#Japan #Tokyo #Dentsu #CARTA HOLDINGS #Internet Advertising

An In-Depth Look at Japan's 2025 Internet Advertising Expenditure

In a recent release by Dentsu on March 5, 2026, a comprehensive analysis has been carried out by four leading digital marketing companies in Japan: CARTA HD, Dentsu, Dentsu Digital, and Septeni. This analysis not only breaks down the overall advertising expenditure in Japan for 2025 but also dives deep into the specifics of internet advertising expenditures, dissecting various types and transaction methods utilized in the digital advertising landscape, alongside projections for 2026.

Overview of Advertising Expenditure in Japan for 2025

As reported, Japan's total advertising expenditure for 2025 has seen a remarkable increase, totaling 8.623 trillion yen, marking a growth rate of 105.1% compared to the previous year. This marks the fifth consecutive year of growth and the highest level recorded in four years. The significant surge can be attributed to the ongoing digital transformation across the society, leading to a substantial rise in internet advertising spending, which reached approximately 4.045 trillion yen. This surge marks a monumental achievement, with online advertising now accounting for more than half, specifically 50.2%, of Japan's total advertising expenditure.

Breaking Down Internet Advertising Expenditure

When looking deeper into internet advertising expenditure, the category of 'internet advertising media spending', which excludes costs associated with internet advertisement creations and e-commerce platforms, recorded an impressive figure of 3.3093 trillion yen, reflecting an 11.8% increase compared to the previous year. This increase is largely driven by the growth in video advertising, particularly vertical video ads on social media platforms.

Video Advertising Growth

For the first time since tracking began, video advertising has surpassed 1 trillion yen, showing dominance in the market with a staggering 1.0275 trillion yen in spend, contributing to over 30% of the total internet advertising spending with a 21.8% growth from the previous year. Both operational and reserved types of video advertising have seen significant increases.

Social Advertising Continues to Surge

Social advertising has also maintained a robust growth trajectory, totaling 1.3067 trillion yen, which is a 18.7% increase year-on-year. With nearly 40% of the internet advertising media spending, social ads primarily consist of contents from video sharing platforms, which have shown an escalation in their share of the market.

Outlook for 2026

Looking ahead, the projections for 2026 anticipate that internet advertising media spending will reach approximately 3.584 trillion yen, marking an 8.3% increase from 2025. The sustained growth in both video and social advertising is expected to continue, with video ads predicted to reach 1.1783 trillion yen, demonstrating a 14.7% increase.

Comparisons of Advertising Types

The breakdown by ad types shows a high reliance on operational advertisements which constitute a whopping 88.7% of the internet advertising media expenditure. Operational video advertising continues to be a critical component, capturing substantial market share due to platforms and variable pricing strategies employed in procurement.

Summary

In conclusion, the significant growth in Japan's digital advertising landscape reflects the increasing importance and effectiveness of internet strategies as brands shift towards digital platforms for better engagement. As we look toward 2026, these trends suggest that video and social advertising will remain at the forefront, enforcing the critical need for brands to innovate and stay attuned to these developments to harness the full potential of digital marketing.