Advertising Expenditure Reports
Overview of Advertising Expenditures in Japan for 2021
Total advertising expenditures amount to ¥6,799.8 billion
In 2021, advertising expenditures in Japan increased 10.4% year on year to ¥6,799.8 billion, indicating a recovery in the advertising market due to the weakening impact of the COVID-19 pandemic. Internet advertising expenditures surpassed Traditional Media advertising expenditures for the first time, driving the recovery of Japan’s overall advertising market. Expenditures for Digital Advertising Carried by Traditional Media Companies surpassed the ¥100 billion mark for the first time.
Broad Trends in Advertising Expenditures in 2021
- In 2021, total advertising expenditures amounted to ¥6,799.8 billion (up 10.4%). As in 2020, expenditures were significantly impacted by the COVID-19 pandemic in the first half of 2021, during which the Japanese government responded to the spread of infections by declaring a state of emergency and implementing quasi-emergency measures. In the second half, business and consumer sentiment improved amid progress in the COVID-19 situation. Against that backdrop, Television advertising expenditures recovered and Internet advertising expenditures increased at an accelerated pace, driving up growth in advertising expenditures overall. The recovery in demand for advertising was also given a boost by the 2020 Tokyo Olympic and Paralympic Games. From October, results in many advertising media clearly improved as limits on attendance at concerts, sporting events, theme parks, and so on, were gradually eased, and the economy and flows of people began returning to normal. Meanwhile, the number of hybrid events, combining live and online activities, steadily increased and live events started to be held as measures were put in place to prevent the spread of COVID-19 infections. Among such events, the holding of large-scale sporting events, in particular, provided grounds for optimism.
- Internet advertising expenditures increased 21.4% year on year to ¥2,705.2 billion, maintaining the high rate of growth recorded since Dentsu began estimating results in 1996 for these expenditures. For the first time, Internet advertising expenditures exceeded Traditional Media expenditures, which amounted to ¥2,453.8 billion (up 8.9%). The market grew thanks to substantially higher demand for video advertising, particularly on videostreaming services, along with the greater use of digital promotions. Meanwhile, in response to growing calls from the public to provide a wider audience with a balanced amount of information about COVID-19 and related matters, the Internet as well as other types of media have been steadily deployed for this purpose during the pandemic.
- Expenditures for Digital Advertising Carried by Traditional Media Companies surpassed the ¥100 billion mark for the first time, after having posted double-digit growth for three consecutive years since 2018, the first year for which Dentsu estimated expenditures in this category. These expenditures are for advertising through Internet media services, mainly provided by newspaper, magazine, radio, and television companies. These organizations have been leveraging their editorial and production expertise to offer rich content and expand various services, including video and audio streaming, as well as online events.
| Media | Advertising Expenditures (¥ billion) |
YoY Comparison Ratio (%) | Component Ratio (%) | |||
|---|---|---|---|---|---|---|
| Traditional Media | ||||||
| Newspapers | 381.5 | 103.4 | 5.6 | |||
| Magazines | 122.4 | 100.1 | 1.8 | |||
| Radio | 110.6 | 103.8 | 1.6 | |||
| Television | 1,839.3 | 111.1 | 27.1 | |||
| Terrestrial Television | 1,718.4 | 111.7 | 25.3 | |||
| Satellite Media-related | 120.9 | 103.1 | 1.8 | |||
| Subtotal | 2,453.8 | 108.9 | 36.1 | |||
| Internet | ||||||
| Media Costs | 2,157.1 | 122.8 | 31.7 | |||
| Digital Advertising Carried by Traditional Media Companies |
106.1 | 132.1 | 1.6 | |||
| Newspapers Digital | 21.3 | 123.1 | 0.3 | |||
| Magazines Digital | 58.0 | 130.0 | 0.9 | |||
| Radio Digital | 1.4 | 127.3 | 0.0 | |||
| Television Media Digital | 25.4 | 146.8 | 0.4 | |||
| Television media-related video advertising |
24.9 | 146.5 | 0.4 | |||
| Merchandise-related EC Platforms within Advertising Expenditures in Japan |
163.1 | 123.5 | 2.4 | |||
| Production Costs | 385.0 | 113.2 | 5.7 | |||
| Subtotal | 2,705.2 | 121.4 | 39.8 | |||
| Promotional Media | ||||||
| Outdoor | 274.0 | 100.9 | 4.0 | |||
| Transit | 134.6 | 85.8 | 2.0 | |||
| Flyers | 263.1 | 104.2 | 3.9 | |||
| Direct Mail | 344.6 | 104.7 | 5.1 | |||
| Free Newspapers | 144.2 | 93.7 | 2.1 | |||
| POP | 157.3 | 94.9 | 2.3 | |||
| Events / Exhibitions / Screen Displays | 323.0 | 93.0 | 4.7 | |||
| Subtotal | 1,640.8 | 97.9 | 24.1 | |||
| total | 6,799.8 | 110.4 | 100.0 | |||
