Japan: Product data feed advertising, market size and projections 2020

Product data feed advertising market size in 2016 increased about 50% to 64.9 billion yen (565 M USD), the market size is expected to grow about 2.3 times in 150.7 billion yen in 2020.

[Key Facts]

1- 2016 market size for data feed advertisement in Japan reached 64.9 billion yen, about 50% more than in 2015, and it is estimated to be 89.4 billion yen in 2017, 40% more than 2017

2- Advertisers are in the category of e-commerce, human resources, real estate, travel. New digital contents will expand in the future (ebooks, etc)

3- Main placements are on general website and search sites, advertising placement in social media is getting momentum and will grow 800% by 2020 almost equivalent to search sites placement.

[Definition of the product data feed and advertising market]

A product feed or product data feed is a file made up of a list of products and attributes of those products organized so that each product can be displayed, advertised or compared in a unique way. A product feed typically contains a product image, title, product identifier, marketing copy, and product attributes.

Product Data feed advertising in Japan, market size and projections 2020

In the early 2010s, with the advancement of ad technology, data feeds began to be used in the distribution of personalized dynamic ad creatives. Demand in this sector has grown tremendously since.

The 2016 market size of data feed advertisement in Japan is estimated to be 64.9 billion yen, about 50% more than in 2015, and it is estimated to be 89.4 billion yen in 2017, about +40% growth compared to 2016.

Market increase by type of advertising products follows:

  • display advertising increased 48% year on year to 51.1 billion yen
  • search advertising increased 52% year on year to 13.8 billion yen.

Demand for display type advertisements focusing on dynamic retargeting advertisements continued to grow steadily and demand for search type advertisements delivered in accordance with search results such as product search and recruitment search also expanded.

In 2017, it is anticipated to reach 89.4 billion yen (38% YoY).

By product type:

  • display advertising: 70.3 billion yen (+38%)
  • search advertising: 19.1 billion yen (+38%)

datafeed1

Advertisers who use data feed advertisements are e-commerce, human resources, real estate and travel companies that provide information and services online and have a huge list of products and services. nowadays the use of a product data feed is becoming a standard and is expected to expand further.

datafeed2

Advertising placement are mainly on general websites such as portal sites and news sites and search sites. However, share of placement on general websites is expected to drop as social media rise rapidly.datafeed3

[Challenges in product data feed advertising]

  • Improvement of feed quality is a challenge as it takes time and effort and needs a suitable cooperation between the advertiser and the advertising technology provider
  • Real time data feed advertising taking into consideration stock products availability in order to provide highly relevant ads
  • Linking various data (social, etc.) other than the product data in the feed

With the sophistication of digital marketing through multi-purpose use of multiple data, the data feed advertising market is expected to continue to grow steadily in the future and will reach 150.7 billion JPY in 2020.

Ref:
2016年のデータフィード広告市場規模は前年比約5割増の649億円、2020年の市場規模は2016年の約2.3倍、1,507億円と予測(ビカム/デジタルインファクト調査): https://corp.become.co.jp/news/2017-3-7

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