Ad spending in Japan -- the fourth-largest ad marketplace in the world -- reached 7.1 trillion Yen ($52 billion) in 2022, setting a new record for the nation, according to estimates released this morning by Tokyo-based agency holding company Dentsu.
It also represents the first time since 2007 that Japan's ad economy surpassed 7 trillion Yen, and signals that the ad market has fully recovered from a recession that began in 2007 and was exacerbated by the Fukushima nuclear disaster in 2011.
Compared with 2021, Japan's ad economy expanded 4.4%, despite being impacted by various domestic and international factors, including the rebound in COVID-19 infections in Japan, the war in Ukraine, and steeply rising commodity prices.
"The market as a whole was backed by growth in Internet advertising expenditures, reflecting the ongoing digital transformation of Japanese society," Dentsu noted in its release.
Internet ad spending rose 14.3% over 2021, marking an increase of around 1 trillion yen over the past three years, Dentsu noted, adding: "Demand for video ads, particularly in-stream ads, has continued to rise since 2021, and growth in digital promotions contributed to market expansion. The overall increase in total advertising expenditures in 2022 was mainly driven by the solid growth in Internet advertising expenditures."