Makeup of the digital advertising marketCompared to traditional forms of advertising, digital advertising, in many cases, has the advantage of higher flexibility and precision. Many types of digital ads can be used shortly after being created, and changes to their content and placement can be made if necessary, leaving room for optimization. Detailed information on users, usually gathered via cookies, helps improve the precision of advertisements.
The total internet ad expenditure in Japan consists of expenditures on media, production costs, and merchandise-related e-commerce platforms. Among expenditures on media, performance-based advertising is by far the leading transaction method, which shows that many advertisers make use of the aforementioned strengths of digital advertising. The major advertising categories are paid search, display, video, and affiliate advertising. One further distinction can be made between non-social advertising and social advertising. Social advertising mainly refers to ads on social media and video-sharing services. One type of marketing that falls into this category and has garnered attention in recent years is influencer marketing, which utilizes the personal link between influencers and their audiences.