Affiliate Marketing Market in Japan: Key Research Findings 2024

FY2023 Affiliate Marketing Market in Japan Projected to rise by 7.3% from Previous Fiscal Year to 384,650 Million Yen

Yano Research Institute (the President, Takashi Mizukoshi) surveyed the domestic affiliate marketing market and found out the market conditions and trends of affiliate service providers (ASPs).

Transition and Forecast of Affiliate Marketing Market Size in Japan
Transition and Forecast of Affiliate Marketing Market Size in Japan

Market Overview

The affiliate marketing market for FY2022 increased by 9.4% from the previous fiscal year to 383,630 million yen. FY2022 saw recovery in the COVID-19-impacted areas such as tourism, aesthetic salons, and gyms, budget expansion by advertisers, and growth in demand for online-specific services where affiliate marketing had not treated before, due to establishment of online in people’s lives such as remote working. When observing the characteristics by industry, extreme growth is perceived in financial area especially the forex market and investment, because of depreciation of yen or foreign exchange fluctuations. On the contrary, beauty and health products in ecommerce that used to be the main area for the affiliate marketing has slowed down.

For FY2023, some advertisers have lowered their advertisement budgets due to inflation and weak yen, and some businesses have been affected negatively by the changes in ad placement policy, while some businesses enjoyed growth depending on what products they dealt in. Introduction of the invoice system seems to have partly impacted those companies that chiefly deal with small enterprises. 

In the situation where growth rate of the entire affiliate marketing market has been more moderate than before, market entrants seem to continue struggling to occupy market shares, making them seemingly to concentrate on new customer acquisitions and new area explorations or expand the service coverage in creatives. As a result, the affiliate marketing market size for FY2023 is projected to rise by 7.3% to 411,610 million yen.  

Noteworthy Topics

Efforts by Major ASPs in AI Applications

It seems that many of efforts by major ASPs in AI is still in researching. There are some businesses that are utilizing AI for streamlining their in-house business processes, but no specific AI applications are observed for customers.

AI applications in the entire affiliate marketing market may be observed in media contents creations, information collection, or communications with users through social media. Generative AI is assumed to be used at advertisers for creating optimal advertisement materials, while at ASPs for streamlining in-house business processes (operations or sales administrations) and advertising reviews. Because work at ASPs is apt to be labor intensive, if AI technology advances AI applications for work efficiency are highly likely in the future.

Nevertheless, AI technology still seems to have many uncertain factors, so that each company seems to be in the research phase while accumulating the data.
When AI technology progresses, optimization by AI utilization is likely to gradually widespread in the affiliate marketing market.

Future Outlook

The affiliate marketing market hereafter is projected to steadily expand, as there will be entrance by advertisers from new genres, emerging ASPs, and young affiliate marketing businesses that use mostly social media.  

In 2023, rapid increase in fraudulent advertisement and violations were observed in video platforms and social media. This has made legislations in effect in affiliate marketing ahead of other marketing methods, aiming for healthier market. If such efforts go on, advertisement budgets for existing online advertisement platforms may gear to affiliate marketing after 2024. Against this backdrop, the domestic affiliate marketing market is projected to reach 586,220 million yen by FY2027.

Research Outline

1.Research Period: December 2023 to February 2024
2.Research Object: Leading affiliate marketing service providers (ASPs), industrial groups, etc.
3.Research Methogology: Face-to-face interviews (including online) by expert researchers, questionnaire survey, and literature research

The Affiliate Marketing Market

Affiliate marketing is a type of performance-based marketing where a product creator or a seller (an advertiser) who wants to sell its product places a link of its own company website at some other websites and media such as blogs and social media, and pays a certain amount of rewards to the owners of the media (websites, blogs, and social media) when the promotions led to a successful result i.e. purchasing of the product, membership registrations, etc. through that link.
Also known as a publisher, the affiliate can be either an individual or a company that markets the seller’s product in an appealing way to potential consumers.

Affiliate marketing in this research refers to the following four types: 1) ASP (Affiliate marketing Service Provider) style, where an ASP acts as an agent to go between an advertiser and website owners. An ASP earns advertisement and commission fees from an advertiser, while it pays rewards to website owners; 2) Shopping mall style, where a virtual shopping mall earns advertisement and commission fees from shop owners for offering a place to promote sales of products to deal in, and pays rewards to website owners; 3) Stand-alone type, where an ecommerce owner itself becomes an advertiser to promote its own products and contents, and pays the web site owners for rewards, and 4) Platform type that earns rewards by offering a platform equipped with tracking systems and analysis tools needed for affiliate marketing.
The affiliate marketing market size has been calculated by totaling the reward value, commission rate, and various charges involved (i.e. initial cost, monthly expenses, optional charges, etc.)

<Products and Services in the Market>

Affiliate marketing programs, various affiliate services

Published Report

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