2020 was the year when the new coronavirus spread worldwide, and the way we live and work has become more online and digital. Against this backdrop, how has the domestic video advertising market size changed?
CyberAgent Co., Ltd. and Digital Infect Co., Ltd. jointly estimated the annual advertising amount of video advertisements distributed on the Internet and predicted the size of the domestic video advertising market.
Reference:
CyberAgent announces 2020 domestic video advertising market survey
Video advertising market grows at a higher level than in 2019
The study predicted that the video advertising market in 2020 will grow at a higher level than in 2019. An important factor behind this is the spread of the new coronavirus. The Japanese economy has become unstable due to the spread of the new coronavirus. Many companies appear to have temporarily reduced their advertising spending.
However, on the other hand, it seems that the spread of infection did not necessarily have only a negative impact on video advertising. Due to people refraining from going out and shifting to new lifestyles due to the coronavirus pandemic, demand for “stay-at-home consumption,” where people consume products and services at home without going out, has increased. Additionally, the time spent watching videos online at home has increased across a wide range of generations. The amount of video content provided has increased and the quality seems to have improved.
In such a situation, video advertising will become even more attractive. Overall, it seems that many companies found video advertising appealing and continued to invest in it, even though they were keeping their advertising budgets low.
The domestic video advertising market in 2020 is expected to reach 295.4 billion yen, 114% compared to last year.
The graph below shows the results of this study’s estimates and forecasts of the domestic video advertising market size by device.
Source:
CyberAgent announces 2020 domestic video advertising market survey
The market size in 2020 is expected to reach 295.4 billion yen, 114% compared to last year, partly due to the background mentioned in the previous section. In particular, video advertising for smartphones is predicted to increase significantly from last year.
Video advertising for smartphones is expected to reach 263.5 billion yen, 114.8% compared to last year. This will account for 89% of all video ads. This study predicts that video advertising for smartphones will drive the video advertising market, and that the market size will continue to grow.
This prediction is supported by the spread of 5G and reductions in mobile communication charges by major carriers. Against this background, the viewing of video advertisements on smartphones is likely to continue to expand in the future.
In 2020, the range of uses for video advertising has expanded
The graph below shows market size estimates and forecasts for each advertising product.
Source:
CyberAgent announces 2020 domestic video advertising market survey
The outline of each advertising product is as follows.
- In-stream advertising: Video advertising that is displayed on the screen where the video is playing on video sites, SNS, etc.
- Inford ads: Video ads that are displayed between content (e.g. between thumbnails of articles on a news site) on the website or app you are viewing.
- In-banner ads: Video ads displayed in ad spaces surrounding content on portal sites, etc.
In-feed advertising is predicted to have the highest growth rate at 1.15% compared to last year. The range of uses for video advertising also appears to be expanding. Up until now, video advertisements have often been used to expand awareness and stimulate interest in products and services, but in 2020, demand for advertising products that directly promote sales has also increased.
2020 was a year in which demand for video advertising increased as demand for stay-at-home consumption increased during the coronavirus pandemic. It is predicted that the market will continue to expand as the industry as a whole continues to provide attractive video advertisements.