PricewaterhouseCoopers’ (PwC) 17th annual Global Entertainment and Media Outlook 2016-2020 said Japan’s increasingly automated media buying is helping to grow ad spend, noting that strong demand for programmatic technology from premium publishers will help push Japan’s media market to $170 billion by 2020, from its current $154 billion.
PwC notes that Japan’s programmatic segment is significantly more developed than the rest of APAC, although many brands are still just beginning to grasp its relevance and benefits.
While the technology has helped deliver robust online spending, it’s at a more nascent stage in Japan’s mobile market, but is growing quickly.
PwC forecast the mobile programmatic market to reach $2.54 billion by 2020.
Meanwhile, PwC raises the increasing adoption of ad blocking technology as a possible red flag for ad growth, noting that mobile growth especially could be stymied as more device manufacturers build in ad blocking to their operating systems, as Apple did last year, and more wireless carriers – in the name of customer data conservation – suggest that they, too, could begin to block ads.
PageFair says some 200 million Internet users employ ad-blocking technology, and nates that mobile – especially in APAC – is seeing even heavier use, some 416 million users have some sort of ad-blocking technology on their devices.
The industry is looking for new ways, including anti-ad blocking, native ads and blocking viewers who use ad blocking from their sites to combat the problem.
Programmatic is seeing strong growth in video ads in Japan as well, where 37.5% of brands turned to online video last year, more than 2X 2014. PwC said it expects the market to top $655 million by 2020.
Major events like the 2020 Tokyo Olympics are expected to drive a surge in advertising as well.
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