In Japan, the digital advertising market is dominated by two major platforms: Google Ads and Microsoft Ads.

Just like in many countries, Google is still the market leader in Japan in 2025 but we’ll show you that Microsoft can also be a good alternative for digital Ads, mostly depending on your specific business goals and target audiences.

As a digital Marketing agency based in Tokyo, we know the specific scenarios in which a company should prioritize Google or Microsoft when setting up campaigns for the Japanese market.

This article will describe the strengths and weaknesses of each platform, providing insights to help you determine which advertising solution is better suited for your needs in Japan.

Key insights about the digital Advertising market in Japan:

When it comes setting up digital Ads, choosing the right search engine is strategically very important. In 2024, Google and Yahoo! JAPAN are the primary platforms for PPC advertising in Japan. Google holds 78.24% of the market share, while Yahoo! JAPAN accounts for around 9.77%, and Bing has approximately 10.63%

Digital ad spending in Japan has been on the rise, slowly but surely surpassing traditional media like TV or radio.

In 2024, Ad spending in Japan has reached around USD $55 billion, marking a significant contribution to the global advertising market. By 2029, digital advertising is expected to account for over 60% of total ad spending.

Another interesting fact is that television and video advertising remain the largest segments in Japan in 2024, with a market volume of USD $19 billion. As mentioned above, these segments are expected to be surpassed by digital ads in the coming years.

Programmatic advertising (including PPC campaigns) is expected to generate nearly 78% of Japan’s advertising revenue by 2029. Just like in many countries, it seems that the Japan’s advertising market is experiencing a significant move towards digital platforms.

The Main Advantages of Using Google Ads in Japan

Google Ads is the worldwide leader in digital ads, and Japan is no exception. Here are some important information to take into consideration:

1) Audience Reach:

With a 78.24% share of the search engine market in Japan, Google remains the most powerful tool for reaching a large audience.

Besides the search engine, Google has an extensive network that includes other powerful platforms such as YouTube and Google Display Network. In terms of volume and potential ad viewers,  there is no doubt that Google has a significant advantage in Japan compared to Microsoft as advertisers can expertly target users across popular platforms.

2) Targeting Options:

A foreign company aiming to conduct digital activities in Japan has to carefully segment its marketing campaigns to fit the local and specific audience.

Google Ads is powerful because it allows users to use advanced targeting options, including demographics, interests, and behaviors. This is particularly useful in Japan, where consumers often conduct detailed research before making purchase decisions.

This allows businesses to reach specific segments of the Japanese market and avoid mistakes. Scroll down for more details regarding common mistakes foreign companies usually commit while entering the Japanese market.

3) AI and Automation:

Setting up digital campaigns in Japan is challenging due to culture, user behavior & language. The good news is that Google has developed strong AI capabilities that help optimize ad performance by analyzing user behavior and adjusting bids in real time.

This can lead to higher conversion rates and better return on investment for your Japanese campaigns. These features include:

• Machine learning that helps to optimize bids for conversions or conversion value in every auction, a feature known as “auction-time bidding’’.
• Responsive Search Ads that automatically test different combinations of headlines and descriptions to find the best-performing ads.
• Dynamic Search Ads that automatically generate ads based on the content of your website.
• Performance max campaigns that allow advertisers to access all of Google’s ad inventory from a single campaign.
• Ad extensions that automatically add relevant extensions to your ads, such as site links and structured snippets.
• Smart Campaigns (designed for small businesses). These campaigns use machine learning to create and manage ads with minimal input.
• Ad Customizers that dynamically update your ad text based on user searches, devices, locations, and other factors.
• Automated Insights that provide actionable insights and recommendations to improve campaign performance.

4) Flexibility

Setting up digital ads in Japan often requires adaptation and flexibility. For an outsider, starting with a small budget may be a good opportunity to familiarize themselves with the Japanese market.

Google Ads offers flexible budgeting options, allowing you to scale up as you see results. This is beneficial for businesses of all sizes looking to conduct digital activities in Japan.

The Main Advantages of Using Microsoft Ads in Japan

Microsoft Ads is newer to the Japanese market but the American giant is currently expanding its presence and offers several interesting features for businesses aiming to reach a specific audience in Japan. Here are the main advantages choosing Microsoft Ads:

1) Unique Audience:

If you are conducting B2B activities in Japan, Microsoft Ads can help you reach a distinct audience, including professionals and decision-makers who use Microsoft products like Windows, Bing and Edge.

Catching the attention of the big fish in the small pond is sometimes a better deal than competing with numerous companies by using Google Ads.

Depending on your strategy and the prospects you want to target, Microsoft Ads may be an interesting option to increase your brand visibility in Japan and increase ROI since the Microsoft audience tends to have higher purchasing power and engagement rates.

2) Integration with Microsoft Ecosystem:

One of the main advantages choosing Microsoft Ads is the possibility to integrate easily with other powerful Microsoft products and services. Here are significant benefits:

• Microsoft Ads integrates with other Microsoft products like Dynamics 365, Azure, and Microsoft 365, giving you the opportunity to share data and improve your targeting strategy. For example, you can use CRM data from Dynamics 365 to create targeted ad campaigns.
• By integrating with Microsoft Analytics and Power BI, you can get useful information that allows you to increase your ad performance. This helps you make data-driven decisions and optimize your campaigns more effectively.
• Microsoft Ads can be used across various Microsoft platforms, including Bing, LinkedIn, and the Microsoft Audience Network. These integrations provide you with a unified advertising experience and help you reach a broader audience.
• Microsoft products have also powerful AI and machine learning capabilities that allow you to target ads and personalize your content. This is interesting because it helps you to ensure that your ads are shown to the most relevant audience so that you can improve engagement and conversion rates.
• Microsoft is highly focused on privacy and security to protect your data. This is particularly important in markets like Japan, where data privacy is a significant concern.

3) Lower CPC than Google Ads:

In western countries and in Japan, Microsoft Ads face lower competition than Google Ads, which can result in lower cost-per-click and better ROI for advertisers.

In Japan, the average CPC on Google is currently very high for certain industries such as consumer services, finance, IT, legal and B2B in general. Again, it depends on your strategy and the industry you want to target but it seems that Microsoft Ads are way cheaper than Google Ads and would allow you to invest a smaller budget.

4) Import Tools:

For Google ads users, switching to Microsoft Ads while setting up campaigns in Japan since their platform offers tools to easily import campaigns from Google Ads. This makes it convenient for businesses to expand their advertising efforts without starting from scratch.

Main differences between Google Ads and Microsoft Ads for the Japanese Market

*Source: https://www.statista.com/statistics/1173906/japan-leading-internet-search-engines/

Digital Ads in Japan – Common Mistakes & Best Practices

As a digital marketing agency based in Tokyo, we’ve been helping foreign companies aiming to increase their visibility in Japan through digital campaigns. Here are the common mistakes and best practices you should be aware of:

1) Not Knowing the Japanese Audience

Mistake: Failing to identify and understand your target audience in Japan can lead to ineffective ad campaigns.

Our recommendation: You should create detailed buyer personas to understand your audience’s demographics and interests.

2) Ignoring Mobile Optimization

Mistake: Not optimizing your ads and landing pages for mobile devices can result in a poor user experience and lost conversions, especially in Japan where people are highly focused on details.

Our recommendation: Always double-check that your website and ads are mobile-responsive, with fast loading times and clear navigation. This will help you to increase conversions.

3) Ad Copy and Creative / Japanese Customization

Mistake: Using ‘’generic’’ ad copy can fail to capture the attention of local consumers. Japanese are detail-oriented, and ads should reflect this cultural trait.

Our recommendation: Write relevant and visually appealing ad content that looks like a copy written by a local company. Always check out how locals handle these activities.

4) Lack of a Clear Call-to-Action button

Mistake: Ads without a clear CTA can leave Japanese users confused about what to do next.

Our recommendation: Always ensure that you Include a clear CTA that guides users towards the desired action, such as “Buy Now” or anything that sounds attractive and clear to the user.

5) Setting Unrealistic Budgets

Mistake: As an outsider in Japan, allocating too much budget without a clear strategy can lead to poor Return on investment since this is a singular market that requires time to familiarize oneself with.

Our recommendation: Always set realistic budgets based on your campaign goals and ensure that you adjust your investment based on performance. This is why it is important to carefully track the efficiency of your campaigns.

6) Not Testing your Japanese Ads

Mistake: Running the same Japanese ads without testing different variations can limit your campaign’s effectiveness as you may not be aware of the potential of keyword’s potential.

Our recommendation: Conducting A/B testing on ad copy is never a waste of time. This is also a good opportunity to test different visuals that may be more or less attractive to the Japanese audience. You can also target different segments to find the best-performing combinations.

7) Ignoring Negative Japanese Keywords

Mistake: One of the main challenges while setting up campaigns in the Japanese language is to be able to identify negative keywords. Indeed, not using negative keywords can result in your ads showing for irrelevant searches and waste your budget.

Our recommendation: Conduct research using tools like Semrush or Moz to identify negative keywords in Japanese or keywords that are not relevant in the Japanese market. Then, ensure that you update your negative keyword list to exclude irrelevant search terms.

8) Failing to Adapt to Market Changes in Japan

Mistake: In Japan, sticking to outdated strategies without adapting to local market trends can reduce your ad effectiveness.

Our recommendation: Always conduct research or partner with a local agency to stay updated with industry trends.

Conclusion:

Choosing between these two heavyweights will mostly depend on your specific business needs and target audience.

We would recommend Google Ads for businesses or agencies looking to reach a large and diverse Japanese audience with a higher budget for competitive CPC rates. This platform is also interesting because it offers advanced features that make it suitable for B2C marketing in Japan.

On the other hand, Microsoft Ads is a cheaper option for businesses or agencies targeting a professional audience, particularly for B2B marketing. The biggest advantage is probably the possibility to integrate LinkedIn into your digital Ad strategy. Microsoft also offers lower CPC rates,  making it an interesting tool for reaching high-quality leads.

Long story short, the best choice will depend on your advertising goals, budget, and target audience but we can guarantee that both platforms offer unique advantages that can help you succeed in the Japanese market.

Are you looking to set up digital campaigns in Japan? Let’s maximize ROI together!

Setting up digital campaigns in Japan is a challenging task due to several factors such as language barrier, cultural traits or local trends! As a new entrant, being able to compete with local companies is a tough challenge.

To create content that appeals to the Japanese audience, local consumer behavior, cultural nuances, language, and singular marketing techniques must be considered.

As a Tokyo-based digital Marketing agency, we have provided extensive help to our international clients for the past 10 years. We know how challenging building up digital Ads in Japan can be.

Our local expertise in setting up digital campaigns using Google Ads or Microsoft Ads can help you reach a large audience, increase brand awareness, and maximize ROI.

Do you need help creating appealing digital campaigns for the Japanese market? Contact us! Our Tokyo-based team of native English and Japanese speakers will be happy to help!

About Bloomstreet

Bloomstreet is a digital marketing agency based in Tokyo that integrates functions to help foreign companies doing business in Japan.

We maximize lead generation in Japan with our unique methods, communicating closely with both headquarters and the Japanese branch office.

You can take a look at our SEO services for more information.

About the Author

Junichi Takayama

CEO

Experienced in studying abroad and working in New York as a web marketer. Joined Alibaba Japan to gain knowledge from their Chinese headquarters.
Have excellent knowledge and understanding of SEO as well as digital marketing, specialized in South Korea and China.