Influencer marketing market size in Japan 2020-2027

The annual expenditure of businesses on influencer marketing in Japan was estimated to amount to 74.1 billion Japanese yen in 2023, which represents an increase of 12.6 billion yen compared to the previous year. It was expected that the market would grow further and reach a value of more than 130 billion yen by 2027.

Advertising and social media in Japan

Japan is home to a large advertising market, which is considered to be one of the most creative worldwide. In recent years, online advertising has become more and more important, while many traditional media increasingly struggle to generate advertising revenues. This shift from traditional to digital media has been accelerated by the spread of COVID-19 in 2020, which led people to spend more time inside their own homes and increased the demand for digital entertainment. Social media plays an increasingly important role for advertising not only because social media platforms offer an opportunity to connect with other people, but also because they are frequently used to look up information. Among social advertising expenditures, regular social networking services as well as video-sharing platforms constitute the largest ad categories.

Social media marketing

Unlike advertising, which refers to the process of making a product or service known to potential customers, marketing usually involves further aspects that are directly related to the dissemination of advertisements, such as the research and analysis necessary for the design and creation of ads. Influencer marketing is part of the larger social media marketing market, which is expected to exhibit strong growth in the coming years. As a breakdown of this market shows, it consists of social media advertising, influencer marketing, financial support for the operation of social media accounts, expenses for analytics tools, as well as campaign planning and consulting. While analytics tools and campaign planning and consulting make up comparatively small shares of the market, they are indispensable aspects with regard to choosing the right platform and advertising strategy. Within the Japanese influencer market, YouTube, Instagram, TikTok, and Twitter represent the major segments.