Market Insights Advertising & Media Advertising Out-of-Home Advertising

Digital Out-of-Home Advertising - Japan

Japan

Ad spending in the Digital Out-of-Home Advertising market in Japan is forecasted to reach US$1.63bn in 2024.
The expected annual growth rate (CAGR 2024-2029) of ad spending is 4.28%, leading to a projected market volume of US$2.01bn by 2029.
With a projected market volume of US$5,277.00m in 2024, the majority of ad spending will be generated United States.
The average ad spending per capita in the Digital Out-of-Home Advertising market is projected to be US$13.30 in 2024.
In Japan, the Digital Out-of-Home Advertising market is rapidly expanding, with innovative technologies driving interactive and engaging campaigns in prime locations.

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

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Analyst Opinion

The Digital Out-of-Home Advertising market in Japan is experiencing significant growth and development due to changing customer preferences, emerging trends, and local special circumstances.

Customer preferences: Customers in Japan are increasingly drawn to digital out-of-home advertising due to its dynamic and interactive nature. Digital screens provide a visually appealing and engaging experience, capturing the attention of passersby and increasing brand awareness. Additionally, customers appreciate the ability of digital out-of-home advertising to deliver targeted and personalized messages, enhancing the overall effectiveness of advertising campaigns.

Trends in the market: One of the key trends in the digital out-of-home advertising market in Japan is the integration of advanced technologies. With the rise of smart cities and Internet of Things (IoT) devices, digital screens are being equipped with sensors and analytics capabilities. This allows advertisers to gather real-time data on audience demographics, behavior, and preferences, enabling them to deliver more relevant and targeted advertisements. Furthermore, the integration of artificial intelligence (AI) and machine learning algorithms is enabling the creation of dynamic and personalized content that adapts to the specific context and audience. Another trend in the market is the increasing adoption of programmatic advertising. Programmatic advertising allows for automated buying and selling of advertising space, optimizing ad placements and targeting based on data-driven insights. This trend is driven by the need for efficiency and cost-effectiveness in advertising campaigns, as well as the desire to reach the right audience at the right time with the right message.

Local special circumstances: Japan has a highly urbanized population, with densely populated cities and a high level of public transportation usage. This creates a favorable environment for digital out-of-home advertising, as there are numerous opportunities to reach a large and diverse audience. Additionally, Japan has a strong culture of technological innovation and adoption, making it a fertile ground for the growth of digital out-of-home advertising.

Underlying macroeconomic factors: The growth of the digital out-of-home advertising market in Japan is also influenced by underlying macroeconomic factors. Japan has a stable and mature advertising industry, with a high level of investment in marketing and advertising activities. Furthermore, the country has a strong economy and high levels of consumer spending, providing a favorable environment for advertisers to invest in digital out-of-home advertising. In conclusion, the Digital Out-of-Home Advertising market in Japan is experiencing growth and development driven by changing customer preferences, emerging trends, and local special circumstances. The integration of advanced technologies, such as sensors and AI, is enhancing the effectiveness of digital out-of-home advertising. The adoption of programmatic advertising is also increasing, allowing for more efficient and targeted ad placements. Japan's urbanized population, technological innovation, and strong economy further contribute to the growth of the market.

Methodology

Data coverage:

Data encompasses enterprises (B2B). Figures are based on digital out-of-home advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers internet-connected out-of-home advertisements such as digital billboards, digital street furniture, digital transit and transportation, and digital place-based media.

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, 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, urban population, and internet infrastructure.

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.