2025 Advertising Expenditures in Japan

Advertising expenditures in Japan grew 5.1% year on year to a record high of 8,062.3 billion yen, reaching a record high for the fourth consecutive year; Internet advertising expenditures increased 10.8% year on year to 4,045.9 billion yen, exceeding 4,000 billion yen for the first time and also accounting for more than half of total advertising expenditures for the first time (50.2%); In promotional media advertising expenditures, "events/exhibitions/screen displays" recorded double-digit growth, buoyed by major events such as Expo 2025 Osaka, Kansai, Japan and the 2025 World Athletics Championships in Tokyo

Dentsu Inc. (President & CEO: Takeshi Sano; Head Office: Tokyo), announced today the completion of its calendar year 2025 annual report on advertising expenditures in Japan, which includes a breakdown of estimated expenditures by advertising medium and industry. The main findings of the report are as follows.

Overview of Japanese Advertising Expenditures throughout 2025

• Throughout 2025, advertising expenditures grew 5.1% year on year to 8,062.3 billion yen, marking five consecutive years of growth and the fourth consecutive year of record high expenditures. Strong corporate earnings served to accelerate digital investment, while major events also helped drive growth. Video and social media ads performed strongly, with internet advertising expenditures accounting for more than half of total advertising expenditures for the first time at 50.2%. Traditional media advertising expenditures remained flat, down 1.6% year on year at 2,298.0 billion yen.
• Internet advertising expenditures reached 4,045.9 billion yen, up 394.2 billion yen (10.8%) over the previous year and exceeding 4,000 billion yen for the first time since records began in 1996. Increasing demand for video ads, led by social media vertical video ads and connected TVs (internet-connected TVs) contributed to overall market expansion.
• Promotional media advertising expenditures grew for the third consecutive year, increasing 2.0% year on year to 1,718.4 billion yen, supported by rising inbound tourism-led demand and major events that increased mobility, with growth seen in fields relating to human movement and activity, such as outdoor, transit, POP,and events/exhibitions/screen displays,etc.
  Events/exhibitions/screen displays" alone recorded double-digit growth of 11.2%, reaching 474.8 billion yen, buoyed by major events Expo 2025 Osaka, Kansai, Japan and the 2025 World Athletics Championships in Tokyo.

Advertising Expenditures in Japan

Note: The categories of "Merchandise-related EC Platforms" and "Events" within Advertising Expenditures in Japan were added in 2019. Results up to 2018 have not been adjusted to reflect this change.

Overview of Advertising Expenditures by Medium
In Dentsu Inc.'s annual reports on advertising expenditures in Japan, expenditures are classified into three broad categories of advertising media: (1) Traditional media advertising expenditures (comprising advertising expenditures and their respective production costs for the categories of newspapers, magazines, radio, and television); (2) Internet advertising expenditures (comprising the categories of internet media costs, merchandise-related EC platforms within advertising expenditures in Japan, and internet advertising production costs); and (3) Promotional Media advertising expenditures (comprising advertising expenditures for the categories of outdoor, transit, flyers, direct mail, free newspapers, POP, and events/exhibitions/screen displays).

(1) Traditional media advertising expenditures amounted to 2,298.0 billion yen (down 1.6%)
Traditional media advertising expenditures, comprising newspaper, magazine, radio and television advertising expenditures remained overall at a similar level to the previous year, down 1.6% at 2,298.0 billion yen.

(2) Internet advertising expenditures amounted to 4,045.9 billion yen (up 10.8%)
With growth focused in video ads, internet advertising expenditures continued to expand, accounting for more than half of all expenditures for the first time ever, at 50.2%. Out of the total, internet media costs amounted to 3,309.3 billion yen, a double-digit growth rate of 11.8% year on year.

In terms of digital advertising derived from traditional media, television media-related video advertising expenditures continued their high growth rate, increasing 23.3% to 80.5 billion yen.

Advertising expenditures for merchandise-related EC platforms were up 12.5% year on year to 244.4 billion yen, on the back of further expansion of online sales. Internet advertising production costs increased 4.0% to 492.2 billion yen, driven by the expanding number of video advertising productions.

(3) Promotional media advertising expenditures amounted to 1,718.4 billion yen (up 2.0%)
Burgeoning inbound tourism-related demand served to boost outdoor, transit and POP advertising. Major events such as the Expo 2025 Osaka, Kansai, Japan and the 2025 World Athletics Championships in Tokyo, along with positive factors including the opening or renovation of major commercial facilities and hotels and ongoing urban redevelopment, all helped to drive double digit growth of 11.2% in expenditures on events/exhibitions/screen displays for a total of 474.8 billion yen, contributing to the overall expansion of promotional media advertising expenditures.

TABLE 1
Advertising Expenditures by Medium (2023-2025)

TABLE 2
Sources Of Media Expenditures

TABLE 3
Advertising Expenditures and Japan's Nominal GDP (2005-2025)

Notes:
1. The GDP figures are taken from the Cabinet Office's "Annual Report on National Accounts" and "QuarterlyEstimates of GDP."
2. The method for estimating advertising expenditures in Japan was modified in 2007, and the data for 2005 and 2006 have been retroactively revised.
3. Since 2018, digital advertising carried by traditional media companies has been added to estimates for Internet Advertising Expenditures.
4. Since 2019, advertising expenditures for Merchandise-related EC Platforms within Advertising Expenditures in Japan have been added to estimates for Internet Advertising Expenditures, and Events advertising expenditures have been added to estimates for Exhibitions/Screen Displays.

TABLE 4
Advertising Expenditures by Industry in Traditional Media for 2025
(Traditional Media Only, Excluding Satellite Media-related Spending)

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