Market Insights Advertising & Media Advertising

Influencer Advertising - Japan

Japan

Ad spending in the Influencer Advertising market in Japan is forecasted to reach €0.80bn in 2024.
The annual growth rate (CAGR 2024-2029) is expected to be 10.20%, leading to a projected market volume of €1.30bn by 2029.
The average ad spending per internet user in the Influencer Advertising market in Japan is projected to be €7.65 in 2024.
When compared globally, China is anticipated to generate the highest ad spending, amounting to €17,770.00m in 2024.
In Japan, Influencer Advertising is rapidly growing as brands capitalize on the popularity and trust associated with social media personalities for targeted marketing campaigns.

Key regions: Australia, Germany, France, Europe, United States

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Analyst Opinion

The Influencer Advertising market in Japan has been experiencing significant growth in recent years.

Customer preferences: Japanese consumers have a strong affinity for social media platforms, with a large percentage of the population actively using platforms such as Instagram, YouTube, and Twitter. This has created a fertile ground for influencer marketing, as influencers are seen as trustworthy and relatable figures who can sway consumer purchasing decisions. Additionally, Japanese consumers value authenticity and are more likely to engage with influencers who are genuine and transparent in their promotions.

Trends in the market: One of the key trends in the Influencer Advertising market in Japan is the rise of micro-influencers. These are individuals with a smaller but highly engaged following, often in niche areas. Brands are increasingly turning to micro-influencers as they offer a more targeted and cost-effective way to reach their desired audience. This trend is driven by the growing demand for authenticity and relatability, as micro-influencers are perceived as more genuine and trustworthy compared to celebrities or macro-influencers. Another trend in the market is the diversification of influencer channels. While Instagram and YouTube remain popular platforms for influencer marketing, there has been a rise in the use of other channels such as TikTok and Twitch. These platforms offer unique opportunities for brands to connect with younger audiences and tap into emerging trends. As these platforms continue to gain popularity, we can expect to see more brands incorporating them into their influencer marketing strategies.

Local special circumstances: Japan has a unique cultural landscape that influences the influencer advertising market. The concept of "kawaii" (cuteness) is deeply ingrained in Japanese culture, and influencers who embody this aesthetic are highly sought after by brands. Additionally, Japanese consumers have a strong interest in beauty and fashion, making influencers in these industries particularly influential. Brands that can align themselves with these cultural preferences are likely to see success in the Japanese market.

Underlying macroeconomic factors: The growth of the Influencer Advertising market in Japan can also be attributed to the overall growth of the digital advertising industry in the country. With traditional advertising channels becoming less effective, brands are shifting their budgets towards digital advertising, including influencer marketing. This shift is driven by factors such as the increasing penetration of smartphones, the rise of social media usage, and the changing media consumption habits of Japanese consumers. In conclusion, the Influencer Advertising market in Japan is growing due to customer preferences for social media and authenticity, the rise of micro-influencers and diversification of influencer channels, unique cultural preferences, and the overall growth of the digital advertising industry. As these trends continue to evolve, we can expect the Influencer Advertising market in Japan to further expand and innovate.

Methodology

Data coverage:

Data encompasses enterprises (B2B). Figures are based on influencer advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers advertising fees paid directly to influencers to post sponsored content.

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. We use market data from independent databases, influencer marketing platforms, and third-party reports to analyze and estimate global influencer advertising spending. We start by researching on the average cost per content post on each social media platform, the number of influencers available on advertising platforms (breakdown by tier: nano, micro, macro, and mega), and the average number of posts per year. Then we estimate the market size for each country individually. We use relevant key market indicators and data from country-specific industry associations, such as GDP, social media users, and digital consumer spending. Lastly, we benchmark key countries or regions (global, United States, China, etc.) with external sources.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market. For instance, the S-curve function is well suited to forecast digital products due to the non-linear growth of technology adoption, whereas exponential trend smoothing (ETS) is more suited for projecting steady growth in traditional advertising markets.

Additional notes:

Data is modeled using current exchange rates. The impacts of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice per year in case market dynamics change.