Market Insights Advertising & Media AR & VR

AR Advertising - Japan

Japan

Revenue in the AR Advertising market market in Japan is projected to reach €253.8m in 2024.
Revenue in Japan is expected to show an annual growth rate (CAGR 2024-2029) of 9.49%, resulting in a projected market volume of €399.3m by 2029.
With a projected market volume of €1,135.0m in 2024, most revenue in the global context is generated the United States.
Japan's AR advertising market is increasingly integrating traditional cultural elements, enhancing user engagement and creating unique brand experiences in a technologically advanced society.

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Analyst Opinion

The AR Advertising market in Japan is experiencing significant growth and development.

Customer preferences: Customers in Japan are increasingly embracing AR advertising due to its interactive and immersive nature. AR ads provide a unique and engaging experience, allowing consumers to interact with products and brands in a virtual environment. This appeals to tech-savvy Japanese consumers who are always looking for innovative and cutting-edge experiences. Additionally, AR advertising enables personalized and targeted messaging, which resonates well with Japanese consumers who value tailored and relevant content.

Trends in the market: One of the key trends in the AR Advertising market in Japan is the integration of AR technology into social media platforms. Social media platforms like Instagram and Snapchat have introduced AR filters and effects, allowing users to overlay virtual objects and animations onto their photos and videos. This trend has gained popularity among Japanese users, leading to increased adoption of AR advertising by brands. Furthermore, the rise of influencer marketing in Japan has also contributed to the growth of AR advertising. Influencers are leveraging AR technology to create interactive and engaging content, enabling brands to reach a wider audience and drive brand awareness.

Local special circumstances: Japan is known for its advanced technology and innovation-driven culture. The country has a strong AR ecosystem with several startups and tech companies specializing in AR development. This has created a favorable environment for the growth of the AR Advertising market in Japan. Additionally, the upcoming Tokyo Olympics in 2021 has further accelerated the adoption of AR advertising. Brands are leveraging AR technology to create immersive and interactive experiences for Olympic-related campaigns, capitalizing on the global attention and excitement surrounding the event.

Underlying macroeconomic factors: The Japanese economy has been gradually recovering from the impact of the COVID-19 pandemic. As businesses reopen and consumer confidence improves, companies are investing more in advertising and marketing to regain market share and drive sales. AR advertising offers a unique and effective way for brands to stand out in a crowded market and capture the attention of consumers. With the increasing adoption of smartphones and the growing popularity of social media platforms in Japan, the AR Advertising market is poised for further growth in the coming years. In conclusion, the AR Advertising market in Japan is experiencing significant growth and development due to customer preferences for interactive and immersive experiences, the integration of AR technology into social media platforms, the rise of influencer marketing, the country's advanced technology ecosystem, and the gradual recovery of the Japanese economy. This market is expected to continue expanding as brands recognize the value of AR advertising in reaching and engaging with Japanese consumers.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on AR advertising revenue, which includes pop-up advertising displayed in social media apps, gaming apps, and eCommerce apps as well as advertising that is integrated into the virtual world.

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).