--2019 Advertising Expenditures in Japan Expanded to 6,938.1 Billion Yen; Using the Same Estimation Method as for 2018, Advertising Expenditures Would Have Amounted to 6,651.4 Billion Yen (Up 1.9%, Posting Year-on-Year Growth for the Eighth Consecutive Year);¹ Expenditures on Internet Advertising Surpassed Television Advertising Expenditures (Chart 1); Advertising Expenditures for Merchandise-related EC Platforms within Advertising Expenditures in Japan² (Newly Established Category) Amounted to 106.4 Billion Yen; Events/Exhibitions/Screen Displays³ (Revised Category) Amounted to 567.7 Billion Yen--

Dentsu Inc. (Headquarters: Minato-ku, Tokyo; President & CEO: Hiroshi Igarashi; Capital: 10,000 million yen), today released its calendar year 2019 annual report on advertising expenditures in Japan, including an estimated breakdown by medium and industry.

With the addition of growing advertising expenditures for Merchandise-related EC platforms and event domain estimates, Japan's advertising expenditures for 2019 totaled 6,938.1 billion yen.

Note 1: Advertising expenditures for Merchandise-related EC Platforms within Advertising Expenditures in Japan and Events were added to the 2019 estimates. If calculated using the same estimation method as for 2018, advertising expenditures in 2019 would be 6,651.4 billion yen, up 1.9% compared with 2018.
Note 2: 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.
Note 3: 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 yen in 2019) 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.

Overview of Japanese Advertising Expenditures during 2019

-In 2019 overall advertising expenditures, with additional estimates of advertising expenditures for Merchandise-related EC Platforms within Japanese Advertising Expenditures and Events/Exhibitions/Screen Displays, grew for the eighth consecutive year, amounting to 6,938.1 billion yen (up 6.2%; if calculated using the same estimation method as in the previous year, advertising expenditures would be 6,651.4 billion yen, up 1.9%). Given that the Japanese economy is facing strong headwinds--including uncertainty in the global economy, a series of natural disasters, a decline in personal consumption due to changes in the consumption tax rate, and weak inbound consumption--ongoing growth in the Internet advertising and event-related domains was the driver of advertising expenditures overall. In addition, Internet advertising expenditures exceeded Television advertising expenditures to become an advertising market of about 2,000 billion yen. Further advances in digital transformation and the evolution of digitally integrated solutions within existing media were turning points in the advertising industry.

-Traditional media advertising expenditures (including Satellite Media-related spending) were 2,609.4 billion yen (down 3.4%), declining for the fifth consecutive year. Broken down by medium, advertising expenditures fell in Newspapers (down 5.0%), Magazines (down 9.0%), Radio (down 1.4%), and Television (down 2.7%; including Terrestrial Television and Satellite Media-related spending combined. As a result, overall spending in the traditional media posted a decline of 3.4%.

-Internet advertising expenditures, driven mainly by major platformers and the additional estimation of advertising expenditures for Merchandise-related EC Platforms within Advertising Expenditures in Japan (106.4 billion yen in 2019), resulted in expenditures of 2,104.8 billion yen (up 19.7% and accounting for 30.3% of spending in all media), achieving the sixth consecutive year of double-digit growth. This is the first time spending has surpassed the 2,000-billion-yen mark, exceeding Television expenditures. Internet advertising media expenditures were 1,663.0 billion (up 14.8%), including expenditures on digital advertising carried by traditional media companies of 71.5 billion yen (up 22.9%), an increase of 215.0 billion yen compared with the previous year.

-Promotional Media spending increased, amounting to 2,223.9 billion yen (up 7.5%) with advances in digital signage and increases in Outdoor, Transit and Events/Exhibitions/Screen Displays, a new estimate of the event area from the perspective of the advertising industry (Chart 2). Events/Exhibitions/Screen Displays grew for the eighth consecutive year. (Moreover, Events within Advertising Expenditures in Japan amounted to 180.3 billion yen.)

For further details, please see the attached PDF file.