Welcome!

Agile Computing Authors: Elizabeth White, Yeshim Deniz, Pat Romanski, ManageEngine IT Matters, Liz McMillan

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
SYS-CON Events announced today that Calligo, an innovative cloud service provider offering mid-sized companies the highest levels of data privacy and security, has been named "Bronze Sponsor" of SYS-CON's 21st International Cloud Expo ®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Calligo offers unparalleled application performance guarantees, commercial flexibility and a personalised support service from its globally located cloud plat...
"We are focused on SAP running in the clouds, to make this super easy because we believe in the tremendous value of those powerful worlds - SAP and the cloud," explained Frank Stienhans, CTO of Ocean9, Inc., in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
Internet of @ThingsExpo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devic...
"The Striim platform is a full end-to-end streaming integration and analytics platform that is middleware that covers a lot of different use cases," explained Steve Wilkes, Founder and CTO at Striim, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"We provide IoT solutions. We provide the most compatible solutions for many applications. Our solutions are industry agnostic and also protocol agnostic," explained Richard Han, Head of Sales and Marketing and Engineering at Systena America, in this SYS-CON.tv interview at @ThingsExpo, held June 6-8, 2017, at the Javits Center in New York City, NY.
SYS-CON Events announced today that DXWorldExpo has been named “Global Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Digital Transformation is the key issue driving the global enterprise IT business. Digital Transformation is most prominent among Global 2000 enterprises and government institutions.
SYS-CON Events announced today that Datera, that offers a radically new data management architecture, has been named "Exhibitor" of SYS-CON's 21st International Cloud Expo ®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Datera is transforming the traditional datacenter model through modern cloud simplicity. The technology industry is at another major inflection point. The rise of mobile, the Internet of Things, data storage and Big...
"We've been engaging with a lot of customers including Panasonic, we've been involved with Cisco and now we're working with the U.S. government - the Department of Homeland Security," explained Peter Jung, Chief Product Officer at Pulzze Systems, in this SYS-CON.tv interview at @ThingsExpo, held June 6-8, 2017, at the Javits Center in New York City, NY.
DX World EXPO, LLC., a Lighthouse Point, Florida-based startup trade show producer and the creator of "DXWorldEXPO® - Digital Transformation Conference & Expo" has announced its executive management team. The team is headed by Levent Selamoglu, who has been named CEO. "Now is the time for a truly global DX event, to bring together the leading minds from the technology world in a conversation about Digital Transformation," he said in making the announcement.
"MobiDev is a Ukraine-based software development company. We do mobile development, and we're specialists in that. But we do full stack software development for entrepreneurs, for emerging companies, and for enterprise ventures," explained Alan Winters, U.S. Head of Business Development at MobiDev, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
While the focus and objectives of IoT initiatives are many and diverse, they all share a few common attributes, and one of those is the network. Commonly, that network includes the Internet, over which there isn't any real control for performance and availability. Or is there? The current state of the art for Big Data analytics, as applied to network telemetry, offers new opportunities for improving and assuring operational integrity. In his session at @ThingsExpo, Jim Frey, Vice President of S...
SYS-CON Events announced today that DXWorldExpo has been named “Global Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Digital Transformation is the key issue driving the global enterprise IT business. Digital Transformation is most prominent among Global 2000 enterprises and government institutions.
In his opening keynote at 20th Cloud Expo, Michael Maximilien, Research Scientist, Architect, and Engineer at IBM, discussed the full potential of the cloud and social data requires artificial intelligence. By mixing Cloud Foundry and the rich set of Watson services, IBM's Bluemix is the best cloud operating system for enterprises today, providing rapid development and deployment of applications that can take advantage of the rich catalog of Watson services to help drive insights from the vast t...
SYS-CON Events announced today that EnterpriseTech has been named “Media Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. EnterpriseTech is a professional resource for news and intelligence covering the migration of high-end technologies into the enterprise and business-IT industry, with a special focus on high-tech solutions in new product development, workload management, increased effic...
SYS-CON Events announced today that Massive Networks, that helps your business operate seamlessly with fast, reliable, and secure internet and network solutions, has been named "Exhibitor" of SYS-CON's 21st International Cloud Expo ®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. As a premier telecommunications provider, Massive Networks is headquartered out of Louisville, Colorado. With years of experience under their belt, their team of...
SYS-CON Events announced today that Cloud Academy named "Bronze Sponsor" of 21st International Cloud Expo which will take place October 31 - November 2, 2017 at the Santa Clara Convention Center in Santa Clara, CA. Cloud Academy is the industry’s most innovative, vendor-neutral cloud technology training platform. Cloud Academy provides continuous learning solutions for individuals and enterprise teams for Amazon Web Services, Microsoft Azure, Google Cloud Platform, and the most popular cloud com...
SYS-CON Events announced today that Cloudistics, an on-premises cloud computing company, has been named “Bronze Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Cloudistics delivers a complete public cloud experience with composable on-premises infrastructures to medium and large enterprises. Its software-defined technology natively converges network, storage, compute, virtualization, and ...
SYS-CON Events announced today that CHEETAH Training & Innovation will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct. 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CHEETAH Training & Innovation is a cloud consulting and IT training firm specializing in improving clients cloud strategies and infrastructures for medium to large companies.
SYS-CON Events announced today that Datanami has been named “Media Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Datanami is a communication channel dedicated to providing insight, analysis and up-to-the-minute information about emerging trends and solutions in Big Data. The publication sheds light on all cutting-edge technologies including networking, storage and applications, and thei...
The current age of digital transformation means that IT organizations must adapt their toolset to cover all digital experiences, beyond just the end users’. Today’s businesses can no longer focus solely on the digital interactions they manage with employees or customers; they must now contend with non-traditional factors. Whether it's the power of brand to make or break a company, the need to monitor across all locations 24/7, or the ability to proactively resolve issues, companies must adapt to...