In-App Advertising - Japan

Japan

Highlights

Ad spending in Japan's In-App Advertising market is forecasted to reach US$8.60bn in 2024.
The ad spending is anticipated to demonstrate an annual growth rate (CAGR 2024-2030) of 6.93%, leading to a projected market volume of US$12.85bn by 2030.
The average ad spending per mobile internet user in Japan's In-App Advertising market is projected to be US$70.12 in 2024.
When compared globally, China is expected to generate the most ad spending (US$132.80bn in 2024).
In Japan, the In-App Advertising market is thriving due to the high mobile penetration rate and tech-savvy consumer base.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

In-App Advertising market in Japan has been experiencing significant growth in recent years.

Customer preferences: Japanese consumers are increasingly spending more time on their smartphones, which has led to a rise in the popularity of mobile applications. As a result, advertisers have recognized the potential of reaching their target audience through in-app advertising. In addition, Japanese consumers are known for their high engagement with mobile advertisements, making in-app advertising an effective way to capture their attention.

Trends in the market: One of the key trends in the In-App Advertising market in Japan is the shift from traditional forms of advertising, such as television and print, to digital advertising. Advertisers are now allocating a larger portion of their budgets to in-app advertising as they recognize the effectiveness of targeting consumers who are actively using mobile applications. This trend is expected to continue as smartphone penetration and mobile app usage continue to rise in Japan. Another trend in the market is the increasing adoption of programmatic advertising. Programmatic advertising allows advertisers to automate the buying and selling of ad space, making it more efficient and cost-effective. This trend is driven by the need for advertisers to reach their target audience in a timely and personalized manner. Programmatic advertising also provides advertisers with data-driven insights and analytics, enabling them to optimize their campaigns and improve return on investment.

Local special circumstances: Japan has a unique advertising landscape with a strong emphasis on aesthetics and storytelling. Advertisers in Japan often prioritize creating visually appealing and emotionally engaging advertisements. This preference for high-quality and creative content has translated into the In-App Advertising market, where advertisers strive to create visually captivating ads that resonate with Japanese consumers. Furthermore, Japan has a large and mature gaming market, which presents opportunities for in-app advertising. Gaming apps are particularly popular in Japan, and advertisers can leverage this popularity by placing ads within gaming apps. This allows advertisers to reach a highly engaged audience and increase brand awareness.

Underlying macroeconomic factors: The In-App Advertising market in Japan is also influenced by macroeconomic factors. Japan has a strong economy with a high level of consumer spending. This provides advertisers with a large and affluent target audience to engage with through in-app advertising. Additionally, Japan has a high smartphone penetration rate, which further contributes to the growth of the In-App Advertising market. In conclusion, the In-App Advertising market in Japan is growing due to the increasing popularity of mobile applications, the shift towards digital advertising, the adoption of programmatic advertising, the unique advertising landscape in Japan, the opportunities within the gaming market, and the underlying macroeconomic factors. Advertisers in Japan are recognizing the effectiveness of in-app advertising in reaching their target audience and are allocating more resources towards this form of advertising. As smartphone usage continues to rise and the advertising industry evolves, the In-App Advertising market in Japan is expected to continue its growth trajectory.

Data coverage:

The data encompasses B2B enterprises. Figures are based on in-app advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers ad spending on advertisements displayed within a mobile application.

Modeling approach:

The market size is determined through a combined top-down and bottom-up approach. We use market data from independent databases, the number of application downloads from data partners, survey results taken from our primary research (e.g., the Consumer Insights Global Survey), and third-party reports to analyze and estimate global in-app advertising spending. To analyze the markets, we start by researching digital advertising in mobile applications for each advertising format, incidents of in-app and mobile browser usage, as well as the time spent in mobile apps by categories. To estimate the market size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as GDP, mobile users, and digital consumer spending. Lastly, we benchmark key countries and/or regions (e.g., global, the United States, China) with external sources.

Forecasts:

We apply a variety of forecasting techniques, depending on the behavior of the relevant market. For instance, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year.