Advertising in Japan Totaled 6,390.7 Billion Yen in 2017, a growth of 1.6%

Dentsu released its calendar year 2017 annual report on advertising expenditures in Japan, including an estimated breakdown by medium and industry.Based on Dentsu’s survey, Japan’s advertising expenditures for 2017 totaled 6,390.7 billion yen, an increase of 1.6% compared with the previous year’s figure. Accompanying Japan’s continuing economic growth in calendar 2017, overall spending on advertising posted year-on-year gains for a sixth consecutive year.

According to Dentsu, the 1.6% full-year growth rate for overall advertising expenditures in 2017 was underpinned by sustained, gradual expansion in the Japanese economy, which benefitted from the convergence of an array of positive factors. These include recovery in the global economy, rising corporate earnings, an improvement in the employment environment, weakening of the yen exchange rate, and a vigorous stock market. In particular, robust spending in Internet advertising drove overall expenditure growth. Across the advertising market as a whole, the transformation to digital advertising media advanced on a range of fronts, as integrated communication platforms that leveraged the particular characteristics of each medium became more conspicuous.

Broken down by medium, advertising expenditures fell in Newspapers (down 5.2%), Magazines (down 9.0%), and Television (down 0.9%; including both Terrestrial Television and Satellite Media-related spending), and rose in Radio (up 0.4%). As a result, overall spending in the traditional media posted a decline of 2.3%. In Internet advertising expenditures (up 15.2% including medium expenditures and production costs), growth of performance-based ads and video ads directed at users of mobile devices was particularly strong. Hence, growth in the Internet medium remained the key driver for advertising expenditures overall. Although spending on Promotional Media decreased (down 1.5%), growth was recorded for Outdoor, POP, and Exhibitions/Screen Displays and other sub-categories.

  1. By industry category (for the traditional media, but excluding Satellite Media-Related spending), year-on-year spending rose in 6 of the 21 industry categories.
    Major categories posting gains were Real Estate/Housing Facilities (up 8.9% on increased placements for general housing); Energy/Materials/Machinery (up 8.0% on placements for ads related to gas market liberalization); Information/Communications (up 1.7% on increased placements for web content and smartphones); and Automobiles/Related Products (up 1.5% on stronger advertising for station wagons/hatchbacks, K-cars (engine displacement up to 660 cc) and SUVs).

Major categories posting declines included Home Electric Appliances/AV Equipment (down 11.4% on decreased advertising for vacuum cleaners, and hair styling and beauty appliances); Precision Instruments/Office Supplies (down 11.2% on decreased placements for wristwatches and digital cameras); Distribution/Retailing (down 9.7%) on decreased placements for general merchandise stores and convenience stores; Government/Organizations (down 8.1% on fewer placements for advertising industry organizations and foreign governmental and public agencies); Apparel/Fashion, and Accessories/Personal Items (down 8.0% on decreased advertising for casual wear).

%d bloggers like this: