Market Insights Advertising & Media Advertising TV & Video Advertising

Traditional TV Advertising - Japan

Japan

Ad spending in the Traditional TV Advertising market in Japan is forecasted to reach US$13.82bn in 2024.
The ad spending is anticipated to demonstrate an annual growth rate (CAGR 2024-2029) of 0.22%, leading to a projected market volume of US$13.97bn by 2029.
The average ad spending per TV Viewer in the Traditional TV Advertising market in Japan is projected to be US$107.80 in 2024.
By 2029, the number of users in the Traditional TV Advertising market in Japan is expected to reach 126.1m users.
Traditional TV advertising in Japan is experiencing a resurgence, with brands turning to nostalgic and culturally relevant campaigns to engage viewers in a digitally saturated landscape.

Key regions: Germany, Europe, Japan, United Kingdom, Australia

Definition:
Traditional TV Advertising refers to ad spending on moving image formats broadcasted via traditional transmission channels such as terrestrial and digital terrestrial (DTTV, DTT, DTTB) TV, cable TV, satellite TV, and linear TV delivered via Internet Protocol television (IPTV). Terrestrial television uses traditional antennas that transmit analog signals. Analog terrestrial TV has undergone a digital switchover (DSO) to digital terrestrial TV in most parts of the world. For digital terrestrial TV, television broadcasting stations transmit TV content through radio waves to televisions in households in a digital format. Internet Protocol television (IPTV) refers to the delivery of television content via Internet Protocol networks. IPTV is used in subscriber-based telecommunications networks via set-top boxes or other customer-premises equipment (IPTV is included in the cable revenue split here). Traditional TV Advertising covers all ad spending on pay-TV operators and networks as well as free-to-air networks and free-to-air spin-off digital channels from terrestrial network operators. Usually, the distribution of advertising time in television programs is either carried out by the broadcasters themselves or by marketing agencies.

Structure:

Cable TV signals are transmitted through coaxial or fiber-optic cables directly to each household without the need for external antennas.
Satellite TV includes television programming with the use of communication satellites that transmit to satellite dishes. A dedicated satellite receiver (external set-top boxes or built into TV sets) decodes the television program.
Digital Terrestrial Television (DTT), sometimes known as direct-to-terrestrial television, is a type of television reception in which a signal is transmitted directly to a viewer's antenna rather than through a cable or satellite system. As a rule, HDTV signals are available through digital terrestrial television, and this type of television also makes better use of the radio spectrum.

Additional information:
Traditional TV Advertising comprises advertising spending, users, average revenue per user, and user demographic. The market only displays B2B spending and users. Figures are based on Traditional TV Advertising spending and exclude agency commissions, rebates, production costs, and taxes. For more information on the data displayed, use the info button right next to the boxes.

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Analyst Opinion

The Traditional TV Advertising market in Japan has been experiencing significant growth in recent years, driven by changing customer preferences and local special circumstances.

Customer preferences: Japanese customers have traditionally been avid consumers of television content, with a strong preference for watching live broadcasts and a wide variety of TV channels. This has created a large and engaged audience for traditional TV advertising. However, in recent years, there has been a shift in customer preferences towards digital platforms and streaming services. Many viewers now prefer to watch their favorite shows and movies on demand, which has led to a decline in traditional TV viewership. As a result, advertisers are increasingly looking for alternative ways to reach their target audience.

Trends in the market: One of the key trends in the Traditional TV Advertising market in Japan is the increasing adoption of programmatic advertising. Programmatic advertising allows advertisers to automate the buying and selling of ad inventory, making it more efficient and cost-effective. This trend is driven by the need to reach a fragmented audience across multiple channels and platforms. Advertisers are also leveraging data and analytics to target their ads more effectively and measure the impact of their campaigns. This shift towards programmatic advertising is expected to continue in the coming years, as advertisers look for more efficient ways to reach their target audience. Another trend in the market is the integration of traditional TV advertising with digital platforms. Advertisers are increasingly using social media and online video platforms to complement their TV campaigns and extend their reach. This allows them to engage with a younger and more tech-savvy audience who are spending more time on digital platforms. The integration of TV and digital advertising also provides advertisers with more opportunities to measure the effectiveness of their campaigns and optimize their ad spend.

Local special circumstances: Japan has a unique media landscape, with a strong emphasis on domestic content and a preference for local celebrities. This has created opportunities for advertisers to leverage popular TV shows and personalities to promote their products and services. Advertisers often sponsor TV programs and events, and use celebrity endorsements to build brand awareness and credibility. This local special circumstance has contributed to the growth of the Traditional TV Advertising market in Japan, as advertisers seek to capitalize on the popularity of local content and celebrities.

Underlying macroeconomic factors: The growth of the Traditional TV Advertising market in Japan is also influenced by underlying macroeconomic factors. Japan has a stable and mature economy, with a large consumer base and high disposable income. This creates a favorable environment for advertisers, as they have a captive audience with the purchasing power to buy their products and services. Additionally, Japan has a highly developed advertising industry, with a strong network of agencies and media companies. This infrastructure supports the growth of the Traditional TV Advertising market by providing advertisers with the necessary tools and expertise to create and distribute their campaigns.

Methodology

Data coverage:

Data encompasses enterprises (B2B). Figures are based on traditional TV advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers non-digital formats such as terrestrial TV, cable TV, satellite TV, and linear TV.

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, media consumption, number of households with television, and consumer spending.

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.