Advertising Expenditures in Japan

Overview of Advertising Expenditures in Japan for 2019

Total advertising expenditures amounted to ¥6,938.1 billion

Japan’s advertising expenditures for calendar 2019 totaled ¥6,938.1 billion. This total included the addition of growing advertising expenditures for such areas as Merchandise-related EC Platforms and Events. Under the estimation method used for calendar 2018, advertising expenditures would have totaled ¥6,651.4 billion, an increase of 1.9%. Overall advertising expenditure increased for an eighth consecutive year. Internet advertising expenditures achieved double-digit growth for the sixth consecutive year, exceeding Television advertising expenditures and surpassing ¥2,000 billion for the first time.

• Newly added category: Advertising expenditures for Merchandise-related EC Platforms within Advertising Expenditures in Japan amounted to ¥106.4 billion.¹
• Revised category: Events/Exhibitions/Screen Displays, to which estimates for Events within Advertising Expenditures in Japan were added, amounted to ¥567.7 billion.²

General Characteristics of Advertising Expenditures during Calendar 2019

1. Total advertising expenditures for the full 2019 calendar year amounted to ¥6,938.1 billion. The Japanese economy faced strong headwinds, including from such factors as an uncertain outlook for the global economy, the impact of several natural disasters, a decline in personal consumption owing to changes in consumption tax rates, and weak consumption in the inbound visitor sector. Despite these conditions, continued growth in the Internet advertising field and Events advertising expenditures drove advertising expenditure growth overall.
2. Internet advertising expenditures surpassed ¥2,000 billion for the first time, and in doing so exceeded Television advertising expenditures. The digital transformation continued to advance, and further evolution occurred in the area of integrated solutions encompassing digital and traditional media. These advances represented turning points for the Japanese advertising industry.
3. The new media category of Merchandise-related EC Platforms within Advertising Expenditures in Japan was added to estimates. The previous Exhibitions/Screen Displays category was revised by adding estimates for Events within Advertising Expenditures in Japan, with the newly revised category being named Events/Exhibitions/Screen Displays.
   Overall advertising expenditure grew for the eighth consecutive year.
   
   

   Notes:

   1. Advertising expenditures for Merchandise-related EC Platforms within Advertising Expenditures in Japan only include advertisers with stores and advertising transactions carried out by those advertisers for products on merchandise-related EC platforms such as household appliances, miscellaneous goods, books, clothing, and office supplies. Those expenditures do not comprise the overall Internet advertising expenditures in the EC platforms category. On July 29, 2019, three Dentsu Group companies—D2C Inc., Cyber Communications Inc. (CCI) and Dentsu Inc.—announced that they had jointly produced estimates for “Advertising Expenditures on Merchandising-E-commerce Platforms.” However, based on research for 2019 Advertising Expenditures in Japan, the portion overlapping with existing estimates included within Advertising Expenditures in Japan was excluded, and the category was redefined and newly added to estimates.
      2018: ¥82.2 billion (estimate for reference purposes; not included within 2018 Advertising Expenditures in Japan)
      2019: ¥106.4 billion (for reference purposes, up 29.4% compared with the previous year)
      Reference:
      Joint press release by D2C Inc., Cyber Communications Inc. (CCI) and Dentsu Inc., July 29, 2019;
      2018 results: ¥112.3 billion (up 20.6% compared with 2017); 2019 forecast: ¥144.1 billion (forecast increase of 28.3%)
   2. Events/Exhibitions/Screen Displays indicate the total production costs for various events handled by the advertising industry, including promotional campaigns, exhibitions, expositions and PR venues, production and screening costs for cinema advertising and promotional videos. Advertising expenditures (¥180.3 billion in 2019, not disclosed for 2018 since no estimate was made) for Events within Advertising Expenditures in Japan are defined as follows: Production costs for sales promotions, pop-up stores, sports events, PR events, and other events excluding displays, PR venues, and promotional video production in event areas handled by the advertising industry.
   Advertising Expenditures by Medium for 2019

   Media			Advertising Expenditures (¥ billion)	YoY Comparison Ratio (%)	Component Ratio (%)
   Traditional Media
   	Newspapers		454.7	95.0	6.6
   	Magazines		167.5	91.0	2.4
   	Radio		126.0	98.6	1.8
   	Television		1,861.2	97.3	26.8
   		Terrestrial Television	1,734.5	97.2	25.0
   		Satellite Media-related	126.7	99.4	1.8
   Subtotal			2,609.4	96.6	37.6
   Internet
   	Digital advertising carried by traditional media companies1		71.5	122.9	1.0
   		Newspapers Digital	14.6	110.6	0.2
   		Magazines Digital	40.5	120.2	0.6
   		Radio Digital	1.0	125.0	0.0
   		Television Media Digital	15.4	146.7	0.2
   		Television media-related   video advertising	15.0	148.5	0.2
   	Merchandise-related EC Platforms within Advertising Expenditures in Japan2		106.4	-	1.5
   Subtotal			2,104.8	119.7	30.3
   Promotional Media
   	Outdoor		321.9	100.6	4.6
   	Transit		206.2	101.8	3.0
   	Flyers		355.9	91.0	5.1
   	Direct Mail		364.2	99.0	5.3
   	Free Newspapers / Telephone Directories		211.0	92.3	3.1
   	POP		197.0	98.5	2.8
   	Events3 / Exhibitions / Screen Displays		567.7	158.4	8.2
   	Subtotal		2,223.9	107.5	32.1
   total4			6,938.1	106.2	100.0

   Notes:

   1. Digital advertising carried by traditional media companies has been estimated since 2018.
   2. Advertising expenditures for Merchandise-related EC Platforms within Advertising Expenditures in Japan started to be estimated in 2019.
   3. In 2019, Events within Advertising Expenditures in Japan were estimated to be 180.3 billion yen.
   4. Total advertising expenditure figures include these additional estimate areas. If estimated using the same method as in the previous year, the year-on-year comparison ratio is 101.9%.

   

   Full Report
   Advertising Expenditures in Japan 2019 (663KB)