SEPTENI HOLDINGS CO., LTD.

FOR IMMEDIATE RELEASE
March 12, 2024

2023 Advertising Expenditures in Japan:
Detailed Analysis of Expenditures on Internet Advertising Media—Detailed analysis of spending in 2023 and the forecast for 2024, jointly carried out by CCI,Dentsu, Dentsu Digital, and Septeni—
CARTA COMMUNICATIONS Inc. (CCI), Dentsu Inc. (Dentsu), Dentsu Digital Inc. (Dentsu Digital), and SEPTENI
CO.,LTD. (Septeni), have released a survey titled “2023 Advertising Expenditures in Japan: Detailed Analysis ofExpenditures on Internet Advertising Media.”
The survey analyzes the results of “2023 Advertising Expenditures in Japan,” published by Dentsu on February
27, 2024, and further breaks down data on internet advertising media spending. The analysis presents data basedon variables such as ad category and transaction method. It also includes forecasts for 2024.
In 2023, advertising expenditures in Japan totaled 7,316.7 billion yen (up 3.0% year on year). Breaking the record
set just the previous year, advertising expenditures reached the highest level since estimates began in 1947.
Internet advertising expenditures (estimates began in 1996) grew steadily amid the ongoing digitization of society,increasing by 241.8 billion yen to reach a record-high 3,333.0 billion yen (up 7.8% year on year), accounting for45.5% of total advertising expenditures in Japan. Furthermore, excluding internet advertising production costs
and advertising expenditures for Merchandise-related EC Platforms, internet advertising media expenditures
amounted to 2,687.0 billion yen (up 8.3% year on year) due to growth in video advertising and digital sales
promotions.
Following are the key points of the survey, “2023 Advertising Expenditures in Japan: Detailed Analysis ofExpenditures on Internet Advertising Media.”
1. Paid search advertising amounted to 1,072.9 billion yen, exceeding 1,000 billion yen for the first timesince estimates began.
By ad category, paid search advertising rose 9.9% year on year to 1,072.9 billion yen, exceeding 1,000 billion
yen for the first time since estimates began. Paid search advertising accounted for 39.9% of internet
advertising media expenditures.

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2. Performance-based advertising reached 2,349.0 billion yen, accounting for nearly 90% of internet
advertising media expenditures.
Looking at internet advertising media expenditures by transaction method, performance-based advertisingrose 10.9% year on year to 2,349.0 billion yen, accounting for 87.4% of internet advertising media expenditures.
Reserved advertising was essentially flat year on year (2022: 264.7 billion yen; 2023: 264.8 billion yen), andaffiliate advertising declined 24.2% year on year.
3. Video advertisements amounted to 686.0 billion yen.
Video advertisements grew 15.9% year on year to 686.0 billion yen, the highest growth rate among all adcategories. Instream advertising amounted to 383.7 billion yen, while outstream advertising totaled 302.2
billion yen. In 2024, video advertisements are forecast to maintain double-digit growth of 12.2% year on year,
reaching 769.7 billion yen.
4. In 2024, internet advertising media expenditures are forecast to reach 2,912.4 billion yen.
Internet advertising media expenditures are expected to maintain steady growth in 2024, increasing 8.4% year
on year to 2,912.4 billion yen.

Expenditures on Internet Advertising Media: Breakdown by Advertising Category―Paid search advertising amounted to 1,072.9 billion yen, exceeding 1,000 billion yen for the first time sinceestimates began.―
In 2023, internet advertising media expenditures in Japan increased 8.3% year on year to 2,687.0 billion yen(according to “2023 Advertising Expenditures in Japan,” published by Dentsu). By ad type, paid search advertisingexceeded 1,000 billion yen for the first time since estimates began, increasing 9.9% year on year to 1,072.9 billion
yen, accounting for 39.9% of total internet advertising media expenditures. Display advertising grew 4.5% year
on year to 770.1 billion yen (28.7% of the total), and video advertising rose 15.9% year on year to 686.0 billion yen(25.5% of the total). (Graph 1)
Definitions of advertising categories
Affiliate advertising

Advertisements whereby if a user views an internet advertisement and then performs apredetermined action, some remuneration is given to the media or user.

Paid search advertising

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

Display advertisingAdvertisements in such formats as images and text, which are displayed in the advertising
space of a site or app.

Video advertising

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

Other internet advertising

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

2 / 11Graph 1. Expenditures on Internet Advertising Media: Breakdown by Advertising Category(¥ billion)
3,000

2,500

2,687.0
up 8.3% YoY

96.5 (3.9%)
2,00084.7(3.2%)

2,480.1

73.2 (2.7%)

Other internet advertising: up 9.0% YoY
Affiliate advertising: down 24.2% YoY

77.8(3.1%)

1,072.9(39.9%)

Paid search advertising: up 9.9% YoY

737.2(29.7%)

770.1(28.7%)

Display advertising: up 4.5% YoY

592.0(23.9%)

686.0(25.5%)

Video advertising: up 15.9%YoY

2022

2023

976.6(39.4%)

1,500

1,0005000Note: Figures in parentheses are the percentages of overall internet advertising media expenditures.

Expenditures on Internet Advertising Media: Breakdown by Transaction Method—Performance-based advertising reached 2,349.0 billion yen, accounting for nearly 90% of internet advertising
media expenditures.—Looking at internet advertising media expenditures by transaction method, performance-based advertising rose
10.9% year on year to 2,349.0 billion yen, accounting for 87.4% of internet advertising media expenditures.
Reserved advertising was essentially flat year on year (2022: 264.7 billion yen; 2023: 264.8 billion yen), andaffiliate advertising declined 24.2% year on year. (Graph 2)
Definitions of transaction methods
Affiliate advertising

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

Performance-based advertising

Paid search advertising and advertising that is transacted via an auction systemthrough 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 the advertiser, and advertising that is transacted
through a digital platform or ad network using a non-auction method (fixed price).

3 / 11Graph 2. Expenditures on Internet Advertising Media by Transaction Method(¥ billion)3,0002,687.0
up 8.3% YoY
2,480.1

2,50073.2 (2.7%)

Affiliate advertising: down 24.2% YoY

96.5 (3.9%)

2,000

1,500

2,349.0(87.4%)

Performance-based advertising: up
10.9% YoY

264.7 (10.7%)

264.8 (9.9%)

Reserved advertising: flat YoY

2022

2023

2,118.9(85.4%)
1,000

5000Note: Figures in parentheses are the percentages of overall internet advertising media expenditures.

Expenditures on Internet Advertising Media: Transaction Method and Advertising Category Cross
Tabulation—Within video advertisements, performance-based advertising rose 17.2% year and year, and reserved
advertising 9.1% year on year.—
Cross-tabulating transaction method against advertising category, performance-based paid search advertisingaccounted for 39.9%, the highest among internet advertising media, followed by performance-based display
advertising, accounting for 25.8%, and performance-based video advertising, for 21.5%. In video advertisements,
performance-based advertising rose 17.2% year on year, and reserved advertising 9.1% year on year. (Graph 3)

4 / 11Graph 3. Expenditures on Internet Advertising Media: Transaction Method and Advertising Category
Cross Tabulation(¥ billion)
3,000

2,500

2,687.0
up 8.3% YoY
73.2 (2.7%)

2,480.1

3.3(0.1%)

96.5 (3.9%)

3.3(0.1%)
2,000

976.6(39.4%)

Affiliate advertising: down 24.2% YoYOther internet advertising: down 0.1% YoY

1,072.9(39.9%)

Paid search advertising: up 9.9% YoY

693.9(25.8%)

Display advertising: up 7.6% YoY

1,500

1,000645.2(26.0%)

Video advertising: up 17.2% YoY5000493.8(19.9%)
92.0 (3.7%)
98.2 (4.0%)

74.5(3.0%)

81.5(3.0%)

2022

578.9(21.5%)

Other internet advertising: up 9.4% YoY

76.2 (2.8%)
107.1 (4.0%)

Video advertising: up 9.1% YoY

Display advertising: down17.1% YoY

2023

Note: Figures in parentheses are the percentages of overall internet advertising media expenditures.

Video Advertising Market—This market grew 15.9% year on year to 686.0 billion yen, the highest growth rate among all ad categories.—
Within video advertising expenditures, instream advertising inserted in video content totaled 383.7 billion yen(55.9%), while outstream advertising displayed in online advertising spaces and article content reached 302.2
billion yen (44.1%). (Chart 1)
Further, in terms of transaction method, performance-based advertising accounted for 84.4% of the total. (Chart2)
Definitions of video advertisement types
Instream advertising

Advertisements in video file format that play before, during, and after video content.

Outstream advertising

Display and other advertisements in video file format displayed external to video content. This
includes infeed advertisements in video file format displayed in online advertising spaces andarticle content.

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Chart 1. Video Advertising Expenditures: Breakdown by Advertising Category(billion yen)

Outstream advertising: 302.2(44.1%)

2023 Video
Advertising:
686.0

Instream advertising: 383.7 (55.9%)

Note: Figures in parentheses are the percentages of overall video advertising expenditures.

Chart 2. Video Advertising Expenditures: Breakdown by Transaction Method(billion yen)

Reserved advertising: 107.1 (15.6%)2023 Video
Advertising:
686.0
Performance-based advertising:
578.9 (84.4 %)Note: Figures in parentheses are the percentages of overall video advertising expenditures.

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Social Advertising Market—Social advertising grew 13.3% year on year to 973.5 billion yen.—Social advertising in social media services grew 13.3% year on year to 973.5 billion yen, accounting for 36.2% of
overall internet advertising media expenditures, 1.5% more than in 2022. (Graph 4)
By social media category, SNS amounted to 407.0 billion yen (41.8%) and video sharing to 337.2 billion yen(34.6%), totaling 76.4% of social advertising expenditures. (Chart 3)
Definitions of social advertising
Advertising placed on social media* services.
* Media (platforms) providing services enabling users to share and exchange information posted by users as content.
(Source: Internet Advertising, Basic Glossary 2023 Edition, Japan Interactive Advertising Association.)

Examples of social media: SNS, blog services, mini (micro) blogs, video sharing websites, social bookmarks,
electronic bulletin board services.
Definitions of social classification
The SNS category includes SNS platforms (excluding the video sharing category). The video sharing category
includes video sharing websites with user-submitted content. The others category includes blogs, electronicbulletin boards, and other websites.

Graph 4. Social Advertising Expenditures(¥ billion)
3,000

2,687.0
up 8.3% YoY
2,480.1

2,500

2,000

1,500

1,713.5(63.8%)

Non-social advertising: up 5.7% YoY

859.5(34.7%)

973.5(36.2%)

Social advertising: up 13.3% YoY

2022

2023

1,620.6(65.3%)

1,000

500

0Note: Figures in parentheses are the percentages of overall internet advertising media expenditures.

7 / 11Chart 3. Social Advertising Expenditures by Ad Category(billion yen)

Others: 229.4 (23.6%)2023 Social
Advertising:973.5

SNS: 407.0 (41.8%)

Video sharing: 337.2 (34.6%)

Note: Figures in parentheses are the percentages of overall social advertising expenditures.

Total Internet Advertising Media Expenditures (Forecast)—In 2024, total internet advertising media expenditures in Japan are forecast to increase 8.4% year on year to2,912.4 billion yen.—Internet advertising media expenditures are expected to maintain steady growth in 2024, increasing 8.4% year
on year to 2,912.4 billion yen. (Graph 5)
Graph 5. Total Internet Advertising Media Expenditures (Forecast)(¥ billion)

2,912.4

3,000

2,687.0

Internet Advertising Media Expenditures (billion yen)Compared with previous year (%)

2,480.1

2,157.1
2,000

1,663.0

1,756.7

122.8

114.8

115.0

105.6

108.3

108.4

1,0000

2019

2020

2021

2022

Source: Advertising Expenditures in Japan compiled by Dentsu.

2023

2024(forecast)

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Video Advertising Market (Forecast)—Video advertisements in 2024 are forecast to grow 12.2% year on year to 769.7 billion yen.—
In 2024, video advertisements are forecast to maintain double-digit growth of 12.2% year on year to reach 769.7billion yen. Outstream and instream advertisements are expected to grow at about the same rate. (Graph 6)
Graph 6. Video Advertising Market (Forecast)(¥ billion)
1,000

769.7
up 12.2% YoY

800

686.0
592.0

600

512.8
400

386.2

339.7

Outstream advertising: up 12.4%

430.0

Instream advertising: up 12.1%

302.2
246.3

220.7

206.3
200

292.1

345.6

383.7

180.00

2020

2021

2022

2023

2024
(forecast)

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Survey Overview
Survey organizations

CARTA COMMUNICATIONS Inc., Dentsu Inc.,
Dentsu Digital Inc., SEPTENI CO.,LTD.

Survey periodDecember 2023–February 2024

Survey methodology

Carried out estimates based on the following research
1. Research based on questionnaire surveys covering internet
advertising media companies, etc. (web research)
The research was conducted by explaining to respondents that thesurvey would be asking about “2023 Advertising Expenditures inJapan” internet media expenditures.
2. Same as above, but with additional interview research
3. Various types of data collection and analysis

Note: The figures shown in graphs contained in this release are rounded to the nearest unit. Consequently, sometotals differ from the sum of the components shown.

Company profile
CARTA COMMUNICATIONS Inc.（https://www.cci.co.jp/en/）
Location: Toranomon Hills Station Tower 36F, 2-6-1, Toranomon, Minato-ku, Tokyo,105-5536, Japan⚫ Representative: Taku Meguro, Representative Director, President⚫ Business outline:
CCI is engaged in comprehensive digital marketing business development. In addition to thesale of advertising space, CCI works with media companies and platformers to develop
products, solutions, and services provided to client companies.
⚫

Dentsu Inc.（https://www.dentsu.co.jp/en/）
Location: 1-8-1, Higashi-shimbashi, Minato-ku, Tokyo 105-7001, Japan⚫ Representative: Takeshi Sano, Representative Director, President and CEO⚫ Business outline:⚫

In addition to providing various solutions for overall client marketing, Dentsu promotes thedevelopment of efficient advertising in response to changes in the digital age; designs optimal
customer experiences; innovates marketing infrastructure; and transforms client business. We
also integrate diverse capabilities that have evolved beyond the marketing domain to provide
integrated solutions, which contribute to the sustainable growth of clients and society.

10 / 11Dentsu Digital Inc.（https://www.dentsudigital.co.jp/en/）
Location: 1-8-1 Higashi-shinbashi, Minato-Ku, Tokyo, 105-7077, Japan
Representative: Koh Takimoto, Representative Director, President and CEO⚫ Business outline:
Dentsu Digital is one of the largest integrated digital firms in Japan. We are committed torealizing the full potential of new solutions that can emerge from the joining of creativity andtechnology that are closer to people’s hearts and minds. We offer services such as: datadriven “marketing strategy formulation and execution”, “DX consulting” to support business
innovation, “IT platform design and construction” to help shape the company’s digitalfoundation, and “communication development” that can integrate AI and other cutting-edge
technologies for state-of-the-art results.
⚫
⚫

SEPTENI CO.,LTD.（https://www.septeni.co.jp/en/）
Location: Sumitomo Shinjuku Grand Tower 28F, 8-17-1 Nishi-Shinjuku, Shinjuku-ku,
Tokyo 160-6128⚫ Representative: Yusuke Shimizu, Representative Director, President⚫ Business outline:
Septeni provides comprehensive support for corporate digital transformation, mainly throughdigital advertising, and provides solutions utilizing data and AI.
⚫

#####Contact
SEPTENI HOLDINGS CO., LTD., Public Relations Division, Kofunato & Onuma
E-mail: koho@septeni-holdings.co.jp

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