A Practical Guide to Localizing Vertical Video Ads (TikTok/YouTube/Instagram) for Japan:
Why Translated Ads Underperform, and How to Work with a Japanese Production Team
The internet now accounts for more than half of Japan's ad spend, and vertical video on social media is driving most of that growth. Yet time and again, ads that performed well overseas are translated into Japanese, launched, and then paused after CPI (cost per install) climbs to several times the home-market level. In this article, ZVA's global team, which has produced and run vertical video in Japan and abroad (the US, China, South Korea and Turkey), covers the data behind vertical video advertising in Japan, why translated ads underperform, a case study from an overseas mobile game company, the four stages of localization, and how to brief a Japanese production team and what it costs.
Key takeaways
- The internet accounts for 50.2% of Japan's ad spend, 1.8 times the four traditional media combined. Vertical video ads grew to 155.9% of the previous year's level, the fastest growth of any video ad category
- Ads that are only translated struggle to reach Japanese viewers because of the first two seconds, on-screen captions (telop) and conversational tone. In the case of an overseas mobile game company that rebuilt its ads for Japan, CPI fell from $12 to $3.8 and in-app purchase ROAS rose 12x
- Localization has four stages: translation → localization → new production for Japan → scaling and mass-producing winning patterns. To grow a business in Japan and keep profits stable, you need to reach stages 3 and 4
Japan's "mass audience" now lives in vertical video online
Television is no longer the main battleground for reaching a broad audience in Japan. Whether you look at ad spend, viewing time or user numbers, the center of gravity has shifted to the internet, and especially to vertical video on social media.
Ad spend: the internet is 1.8 times the four traditional media
Sources: Dentsu, "2025 Advertising Expenditures in Japan"; CARTA HOLDINGS et al., "Detailed Analysis of Internet Advertising Media Expenditures" (March 5, 2026). The four traditional media are TV, newspapers, magazines and radio. Video ads are a subset of internet advertising media expenditures.
Of Japan's total ad spend of ¥8.0623 trillion in 2025, internet ad spend was ¥4.0459 trillion (110.8% of the previous year), exceeding half of the total for the first time (50.2%). The four traditional media came to ¥2.298 trillion (98.4% of the previous year), a year-on-year decline. Within the internet category, video ads exceeded ¥1 trillion for the first time (121.8% of the previous year), and Dentsu cites vertical video ads on social media as a driver.
Vertical video ads: the fastest-growing video ad category
Source: CyberAgent / Digital InFact, "2025 Domestic Video Advertising Market Survey" (March 2026). Hatched bars are forecasts.
- Japan's video ad market was ¥885.5 billion in 2025 (122.2% of the previous year). It is projected to exceed ¥1 trillion for the first time in 2026 at ¥1.0437 trillion, and to reach ¥1.6336 trillion by 2029
- About 80% of that (¥705.3 billion) is for smartphones
- Vertical video ads reached ¥204.9 billion (155.9% of the previous year), 29.1% of smartphone video ads. That share is forecast to rise to 42.5% by 2029
* Dentsu's and CyberAgent's video ad figures use different scopes and cannot be compared directly.
Audiences: TikTok has about 49.5 million users, and internet time exceeds TV for everyone up to their 50s
| Metric | Figure | Source |
|---|---|---|
| TikTok monthly users in Japan | About 49.5 million | End of May 2026, excluding overlap between TikTok and TikTok Lite. Announced by TikTok |
| YouTube usage rate (ages 13–79) | 81.5% | Surveyed December 2025. MIC |
| Instagram usage rate (same) | 54.8% | Same as above |
| TikTok usage rate (same) | 36.7% (67.9% among teens) | Same as above. 2.5x in five years, up from 14.9% in 2020 |
| Weekday internet time | 183.9 min (TV: 156.1 min) | Internet exceeds TV in every age group from teens to 50s. MIC |
What this means for overseas marketers: If you want to reach a broad audience in Japan, building vertical social video specifically for Japan fits today's viewing habits better than translating and airing a TV commercial. This is where the battle for Japan will be fought. For more data on the Japanese market and vertical video advertising, see Japan's 2026 market in data.
Why translated ads struggle to scale in Japan
1. Viewers can tell instantly whether an ad is "Japanese"
Vertical video ads run in an environment where viewers can skip them with a single swipe. If they don't feel "this is relevant to me" in the first one or two seconds, they won't watch further. Translated ads retain a "foreign ad" feel somewhere, whether in the talent, the background or the phrasing, and viewers drop off before they take the message personally.
2. Japanese vertical video assumes telop (on-screen text)
Japanese short-form video typically overlays what is being said as fairly large on-screen text, known as "telop." Many people watch with the sound off, so the readability and pacing of the telop directly affect view-through rates. Translated subtitles tend to simply display the dialogue at the bottom of the screen, which differs from the presentation Japanese viewers are used to.
3. Literal and AI-translated phrasing makes ads feel more like ads
Literal translations of English or Chinese ad copy tend to come out stiff or unnatural in Japanese. What gets a response in Japan is conversational language, as if talking to a friend, or a line a real user might actually say. Scripts need to be written in Japanese from the start, not translated.
What we've seen on the ground: Quite a few overseas companies entering Japan invest heavily in ad creative that was AI-translated as-is and reads unnaturally in Japanese. Even with a winning formula refined in their home market, the awkward Japanese alone can keep the message from landing, driving up acquisition costs and weakening brand perception, which is a significant loss. Put the other way, simply re-expressing that winning formula correctly in Japanese leaves a lot of room for results to change.
Case study: from translated ads to new production for Japan (overseas mobile game company)
This overseas mobile game company had added Japanese subtitles to ads that performed well in its home market and launched them in Japan, but CPI stalled. ZVA rebuilt the messaging angle and the opening hook for Japan, produced 12 new videos with Japanese talent, and ran them.
Beyond performance: brand perception and downstream KPIs change too
Creative made for Japan does more than lower acquisition costs. Ads with natural Japanese and Japanese talent substantially improve how people perceive the brand or service itself. Because viewers understand the service well and install and move into onboarding already convinced, downstream KPIs such as retention and in-app purchases also tend to improve. That the improvement in purchase ROAS far outpaced the improvement in CPI in this case study is consistent with that tendency.
The four stages of localization
Approaches to adapting overseas ads for Japan fall into four stages, based on effort and impact.
| Stage | What it involves | When it fits |
|---|---|---|
| ① Translation | Add Japanese subtitles or dubbing to existing videos | When you want a minimal read on how the Japanese market responds |
| ② Localization | Keep the existing structure, reshoot with Japanese talent, and rewrite the script and telop in Japanese | When you want to test whether your home-market winner works in Japan |
| ③ New production for Japan | Re-plan from the messaging angle and opening hook for Japanese viewers, then create and test multiple patterns | When you want to seriously grow installs or purchases in Japan |
| ④ Scaling and mass-producing winning patterns | Expand the messaging angles and script patterns found in ③, and keep mass-producing variations | Growing the business in Japan and stabilizing profits |
Even if stages ① and ② show promise, viewers quickly tire of the same video as it keeps running (creative fatigue). To grow a business in Japan and stabilize profits, you need to find a winning formula for Japan in ③ and have a setup that keeps producing in ④.
Five must-have elements of creative for Japan
| Element | Key points |
|---|---|
| A hook in the first 2 seconds | Open with a scene rooted in everyday Japanese life, such as spare moments on the commuter train, saving on household expenses or workplace relationships |
| Native Japanese talent | Speech, expressions and clothing determine whether the ad reads as a relatable person's real experience |
| Japanese telop design | Match the format Japanese viewers expect in vertical video, down to text size, color and timing |
| One message per video | Focus each video on a single message and test other messages in separate videos |
| Volume and testing | Create multiple patterns from the start and narrow down the winners with performance data |
ZVA production services
Vertical video for Japan, with communication in English, Chinese and Korean
We handle everything in-house, from planning and Japanese scripts to Japanese talent, shooting and telop editing. From ¥50,000 per video (overseas projects are quoted individually), with delivery in as few as 5 business days.
See pricing and process →Japan's ad regulations and platform review
Expressions that are common overseas can run afoul of regulations in Japan. Here are the main ones.
| Regulation | Main provisions | Examples of affected expressions |
|---|---|---|
| Stealth marketing regulation | Took effect October 1, 2023, under the Premiums and Representations Act. Prohibits representations that conceal that they are advertising. The advertiser bears responsibility | Influencer-style or review-style videos made so that it isn't clear they are ads |
| Act against Unjustifiable Premiums and Misleading Representations (Premiums and Representations Act) | Prohibits representations that mislead consumers into thinking a product is significantly better or a better deal than it actually is (misleading quality or price representations) | Unsubstantiated "No. 1" or "lowest price" claims, "free" with hidden conditions |
| Pharmaceuticals and Medical Devices Act (PMD Act) | Prohibits efficacy claims beyond the approved scope for cosmetics, health foods and similar products | Efficacy claims such as "erases dark spots" or "lose weight just by drinking it" |
According to the Consumer Affairs Agency, there were 11 cases handled under the stealth marketing regulation in fiscal 2025 (April 2025–March 2026). On top of that, ad review by platforms such as TikTok is strict, and expressions that violate regulations will not pass review.
How ZVA handles this
At ZVA, we write scripts in line with the advertising regulations (expression rules) provided by the client, and we also run creative through the client's own review before launch. We check on-screen disclaimers (the supplementary notes marked with ※) especially carefully during production. We can also advise on expression-related checks.
This article is intended as general information and is not legal advice. Please confirm whether specific expressions are permissible with a professional or against each platform's advertising policies.
How to work with a Japanese production team from overseas (the ZVA process)
Meetings are attended by our global team, who are well versed in Japanese advertising and marketing. We can work in Japanese, English, Korean and Chinese (Simplified and Traditional).
We primarily communicate by email, hold meetings on Google Meet, and also work on Slack. We generally operate on Japan time but adjust flexibly to time differences.
| Step | What happens | What you do |
|---|---|---|
| 1. Consultation and quote | We ask about your product, ad platforms, goals (CPI, CPA, etc.) and number of videos, and provide a quote in Japanese yen | Share product materials and any ads that are performing in your home market |
| 2. Planning and scripting | We design messaging angles and opening patterns for Japanese viewers and write scripts in Japanese. Translations for review can be provided on request | Review the scripts (up to 2 rounds of revisions free) |
| 3. Shooting | Japanese talent shoot in our own studio in Japan | No need to attend |
| 4. Editing and delivery | We edit in telop and background music and deliver | Review the videos (1 round of revisions free) |
| 5. Media buying and optimization (optional) | We can also manage TikTok Ads, Meta ads and Google Ads (including YouTube Shorts). Performance-based plans are available | Share performance data, or outsource campaign management |
- Turnaround: We can deliver in as few as 5 business days, but given the back-and-forth of reviews and revisions, we recommend building some slack into your schedule
- Shooting: As a rule, we shoot in our own studio. If shooting isn't feasible, we can also produce using supplied footage or AI-generated assets
- Markets beyond Japan: In addition to Japan, we have experience producing creative for other markets, including English-speaking markets
Pricing guide
| Plan | Base rate (excl. tax) | Details |
|---|---|---|
| Single trial video | From ¥60,000 | One video to check quality and workflow |
| 6-video pack | From ¥300,000 (from ¥50,000 per video) | Test different messaging and opening patterns in parallel |
| 10+ videos per month | Custom quote | Ongoing mass production (stage ④). A commitment of 3 months or more is recommended |
- The base rate includes planning, scripting, talent, shooting, editing, captions and background music
- Projects for overseas clients are quoted individually, adding an overseas-support component to the base rate. Because this varies with whether translation is needed, the review process and staffing, we tell you the amount before production and start only once you've approved it
- Prices are in Japanese yen (JPY). Amounts in your local currency will vary with exchange rates at the time of quoting and payment
- Payment is generally by bank transfer against invoice (closing at month-end, payable by the end of the following month), and we accept international wire transfers from overseas clients
Pre-brief checklist
| Item to confirm | Why it matters |
|---|---|
| The metric you want to grow in Japan and your target cost | Whether you're optimizing for installs, sign-ups or purchases changes how scripts are written |
| The platforms you'll run on | The optimal length and telop differ across TikTok, Instagram Reels and YouTube Shorts |
| Ads that perform in your home market, and why | Lets us separate messages that will work in Japan from those that need rebuilding |
| Whether any expressions can't be used in Japan | Definitive efficacy claims and unsubstantiated No. 1 claims get stopped by both regulation and platform review |
| Your measurement setup in Japan (MMP, pixels) | Without performance data, you can't narrow down the winners |
| Initial number of videos and testing period | With too few videos, you can't conclude which message worked |
Summary
The internet now accounts for more than half of Japan's ad spend, and growth has shifted to vertical video on social media. This is the main battleground for reaching a broad audience and acquiring customers in Japan. And the fastest route to results with vertical video in Japan is not translation, but rebuilding the planning, scripts, talent and telop for Japanese viewers, then finding winning patterns and continuing to produce them at scale.
ZVA is a global team that has produced and run vertical video in Japan and abroad (the US, China, South Korea and Turkey). Team members well versed in Japanese advertising and marketing work in Japanese, English, Korean and Chinese; we invoice in Japanese yen and accept international wire transfers from overseas. From test campaigns in the Japanese market to full-scale business expansion, start by asking us for a quote.
References and sources
- Dentsu, "2025 Advertising Expenditures in Japan" (March 5, 2026) (Japanese)
- CARTA HOLDINGS, Dentsu, Dentsu Digital and Septeni, "2025 Advertising Expenditures in Japan: Detailed Analysis of Internet Advertising Media Expenditures" (March 5, 2026) (Japanese)
- CyberAgent, "2025 Domestic Video Advertising Market Survey" (March 9, 2026) (Japanese)
- Web Tantousha Forum, article on CyberAgent's survey: video ads to top ¥1 trillion in 2026, with vertical video making up 30% of smartphone ads (March 13, 2026) (Japanese)
- TikTok Newsroom (June 2026), third Socio-Economic Impact Report for Japan (Japanese)
- MIC Institute for Information and Communications Policy, "FY2025 Survey on Usage Time of Information and Communications Media and Information Behavior" (June 26, 2026) (Japanese)
- Consumer Affairs Agency, stealth marketing regulation page (Japanese)
- Consumer Affairs Agency, enforcement of the Premiums and Representations Act in FY2025 (published May 28, 2026) (Japanese)
- Ministry of Health, Labour and Welfare, "Advertising Regulations for Pharmaceuticals and Related Products" (Japanese)
Market data are the figures published by each source (checked October 2026). Case study figures are actual results from projects handled by ZVA and are disclosed within the scope of our confidentiality obligations to clients. Pricing, turnaround, number of revisions and payment terms reflect ZVA's standards as of October 2026.