Welcome!

Agile Computing Authors: Liz McMillan, Elizabeth White, SmartBear Blog, Richard Hale, Akhil Sahai

News Feed Item

Dentsu: Advertising Expenditures in Japan Totaled 5,891.3 Billion Yen in 2012, Up 3.2% from 2011

Dentsu Inc. (TOKYO:4324)(ISIN:JP3551520004)(President & CEO: Tadashi Ishii; Head Office: Tokyo; Capital: 58,967.1 million yen) released today its annual report of advertising expenditures in Japan for the 2012 calendar year, including an estimated breakdown by medium and industry.

According to this report, Japan's advertising expenditures in 2012 totaled 5,891.3 billion yen, an increase of 3.2% over the previous year. Overall spending on advertising began to fall in 2008 (down 4.7%) as a result of the simultaneous global recession precipitated by the financial crisis in the United States. Yearly spending continued to decline in 2009 (down 11.5%), 2010 (down 1.3%), and 2011 (down 2.3%), but bounced back in 2012 (up 3.2%), benefiting from a resumption in spending that had been delayed or postponed after the Great East Japan Earthquake and Tsunami. Japan's advertising expenditures increased in 2012 for the first time in five years.

Overview of Advertising Expenditures during 2012

  1. Ad placements recovered strongly during the second half of 2011 on reconstruction-related demand after the Great East Japan Earthquake and Tsunami, and this trend carried over through the first half of 2012. After the London 2012 Olympic Games, however, a slowdown in the overall economy depressed advertising expenditures. This was caused by a number of factors, including a fall in consumer spending after the discontinuance of the tax reduction and subsidy program for eco-car purchases, the high value of the yen, economic stagnation in Europe, and a decline in exports. Nevertheless, for the year as a whole advertising expenditures totaled 5,891.3 billion yen, a gain of 3.2% from the previous year; this was the first annual increase in five years. A strong recovery in ad placements pushed spending in the traditional media to 2,779.6 billion yen, exceeding the level achieved in 2010 before the Great East Japan Earthquake and Tsunami.
  2. Broken down by medium, expenditures were higher in Television (up 3.0%), Newspapers (up 4.2%), and Magazines (up 0.4%), and held steady in Radio (down 0.1%). Overall spending in the traditional media was up 2.9%. Advertising in Promotional Media also grew (up 1.4%). Satellite Media-Related spending posted double-digit growth (up 13.7%) for a third straight year, boosted by placements related to the London 2012 Olympic Games. Internet advertising again posted solid gains (up 7.7%).
  3. By industry category (for the traditional media), expenditures grew in 16 of the 21 industry categories, including Automobiles/Related Products (up 26.9% on increased placements for K-cars [engine displacement up to 660cc] and 2-box vehicles), Information/Communications (up 10.5% on expenditures related to smartphone services, satellite broadcasting, and web content advertising), and Beverages/Cigarettes (up 7.0 % on expenditures related to beauty and energy drinks, lactic acid drinks, and carbonated beverages). In contrast, expenditures fell in 5 of the 21 industry categories, including Government/Organizations, where spending fell dramatically (down 69.4%) compared with 2011, which had seen a massive increase in public service placements by advertising organizations after the Great East Japan Earthquake and Tsunami; and Classified Ads/Others (down 19.8% on declines in placements by corporate groups as well as the movie and theater industry).

• Outline of Advertising Expenditures by Medium
Advertising expenditures in the traditional media grew 2.9% compared with the previous year, reaching a total of 2,779.6 billion yen. Spending rose not only in Television (up 3.0%), but also in Newspapers and Magazines. Promotional Media advertising also posted gains (up 1.4%). Satellite Media-Related advertising expenditures were up 13.7%, boosted by demand related to the London 2012 Olympic Games. Internet advertising showed solid gains, up 7.7% year on year.

• Quarterly Breakdown of Growth in Advertising Expenditures in the Traditional Media in 2012
A quarterly breakdown of advertising expenditures for the traditional media in the 2012 calendar year showed that spending rose steadily during the first half of the year, but fell below previous-year levels during the last six months as the overall economy weakened.

 

(Year-on-year, %)

   

2012
(Full
Year)

 

Jan.–
Jun.

  Jul.–
Dec.
  Jan.–
Mar.
  Apr.–
Jun.
  Jul.–
Sep.
  Oct.–
Dec.

Advertising
Expenditures in the
Traditional Media

  102.9   107.8   98.3   105.2   110.6   98.8   97.8
       

• Outline of Advertising Expenditures by Industry (21 Categories, Traditional Media Only)
Advertising expenditures increased in 16 of the 21 industry categories surveyed during 2012, and declined in 5 categories.

Two industry categories posted double-digit gains: Automobiles/Related Products (up 26.9%) on increased placements for K-cars and 2-box vehicles, and Information/Communications (up 10.5%) on expenditures related to smartphone services, satellite broadcasting, and web content advertising. Expenditures also rose in Precision Instruments/Office Supplies (up 9.7%), aided by growth in placements for digital SLR cameras and wristwatches; Distribution/Retailing (up 8.6%), which saw stronger demand for general merchandise store and direct marketing advertising; Transportation/Leisure (up 8.2%) on a recovery in outlays by travel agencies, hotels and inns; Apparel/Fashion, Accessories/Personal Items (up 7.6%), due to increased spending on ads for women's clothing and shoes; Beverages/Cigarettes (up 7.0%) on expenditures related to beauty and energy drinks, lactic acid drinks, and carbonated beverages; Foodstuffs (up 6.4%), led by health foods and beauty-related food products; Food Services/Other Services (up 4.4%), which saw increased placements for ladies' wigs and aesthetic salons; Real Estate/Housing Facilities (up 4.1%) on an upsurge in demand for household fixtures and condominium advertising; Cosmetics/Toiletries (up 4.0%), boosted by growth in ads for skin toners and emulsions; Pharmaceuticals/Medical Supplies (up 3.4%), helped by a rise in corporate advertising by pharmaceutical companies, and in placements related to eyeglasses; Education/Medical Services/Religion (up 3.2%), which recorded increased spending on ads for English conversation and language schools, preparatory and tutoring schools, and correspondence education; Publications (up 3.0%) on higher placements for hardcover books, corporate advertising by publishers, and ads for hobby-related magazines; Finance/Insurance (up 2.7%) on the strength of corporate advertising by insurance companies, and ads for credit card loans; and Household Products (up 1.2%), led by placements for furniture and kitchen accessories.

Advertising expenditures fell in five industry categories, most notably in Government/Organizations (down 69.4%). This category saw a massive increase in public service ad placements by advertising organizations in 2011 after the Great East Japan Earthquake and Tsunami, but spending dropped back significantly in 2012; Classified Ads/Others (down 19.8%) on declines in placements by corporate groups as well as the movie and theater industry; Energy/Materials/Machinery (down 3.7%) on cutbacks by electric power and gas companies; Hobbies/Sporting Goods (down 1.9%), hurt by weakness in the areas of video software, pachinko machines and "pachi-slo" slot machines, and game software; and Home Electric Appliances/AV Equipment (down 0.7%), which saw a fall in demand for placements related to LCD televisions and Blu-ray disc recorders.

The full text of 2012 Advertising Expenditures in Japan is currently being compiled and will be available on Dentsu's website at the end of March 2013. For reference, please refer to the tables on the following pages.

 

TABLE 1

Japan's GDP and Advertising Expenditures (2008−2012)

Year   Gross Domestic Product (B)   Advertising Expenditures (A)  

A / B
(%)

GDP
(¥ billion)

 

Compared
to Previous
Year (%)

Advertising
Expenditures
(¥ billion)

 

Compared
to Previous
Year (%)

2008 501,209.3 97.7 6,692.6 95.3 1.34
2009 471,138.7 94.0 5,922.2 88.5 1.26
2010 482,384.4 102.4 5,842.7 98.7 1.21
2011 470,623.2 97.6 5,709.6 97.7 1.21
2012   475,729.0   101.1   5,891.3   103.2  

1.24

Notes:
The above figures for GDP are those released in the Cabinet Office's 'Annual Report on National Accounts' and 'GDP Estimates'.
All the above figures are for the calendar year.

 

TABLE 2

Advertising Expenditures by Medium (2010−2012)

Media  

Advertising Expenditures
(¥ billion)

 

YoY Comparison
Ratio (%)

 

Component Ratio
(%)

2010   2011   2012 2011   2012 2010   2011   2012
Traditional Media
Newspapers 639.6 599.0 624.2 93.7 104.2 11.0 10.5 10.6
Magazines 273.3 254.2 255.1 93.0 100.4 4.7 4.4 4.3
Radio 129.9 124.7 124.6 96.0 99.9 2.2 2.2 2.1
Television 1,732.1   1,723.7   1,775.7 99.5   103.0 29.6   30.2   30.2

Subtotal

2,774.9   2,701.6   2,779.6 97.4   102.9 47.5   47.3   47.2
Satellite Media-Related 78.4   89.1   101.3 113.6   113.7 1.3   1.6   1.7
Internet
(Advertising placement) 607.7 618.9 662.9 101.8 107.1 10.4 10.8 11.2
(Advertising production) 167.0   187.3   205.1 112.2   109.5 2.9   3.3   3.5
Subtotal 774.7   806.2   868.0 104.1   107.7 13.3   14.1   14.7
Promotional Media
Outdoor 309.5 288.5 299.5 93.2 103.8 5.3 5.1 5.1
Transit 192.2 190.0 197.5 98.9 103.9 3.3 3.3 3.4
Flyers 527.9 506.1 516.5 95.9 102.1 9.0 8.9 8.8
Direct Mail 407.5 391.0 396.0 96.0 101.3 7.0 6.8 6.7
Free Newspapers /

Free Magazines

264.0

255.0

236.7

96.6

92.8

4.5

4.5

4.0

POP 184.0 183.2 184.2 99.6 100.5 3.2 3.2 3.1
Telephone Directories 66.2 58.3 51.4 88.1 88.2 1.1 1.0 0.9
Exhibitions /

Screen Displays

263.4

 

240.6

 

260.6

91.3

 

108.3

4.5

 

4.2

 

4.4

Subtotal 2,214.7   2,112.7   2,142.4 95.4   101.4 37.9   37.0   36.4
Total   5,842.7   5,709.6   5,891.3   97.7   103.2   100.0   100.0   100.0
 
 

TABLE 3

Advertising Expenditures by Industry in the Traditional Media

(2011−2012)

(Unit: ¥10 million)

 

Media

 

Newspapers

 

Magazines

  Radio   Television  

Total

Industry 2011   2012  

Comparison
Ratio
(%)

2011  

2012

 

Comparison
Ratio
(%)

2011   2012  

Comparison
Ratio
(%)

2011  

2012

 

Comparison
Ratio
(%)

2011   2012  

Comparison
Ratio
(%)

Energy / Materials /
Machinery

551 640 116.2

166

126

75.9

241

283 117.4 1,766 1,575 89.2 2,724 2,624 96.3
 

Foodstuffs

5,222 5,561 106.5 1,421 1,553 109.3 1,154 1,163 100.8 18,822 20,052 106.5 26,619 28,329 106.4
 

Beverages /
Cigarettes

2,019 2,344 116.1 1,212 1,386 114.4 577 532 92.2 15,813 16,725 105.8 19,621 20,987 107.0
 

Pharmaceuticals /
Medical Supplies

1,762

1,700

96.5

708 836 118.1 993 1,039 104.6 10,891 11,272 103.5 14,354 14,847 103.4
 

Cosmetics /
Toiletries

2,726 3,130 114.8 3,350 3,353 100.1 467 411 88.0 21,144 21,889 103.5 27,687 28,783 104.0
 

Apparel / Fashion,
Accessories /
Personal Items

1,641 1,675 102.1 6,200 6,483 104.6 68 66 97.1 2,909 3,421 117.6 10,818 11,645 107.6
 

Precision
Instruments /
Office Supplies

479 530 110.6 828 914 110.4 35 52 148.6 1,288 1,390 107.9 2,630 2,886 109.7
 

Home Electric
Appliances /
AV Equipment

747 687 92.0 758 646 85.2 176 163 92.6 3,768 3,916 103.9 5,449 5,412 99.3
 

Automobiles /
Related Products

1,403

1,444 102.9 831 866 104.2 777 852 109.7 9,970 13,311 133.5 12,981 16,473 126.9
 

Household Products

1,017 1,149 113.0 467 471 100.9 174 183 105.2 4,763 4,693 98.5 6,421 6,496 101.2
 

Hobbies /
Sporting Goods

1,295 1,279 98.8 1,455 1,486 102.1 306 314 102.6 8,005 7,774 97.1 11,061 10,853 98.1
 

Real Estate /
Housing Facilities

2,853 2,917 102.2 826 749 90.7 446 502 112.6 6,320 6,701 106.0 10,445 10,869 104.1
 

Publications

5,696 5,702 100.1 306 297 97.1 670 606 90.4 2,277 2,611 114.7 8,949 9,216 103.0
 

Information /
Communications

3,831 3,903 101.9 1,584 1,346 85.0 782 847 108.3 16,003 18,429 115.2 22,200 24,525 110.5
 

Distribution /
Retailing

6,943 7,563 108.9 1,044 996 95.4 816 876 107.4 9,891 10,862 109.8 18,694 20,297 108.6
 

Finance / Insurance

2,310 2,105 91.1 754 600 79.6 946 937 99.0 10,111 10,857 107.4 14,121 14,499 102.7
 

Transportation /
Leisure

9,678 10,219

105.6

1,524 1,491 97.8 953 1,023 107.3 7,372 8,390 113.8 19,527 21,123 108.2
 

Food Services /
Other Services

1,988

1,942 97.7 679 625 92.0 1,178 1,261 107.0 8,511 9,068 106.5 12,356 12,896 104.4
 

Government /
Organizations

1,265 1,450 114.6 209 212 101.4 1,204 882 73.3 8,195 783 9.6 10,873 3,327 30.6
 

Education / Medical
Services / Religion

2,785 2,891 103.8 1,048 1,022

97.5

479 445 92.9 3,267 3,465 106.1 7,579 7,823 103.2
 

Classified Ads /
Others

 

3,689

 

 

3,589

 

 

97.3

 

50

 

 

52

 

 

104.0

 

28

 

 

23

 

 

82.1

 

1,284

 

 

386

 

 

30.1

 

5,051

 

 

4,050

 

 

80.2

Total   59,900   62,420   104.2   25,420   25,510   100.4   12,470   12,460   99.9   172,370   177,570   103.0   270,160   277,960   102.9
 

TABLE 4

Sources of Media Expenditures

 

Traditional Media: Advertising expenditures spent in the traditional media of newspapers, magazines, radio and television.

Newspapers: Advertising rates of national daily and trade newspapers, and advertising production costs.

Magazines: Advertising rates of national monthly, weekly and specialized magazines, and advertising production costs.

Radio: Time rates and production costs of private broadcasting stations nationwide and commercial production costs (but not including event-related costs).

Television: Time rates and production costs of private broadcasting stations nationwide and commercial production costs (but not including event-related costs).

 

Satellite Media-Related: Advertising expenditures for satellite broadcasts, CATV and teletext (placement and production costs).

 

Internet: Placement and production costs for Internet site and mobile in-app advertising (includes production costs for banner ads as well as website set-up costs related to products, services and ad campaigns).

 

Promotional Media: Advertising expenditures for sales promotion-related media.

Outdoor: Production and placement costs for billboards, neon signs, outdoor video screens, etc.

Transit: Placement costs for transit advertisements.

Flyers: Insertion costs for flyers in newspapers nationwide.

Direct Mail: Postage and private delivery costs spent on direct mail.

Free Newspapers/Free Magazines: Advertising costs in free newspapers and magazines.

POP: Production costs for point-of-purchase (POP) displays.

Telephone Directories: Placement costs for advertisements in telephone directories.

Exhibitions/Screen Displays: Production costs for exhibitions, expositions and PR centers; production and screening costs for promotional films and videos, etc.

 

About Dentsu Inc.
Founded in 1901, Dentsu Inc. has held the position of the world's largest single-brand agency for 40 years. Through its unique "Integrated Communication Design" approach, Dentsu offers multinational clients the most comprehensive range of advertising and marketing services in the industry. While continuing to pursue innovation in the digital arena, Dentsu is active in the production and marketing of sports, movies, anime and other entertainment content on a global scale. The Dentsu Group has more than 6,000 clients and around 22,000 employees worldwide.
Dentsu News: http://www.dentsu.com/news/index.html
Dentsu Inc.: http://www.dentsu.com/index.html

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
Is your aging software platform suffering from technical debt while the market changes and demands new solutions at a faster clip? It’s a bold move, but you might consider walking away from your core platform and starting fresh. ReadyTalk did exactly that. In his General Session at 19th Cloud Expo, Michael Chambliss, Head of Engineering at ReadyTalk, will discuss why and how ReadyTalk diverted from healthy revenue and over a decade of audio conferencing product development to start an innovati...
Amazon has gradually rolled out parts of its IoT offerings in the last year, but these are just the tip of the iceberg. In addition to optimizing their back-end AWS offerings, Amazon is laying the ground work to be a major force in IoT – especially in the connected home and office. Amazon is extending its reach by building on its dominant Cloud IoT platform, its Dash Button strategy, recently announced Replenishment Services, the Echo/Alexa voice recognition control platform, the 6-7 strategic...
SYS-CON Events announced today that Venafi, the Immune System for the Internet™ and the leading provider of Next Generation Trust Protection, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Venafi is the Immune System for the Internet™ that protects the foundation of all cybersecurity – cryptographic keys and digital certificates – so they can’t be misused by bad guys in attacks...
It’s 2016: buildings are smart, connected and the IoT is fundamentally altering how control and operating systems work and speak to each other. Platforms across the enterprise are networked via inexpensive sensors to collect massive amounts of data for analytics, information management, and insights that can be used to continuously improve operations. In his session at @ThingsExpo, Brian Chemel, Co-Founder and CTO of Digital Lumens, will explore: The benefits sensor-networked systems bring to ...
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
There will be new vendors providing applications, middleware, and connected devices to support the thriving IoT ecosystem. This essentially means that electronic device manufacturers will also be in the software business. Many will be new to building embedded software or robust software. This creates an increased importance on software quality, particularly within the Industrial Internet of Things where business-critical applications are becoming dependent on products controlled by software. Qua...
SYS-CON Events has announced today that Roger Strukhoff has been named conference chair of Cloud Expo and @ThingsExpo 2016 Silicon Valley. The 19th Cloud Expo and 6th @ThingsExpo will take place on November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. "The Internet of Things brings trillions of dollars of opportunity to developers and enterprise IT, no matter how you measure it," stated Roger Strukhoff. "More importantly, it leverages the power of devices and the Interne...
Large scale deployments present unique planning challenges, system commissioning hurdles between IT and OT and demand careful system hand-off orchestration. In his session at @ThingsExpo, Jeff Smith, Senior Director and a founding member of Incenergy, will discuss some of the key tactics to ensure delivery success based on his experience of the last two years deploying Industrial IoT systems across four continents.
CenturyLink has announced that application server solutions from GENBAND are now available as part of CenturyLink’s Networx contracts. The General Services Administration (GSA)’s Networx program includes the largest telecommunications contract vehicles ever awarded by the federal government. CenturyLink recently secured an extension through spring 2020 of its offerings available to federal government agencies via GSA’s Networx Universal and Enterprise contracts. GENBAND’s EXPERiUS™ Application...
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and shared the must-have mindsets for removing complexity from the develo...
SYS-CON Events announced today that MangoApps will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. MangoApps provides modern company intranets and team collaboration software, allowing workers to stay connected and productive from anywhere in the world and from any device.
The IETF draft standard for M2M certificates is a security solution specifically designed for the demanding needs of IoT/M2M applications. In his session at @ThingsExpo, Brian Romansky, VP of Strategic Technology at TrustPoint Innovation, explained how M2M certificates can efficiently enable confidentiality, integrity, and authenticity on highly constrained devices.
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportuni...
In today's uber-connected, consumer-centric, cloud-enabled, insights-driven, multi-device, global world, the focus of solutions has shifted from the product that is sold to the person who is buying the product or service. Enterprises have rebranded their business around the consumers of their products. The buyer is the person and the focus is not on the offering. The person is connected through multiple devices, wearables, at home, on the road, and in multiple locations, sometimes simultaneously...
“delaPlex Software provides software outsourcing services. We have a hybrid model where we have onshore developers and project managers that we can place anywhere in the U.S. or in Europe,” explained Manish Sachdeva, CEO at delaPlex Software, in this SYS-CON.tv interview at @ThingsExpo, held June 7-9, 2016, at the Javits Center in New York City, NY.
"We've discovered that after shows 80% if leads that people get, 80% of the conversations end up on the show floor, meaning people forget about it, people forget who they talk to, people forget that there are actual business opportunities to be had here so we try to help out and keep the conversations going," explained Jeff Mesnik, Founder and President of ContentMX, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
From wearable activity trackers to fantasy e-sports, data and technology are transforming the way athletes train for the game and fans engage with their teams. In his session at @ThingsExpo, will present key data findings from leading sports organizations San Francisco 49ers, Orlando Magic NBA team. By utilizing data analytics these sports orgs have recognized new revenue streams, doubled its fan base and streamlined costs at its stadiums. John Paul is the CEO and Founder of VenueNext. Prior ...
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo Silicon Valley Call for Papers is now open.
The IoT is changing the way enterprises conduct business. In his session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, discussed how businesses can gain an edge over competitors by empowering consumers to take control through IoT. He cited examples such as a Washington, D.C.-based sports club that leveraged IoT and the cloud to develop a comprehensive booking system. He also highlighted how IoT can revitalize and restore outdated business models, making them profitable ...
With 15% of enterprises adopting a hybrid IT strategy, you need to set a plan to integrate hybrid cloud throughout your infrastructure. In his session at 18th Cloud Expo, Steven Dreher, Director of Solutions Architecture at Green House Data, discussed how to plan for shifting resource requirements, overcome challenges, and implement hybrid IT alongside your existing data center assets. Highlights included anticipating workload, cost and resource calculations, integrating services on both sides...