In 2007, the Japanese online advertising market was
estimated to be worth between $3.4 billion (Dentsu) and $4.1 billion
(PricewaterhouseCoopers). By 2011, Dentsu projects that Japan’s online ad
market value will be $6.8 billion; PricewaterhouseCoopers predicts a
somewhat higher $7 billion.
Japan’s leading advertising agency, Dentsu Group, tracks the island nation's online advertising market in three segments: search ads, mobile ads and
fixed Internet ads, a category that lumps together banner, e-mail, rich
media, streaming video and (non-search) text advertisements.
By Dentsu's reckoning, search spending accounted for 27% of Japan’s
online ad marketing in 2007, a figure significantly lower than in the
United States (40%) and the United Kingdom (60%). By 2010,
Dentsu predicts search will reach just 30% of Japanese online ad
spending.
Dentsu also estimated that Japan’s mobile ad market grew by 42.5% in
2007. Mobile advertising is expected to remain the fastest-growing
segment through 2010. Dentsu forecasts double-digit growth for the
entire Japanese online ad industry to 2011, when growth
is expected to slow to 9.6%.
Online advertising grew from 3% to 6% of all ad spending between 2004 and 2006, according to Dentsu research.
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