Traditional Out-of-Home Advertising - Japan

Japan's Traditional Out-of-Home Advertising market is forecasted to reach US$2.65bn in ad spending by 2024.
The sector is anticipated to demonstrate a -0.18% annual growth rate (CAGR 2024-2030), leading to a market volume projection of US$2.62bn by 2030.
The expected average ad spending per capita in the Traditional Out-of-Home Advertising market is estimated to be US$21.64 in 2024.
Japan's traditional out-of-home advertising market is embracing digital innovations to engage tech-savvy consumers in urban centers like Tokyo and Osaka.

Definition:
Traditional Out-of-Home (OOH) Advertising refers to all advertising revenues generated by traditional (physical) out-of-home media in public areas. The Traditional Out-of-Home Advertising market includes all ad spending on large outdoor formats, street furniture, transit and transportation, and others.

Additional information:
Traditional Out-of-Home (OOH) Advertising comprises advertising spending, users, and average revenue per user. The market only displays B2B spending. Figures are based on advertising spending and exclude agency commissions, rebates, production costs, and taxes. Key players in Traditional Out-of-Home Advertising include JCDecaux, Ströer, Focus Media Information, Hakuhodo, Dentsu, Clear Channel Outdoor, and APG SGA. For more information on the data displayed, use the info button right next to the boxes.

Traditional billboards (bulletins, large banners, inflatable billboards)
Traditional street furniture (advertising columns)
Traditional transit & transportation (traditional indoor and outside advertising in and on vehicles used for public transportation)
Traditional place-based media (e.g. traditional ambient media at point of sale, posters in restrooms)

Digital billboards (city-light boards)
Digital street furniture (city-light posters, city-light posters)
Digital transit & transportation (digital advertising in and on vehicles used for public transportation)
Digital place-based media (digital ambient media at point of sale)
Event- and promotion-related media

The Traditional Out-of-Home Advertising market in Japan is experiencing steady growth and development.

Customer preferences: In Japan, customer preferences for advertising have traditionally been focused on traditional out-of-home advertising methods such as billboards, transit advertising, and street furniture. This is due to the high visibility and impact of these mediums, which are able to reach a large number of people in public spaces. Additionally, Japanese consumers tend to value authenticity and trustworthiness in advertising, and traditional out-of-home advertising methods are seen as more reliable and credible compared to digital advertising.

Trends in the market: One of the key trends in the Traditional Out-of-Home Advertising market in Japan is the increasing use of technology to enhance the effectiveness and efficiency of advertising campaigns. Digital billboards and signage are becoming more prevalent, allowing advertisers to display dynamic and interactive content that can capture the attention of consumers. This trend is driven by advancements in technology and the increasing availability of high-speed internet connections, which enable real-time updates and targeted advertising. Another trend in the market is the integration of traditional out-of-home advertising with mobile devices. QR codes and NFC technology are being used to bridge the gap between the physical and digital worlds, allowing consumers to interact with advertisements using their smartphones. This integration provides advertisers with valuable data and insights about consumer behavior, enabling them to tailor their campaigns and messaging to specific target audiences.

Local special circumstances: Japan has a unique cultural and social context that influences the Traditional Out-of-Home Advertising market. The Japanese population is known for its high level of smartphone penetration and tech-savviness, making them receptive to digital advertising. However, there is also a strong preference for traditional and physical forms of advertising, which are seen as more trustworthy and reliable. Additionally, Japan has a highly urbanized population, with large cities like Tokyo and Osaka serving as major commercial and business hubs. This concentration of population and economic activity makes traditional out-of-home advertising methods particularly effective, as they can reach a large number of people in densely populated areas.

Underlying macroeconomic factors: The growth and development of the Traditional Out-of-Home Advertising market in Japan are influenced by several macroeconomic factors. Japan has a stable and mature economy, with a high level of consumer spending and disposable income. This provides a strong foundation for advertisers to invest in traditional out-of-home advertising campaigns. Furthermore, Japan has a well-developed transportation infrastructure, including an extensive network of trains, buses, and subways. This allows advertisers to reach a wide audience through transit advertising, which is a popular and effective medium in Japan. The high level of urbanization and population density also contribute to the demand for traditional out-of-home advertising, as it provides advertisers with the opportunity to reach a large number of consumers in a concentrated area. In conclusion, the Traditional Out-of-Home Advertising market in Japan is developing and evolving to meet the changing preferences and needs of consumers. The integration of technology, the unique cultural context, and the underlying macroeconomic factors are all contributing to the growth and success of the market in Japan.

Data coverage:

Data encompasses enterprises (B2B). Figures are based on traditional out-of-home advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers offline out-of-home advertisements such as billboards, street furniture, transit and transport displays, and place-based media.

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. We use annual financial reports of the market-leading companies and industry associations, third-party reports, and survey results from our primary research (e.g., Consumer Insights Global Survey) to analyze the markets. 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, population, urban population, and internet infrastructure.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market. For instance, the S-curve function is well suited to forecast digital products due to the non-linear growth of technology adoption, whereas exponential trend smoothing (ETS) is more suited for projecting steady growth in traditional advertising markets.

Additional notes:

Data is modeled using current exchange rates. The impacts of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice per year in case market dynamics change.

This report presents a comprehensive analysis and additional information on the Advertising & Media market, in a PDF format.

When consumers take a break from smartphones, connected TVs, and computer screens, outdoor advertising is often there, promoting products and services on billboards and transit displays. Still, out-of-home (OOH) channels have also gone increasingly digital – today, online and programmatic solutions drive the industry's expansion worldwide. Mid-2023 estimates indicated that static OOH could barely grow half as fast as the digital OOH (or DOOH) subsegment between 2023 and 2025.