PwC says programmatic is helping to spur Japan’s media market

By Jim O'Neill on Jun 27 2016 at 11:00 AM

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.

Stay tuned.

Follow me on Twitter @JimONeillMedia and on LinkedIn

READ THESE NEXT

Sports, APAC, Live Streaming
NFL making a pass at China
Aug 22 2017 12:00 PM

The NFL has been eager to get its game in front of viewers globally for years; that was the reason behind its Yahoo trial two years ago, its brief flirtation with Twitter last year and it’s estimated $50 million deal for Thursday Night Football with Amazon Prime this season.

Audiencewise, the Yahoo and Twitter deals were just probes, testing the waters and the technology.

HOOQ gets $25M more in funding as fight for APAC SVOD heats up
APAC, SVOD
HOOQ gets $25M more in funding as fight for APAC SVOD heats up
Jan 12 2017 10:30 AM

HOOQ, the other Southeast Asia subscription video on-demand (SVOD) platform that wants to go toe-to-toe with Netflix (Malaysia’s iFlix also hopes it can punch above it weight), has gotten a $25 million cash infusion from its main investors – SingTel, Warner Bros. and Sony Pictures.

Netflix original Korean content plays to markets in SE Asia, Korea & China - eventually
APAC, Netflix, SVOD
Netflix original Korean content plays to markets in SE Asia, Korea & China - eventually
Jan 11 2017 11:45 AM

Netflix has joined the long list of over-the-top services that are looking to use South Korean dramas as a lure to draw new viewers in Asia, while at the same time making its own service more competitive to local services in South Korea.

The company today announced it had contracted for a 12-episode original series based on a South Korean online comedy series. The series will debut in 2018.

Iflix looks to Hum for local content in Pakistan as it sets to deploy
APAC, SVOD, Content Deals
Iflix looks to Hum for local content in Pakistan as it sets to deploy
Jan 04 2017 7:15 AM

Iflix, the Netflix wannabe that has gained a toe-hold in some Asia-Pacific countries, is extending its content reach, signing a multi-year programming deal with Pakistan’s entertainment channel Hum TV.

Iflix is set to deploy in Pakistan this year, so the content deal – which includes dramas and other episodic programming – gives it a bit more panache with Pakistani audiences. Included in the deal are shows like Bin RoyeHumsafar and Udaari.