Online Advertisement Market in Japan: Key Research Findings 2021

Online Advertisement Market Size was 2.1 Trillion Yen for FY2020, and to Expand to 3.3 Trillion Yen by FY2024

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.

Online Advertisement Market Size Transition and Forecast
Online Advertisement Market Size Transition and Forecast

Market Overview

In recent years, the domestic online advertisement market grew steadily, but the COVID-19 pandemic in FY2020, restricting people to stay home and causing stores to close or to shorten the business hours, reduced ad placement temporarily. Though the growth rate slowed down, the market eventually attained positive growth, because of recovery in consumer spending and ongoing digital transformation at enterprises since the latter half of that fiscal year. The online advertisement market size generated 2,129,000 million yen in FY2020, 107.4 percent of the previous fiscal year.

For FY2021, against the backdrop of economic recovery driven by stay-home demand that has led to growth of the ecommerce market and frequent use of online shopping, the advertisement sponsors are shifting to the online ad placement, which is projected to expand the online advertisement market in FY2021 to reach 2,437,000 million yen, 14.5 percent of the size of the preceding fiscal year. 

Noteworthy Topics

Video Advertisement Market Achieved Rapid Growth in COVID-19 Calamity

As a change during the COVID-19 calamity, the number of video streaming service users increased, as more people spent more hours at home, bringing about video advertisement among the advertisement media (format) to be on the rise. The growth of video ads owes partly to rapid growth of video streaming platforms including YouTube and TikTok, and increase in video ads media. Moreover, progress in the telecommunication environment, represented by 5G, has improved the speed and quality of video contents for streaming, which encouraged ad placement especially by brand sponsors aiming to raise the brand values for the companies and services.

As a recent trend, the advertisement market for connected-TVs such as TVer is on the rise. TVer has attracted the stay-home demand, and is said to have brought in twice the number of users during the past year. This kind of service enables the users to watch videos on multiple devices, which may make the boundary between TV and internet to become vague in the future.

There are cases of sponsors shifting from TV commercials to online advertisement. As there will be more users (audiences) across multiple devices, the video ads market is likely to grow furthermore.

Future Outlook

Further advancement in digital transformation such as AI-used advertisement operation methods is expected to stimulate the shifting to online advertisement from all other media. In addition, progress of the telecommunication environment and enhancement of devices may extend the ranges of online advertisement.

For the advertisement by type, expansion of programmatic advertising such as social media ads and video ads is expected to increase the domestic online advertisement market size to reach 3,300 ,000 million yen.

Research Outline

1.Research Period: July to September 2021
2.Research Object: Online advertising agencies, media reps, ad technology providers, media, etc.
3.Research Methogology: Face-to-face and online interviews by the expert researchers, and literature research

The Online Advertisement Market

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.

<Products and Services in the Market>

programmatic advertising (display, search), non-programmatic advertising

Published Report

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