FOR IMMEDIATE RELEASE
March 17, 20202019 Advertising Expenditures in Japan:
Detailed Analysis of Expenditures
on Internet Advertising Media—Detailed analysis of spending on Internet advertising media jointly carried out by

D2C, CCI, Dentsu and Dentsu Digital—
D2C Inc. (D2C), Cyber Communications Inc. (CCI), Dentsu Inc. (Dentsu) and Dentsu Digital
Inc. (Dentsu Digital) have released a survey titled “2019 Advertising Expenditures in Japan:
Detailed Analysis of Expenditures on Internet Advertising Media.” This survey analyzes theresults of “2019 Advertising Expenditures in Japan” published by Dentsu on March 11,2020—and further breaks down data on Internet advertising media spending. The analysis
presents data according to such variables as ad category and transaction method. It also
includes forecasts for 2020.
In calendar year 2019, advertising expenditures in Japan totaled 6,938.1 billion yen. Internet
advertising accounted for 30.3% of advertising expenditures, having grown 19.7%
compared with the previous year, to 2,104.8 billion yen. After excluding Internet advertisingproduction costs and advertising expenditures for Merchandise-related EC Platforms,Internet advertising media expenditures amounted to 1,663.0 billion yen (up 14.8%compared with 2018), exhibiting continued robust growth.
Key Points of the “2019 Advertising Expenditures in Japan: Detailed Analysis of Expenditures
on Internet Advertising Media” follow.
1. Video advertisements grew a substantial 57.1% compared with the previousyear, to 318.4 billion yen.
Looking at overall expenditures on Internet advertising media by ad category, video
advertisements grew to account for approximately 20% overall, having grown 57.1% to318.4 billion yen. In 2020 video advertisements are forecast to grow 13.0% to 359.7
billion yen.
2. Performance-based advertising, accounting for approximately 80% of the total,grew 15.2% compared with the previous year; reserved advertising alsoachieved double-digit growth of 17.4%.
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Performance-based advertising, which is becoming the main method of transaction,accounted for 79.8% of the total. Reserved advertising was second, accounting for 13.9%of the total, with both methods of transaction achieving double-digit growth comparedwith the previous year.
3. Social advertising amounted to 489.9 billion yen, accounting for 30% of overall
expenditures on Internet advertising media.
Social advertising placed on social media and video-sharing platforms maintained a highgrowth rate of 26% compared with the previous year, amounting to 489.9 billion yen andaccounting for 29.5% of overall expenditures on Internet advertising media.
4. In 2020, Internet advertising media expenditures overall are forecast to grow11%, to 1,845.9 billion yen
Despite slowing growth, Internet advertising media expenditures will continue to grow in
2020, with overall expenditures forecast to increase 11% compared with 2019, to 1,845.9billion yen.
Expenditures on Internet Advertising Media: Breakdown by Advertising Category—The two largest categories, paid search advertising (40.2%) and display advertising(33.3%), accounted for more than 70% of the total. Video advertising grew substantiallycompared with the previous year, accounting for approximately 20.0% of the total.—
In 2019, Internet advertising media expenditures in Japan amounted to 1,663.0 billion yen(according to “2019 Advertising Expenditures in Japan” published by Dentsu). Of the total,
the two largest ad categories were paid search advertising (40.2%) and display advertising(33.3%), giving these two categories a combined share of more than 70%. Video advertising
grew a substantial 57.1% compared with the previous year, amounting to 318.4 billion yen,accounting for 19.1% of the total. This was followed by affiliate advertising, with 6.3%, whileother Internet advertising accounted for 1.0%. (Graph 1)
Definitions of advertising categories

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Display advertising

Advertisements and tie-up ads in such formats as images and text,
which are displayed in the advertising space of a site or app.

Paid search advertising

Advertisements displayed on a search results page based on theirrelevance to search keywords used in a search site.

Video advertising

Advertisements in video file format (video images/audio).

Affiliate advertising

Advertisements whereby if a user views an Internet advertisement
and then performs some predetermined action, someremuneration is given to the media or user.

Other Internet advertising

Advertisements in formats other than those mentioned above. For
example, email advertising and audio advertising.

Graph 1: Expenditures for Internet Advertising Media: Breakdown byAdvertising Category(¥ billion)
1,800
1,600
1,400

1,663.0
up 14.8 % YoY
1,448.0
99.0 (6.8%)

104.9 (6.3%)

1,000

Affiliate advertising:up 5.9 % YoY

17.0 (1.0%)
11.7 (0.8%)

1,200

Other Internet advertising:up 45.4 % YoY668.3 (40.2%)

570.8 (39.4%)

Paid search advertising:up 17.1 % YoY

800
600
400

554.4 (33.3%)

Display advertising:
down 1.7 % YoY

318.4 (19.1%)

Video advertising:up 57.1 % YoY

563.8 (38.9%)

200

202.7 (14.0%)
02018

2019

Notes: Figures in parentheses are the percentage of overall Internet advertising media expenditures.

Expenditures on Internet Advertising Media: Breakdown by Transaction Method—By transaction method, performance-based advertising accounted for 79.8%,reserved advertising for 13.9%, and affiliate advertising for 6.3%.—
Analyzed by transaction method used for Internet advertising media expenditures,
performance-based advertising—the principal transaction method—amounted to 1,326.7
billion yen (79.8% of total Internet advertising media expenditures). This was followed byreserved advertising (13.9%) and affiliate advertising (6.3%). Performance-based
advertising increased 15.2% and reserved advertising 17.4%, both achieving double-digit
growth compared with the previous year. (Graph 2)
Definitions of transaction methods

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Performance-based advertising

Paid search advertising and advertising that is transacted via anauction system through digital platforms or ad networks.

Reserved advertising

Conventional and tie-up advertising that is sold via advertising
agencies or media representatives, or sold directly to theadvertiser, and advertising that is transacted though a digitalplatform or ad network based using a non-auction method (fixedprice).

Affiliate advertising

Advertisements whereby if a user views an Internet advertisement
and then performs some predetermined action, the media or user
is paid some remuneration.

Graph 2: Internet Advertising Media Expenditures by Transaction Method
1,663.0
up 14.8 % YoY(¥ billion)
1,800
1,600

1,448.0

104.9 (6.3%)

Affiliate advertising:up 5.9 % YoY

99.0 (6.8%)

1,400
1,200

1,326.7 (79.8%)

1,000
800

1,151.8 (79.5%)

Performance-based advertising:up 15.2 % YoY600400200

197.1 (13.6%)

231.4 (13.9%)

20182019Reserved advertising:up 17.4 % YoY

0Notes: Figures in parentheses are the percentage of overall Internet advertising media expenditures.

Expenditures on Internet Advertising Media: Transaction Method and Advertising
Category Cross Tabulation—Substantial growth in performance-based (up 45.1%) and reserved (up 129.4%) video
advertising—
Cross-tabulating transaction method against advertising category, performance-based paid
search advertising accounted for 40.2%, making it the largest sub-category, followed byperformance-based display advertising, which accounted for 24.2%. In addition, displayadvertising declined slightly, while performance-based (up 45.1%) and reserved (up129.4%) video advertising grew substantially. (Graph 3)

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Graph 3: Internet Advertising Media Expenditure Transaction Methodand Advertising Category Cross Tabulation
1,663.0
up 14.8 % YoY(¥ billion)
1,800
1,600
1,400

1,448.0

104.9 (6.3%)
3.4 (0.2%)

99.0 (6.8%)
2.4 (0.2%)

1,200
1,000

668.3 (40.2%)

570.8 (39.4%)

403.0 (24.2%)
404.9 (28.0%)

400
200

173.7 (12.0%)
158.9 (11.0%)

02018

Other Internet advertising:up 38.2 % YoY
Paid search advertising: up 17.1 % YoY

Performance-based advertising:up 15.2 % YoY

800
600

Affiliate advertising:up 5.9 % YoY

13.6 (0.8%)
9.2 (0.6%)
28.9 (2.0%)

252.0 (15.2%)
151.4 (9.1%)
66.4 (4.0%)

2019

Display advertising: down 0.5 % YoY
Video advertising: up 45.1 % YoYOther Internet advertising:up 47.3 % YoYReserved advertising:up 17.4 % YoY
Display advertising: down 4.7 % YoY
Video advertising: up 129.4 % YoY

Notes: Figures in parentheses are the percentage of overall Internet advertising media expenditures.

Social Advertising Market—Social advertising expenditures amounted to 489.9 billion yen, accounting for 29.5% ofoverall Internet advertising media expenditures.—
Social advertising placed on social media services grew at a high rate of 26% compared withthe previous year, amounting to 489.9 billion yen and accounting for 29.5% of overall
Internet advertising media expenditures. (Graph 4)
Furthermore, when social media are placed in “SNS,” “video sharing” and “others” categories,
the “SNS” category accounts for the largest market at 228.0 billion yen, followed by “other”
at 148.0 billion yen and “video sharing” at 113.9 billion yen. (Graph 5)
Definitions of social advertisingSocial Advertising

5 /6Advertising placed on social media* services.
* Media (platforms) providing services enabling users to share and exchange
information posted by users as content (source: “Fiscal 2019 Internet
Advertising Glossary of Basic Terms,” Japan Interactive Advertising Association)
Examples of social media: SNS, blog services, mini (micro) blogs, video sharing
websites, social bookmarks, electronic bulletin board services, etc.

Graph 4: Social Advertising Expenditures
1,663.0
up 14.8 % YoY(¥ billion)
1,800
1,600

1,448.0

1,400
1,200
1,000

1,173.1 (70.5%)

Non-social advertising:up 10.8 % YoY

489.9 (29.5%)

Social advertising:up 26.0 % YoY

1,059.0 (73.1%)

800
600
400
200

389.0 (26.9%)

02018

2019

Notes: Figures in parentheses are the percentage of overall Internet advertising media expenditures.

Graph 5: Social Advertising Expenditures by Ad Category

Others
148.0 (30.2%)
SNS category
228.0 (46.5%)
Video sharing
category
113.9 (23.2%)

Notes: Figures in parentheses are the percentage of overall social advertising expenditures.

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Total Internet Advertising Media Expenditures (Forecast)—In 2020, total Internet advertising media expenditures in Japan are forecast to increase
11.0% compared with 2019, to 1,845.9 billion yen.—
In 2020, total Internet advertising media expenditures in Japan are forecast to increase
11.0% compared with 2019, to 1,845.9 billion yen, and although the growth rate is slightly
lower than in recent years, growth is expected to continue. (Graph 6)
Graph 6: Total Internet Advertising Media Expenditures (Forecast)(¥ billion)
2,000(%)

Internet Advertising Media Expenditures (¥ billion)

1,800
1,600

1,845.9
1,663.0200

Compared with previous year (%)

1,400

1,448.0

1,220.6

1,200

1,037.8

1,000919.4

800

111.5

112.9

2015

2016

117.6

118.6

114.8

2017

2018

2019

111.0

100

600
400
20002020 (forecast)

0Source: Advertising Expenditures in Japan compiled by Dentsu
Notes: In 2018, the survey of Internet advertising expenditures newly included estimates for digitaladvertising carried by companies in the four major traditional media.

Video Advertising Market (Forecast)—Video advertising in 2020 is forecast to grow to approximately 359.7 billion
yen.—
Although the growth rate is slightly lower than in 2019, the market is expected to expand
13.0% to 359.7 billion yen. (Graph 7)

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Graph 7: Video Advertising Market (Forecast)(¥ billion)
400

359.7
up 13.0 % YoY

350

318.4

300

250

202.7
200

150

1005002018

2019

2020 (forecast)Research Overview
Research organizations D2C Inc., Cyber Communications Inc., Dentsu Inc., Dentsu Digital Inc.
Research period

December 2019–February 2020
Carried out estimates based on the following research

Research methodology

1. Research based on questionnaire surveys covering Internet
advertising media companies, etc. (postal research/web research)
The research was conducted by explaining to respondents that thesurvey would be asking about “2019 Advertising Expenditures inJapan” Internet media expenditures
2. Same as above, but with additional interview research
3. Various types of data collection and analysis* The figures shown in graphs contained in this release are rounded to the nearest unit. Consequently, some totals
differ from the sum of the components shown、#####Contact:
Corporate Communications Division
E-mail: global.communications@dentsu.co.jp

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