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Japan’s Advertising Market Outlook: Social Media Hits ¥1Tn Milestone

Japan Ad Spend shifting to Social, Video, and CTV, powering growth in 2024.

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Based on insights from Dentsu’s 2024 advertising report, Japan’s ad market maintained strong momentum last year, achieving a total spend of ¥7,673 billion (~USD 53 billion), up 4.9% year-over-year despite economic challenges like inflation and the Noto Peninsula earthquake.

Social media advertising achieved a historic milestone in 2024, surpassing ¥1 trillion for the first time in Japan. This figure is now nearly on par with spending on search advertising, highlighting a significant shift in digital ad priorities.

The report shows key trends shaping the Japanese digital advertising landscape, particularly the rapid growth of video advertising—whether on YouTube or Connected TV—and the rising dominance of social media platforms such as Instagram, LINE, and TikTok.

Key Highlights of Japan’s 2024 Advertising Market

  1. Mass Media Advertising (Traditional Media) Returns to Growth – For the first time in three years, advertising expenditures on TV, radio, newspapers, and magazines grew by 0.9% YoY to ¥2,336 billion.
  2. Digital Advertising Continues to Dominate – Digital ad spending surged 9.6% YoY to ¥3,651 billion, now accounting for 47.6% of total ad spend, driven by the rapid growth of video ads, social media ads, and Connected TV (CTV) placements.
  3. Promotional Media Sees Modest Recovery – Spending on outdoor, transit, event, and direct mail advertising grew by 1.0% YoY to ¥1,685 billion, though it has yet to reach pre-pandemic levels.

Breakdown by Advertising Category

1. Traditional Media Advertising (Mass Media: TV, Radio, Newspapers, Magazines)

After years of decline, mass media advertising rebounded to ¥2,336 billion (+0.9%), driven by increased spending on TV, radio, and magazines.

  • TV Advertising: ¥1,760 billion (+1.5%)
    • Growth led by B2B brand campaigns, automotive, pharmaceuticals, and travel sectors.
    • Connected TV (CTV) advertising surged 46.3% YoY to ¥654 billion, reflecting a shift toward digital consumption.
  • Radio Advertising: ¥116 billion (+2.0%)
    • Growth fueled by podcasts and digital audio ads, attracting younger listeners.
  • Magazine Advertising: ¥117 billion (+1.4%)
    • Digital integration strategies, such as social media collaborations and branded web content, contributed to growth.
  • Newspaper Advertising: ¥341 billion (-2.7%)
    • Despite major events such as the Paris 2024 Olympics and Japan’s general elections, print advertising continued to decline due to circulation drops.

2. Digital Advertising: The Main Growth Driver

Japan’s digital advertising spend reached ¥3,651 billion (+9.6%), continuing its dominance in the market.

  • Video Ads: The fastest-growing segment at ¥844 billion (+23%), fueled by short-form vertical video ads on social media and in-stream ads on video-sharing platforms.
  • Search Ads: Remains the largest segment, accounting for 40.3% of internet ad spend.
  • Social Media Ads: Exceeded ¥1 trillion for the first time, growing 13.1% YoY, making up 37.2% of digital ad spend.
  • E-commerce Platform Ads: Grew 3.4% to ¥217 billion, indicating a more stable post-pandemic market.

3. Promotional Media Advertising: Slow Recovery but Positive Trends

With ¥1.685 trillion (+1.0%), promotional media advertising saw mixed results.

  • Transit Ads: Up 8.5% YoY to ¥159 billion, benefiting from increased commuting and inbound tourism.
  • Outdoor Ads (OOH): Grew slightly (+0.8% to ¥288 billion), with strong demand for luxury brands and job recruitment campaigns.
  • Events & Exhibitions: Increased 11% to ¥426 billion, driven by the return of large-scale corporate and brand activations.
  • Direct Mail (DM): Declined 7.7% to ¥286 billion, impacted by postal fee hikes and rising printing costs.

The Rise of Digital-First Mass Media Advertising

Connected TV

One of the most significant trends in 2024 was the digital transformation of traditional media advertising.

  • Television companies expanded into online video, leading to a 46.3% surge in TV-related digital advertising.
  • Magazine and newspaper publishers leveraged social media and web integrations, blurring the line between print and digital.
  • Radio’s digital shift continued, with podcasts and streaming audio ads growing 21.4% YoY.

Social Media Advertising: Surpassing ¥1 Trillion for the First Time

In 2024, social media advertising in Japan achieved a significant milestone, exceeding ¥1.1 trillion for the first time—a 13.1% year-over-year increase. This growth underscores the escalating importance of social platforms in Japan’s digital advertising landscape.

Breakdown by Platform Type:

  • Social Media Ads (Meta, LINE): Accounted for ¥455 billion, representing 41.3% of social media ad spend. This category includes platforms like LINE, Instagram, and Facebook.
  • Video Sharing Platforms (mainly YouTube): Contributed ¥405.4 billion, making up 36.8% of the total. This segment encompasses platforms such as YouTube and TikTok, which have seen increased advertising investments due to their growing user engagement.
  • Other Platforms: Comprised ¥240.4 billion, or 21.8%, covering blogs, forums, and other niche social media services.

 

Key Insights:

  • Video Ads Lead Growth: Video advertising experienced the highest growth rate among all digital ad formats, increasing by 23% year-over-year to ¥843.9 billion. This surge reflects the rising consumption of video content across social media platforms.
  • Search Advertising Remains Dominant: Paid search advertising continued to hold the largest share of internet advertising media expenditures at 40.3%, growing by 11.2% to ¥1,193.1 billion.
  • Display Advertising Declines: Display advertising saw a slight decrease of 0.65%, indicating a shift in advertiser preference towards more engaging formats like video and search ads.

Outlook for 2025: What’s Next?

Japan’s advertising market is expected to continue its digital-first evolution, with projected 9.7% growth in digital ad spend in 2025.

  • ​Social media advertising in Japan is projected to grow by 8.7% year-on-year, reaching approximately ¥1.2 trillion
  • Retail media advertising (ads within e-commerce platforms) is projected to reach ¥469 billion in 2024 and surpass ¥1 trillion by 2028.
  • Connected TV (CTV) and programmatic outdoor advertising (DOOH) will become key investment areas.

As advertising budgets shift further toward digital, companies will need data-driven strategies to navigate Japan’s rapidly evolving media landscape.

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