#Japan #Tokyo #The Trade Desk #OTT Advertising

The Rise of OTT Advertising in Japan

The recent trend in Over-the-Top (OTT) advertising is gaining significant traction among marketers in Japan, as revealed by a study conducted by The Trade Desk, a global advertising technology company based in California. According to their latest research, around 50% of Japanese marketers are planning to either launch or expand their OTT advertising initiatives over the next year. This shift underscores the growing relevance of video streaming platforms in contemporary marketing strategies.

The study surveyed 177 marketers engaged in digital advertising within Japan, including both advertisers and agency professionals. The findings suggest that the importance of video streaming platforms is on the rise across the Japanese marketing landscape.

Among the findings, a notable 32% of marketers reported integrating professionally produced premium video content into their media plans for OTT advertising. The benefits of OTT advertising are compelling, highlighting its ability to reach users who prefer viewing on larger screens, such as connected TVs (62%). Moreover, OTT platforms offer the opportunity to connect with younger audiences who have become increasingly hard to reach through traditional TV advertising (49%). Additionally, the brand safety afforded by professionally produced content allows for higher quality ad placements (44%).

However, the survey also identified challenges faced by marketers in the OTT advertising space. A significant 41% pointed to high advertising costs as a barrier, while 32% cited the substantial burden of creative production as a concern. Despite these challenges, approximately 46% of marketers expressed enthusiasm for entering or expanding their OTT advertising efforts in the near future, indicating a strong expectation for growth in this sector.

Kei Majima, the General Manager for Japan at The Trade Desk, stated, “As consumer media consumption continues to diversify, including content types and viewing devices, marketers must adapt their strategies to address this increasingly complex landscape. With the rise in consumption of OTT and Connected TV, more than half of marketers are keen to invest in these advertising avenues, pointing to a promising future for OTT advertising.” He further mentioned that The Trade Desk remains committed to expanding its OTT inventory and data offerings to cater to various marketer needs.

Key Findings from the Research

• - Video Advertising Experience: 83% of Japanese advertisers and agency professionals have experience with video advertising.
• - Incorporation of OTT Ads: Only 32% of marketers are currently integrating OTT ads into their media planning.
• - Frequency of OTT Ads: 54% reported running OTT ads four times a year or more, with 28% doing so ten times or more annually.
• - هدف OTT Usage: A substantial 83% of marketers aim to enhance brand awareness through OTT advertising.
• - Future Expectations: Marketers hope for an increase in reach (56%), improvements in advertising costs (56%), and the realization of standardized ad effect measurement similar to other digital media (50%).
• - Other Advertising Formats Impacted: Some marketers indicated they would downscale traditional advertising formats, such as TV commercials (26%), newspapers (23%), display ads (23%), and social media video ads (21%), in favor of OTT advertising.

Looking ahead, the survey indicates a promising landscape for OTT advertising, with 46% of marketers contemplating new initiatives or enhancements to their existing strategies in the coming year.

For a detailed view of the survey findings, feel free to download the complete report here.

About the Survey

• - Method: Online survey
• - Period: September 11 to October 21, 2024
• - Participants: 177 marketers involved in digital advertising in Japan (83 advertisers and 94 agency professionals)
• - Collaborative Entities: The Trade Desk and Digital InFact Inc.

About The Trade Desk

The Trade Desk is a technology company dedicated to supporting advertising buyers. Through its self-service cloud-based platform, buyers can create, manage, and optimize digital advertising campaigns across multiple devices, including PCs, mobile, and Connected TVs. By connecting with key data, inventory, and publishing partners, The Trade Desk maximizes reach and operational efficiency. For more information, visit The Trade Desk's website or follow them on social media platforms.