 63% of total ad spending will come from digital sources in 2029.
The average ad spending per capita in the TV & Video Advertising market is projected to be €144.10 in 2024 in Japan.
In Japan's Advertising market, Advertising market of the 79% revenue will be generated through programmatic advertising in 2029.
In Japan, the Advertising market is increasingly utilizing innovative digital platforms to target tech-savvy consumers, driving a shift towards online ad spending.

Key regions: United States, China, Europe, Asia, Japan

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Analyst Opinion

The Advertising market in Japan has been experiencing significant growth in recent years, driven by changing customer preferences and local special circumstances.

Customer preferences: In Japan, customers have shown a strong preference for digital advertising channels, particularly mobile advertising. With the widespread adoption of smartphones and the increasing use of social media platforms, Japanese consumers are spending more time online, making digital advertising an effective way to reach them. Additionally, customers in Japan value personalized and targeted advertising messages, which can be delivered more effectively through digital channels.

Trends in the market: One of the key trends in the Japanese advertising market is the shift from traditional media to digital media. Traditional media, such as television and print, still hold a significant share of the advertising market, but digital advertising is growing at a much faster rate. Advertisers are increasingly allocating their budgets to digital channels, as they offer more precise targeting options and measurable results. This trend is expected to continue in the coming years, with digital advertising becoming the dominant form of advertising in Japan. Another trend in the Japanese advertising market is the rise of influencer marketing. Influencers, who are individuals with a large following on social media platforms, have become powerful marketing tools for brands. Japanese consumers trust the recommendations of influencers and are more likely to make a purchase based on their endorsements. As a result, brands are partnering with influencers to promote their products or services, creating a new avenue for advertising in Japan.

Local special circumstances: Japan has a unique advertising landscape due to its cultural and linguistic characteristics. Japanese consumers have a strong preference for advertisements that are tailored to their local culture and language. This presents a challenge for international brands entering the Japanese market, as they need to localize their advertising campaigns to resonate with the target audience. Local advertising agencies and creative teams play a crucial role in helping international brands navigate the Japanese advertising market and create effective campaigns.

Underlying macroeconomic factors: The growth of the advertising market in Japan is also influenced by underlying macroeconomic factors. Japan has a stable and developed economy, which provides a conducive environment for businesses to invest in advertising. Additionally, Japan has a large population with high disposable income, making it an attractive market for advertisers. The government's efforts to promote tourism and attract foreign investment have also contributed to the growth of the advertising market, as businesses seek to capitalize on these opportunities. Overall, the Advertising market in Japan is evolving to meet the changing customer preferences and taking advantage of local special circumstances. The shift towards digital advertising, the rise of influencer marketing, and the need for localized campaigns are shaping the advertising landscape in Japan. With a stable economy and a large consumer base, the advertising market in Japan is expected to continue its growth trajectory in the coming years.

Methodology

Data coverage:

Data encompasses enterprises (B2B). Figures are based on advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers advertising by businesses for traditional and digital advertisements.

Modeling approach:

Market sizes are determined by a combined top-down and bottom-up approach, based on a specific rationale for each market market. As a basis for evaluating markets, we use annual financial reports of the market-leading companies and industry associations, third-party reports, and survey results from our primary research (e.g., Consumer Insights Global Survey). Next, we use relevant key market indicators and data from country-specific associations, such as GDP, internet users, consumer spending, and digital consumer spending. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, the S-curve function is well suited to forecast digital products due to the non-linear growth of technology adoption, whereas exponential trend smoothing (ETS) is more suited for projecting steady growth in traditional advertising markets.

Additional notes:

Data is modeled using current exchange rates. The impacts of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice per year. 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).