Japanese Social Media Marketing Market in 2024 Surpasses 1.2 Trillion JPY! Growth Forecasts and Future Outlook
Introduction
hotice Co., Ltd. primarily specializes in influencer marketing. Through our work with influencers both domestically and internationally, we experience the growth of social media and the increasing importance of social media marketing every day.
Social media has become an indispensable tool in people’s daily lives.
For example, it is used for a wide variety of purposes, such as contacting someone, gathering ideas for things to purchase, or checking the latest trends.
In the context of business, social media also holds significant power. It continues to evolve as a platform for introducing, promoting, and selling products and services. It has become essential for driving business growth and development.
For these reasons, this time, we will focus on the market size, future forecasts, and the growth potential of social media content in Japan.
The findings presented are based on research conducted by CyberBuzz, one of Japan’s leading influencer agencies, and Digital Infact.
(Source: CyberBuzz/Digital Infact)
Social Media Marketing Market to Hit $8.55 Billion in 2024, Projected to Reach $15.13 Billion by 2029
The domestic social media marketing market in 2024 is projected to reach ¥1.2038 trillion, a 113% increase compared to the previous year. This growth reflects the increasingly important role of social media in corporate digital marketing strategies. Social media has evolved from being a mere communication tool to becoming an indispensable channel for driving purchasing behavior and expanding brand recognition.
Social media platforms are advancing targeting technologies by leveraging AI and machine learning, enabling advertisers to connect with users at the optimal time, using the ideal format and combinations. This evolution has significantly enhanced advertising effectiveness, boosting user engagement and encouraging consumer actions.
In recent years, the emergence of visually engaging creative formats and the strengthened integration with e-commerce functionalities have positioned social media as a highly attractive sales channel for businesses. This transformation has driven a steady increase in marketing investments by advertisers in social media, which is expected to continue in the coming years.
Against this backdrop, the domestic social media marketing market size is forecasted to reach ¥2.1313 trillion by 2029, a 177% increase compared to 2024. This growth underscores the increasing significance of social media within the broader advertising industry.
Breaking down the 2024 market by category, “social media advertising” leads with ¥1.0727 trillion, accounting for approximately 89.1% of the total market. “Influencer marketing” follows at ¥86 billion (7.1%), “social media account management support” at ¥28.3 billion (2.4%), “analytics tools” at ¥6.6 billion (0.5%), and “campaign planning and consulting” at ¥10.2 billion (0.8%).
These figures highlight how companies can optimize their marketing strategies by leveraging social media, demonstrating its continued prominence as a critical area of focus for the industry.
Influencer Marketing Market to Reach ¥86 Billion in 2024, Projected to Grow 1.9x to ¥164.5 Billion by 2029
The demand for influencer marketing is projected to reach approximately $546.5 million in 2024, marking a 116% increase compared to the previous year, continuing its strong growth trajectory.
Influencer marketing is gaining attention from advertisers due to its effectiveness across the full funnel—from raising brand awareness through video content to driving purchases. As video ads become more widespread, influencers’ content is increasingly being used as creative assets in advertising campaigns, further enhancing their role and value in marketing activities.
The frequency of users watching videos on social media continues to rise, making influencers a familiar presence in daily life. These influencers are recognized across generations and regions, significantly impacting society and consumer behavior on a broader scale.
Additionally, the popularity of vertical short-form videos has brought new opportunities for emerging influencers. This enables businesses to leverage innovative forms of expression to convey the appeal of their products and services, thereby expanding the demand for influencer marketing.Given these trends, the demand for influencer marketing is expected to grow approximately 1.9 times by 2029 compared to 2024, reaching around $1.168 billion.
Demand for Influencer Marketing and Vertical Short-Form Videos to Reach $1.75 Billion in 2024, Projected to Grow 2.6x to $4.52 Billion by 2029
Vertical short-form videos are expanding the range of communication between advertisers and consumers with their expressive power, and the demand for them is steadily increasing.
Starting with the popularity of TikTok, major social media platforms like Instagram, YouTube, and LINE have begun offering vertical video formats.
In recent years, the environment for creating vertical video content has been enhanced, with influencers specializing in short videos gaining prominence across platforms. These influencers are increasingly handling creative projects for vertical video content that cater to advertisers’ marketing needs. Against this backdrop, the demand for influencer marketing and vertical short-form videos is projected to reach approximately $1.75 billion in 2024, marking a 137% increase compared to the previous year.Vertical short-form videos cater to the viewing needs of users ranging from younger generations to middle-aged and older adults. Their audience base and viewing time are expected to continue expanding. Furthermore, social media platforms are improving their video formats, making vertical short-form videos an increasingly captivating format for users. Given these trends, the demand for vertical short-form videos is forecasted to grow approximately 2.6 times by 2029 compared to 2024, reaching around $4.52 billion.
SNS Account Management, Campaign Planning, and Analytics Tools Market to Reach $3.2 Billion in 2024, Projected to Grow 1.5x to $4.9 Billion by 2029
As multiple social media platforms emerge and communication channels with consumers become increasingly layered, the strategic use of social media remains essential. Advertisers continue to demonstrate strong demand for social media strategy development, and the need for campaign planning and consulting is expected to grow in line with the overall expansion of the social media marketing market.
While the growth of social media account management support has slowed compared to the initial boom during the early adoption phase of social media, demand is expected to remain steady and exceed current levels. However, a polarization is emerging between advertisers who rely on external support services and those transitioning to in-house management, leading to more moderate growth in this sector.
For analytics tools, challenges such as paid API connections by major social media platforms have led to service withdrawals and increased pricing in some cases. Despite these hurdles, the demand for social media account management support, campaign planning and consulting, and analytics tools is projected to reach approximately $3.2 billion in 2024, a 110% increase compared to the previous year. This upward trend is expected to continue, with the market forecasted to grow 1.5 times by 2029, reaching around $4.9 billion, driven by advertisers’ ongoing investment in social media marketing.
Social Media Advertising Market to Reach $7.62 Billion in 2024, Projected to Grow 1.8x to $13.47 Billion by 2029
The demand for social media advertising in 2024 is projected to reach approximately $6.82 billion, representing a 113% increase compared to the previous year. It now constitutes a significant portion of internet advertising demand, influencing the overall trends in the online advertising market.
Looking ahead, while the market may be impacted by domestic socio-economic factors, the growing importance of social media in advertisers’ marketing strategies is expected to drive demand. Social media platforms will continue to play a broad role, from enhancing product and service awareness to driving purchases, ensuring sustained high levels of growth in demand.Against this backdrop, the market is forecasted to expand approximately 1.8 times by 2029 compared to 2024, reaching $12.06 billion.
Summary:
The social media marketing landscape in Japan is experiencing remarkable growth, with the market size projected to reach $7.62 billion in 2024 and $13.47 billion by 2029. Influencer marketing and vertical short-form videos are driving this expansion, with these formats gaining popularity across demographics and transforming how advertisers connect with consumers. Social media platforms have become indispensable tools for businesses, enabling advanced targeting and creative advertising strategies that boost engagement and conversions. Additionally, demand for services like account management, campaign planning, and analytics tools continues to grow, emphasizing the increasing importance of social media in corporate marketing strategies.
At Hotice Co., Ltd., we specialize in influencer marketing, helping businesses harness the power of social media to drive growth and engagement. With our extensive experience working with influencers across Japan and internationally, we have a deep understanding of the rapidly evolving social media landscape. From driving brand awareness to increasing conversions, we leverage the latest trends in social media to deliver measurable results.
Ready to take your social media marketing to the next level? Reach out to Hotice today to discover how we can help you stay ahead in this dynamic industry.
