On March 10, 2021, the four companies (CCI/D2C/Dentsu/Dentsu Digital) that lead the domestic Dentsu Group in the digital advertising field announced the “2020 Detailed Analysis of Advertising Expenditures and Internet Advertising Media Expenditures in Japan”. Among the survey results of “2020 Advertising Expenditures in Japan” announced by Dentsu in February 2021, we analyzed
Internet advertising
media and added predictions for 2021.
This report reveals the state of internet advertising in 2020.
Reference source:
2020 Japanese Advertising Expenses Internet Advertising Media Expenses Detailed Analysis
Internet advertising media expenses in 2020 are increasing by 105% compared to the previous year
[Composition ratio of Internet advertising media expenses by advertising type]
Source:
2020 Japanese Advertising Expenses Internet Advertising Media Expenses Detailed Analysis
Internet advertising media expenses in 2020 were 1,756.7 billion yen, an increase of 105.6% compared to the previous year.
The breakdown was 678.7 billion yen for search advertising (101.6% compared to the previous year), 573.3 billion yen for display advertising (103.4% compared to the previous year), and 678.7 billion yen for video advertising (121.3% compared to the previous year). In particular, video advertising grew significantly due to the increase in video distribution due to demand from people staying at home.
In addition, performance-based advertising was 98.5 billion yen (93.9% compared to the previous year), and other Internet advertising was 20 billion yen (117.8% compared to the previous year).
Programmatic advertising is increasing. On the other hand, performance-based and reservation-based payment types have decreased due to the impact of the coronavirus pandemic.
[Composition ratio of Internet advertising media costs by transaction method]
- Programmatic advertising:
Paid search advertising and those traded through bidding through digital platforms and
ad networks
.
- Reserved advertising:
Those sold as pure advertisements or tie-up advertisements to advertisers via agencies/media reps or directly to advertisers, and those traded on a non-bid basis (fixed price) through digital platforms (tools) and ad networks.
- Performance-based advertising:
An advertisement in which the media and the viewer are compensated when the user who views the Internet advertisement takes a preset action.
Source:
2020 Japanese Advertising Expenses Internet Advertising Media Expenses Detailed Analysis
Next, we will look at each trading method. Programmatic advertising, which is the mainstay of transactions, was worth 1,455.8 billion yen, an increase of 109.7% from the previous year. On the other hand, due to the impact of the coronavirus pandemic, reservation type advertising decreased from the previous year to 202.4 billion yen (87.5% compared to the previous year), and performance-based advertising decreased to 98.5 billion yen (93.9% compared to the previous year).
Programmatic advertising accounts for 80% of the video advertising that has grown significantly.
[Composition ratio by video (video) advertisement type (left) and composition ratio by video (video) advertising transaction method (right)]
- In-stream advertising:
Advertisements in video file format that play before, during, or after video content.
- Outstream advertising:
Advertisements in video file format that are displayed outside of video content such as display ad spaces.
In-feed advertisements that are displayed in advertising spaces on the web or in the content of articles, including those in video file format.
Source:
2020 Japanese Advertising Expenses Internet Advertising Media Expenses Detailed Analysis
Let’s take a closer look at video advertising, which has grown significantly since 2019. First, in terms of ad types, in-stream ads had a share of 46.6% at 180 billion yen, and out-stream ads had a share of 53.4% at 206.3 billion yen, resulting in outstream ads slightly exceeding in-stream ads.
In terms of transaction methods, programmatic advertising accounted for 320.6 billion yen, accounting for 83% of the total.
The amount and overall share of SNS advertising is increasing compared to the previous year.
[Change in social advertising composition ratio (left) and composition ratio by social advertising type (right)]
- SNS types are SNS platforms, video sharing types are user-submitted video sharing sites, and others are blogs and electronic bulletin boards.
Source:
2020 Japanese Advertising Expenses Internet Advertising Media Expenses Detailed Analysis
Next, we will look at the proportion of social advertising in Internet advertising and media costs. In 2019, it was 489.9 billion yen, and in 2020 it was 567.8 billion yen, an increase of 116.1%. Furthermore, the overall proportion of social advertising increased from 29.5% in 2019 to 32.4% in 2020, resulting in an increase in both amount and share.
Furthermore, looking at the composition of social advertising, SNS advertising was 248.8 billion yen (43.7% of the total), video sharing was 158.5 billion yen (27.9% of the total), and others were 161.5 billion yen (28.4% of the total). .
Internet advertising expenditure forecast for 2021 is 1,891.2 billion yen, 107.7% compared to the previous year
[Trends in total Internet advertising media expenses (forecast)]
Source:
2020 Japanese Advertising Expenses Internet Advertising Media Expenses Detailed Analysis
Finally, the predicted value of Internet advertising media costs in 2021 was calculated to be 1,891.2 billion yen, an increase of 107.7% compared to 2020.
[Video advertising market trends (forecast)]
Source:
2020 Japanese Advertising Expenses Internet Advertising Media Expenses Detailed Analysis
In particular, video (video advertising) is expected to grow by 110.4% compared to 2020, and in-stream advertising is expected to grow by 115.1% compared to 2020.
This report reveals that despite the coronavirus pandemic, internet advertising media expenses in 2020 are on the rise, 105% compared to the previous year. In particular, video advertising has grown significantly by 121% compared to the previous year, and this trend is predicted to continue in 2021.
In addition to video advertising, there are other media that are on the rise, such as the overall share of SNS advertising, so we will keep a close eye on trends in internet advertising in 2021.
Reference source:
2020 Japanese Advertising Expenses Internet Advertising Media Expenses Detailed Analysis