The Market Size of Influencer Marketing in Japan: What Does the Future Hold?
Influencer marketing is a method where influential influencers promote products, encouraging consumer awareness and purchase.
In today’s world, where SNS usage is widespread, this approach offers different effects from traditional advertising. The value of influencer marketing in the Japanese market is also being recognized, and once you learn its value, you might be surprised.
For example, while the market size was 30 billion yen in 2020, it almost doubled by 2022. This rapid growth is influenced by Japan’s unique culture, consumer behavior, and SNS usage.
Moreover, it is expected to reach 130.2 billion yen by 2027. Here, you can understand the value of influencer marketing in the Japanese market.
Current Status of Influencer Marketing in Japan
Currently, influencer marketing continues to grow in Japan, and SNS has become an essential promotional tool for companies.
In 2022, the market reached 61.5 billion yen, achieving more than double growth in five years. With the continued penetration of SNS, it is expected that many companies will increasingly use influencers for marketing products and services.
For example, in fields such as beauty, fashion, and food, where target audiences frequently access SNS, influencers use their relationship of trust with followers to make an impact.
As a result, consumers are increasingly inclined to purchase products recommended by influencers, further expanding the market.
Source : https://www.libcon.co.jp/column/influencer-marketing-marketsize/
Factors Driving Growth in Japan’s Influencer Marketing Market
Influencer marketing is on an upward trend in various markets. Since it continues to grow in the Japanese market, let’s explore the driving factors.
Increase in SNS Users
The increase in SNS users is a key factor in the growth of Japan’s influencer marketing market.
Currently, about 80 million Japanese people use SNS. Platforms like Instagram and YouTube have high usage rates, making them indispensable for corporate marketing activities.
SNS serves as a space for consumers to share information and refer to opinions from friends and influencers. This environment makes it easy for influencers to build trust and significantly impact consumers.
Source : https://influencermarketing-company.com/influencer-column/market-size/
Changes in Consumer Behavior
In recent years, with the influence of COVID-19, online shopping has become popular in Japan.
Consumers increasingly obtain product information through SNS. For instance, many consumers research influencers’ reviews on SNS when considering purchases.
In the Japanese market, especially, trusted influencers’ opinions strongly influence purchasing behavior, making it an effective marketing approach for companies.
Market Size by SNS Platform in Japan
Let’s look at the market size of each SNS in Japan. It is essential for companies considering influencer marketing.
Source : https://www.cyberbuzz.co.jp/2022/11/post-1791.html
As an SNS that maximizes visual appeal, Instagram is a popular platform, particularly in industries like fashion, beauty, and food. The platform’s high-quality photo and video content make it easier for consumers to understand brand and product details.
In 2022, Japan’s Instagram influencer marketing market reached 15.5 billion yen, and it is expected to grow to 31 billion yen by 2027.
With features like Instagram Live and Reels, which allow real-time interaction with customers, it serves as a powerful marketing tool.
YouTube
YouTube focuses on long-format video content, offering consumers in-depth knowledge through product reviews and explanatory videos. Companies benefit from influencers who use products and introduce their effects and convenience, giving consumers a concrete image.
Japan’s YouTube influencer marketing market size was 24 billion yen in 2022, and it is expected to reach 48.7 billion yen by 2027.
YouTube is highly reliable, with consumers increasingly deciding purchases after watching influencers review products, making it highly effective for marketing.
Twitter is an SNS characterized by real-time information dissemination and virality, allowing instant sharing of the latest information and trends.
It is often used for events and campaigns. Especially through hashtags, companies and influencers can rapidly spread conversations about specific themes or campaigns.
Japan’s Twitter market size was 11 billion yen in 2022, and it is expected to expand to 18.5 billion yen by 2027.
Real-time feedback enables companies to hear authentic consumer voices and collect feedback, making it useful for customer engagement.
Future of the Japanese Influencer Marketing Market
The Japanese influencer marketing market size presented so far. Let’s discuss trends and future outlook.
Growth and Appeal of Virtual Influencers
Virtual influencers are rapidly gaining popularity in the Japanese market, with interest increasing each year.
Virtual influencers are fictional characters that operate on SNS and media. They are created using AI and CGI technology, actively sharing information and engaging in brand promotions on SNS like real people.
These virtual influencers can be active 24/7, providing consistent brand image representation, making them highly appealing to companies.
For consumers, they offer freshness and high entertainment value, particularly attracting young people.
Strengthening Influencer Marketing through E-commerce Integration
With the integration of e-commerce into influencer marketing, a system is being developed where consumers can easily purchase products through SNS.
On Instagram and YouTube, users can purchase products introduced by influencers with a single click, streamlining the process from product introduction to purchase.
The development of social commerce increases consumer purchasing motivation and enhances conversion rates. Particularly in the Japanese market, where there is a strong emphasis on visual content, appealing products and services through videos and photos encourages consumer purchasing behavior.
Expansion of Regionally Focused Influencer Marketing
Regionally focused influencer marketing is also gaining attention in Japan. In this method, influencers active in specific regions use local characteristics and culture to introduce local products and services.
For instance, local influencers are used to promote tourism and specialty products in regional cities, effectively spreading recognition of regional brands.
For small businesses and locally focused companies, promotion through local influencers is cost-effective and suitable for approaching the local target audience.
This type of regionally focused initiative is expected to continue contributing to the revitalization of Japan’s local economy.
Advancements in Personalization and Targeting through AI and Data Analysis
In Japan’s influencer marketing, the use of AI and data analysis enables more detailed targeting and personalization.
AI technology allows detailed analysis of influencers’ follower attributes and behavior patterns, enabling companies to select the optimal influencers and content for their marketing.
This method enhances marketing effectiveness, allowing companies to expand their reach efficiently. Additionally, sending messages customized to followers’ interests is expected to increase consumer engagement and conversion rates.
The Future of Influencer Marketing: Integration of Technology and Diverse Touchpoints
The Japanese influencer marketing market is expected to further expand along with technological advancements, utilizing diverse online and offline touchpoints.
For instance, live events and offline fan meetings with influencers are increasing to strengthen connections between brands and consumers.
There are also methods to direct consumers to physical stores through SNS posts. Such approaches that enrich the consumer purchasing experience are becoming increasingly important.
Influencer marketing will continue to leverage technological advancements, playing a role in deepening connections between companies and consumers.
hotice Provides Matching Support
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Selection of Japanese models, specifically the influencers for marketing purposes, can be very challenging.
hotice can help you facilitate the selection of influencers while also helping you communicate efficiently with these influencers.
Some models and influencers can be troublesome even after joining an agency, causing issues.
However, with hotice, you will have no problem of such.
If you are looking to optimize Japanese model marketing, hotice is the company for you.
