Social media and online advertising have been growing at a rapid rate in Japan–so much so that it has surpassed 50% of the market. The industry has been enjoying record highs for years. Experts weren’t expecting this level of growth so soon after the COVID-19 epidemic, but consumers have voted with their clicks.
How it Happened
Online ad spend jumped during the epidemic, particularly on social media ads and online videos. This growth coincided with a dip in spending on TV and hard media advertising. Spending on HTML banner ads is expected to reach US$64 billion this year. AI integration is becoming increasingly popular due to labour shortages but you can’t beat HTML banner ads that are designed by humans.
Retail Media Growth
Japan’s retail-related banner ads are expected to jump by 11.6% by the end of 2026. Video advertising is growing as a niche, so it’s only natural that HTML5 display formats are attracting so much attention. Digital formats will sustain the momentum for many years. Researchers predict that they will grow by 16.4% by the end of 2029, hitting a high of over $100 billion.
Google and Meta Lead
Google and Meta are leading the Japanese landscape in terms of ad volume, but a few local brands are offering the cultural alignment required to compete.
Japan’s online advertising ecosystem is nothing new. Digital advertising in the US and UK have also surpassed traditional media marketing. Like Japan, the leading media are in the video and retail media niches.
