According to a report by Dentsu, Japan's advertising expenditure for 2025 is expected to reach a record high of 8.623 trillion yen, reflecting a 5.1% year-on-year increase. Notably, internet advertising is set to hit 4.0459 trillion yen, accounting for over 50% of total advertising spending for the first time since monitoring began in 1996. This marks a major milestone in the advertising landscape, showcasing the increasing reliance on digital platforms.

The surge in internet advertising is driven particularly by video ads, which saw a remarkable increase of 21.8% compared to the previous year, reaching 1.0275 trillion yen. This growth is attributed to the rising demand for vertical video formats that are optimized for smartphone viewing. The adaptation to user preferences and engagement habits signals a clear trend toward mobile-centric advertising strategies, which could reshape the future landscape of media consumption.

In contrast, traditional media such as newspapers, magazines, radio, and television have experienced declines in advertising revenue, with total spending across these mediums down by 1.6% to 2.298 trillion yen. Newspapers saw an 8.2% drop, while magazines and radio also reported declines. Though major events like the Osaka-Kansai Expo provided some boost, they were insufficient to offset declines that followed high-profile events like the Tokyo Olympics. This juxtaposition of growing digital ad spending versus declining traditional media underscores the rapidly changing dynamics of the advertising industry in Japan.