Market Insights Advertising & Media Media Games

In-game Advertising - Japan

Japan

In Japan, revenue in the In-game Advertising market market is projected to reach €2.68bn in 2024.
This revenue is expected to show an annual growth rate (CAGR 2024-2029) of 7.29%, resulting in a projected market volume of €3.81bn by 2029.
The average revenue per user (ARPU) in Japan is expected to amount to €45.10.
In global comparison, most revenue will be generated China, with a figure of €43,220.00m in 2024.
In Japan, in-game advertising is increasingly integrated into popular mobile games, reflecting a cultural shift towards immersive brand experiences among tech-savvy consumers.

Key regions: China, India, United States, Germany, Europe

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Analyst Opinion

The In-game Advertising market in Japan has been experiencing significant growth in recent years.

Customer preferences: Japanese consumers are known for their love of gaming, making Japan one of the largest gaming markets in the world. With a large and dedicated base of gamers, there is a strong demand for in-game advertising. Additionally, Japanese gamers are generally more accepting of advertising within games compared to other markets, as long as it is relevant and non-intrusive. This makes Japan an attractive market for advertisers looking to reach a highly engaged audience.

Trends in the market: One of the key trends in the In-game Advertising market in Japan is the rise of mobile gaming. Mobile games have become increasingly popular in recent years, with more and more Japanese gamers turning to their smartphones and tablets for gaming entertainment. This shift towards mobile gaming has created new opportunities for in-game advertising, as advertisers can now reach a wider audience across different platforms. Another trend in the market is the integration of virtual reality (VR) and augmented reality (AR) technologies in gaming. Japan has been at the forefront of VR and AR development, with companies like Sony and Nintendo leading the way. This has opened up new possibilities for in-game advertising, as advertisers can now create immersive and interactive experiences for gamers.

Local special circumstances: Japan has a unique gaming culture that sets it apart from other markets. The country has a long history of gaming, with iconic franchises like Super Mario and Pokémon originating from Japan. This cultural affinity for gaming has created a strong and loyal gaming community in Japan, which presents a unique opportunity for in-game advertising. Japanese gamers are more likely to engage with and respond positively to advertising that is tailored to their interests and preferences.

Underlying macroeconomic factors: The Japanese economy has been relatively stable in recent years, with steady economic growth and low unemployment rates. This has created a favorable environment for the gaming industry, as consumers have more disposable income to spend on games and in-game purchases. The strong economy has also attracted international game developers and publishers to enter the Japanese market, further driving the growth of the In-game Advertising market. In conclusion, the In-game Advertising market in Japan is growing rapidly due to customer preferences for gaming, the rise of mobile gaming, the integration of VR and AR technologies, the unique gaming culture in Japan, and the favorable macroeconomic factors. As the market continues to evolve, advertisers will need to stay innovative and adapt their strategies to effectively reach and engage the Japanese gaming audience.

Methodology

Data coverage:

The data encompasses B2C revenues. Figures are based on in-app advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers ad spending on advertisements displayed within a mobile application.

Modeling approach / Market size:

The market size is determined through a combined top-down and bottom-up approach. We use market data from independent databases, the number of application downloads from data partners, survey results taken from our primary research (e.g., Consumer Insights), and third-party reports to analyze and estimate global in-app advertising spending. To analyze the markets, we start by researching digital advertising in mobile applications for each advertising format, incidents of in-app and mobile browser usage, as well as the time spent in mobile apps by categories. To estimate the market size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as GDP, mobile users, and digital consumer spending. Lastly, we benchmark key countries and/or regions (e.g., global, the United States, China) with external sources.

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.

Additional Notes:

The market is updated twice per year in case market dynamics change. Consumer Insights data is unbiased for representativeness.