No.3249
Affiliate Marketing Market in Japan: Key Research Findings 2022
Domestic Affiliate Marketing Market for FY2022 Projected to rise by 9.7% from Previous Fiscal Year to 384,650 Million Yen
Yano Research Institute (the President, Takashi Mizukoshi) carried out a survey on the domestic affiliate marketing market, and found out the market conditions and trends of affiliate service providers.
Market Overview
The FY2021 affiliate marketing market increased by 8.8% from the previous fiscal year to 350,530 million yen. The market has shown stable growth, as ad placement volume by advertisers that used to suppress budgets has recovered to usual years. The influence of corona situations has led the business performance for some categories such as tourism and aesthetic salons that need customer visits to keep on being sluggish, while online-only services such as finance and online classes considerably expanded.
The domestic affiliate marketing market for FY2022 is projected to rise by 9.7% on a YoY basis to 384,650 million yen, exceeding the growth rate of the previous fiscal year. Although the categories that had shown rapid growth caused by at-home spending amid the corona crisis such as video streaming (including on-demand videos), food delivery, and telecommunications have somewhat subdued, recovery in those sectors that had devastated by corona, increased budgets for affiliate ads at advertisers, and exploration of new categories (for services and product categories suitable for new lifestyles assuming online) have contributed in the market expansion.
Noteworthy Topics
Guideline Enhancement by Consumer Affairs Agency Aiming for Healthier Market
In recent years, guidelines on affiliate advertisement have been enhanced by the Consumer Affairs Agency, aiming to make the market healthier. In February 2022, a report based on the results from "the Review Committee on Affiliate Advertising, etc.” was released by the Agency, revising the guidance for “the Problems and Consideration on Ad Placement for Consumer Transaction on Internet from the Aspect of Act against Unjustifiable Premiums and Misleading Representations.” This has added an article on affiliate marketing in the administrative guidelines.
The prioritized challenge in the current affiliate marketing market is to eliminate affiliate advertisement that can mislead consumers. Many of ASPs (Affiliate marketing Service Providers) recognize the strengthening of guidelines based on the Act against Unjustifiable Premiums and Misleading Representations as a right decision for improving the market. They consider, from the middle-to-long-term perspectives, that removal of vicious advertisement and businesses will prosper the market in the end.
Future Outlook
The affiliate marketing market is on an uptrend, as major ASPs continue to perform well and emerging ASPs increase their handlings.
In particular, the sectors for finance and ecommerce are steadily expanding. As online consumption invigorated amid the corona situation in 2020 is likely to keep on growing, and as online information is expected to increase, the affiliate marketing market is projected to be on the expansion trend.
Increase in the handlings by emerging ASPs, exploration of new sectors, market entries by new advertisers, and expanding budgets for affiliate ads at advertisers are expected for CAGR from FY2023 to FY2026 to be 10.0%, with the domestic affiliate marketing market size reaching 563,900 million yen by FY2026.
Research Outline
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
About Affiliate Marketing
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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