Advertising in Japan: lessons from the most mature ad market in the world

December 21, 2015  | Subscribers Only

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The Japanese advertising market is one of the most mature ad markets worldwide, ranked the second largest in Asia and the third largest in the world. Its total net ad revenue (after deduction of agency commissions and production costs) in 2014 was ¥3,601.9 billion (€25.6 billion, $34.0 billion). Japan is now in its third year of consecutive growth, and IHS forecasts it will continue to note growth in the next five years. Going forward, IHS expects the Japanese ad market to grow at a steady rate, with total ad revenue exceeding ¥4,000.0 billion (€29.0 billion, $38.5 billion) in 2018. 

Highlights

  • TV and online advertising contributed to ad market growth while radio and print declined in 2014. TV advertising revenue is growing at a modest rate and until now immune to the online cannibalisation.
  • The radio advertising market is struggling to reach commuters and only accounts for 2.7% of the total ad market.
  • Online is growing at a double-digit rate, driven by the fast adoption of smartphones, brands’ optimism about online video ads, and development of advertising delivery technology.
  • Print although declining still made up 18.6% of net ad revenue in 2014, thanks to the persistent high readership of the largest publications. Print is the medium of the “highly educated” and it is still viewed as a good way to reach a high value audience.
  • Out of home (OOH) accounted for 17.2% of the total ad revenue in 2014 and remains a big medium for the Japanese market through its transition from traditional to digital.

List of tables and charts

  • 2014 Ad Revenue
  • Media Share of Total Ad Revenue
  • Media Ad Growth
  • Consumption Growth, GDP Growth, and Ad Growth
  • TV Ad Revenue
  • Broadcaster Ad Revenue
  • Big Five Broadcasters Ad Share of Total Ad Revenue
  • Big Five Broadcasters Ad Revenue
  • Print (Newspaper and Magazine) Ad Revenue
  • Newspaper Circulation
  • Online Ad Revenue
  • Company Share of Online Ad Revenue in Japan (2014)
  • Online Ad Revenue, Ad Growth, and Ad Share
  • OOH Ad Share
  • Radio Ad Revenue

Number of pages: 18

Number of tables and charts: 15

Geography
Asia Pacific Japan
Research by Market
Media & Advertising
Category
Advertising
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