Announcement of “2023 Detailed Analysis of Japan's Advertising Expenses and Internet Advertising Media Expenditures” Internet advertising expenses reach record high since estimates began in 1996 | EC's Mikata
The four companies (CCI/Dentsu/Dentsu Digital/Septeni) that drive the digital field of the domestic Dentsu Group are the ones that are the most popular among Internet advertising companies among the survey results of “2023 Advertising Expenditures in Japan” announced by Dentsu on February 27, 2024. Analyze the breakdown of media costs by advertising type, transaction method, etc. We have released “2023 Detailed Analysis of Advertising Expenditures and Internet Advertising Media Expenditures in Japan,'' which includes forecasts for 2024. This article introduces some excerpts.
Survey overview
◆Research subject
▷CARTA COMMUNICATIONS Co., Ltd. (CCI)
▷Dentsu Inc.
▷Dentsu Digital Inc.
▷Septeni Co., Ltd.
◆Survey period
▷December 2023 to February 2024
◆Investigation method
▷Conducted a questionnaire survey (web survey) targeting Internet advertising media companies, platformers, etc. as “Inquiry about Japanese advertising expenses and Internet advertising media sales in 2023 (Reiwa 5)”
▷Additional interview survey
▷Various data collection and analysis
Paid search advertising exceeds 1 trillion yen for the first time
Internet advertising media expenses (*1) in 2023 were 2,687 billion yen, 108.3% compared to the previous year.
In terms of advertising types, paid search advertising exceeded 1 trillion yen for the first time since estimates began, reaching 1,072.9 billion yen, 109.9% from the previous year, making it the highest composition ratio at 39.9%.
In addition, display advertising was 770.1 billion yen (composition ratio 28.7%), 104.5% compared to the previous year, and video advertising was 686 billion yen (composition ratio 25.5%), 115.9% compared to the previous year.
*1 Internet advertising costs excluding internet advertising production costs and product sales EC platform advertising costs.
Looking at Internet advertising media expenses by transaction method, programmatic advertising increased by 110.9% from the previous year to 2,349 billion yen, accounting for 87.4% of the total composition.
Reservation-type advertising remained almost unchanged at 100.0% compared to the previous year (2022: 264.7 billion yen, 2023: 264.8 billion yen), while performance-based advertising decreased by 75.8% compared to the previous year.
Social advertising accounts for 36.2% of internet advertising media costs
Social advertising totaled 973.5 billion yen, an increase of 113.3% from the previous year, an increase of 1.5% from the previous year. This accounted for 36.2% of Internet advertising media expenses.
If we categorize social advertising by type into SNS, video sharing, and other, SNS ads account for 407 billion yen (composition ratio: 41.8%), and video sharing ads account for 337.2 billion yen (composition ratio: 34.6%). The result was 76.4%.
Japan's total advertising expenditure in 2023 will reach a new record high
Internet advertising media expenses increased by 108.3% from the previous year to 2,687 billion yen due to growth in video advertising and digital sales promotion. It is predicted to continue to expand steadily in 2024, reaching 2,912.4 billion yen, 108.4% from the previous year.
Japan's total advertising expenditure in 2023 will be 7,316.7 billion yen, an increase of 3.0% from the previous year, setting a new record high since estimates began in 1947. Internet advertising expenditures (estimates started in 1996) also reached a record high of 3,333 billion yen (107.8% compared to the previous year), accounting for 45.5% of Japan's total advertising expenditures.
While paying close attention to trends in Internet advertising expenditures, which are expected to continue to grow in the future, each business operator should carry out advertising efforts that keep track of trends.
