How Brands Can Tap into the New Era of Ad-Supported Streaming in Japan

In Magnite’s 2023 report, “The Rise of Ad-Supported Streaming Services”, we see that streaming television in Japan has reached critical mass. In this new era of streaming TV popularity, ad-supported streaming viewership in particular is experiencing significant growth. Our research revealed that 71% of TV viewers in Japan watch ad-supported streaming services, consuming over 2 hours a day of ad-based TV content. Even more promising is the trend of non-streamers adopting ad-supported content, with over half (56%) likely to subscribe to an ad-supported service in the near future. 

With these positive trends set to accelerate as media owners continue to invest in quality content and internet-connected device ownership increases, Japan’s streaming TV ecosystem offers significant opportunities and benefits to advertisers looking to reach highly engaged audiences across all devices. 

Engagement, immersion and trust

Not all video environments produce the same level of engagement. Compared to other video channels, streaming TV services have the power to captivate viewers for prolonged periods of time. This is evident in the amount of time consumers spend watching content each day, where almost half (44%) of viewers are streaming more content than they did a year ago. In contrast, viewers spend 51 minutes each day on social media, mostly watching short-form videos that are a few minutes long or less. 

Not only are viewers more engaged with the content they watch across streaming services, but they are also more engaged with ads they see on these platforms. 78% of ad-supported streamers trust the ads they see within streaming TV, on par with broadcast TV viewers. Audiences trust ads seen on streaming services to a much greater extent than they do ads seen on social media. 

Streaming’s immersive environment provides a different viewing experience than social video, connecting advertisers with highly engaged consumers and helping to build deeper connections between brands and audiences.

A premium, brand-safe advertising environment

Professionally produced content and high-caliber advertising from premium brands provide a quality environment for advertisers to engage with their audiences across devices. Due to the premium environment, streaming services have emerged as a key channel for driving brand visibility and discovery of new products and services. Magnite’s research shows that 74% of ad-supported streamers are satisfied with the amount of ads they see within streaming services, higher than viewers on other channels.

This measured advertising cadence within streaming services ensures brands secure a high share of voice and replicates the broadcast TV advertising environment with ads appearing pre, mid and post show to help preserve both the user experience and the advertising experience. A winning trifecta for brands, media owners and streaming audiences alike.

A powerful driver of marketing outcome

With the economic climate squeezing consumer wallets, 65% of streamers say paying for an ad-free service is unnecessary when they can access the same content with ads for less money. Streamers understand the value exchange that ad-supported streaming services offer, providing a similar value exchange for brands looking to increase the efficiency and effectiveness of their advertising budgets. 

Building deeper levels of engagement and connection with audiences is vital to help make advertising budgets work harder. With Japanese streamers consuming TV content on multiple screens, their exposure to brand messaging across touchpoints enhances their connection to brands. 64% of ad-supported streamers are more likely to make a purchase from a brand they engaged with across multiple devices (TV, mobile, desktop, etc.). 

Streaming advertising in motion

With streaming services, a must-have in 72% of Japanese households and 8 in 10 TV viewers indicating a preference to watch free or reduced-cost ad-supported content offers further proof of the untapped streaming TV advertising opportunity in Japan. With the demand for ad-based streaming across screens likely to accelerate, brands should consider how they can leverage the power of Japan’s ad-supported streaming ecosystem to drive greater connections with their audiences and boost impact across devices.

Download the full report “The Rise of Ad-Supported Streaming Services” to learn more.