Impression-Based TV Ad Sales: Exploring New Potential for Tokyo’s Key Stations
Programmatica’s analysis of Q1–Q3 FY2024 advertising revenue among Tokyo’s major broadcasters (NTV, EX, TBS, TX, CX) reveals modest recovery from the previous year’s declines. Spot advertising improved from June 2024, though costs tied to the Paris Olympics kept margins tight. Streaming ad revenue is growing but still represents only 4–6% of total revenue and hasn’t replaced traditional TV advertising.
Spot ads remain dominant. NTV leads in both total and spot revenue, while TV Asahi (EX) captured 23.3% of Tokyo’s spot market. However, most broadcasters already hit the JBA’s commercial volume limit, with roughly 70% of slots being spot ads. Simply increasing inventory is no longer feasible.
Japan’s linear TV still operates at significantly lower CPM rates compared to Connected TV (CTV), often by a factor of 10. Impression-based ad trading—selling TV ads by actual impressions rather than by program slots—offers a solution: higher unit prices, fewer ads, and a better viewer experience. This shift could help TV regain relevance among younger audiences.
Programmatica used audience data to estimate impression volumes by demographic. Differences in younger viewer reach (especially among MF1 and MF2 segments) are stark. If all stations traded impressions at the same CPM, those with lower youth viewership would be disadvantaged. For example, at a CPM of $46 for the F1 segment (women aged 20–34), only NTV sees revenue growth; others decline.
When CPM is raised to $60–80, most stations can surpass current revenue, but such pricing is unrealistic compared to typical CTV CPMs ($15–50). Thus, uniform CPM-based impression trading across all stations and demographics is unworkable.
Instead, stations should adopt tailored models:
EX may benefit from a broader, all-target strategy using segment-specific CPMs (e.g., MF1 at $10, MF2 at $6.70).
TBS could trade on wider segments (like LTV4–59) using flexible CPM tiers.
TX might capitalize on loyal niche audiences with targeted packages.
CX, facing reputational damage, is exploring fewer impressions at higher CPMs to stabilize revenue.
Ultimately, impression-based trading should reflect each station’s strengths and audience profiles. Future blog entries will explore what CPM levels and targeting strategies can make impression trading viable in Japan.