Influencer Marketing Costs in Japan | Market Rates and Key Points to Maximize Cost-Effectiveness
The influencer marketing market in Japan is growing rapidly, but the costs involved are a significant factor for businesses. Understanding the market rates and cost breakdowns is crucial to achieving effective marketing in the Japanese market. In this article, we will introduce the market rates for influencer marketing in Japan and strategies to maximize cost-effectiveness.
Latest Trends and Characteristics of Influencer Marketing in Japan
Until the mid-2010s, influencer marketing in Japan was primarily centered around celebrities and was part of the television industry. However, since 2015, ordinary users have emerged as influencers, causing a significant shift in the landscape. In this section, we will first provide a detailed introduction to the Japanese market to help maximize cost-effectiveness in influencer marketing.
Japan’s Influencer Marketing Market is Growing at 74.1 Billion Yen
According to a study by CyberBuzz, Japan’s influencer marketing market reached 65.1 billion yen in 2022 and is expected to grow to 74.1 billion yen in 2023. With Japan’s total advertising market at 7.1 trillion yen, and SNS advertising making up 1.1 trillion yen, influencer marketing has expanded to account for more than 1% of the total advertising market, with further growth anticipated. CyberBuzz forecasts that the market will reach 130.2 billion yen by 2027.
source: https://www.statista.com/statistics/1246035/japan-influencer-marketing-market-size/
Differences Between Japan and Overseas: The Key Difference Lies in Social media Platforms
The biggest difference between influencer marketing in Japan and overseas lies in the Social media platforms used. In Japan, platforms such as Instagram, YouTube, and TikTok are dominant, and influencers with significant influence on these platforms are gaining attention. Meanwhile, overseas, particularly in the US and Europe, platforms like Facebook and Twitter still have a strong influence. Even globally popular Social media platforms may not have reached the same level of popularity in Japan. Therefore, it is crucial to choose the appropriate SNS based on the user base and culture of each region. The different Social media usage trends in each country play a key role in shaping marketing strategies.
Below, we will introduce a ranking of SNS platforms that are popular in Japan, so please refer to it.
Ranking of SNS Platforms in Japan by Monthly Active Users
1. LINE – 94 million users
2. YouTube – 65 million users
3. Twitter – 45 million users
4. note – 38.8 million users
5. Instagram – 33 million users
6. Facebook – 26 million users
7. TikTok – 16.9 million users
Source: https://find-model.jp/insta-lab/sns-users/#SNS-2)
Typical Influencer Marketing Costs in Japan: 300,000 to 1,000,000 Yen
The largest part of the cost in influencer marketing is the payment to the influencers themselves. This amount fluctuates greatly depending on the number of followers, the cost per follower, and the number of influencers hired. The typical cost to hire an influencer is between 300,000 to 1,000,000 yen per post. To maximize advertising effectiveness, it’s common to hire multiple influencers at once.
For example, hiring three influencers with 100,000 followers each, with a cost per follower of 3 yen, would result in a total fee of 900,000 yen (100,000 × 3 yen × 3 influencers). In addition, product costs, transportation fees, and agency fees will further increase the total cost.
To stay within budget, it’s often more practical to work with influencers who have 50,000 to 100,000 followers.
Cost Breakdown for Influencer Marketing in Japan
Here, we will explain the breakdown of costs that occur when conducting influencer marketing in Japan.
Payment to Influencers
The compensation paid to influencers based on their follower count and influence. The cost per follower (i.e., how much it costs per follower) is typically used to calculate the payment, with the price varying greatly based on the influencer’s popularity and content. In Japan, the average cost per follower is between 2 to 4 yen. Influencers with greater influence tend to receive higher compensation. Understanding how compensation works is essential, especially since YouTube influencers, who require skills such as video editing, tend to earn more than influencers on other platforms.
Agency Fees
This is the fee paid to agencies that handle marketing strategy, influencer negotiations, and campaign management. Using an agency ensures proper influencer selection and the execution of effective campaigns.
Platform Usage Fees
Platforms that connect influencers and businesses charge a fee for usage. Depending on the platform, this fee may be a monthly subscription or performance-based.
Product and Shipping Costs
These are the costs of providing products for PR purposes. When dealing with expensive or large quantities of products, these costs can add up. Shipping fees should also be considered.
Secondary Use Fees
If you plan to reuse influencer-created photos or videos in your own advertisements or on social media, additional fees will apply. These fees depend on the usage scope and duration, and it’s important to clarify them in advance when signing the contract.
Travel and Accommodation Costs
These are the costs involved when inviting influencers to events or shoots, including transportation and lodging. If the promotion takes place in rural areas or overseas, these costs can be substantial, so it’s important to confirm the budget beforehand.
Enhancing the Cost-Effectiveness of Influencer Marketing in Japan
Influencer marketing is a widely used promotional tool in Japan. However, simply hiring influencers doesn’t always guarantee the desired outcomes. In particular, selecting the right social media platforms for the target audience and having an effective content strategy are crucial for success in the Japanese market. In this article, we will outline key points for improving the cost-effectiveness of influencer marketing in Japan.
Leverage Popular SNS Platforms (Instagram, YouTube, TikTok) to Boost Cost-Effectiveness
To maximize the cost-effectiveness of influencer marketing in Japan, it is vital to use the currently trending social media platforms. Instagram, YouTube, and TikTok are particularly effective due to their high user bases in Japan, and each platform offers unique advantages for promotional activities.
Instagram is known for its strong visual appeal, making it ideal for conveying the atmosphere of a brand or product. Utilizing stories and reels allows for easy and effective short-term messaging. With approximately 66 million users in Japan, especially among the younger demographic (ages 18-29), Instagram exerts significant influence. It holds the highest number of daily stories (7 million) globally and boasts the second-highest engagement rate (4.93%), making it a powerful platform for brand promotion. Using features like stories, feed ads, and shopping can be highly effective for BtoC product marketing.
YouTube
YouTube excels at offering long-form content that can deeply explain products or services, which is effective for driving purchasing intent. Review videos or Vlogs are particularly impactful. Recently, short-form videos have gained significant traction in Japan. In July 2021, YouTube Shorts was launched, and in February 2023, monetization became available. Many creators have started posting Shorts, and the total daily views for Shorts videos now exceed 30 billion globally. Notably, non-verbal content has also achieved viral success, with view counts reaching millions or even billions, showcasing its massive viral potential.
TikTok
TikTok is well-suited for spreading impactful, short-form videos quickly and tends to generate buzz among younger audiences. By tapping into trending content, brands can rapidly increase their recognition. Following the 2024 update, TikTok introduced “carousel ads,” which allow multiple videos or images to be displayed in a horizontal format, enhancing the visual appeal and attracting user attention. A Japanese company, “En Haken,” achieved a significant reduction in CPA (Cost Per Acquisition) by about 75% and a 4-fold increase in CTA (Click-Through Rate) after adopting this ad format, proving the effectiveness of the new feature.
By carefully selecting the appropriate SOcial media platform based on the target demographic and leveraging the unique strengths of each platform, businesses can achieve more cost-effective influencer marketing in Japan.
Leveraging Japan’s Unique “Empathy Marketing” for Cost-Effective Influencer Campaigns
In Japan, the psychological tendency of “avoiding failure” is deeply rooted, particularly among the younger demographic. This has led to a strong focus on “social proof” — consumers are highly influenced by comments, likes, and opinions that resonate with the masses. Therefore, Japanese consumers often prioritize the collective agreement of others. Additionally, in Japan, simply showcasing a product isn’t enough; there’s a growing need for content that tells a story. It’s crucial to demonstrate how a product or service integrates into everyday life with specific examples. When influencers speak from their personal experiences about the benefits and ease of use, it triggers a “I want this too” feeling in viewers.
Capitalizing on Japan’s Unique Review Culture
Utilizing Japan’s unique Review culture is an effective way to increase the cost-effectiveness of influencer marketing. In Japan, personal testimonials and real-life experiences are often valued more than traditional advertisements. In fact, nearly 90% of Japanese consumers rely on reviews and word-of-mouth when making purchasing decisions. Consequently, influencer-led reviews and genuine experiences serve as powerful tools for motivating purchase intentions.
To build a strong bond of trust between influencers and their audience, interactive content such as Q&A sessions, live streaming, and engaging posts can be highly effective. These formats encourage viewers to think, “I should try it too,” and help drive real-world purchases.
The Power of Micro-Influencers
Using micro-influencers is another highly effective way to increase the cost-effectiveness of influencer marketing. Micro-influencers tend to have deeper relationships with their followers and boast higher engagement rates. Their close connection to followers makes it easier for them to build trust and generate empathy with their audience. Despite having fewer followers, micro-influencers often specialize in niche markets, allowing for targeted and precise promotion.
Moreover, since micro-influencers’ contract fees are lower than those of larger influencers, they enable businesses to collaborate with multiple influencers within a limited budget. This enables brands to reach broader audiences while keeping costs under control. A real-world example includes ANA (All Nippon Airways), which collaborated with a video creator named AOI, who had 50,000 followers, to promote their “Soratabi Life” campaign. AOI’s Instagram post featuring Okinawan travel photos garnered over 1,300 likes, proving the significant impact of micro-influencer marketing.
Understanding Japan’s Unique Characteristics is Key to Maximizing Cost-Effectiveness
To improve the cost-effectiveness of influencer marketing in Japan, understanding the nuances of Japanese culture is essential. Visually compelling content and storytelling that evokes empathy are highly effective in the Japanese market. Furthermore, emphasizing the importance of real-world testimonials and reviews — key elements of Japan’s word-of-mouth culture — can trigger purchasing intent.
Additionally, using micro-influencers and adopting a more targeted approach based on specific audience segments can help maximize the impact of a marketing campaign while optimizing budget allocation. By understanding Japan’s unique characteristics and strategically leveraging social media and influencers, you can achieve greater marketing success. Implementing these strategies will enable you to maximize cost-effectiveness in your influencer marketing efforts.
