Market Insights Advertising & Media Advertising

TV & Video Advertising - Japan

Japan

Ad spending in the TV & Video Advertising market in Japan is forecasted to reach US$19.00bn in 2024.
The largest market is Traditional TV Advertising with a market volume of US$13.82bn in 2024.
When comparing globally, the China is expected to generate the highest ad spending, reaching US$64.02bn in 2024.
The average ad spending per user in the Traditional TV Advertising market is projected to be US$153.10 in 2024.
By 2029, the number of TV Viewers in Japan is anticipated to reach 88.28m users.
In Japan, TV & Video Advertising market is seeing a shift towards targeted digital campaigns to reach specific audiences efficiently.

Key regions: United States, Europe, United Kingdom, Japan, Germany

Definition:
TV & Video Advertising includes advertising in the form of moving visual images instead of traditional broadcast television and all ad formats within digital video channels. Traditional TV Advertising includes non-digital formats and excludes all forms of digital TV advertising. Traditional TV Advertising also covers all ad spending on pay-TV operators and networks, free-to-air networks, and free-to-air spin-off digital channels from terrestrial network operators. In comparison, Digital Video Advertising includes all ad formats within webpage-based videos, app-based video players, social media, or streaming apps that appear on computer screens, smartphones, tablets, and other internet-connected devices.

Structure:

Traditional TV Advertising includes all ad spending on moving image formats broadcasted via traditional transmission channels such as terrestrial and digital terrestrial (DTTV, DTT, DTTB) TV, cable TV, satellite TV, and linear TV delivered via Internet Protocol television (IPTV).
Digital Video Advertising formats are displayed as instream and outstream video ads. Instream video ads include advertising that appears before, during, or after the streamed video (pre-roll, mid-roll, and post-roll video ads) and video overlays (text- or image-based overlays that appear while watching a video). Outstream video ads include video advertising that appears in non-video environments, e.g., in-feed on social media or text-based content (so-called native advertising).

Additional information:
The TV & Video Advertising market comprises advertising spending, users, average revenue per user, and user demographic. The market only displays B2B spending and users for the market. Figures are based on advertising spending and exclude agency commissions, rebates, production costs, and taxes. Additional definitions of Traditional TV Advertising and Digital Video Advertising can be found on the respective pages. For more information on the data displayed, use the info button right next to the boxes.

Market

Region

Region comparison

Currency

Analyst Opinion

The TV & Video Advertising market in Japan has been experiencing significant growth in recent years.

Customer preferences: Japanese consumers have shown a strong preference for video content, making TV and video advertising a lucrative market. With the rise of streaming platforms and the increasing popularity of online video content, consumers are spending more time watching videos on various devices such as smartphones, tablets, and smart TVs. This shift in consumer behavior has led advertisers to invest more in TV and video advertising to reach their target audience effectively.

Trends in the market: One of the key trends in the TV & Video Advertising market in Japan is the increasing adoption of programmatic advertising. Programmatic advertising allows advertisers to automate the buying and selling of ad inventory, enabling them to target specific audiences and optimize their ad campaigns in real-time. This trend is driven by the desire for more targeted and personalized advertising, as well as the need for more efficient ad buying processes. Advertisers in Japan are leveraging programmatic advertising to reach their desired audience effectively and maximize their return on investment. Another trend in the market is the growth of mobile video advertising. With the widespread use of smartphones in Japan, advertisers are recognizing the potential of mobile video advertising to engage consumers on-the-go. Mobile video ads are highly effective in capturing the attention of consumers and driving brand awareness. Advertisers are leveraging this trend by creating mobile-friendly video content and optimizing their ads for mobile devices. This trend is expected to continue as mobile usage continues to rise in Japan.

Local special circumstances: Japan has a unique advertising culture that emphasizes creativity and storytelling. Advertisers in Japan often focus on creating emotionally engaging and visually stunning ads that resonate with consumers. This emphasis on creativity has contributed to the success of TV and video advertising in the country. Advertisers understand the importance of capturing the attention of consumers and are investing in high-quality production and storytelling to create memorable ads.

Underlying macroeconomic factors: The strong economic growth in Japan has contributed to the growth of the TV & Video Advertising market. As the economy continues to expand, businesses are increasing their advertising budgets to promote their products and services. This increased spending on advertising has led to more opportunities for TV and video advertising in the market. In conclusion, the TV & Video Advertising market in Japan is experiencing growth due to customer preferences for video content, the adoption of programmatic advertising, the growth of mobile video advertising, the emphasis on creativity in advertising culture, and the strong macroeconomic factors. Advertisers in Japan are leveraging these trends and circumstances to effectively reach their target audience and drive brand awareness.

Methodology

Data coverage:

Data encompasses enterprises (B2B). Figures are based on TV and video advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers traditional TV advertising (non-digital formats such as terrestrial TV, cable TV, satellite TV, and linear TV) and digital video advertising (video ad formats: web-based, app-based, on social media, and connected devices).

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. We use annual financial reports of the market-leading companies and industry associations, third-party reports, web traffic, and survey results from our primary research (e.g., Consumer Insights) 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 GDP, population, media consumption, internet users, consumer spending, and digital consumer spending.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market. For instance, 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 case market dynamics change.