Japan is generating 6% of global Out-of-Home (OOH) revenues despite accounting for only 1.5% of the world's population. However, the OOH Industry has not recovered in volume terms to its pre-pandemic level of 2020 and has in fact declined by 1.7% share of ADEX since then.

So, what has caused this? To me, it's down to two primary issues; market fragmentation and poor collaboration.

You must realise, you are both competitors and allies at the same time, on the one hand competing fiercely at a local level, but at sector level keeping in mind that advertisers in Japan spend only 6% of their total media budget in OOH, so what about the remaining 94% that goes into other media? Shouldn't the OOH sector be working much harder as allies, competing for a larger share of that?

It's a proven fact that 1% of sector growth contributes five times more to your bottom line than local growth.

The best way for the industry to collaborate is under a unified and well-managed trade association flag, which enables media owners to collaborate at a higher level.

Other measures that can be used to reverse OOH's decline, include:

  • digitise more inventory (Japan is at half the global average)
  • coordinate AdTech and Data generation strategies
  • build an industry-based sustainability roadmap
  • retail and AI: make sure you benefit from these two new opportunities
  • reinforce OOH's role in supplying municipalities with civic amenities
  • highlight OOH's cost-effectiveness more, and
  • keep nurturing the creative community to allow it to continue to WOW.

Although the Japanese market faces formidable challenges, the opportunities are considerable and realisable, with strong leadership and determination. 

For more information, visit www.worldooh.org or contact Richard Saturley at richard@worldooh.org. 

*Image courtesy of contributor