D2C Inc. and Cyber Communications (CCI) jointly conducted a survey on "advertising expenditure by device," "video advertising expenditure," and "advertising expenditure by type" within the internet advertising market from January to December 2016.
In addition to a survey targeting media companies, the findings were compiled based on Dentsu Inc.'s "2016 Japan Advertising Expenditure" report released in February 2017.
Smartphone advertising accounts for 60% of internet advertising media spending
Internet advertising media spending in 2016 totaled ¥1.0378 trillion (according to Dentsu Inc.'s "2016 Japan Advertising Expenditure"). Within this, smartphone advertising accounted for ¥647.6 billion, while PC advertising accounted for ¥390.2 billion. Compared to 2015, smartphone advertising spending increased by 130% year-on-year, while PC advertising spending increased by 93% year-on-year.
Smartphone advertising spending is expected to continue showing high growth rates in 2017.
Market Size Trends for Smartphone Advertising and PC Advertising
Video Advertising Spending Surges 168% Year-on-Year
Video advertising is considered to be growing rapidly in recent years. In 2016, video advertising expenditure reached ¥86.9 billion, a 168% increase year-on-year, accounting for 8.4% of total internet advertising media spending. High growth is also expected in 2017, with projections reaching ¥122.4 billion.
Video Advertising Market Size Estimates and Forecasts
By advertising type, smartphone programmatic advertising accounts for 48% of the total
By advertising type, programmatic advertising expenditure amounted to ¥738.3 billion, accounting for 71% of internet advertising media costs (according to Dentsu Inc.'s "2016 Advertising Expenditure in Japan"). This was followed by reserved advertising expenditure at ¥153.8 billion (15%) and performance-based advertising expenditure at ¥145.7 billion (14%). Within programmatic advertising, smartphone advertising (¥502.0 billion) exceeded PC advertising (¥236.3 billion), representing the highest overall ratio (48%).