Online Advertisement Market in Japan: Key Research Findings 2017

Online Advertisement Market in Japan: Key Research Findings 2017

Yano Research Institute (the President, Takashi Mizukoshi) has conducted a survey on the domestic online advertisement market and has found out the current market status, the trends of market players, and the future outlook.

Figure: Transition and Forecast of Domestic Online Advertisement Market Size
Figure: Transition and Forecast of Domestic Online Advertisement Market Size

Market Overview

The domestic online advertisement market has been on the rise year by year to have exceeded 1,300,000 million yen by FY2017 and is likely to go beyond 1,500,000 yen by FY2018.  The market has been driven by advertisements for smartphones rather than those for PC browsers.

With regard to the market by advertisement type, search advertising together with ad networks*1 has grown favorably, expanding operation-based advertisement which is an advertisement that bids in the form of xxxx yen per click.

When looking at advertisement format, infeed ads*2 and video advertising have been expanding, with social media being their mainstream media.

*1. Ad networks are the network made up of collections of advertisement media websites, enabling to deliver advertisement from/at various websites.

*2. Infeed ads are one of the advertisements displayed in the form of so-called “feed” on websites. They are often inserted between the articles, columns, and etc. in SNS including twitter and facebook, or between the articles of news apps.

Noteworthy Topics

Video advertising has expanded because of increasing use of videos for advertisement within those video platforms including YouTube and because of shift at infeed ads to video advertising.

Increasing number of online users has started using video sites due to sufficient contents.  Such change in consumer activities has encouraged the existing sponsors of advertisement to vigorously use videos, in addition to new adoption of video ads at large brand companies (sponsors).

Improvement in the browsing environment has made online users easier to view video ads without being troubled by slower performance.  This has enabled more video ads placed at social and other media, and more sponsors asking for videos to be used for their advertisement.

It is expected for the future that more consumers watch video ads, larger square measures of video ads are to be created by advertisers and the demand of such video ads by the sponsors continue.  All these are expected to be the driving force of the market expansion.

As more media choose videos to express what they convey, it is possible for new video platforms to be generated.  In such a situation, it is not surprising to find the existing ad networks and other media to shift from still images to videos.

Research Outline

1.Research Period: March to July, 2018
2.Research Object: Leading creative agencies, media reps, ad technology providers, and etc.
3.Research Methogology: Face-to-face interviews by the expert researchers, surveys via telephone and email, and literature search

What is Online Advertisement?

The online advertisement market size in this research is calculated by totaling the amount of ad placement expenses for those ads placed at various types of online media.

Published Report

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