The LED market is developing rapidly. Japan and China are similar in terms of culture in the outdoor advertising market. The following is what the author extracted from the comparison of the outdoor advertising market in China and Japan when sorting out articles in this regard. For sharing, under the conditions of economic globalization and marketization, China and Japan face the same opportunities and challenges in outdoor programmatic transactions.

To understand the Japanese outdoor advertising market, let us first understand its market capacity and emerging trends from a macro level.

Digital outdoor is growing rapidly

Japan's outdoor advertising market forecast White is traditional outdoor advertising, red is digital outdoor advertising The unit is 1 billion US dollars

According to the forecast above, the overall outdoor advertising market revenue in Japan will reach US$4.66 billion this year, including US$4.11 billion in traditional advertising and US$550 million in digital outdoor advertising. According to a 2016 survey by Peter J. Solomon, the global digital outdoor advertising market is expected to achieve a compound annual growth rate of 13.2% from 2013 to 20, and according to a 2015 digital signage research report by Fuji Research Institute, in Japan, this The figure will be 27.8%, showing strong growth capability. Additionally, Ocean Outdoor's 2016 research report estimated Japan's digital outdoor growth rate at 86% between now and 2021, outpacing the growth of mobile (67%) and online advertising (49%). According to the research report of Fuji Research Institute, as shown in the figure below, in 2020, the market value of digital outdoor advertising is expected to reach 150 billion yen, with a compound annual growth rate of 27.8%.

Japan's digital outdoor advertising market growth forecast (unit: million yen)

Digital out-of-home drives programmatic transactions

Japan's digital advertising field also faces problems such as ad fraud and spam, but outdoor is relatively unaffected by these factors, so its advertising value has not been diluted.

As DOOH grows, so must industry practices.

In essence, the digital nature of digital outdoor media means the immediacy of the picture, which can have good compatibility with social media, and more importantly, by connecting digital outdoor and various data types, it is expected to create a kind of A beautiful experience suitable for the current scene, its effect is much better than the traditional one-way communication outdoor advertising effect.

Therefore, outdoor programmatic advertising is an inevitable stage of digital outdoor development. It can automate a series of advertising-related operations and transactions, and use unprecedented massive data to make outdoor advertising creative and effective.

Three major challenges for outdoor programmatic exchanges.

Outdoor programmatic buying can not only achieve mandatory exposure, but also make content more relevant to consumers. However, to realize this vision, the industry must work together to solve three major problems.

The first is a general standard for evaluating the effectiveness of outdoor advertising. In fact, Japan does not have a unified outdoor advertising effect measurement standard. The industry uses more data on the total number of audiences, that is, the overall number of audiences who may see the advertisement. In terms of consumer qualitative research, the cost of data collection is still is a major hurdle for the industry.

The second is the automated transaction of outdoor advertising resources. Japan's outdoor advertising market is also fragmented. If you want to cover 80% of the market share, you have to obtain the consent of more than 1,000 media companies. In the field of transportation advertising, even if the 11 railway media operators in the Kanto region add up, Their overall share of the market is also less than 50%. These advertising resources are managed by different companies, and the broadcast control systems of various digital signage are also diverse, which involves a lot of labor. Therefore, advertisers who want to carry out outdoor programmatic advertising can only use a small amount of advertising resources in the current environment.

The third is a unified advertising content distribution platform. At present, most of the digital outdoor advertising broadcasting platforms are based on local closed systems, and few systems allow foreign users to access and use in real time. Therefore, the static advertising broadcast control system is the mainstream, which requires people to prepare the content in advance and set the playback time in advance. Dynamic content delivery based on real-time, third-party data is possible if the system allows continuous access by outsiders. The key issue here is that you have to have an advertising content broadcast control system that is separate from the existing digital advertising server.

Group heating is the only way out for the industry

China has all of the above problems, and they are more serious than these.

The industry needs to unite to solve practical problems such as unified measurement standards, the construction of media transaction frameworks, and the automated delivery of advertising content. Only then can outdoor programmatic transactions become a reality.

Dentsu believes that the outdoors should also pay attention to the development of emerging technologies, including artificial intelligence, which can have good applications in the industry.

After so many years of observation and practice, I feel that technology is no longer a problem, the key is still a human problem. The interests behind the industry are complex and unspoken rules are rampant. It is easier said than done.

But from the perspective of the industry, what I see is that the opportunities outweigh the challenges. Problems such as measurement, transaction, broadcast control, and data will be solved with the advancement of technology and the times. The future of digital outdoor media must be refined, data-based, and programmed. Become one with financialization so that it is liquid, distributed and value-maximizing, entering an era where use is more important than owning