Online video ad expenditure Japan 2019-2024, by device

Smartphones accounted for almost 264 billion Japanese yen of the total online video advertising spending in Japan in 2020. While PCs accounted for a much smaller share, the advertising expenditure was expected to increase in the case of both devices.

Online video advertising in Japan

Internet advertising expenditures have shown stable growth in Japan. A major component are expenditures on internet advertising media, which can be differentiated into paid search advertising, display advertising, video advertising, affiliate advertising, as well as other forms of internet advertising. Next to paid search advertising and display advertising, online video advertising is one of the most important ways for advertisers to get their messages across to consumers. A breakdown of online video advertising spending by type reveals that in-stream and in-feed ads were the leading types of online video ads in Japan, while in-banner advertising accounted for a much smaller share.

Internet usage

Japan has a high internet penetration rate and therefore a large potential audience for internet advertising. The spread of smartphones throughout the 2010s has made mobile internet use much more convenient than before. Partly as a consequence of this development, the average time people spend on using the internet via mobile devices per weekday has increased significantly in recent years. In addition, various forms of online entertainment and services have become more and more important to people’s daily lives. While television still reigns supreme, video sharing and streaming services as well as videos on social media are among the most popular types of video consumption. It is expected that the reduction of mobile carrier fees as well as the increasing adoption of the 5G mobile standard will further positively influence online video consumption in the coming years.