Online video ad expenditure Japan 2022-2027, by device

Smartphones accounted for 504.8 billion Japanese yen of the total online video advertising spending in Japan in 2023. While connected TVs and PCs accounted for smaller shares, the advertising expenditure was expected to increase for all three types of devices.

Online video advertising in Japan

Internet advertising expenditures have exhibited a stable growth in Japan in recent years. A major component are expenditures on internet advertising media, which can be differentiated into paid search advertising, display advertising, video advertising, affiliate advertising, as well as other forms of internet advertising. Next to paid search advertising and display advertising, online video advertising is one of the most important ways for advertisers to get their messages across to consumers. A breakdown of online video advertising spending by type shows that in-stream and in-feed ads are the leading types of online video ads in Japan, while in-banner advertising accounts for a much smaller share.

Internet usage in Japan

Japan has a high internet penetration rate and therefore a large potential audience for internet advertising. The spread of smartphones throughout the 2010s has made mobile internet use much more convenient than before. Partly as a consequence of this development, the average time people spend on using the internet via mobile devices per weekday has increased significantly in recent years. In addition, various forms of online entertainment and services have become more and more important for people in their daily lives. While television still reigns supreme, video sharing and streaming services as well as videos on social media are among the most popular types of video consumption. More recently, the reduction of mobile carrier fees as well as the increasing adoption of the 5G mobile standard are also thought to positively influence online video consumption.