Market Insights Advertising & Media Advertising TV & Video Advertising

Digital Video Advertising - Japan

Japan

Ad spending in the Digital Video Advertising market in Japan is forecasted to reach US$5.19bn in 2024.
The ad spending is anticipated to demonstrate an annual growth rate (CAGR 2024-2029) of 4.28%, leading to a projected market volume of US$6.40bn by 2029.
With a projected market volume of US$84,610.00m in 2024, a significant portion of the revenue will be generated in Japan.
In the Digital Video Advertising market in Japan, 84.45% of total ad spending is expected to be generated through mobile in 2029.
The average ad spending per internet user in the Digital Video Advertising market in Japan is projected to be US$50.67 in 2024.
Connected TV ad spending in the Digital Video Advertising market in Japan is estimated to reach US$0.68bn in 2024.
Connected TV is forecasted to exhibit an annual growth rate (CAGR 2024-2029) of 3.82%, resulting in a projected market volume of US$0.82bn by 2029.
The ad spending on short-form videos in the Digital Video Advertising market in Japan is projected to reach US$1.77bn in 2024, with an annual growth rate (CAGR 2024-2029) of 9.45%, resulting in a projected market volume of US$2.78bn by 2029.
In Japan, the trend in Digital Video Advertising is leaning towards interactive and personalized content to engage tech-savvy consumers effectively.

Key regions: United Kingdom, Australia, Japan, Germany, India

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Analyst Opinion

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

Customer preferences: Japanese customers have shown a strong preference for digital video advertising due to its convenience and accessibility. With the increasing popularity of smartphones and high-speed internet, consumers are spending more time online, especially on social media platforms. This has created a huge demand for digital video content, making it an effective medium for advertisers to reach their target audience.

Trends in the market: One of the key trends in the digital video advertising market in Japan is the shift from traditional TV advertising to online platforms. Advertisers are recognizing the potential of digital video advertising to reach a wider audience and engage them effectively. As a result, they are allocating more of their advertising budgets towards digital platforms, leading to a surge in digital video ad spending. Another trend in the market is the rise of programmatic advertising. Programmatic advertising allows advertisers to automate the buying and selling of ad inventory, making it more efficient and cost-effective. This technology has gained significant traction in Japan, with advertisers embracing programmatic buying for their digital video ad campaigns. The ability to target specific demographics and track campaign performance in real-time has made programmatic advertising a popular choice among advertisers.

Local special circumstances: Japan has a unique advertising landscape, with a strong emphasis on traditional advertising methods such as TV commercials and print ads. However, the increasing popularity of digital video advertising has disrupted this traditional advertising model. Advertisers are now realizing the benefits of digital video advertising, such as its ability to target specific audiences and measure campaign effectiveness. This shift in advertising preferences is driving the growth of the digital video advertising market in Japan.

Underlying macroeconomic factors: The growth of the digital video advertising market in Japan can also be attributed to the country's strong economic performance. Japan has a large and affluent consumer market, making it an attractive destination for advertisers. Additionally, the government has been actively promoting digital transformation and innovation in the country, which has created a favorable environment for the growth of the digital video advertising market. In conclusion, the Digital Video Advertising market in Japan is experiencing significant growth due to customer preferences for digital content, the shift from traditional TV advertising to online platforms, the rise of programmatic advertising, the disruption of the traditional advertising landscape, and the country's strong economic performance. These factors have created a favorable environment for the development of the digital video advertising market in Japan.

Methodology

Data coverage:

Data encompasses enterprises (B2B). Figures are based on digital video advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers video ad formats (web-based, app-based, social media, and connected devices).

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. We use market data from industry reports and survey results from our primary research (e.g., Consumer Insights) to analyze the markets. Then we benchmark key countries or regions (United States, China, Europe, Asia, and Africa) results with country-specific advertising organizations or associations. 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, internet users, 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.