2024 Advertising Expenditures in Japan

Advertising expenditures in Japan grew 4.9% year on year to a record high of 7,673.0 billion yen; Internet advertising expenditures increased 9.6% year on year to 3,651.7 billion yen, approaching half of total advertising expenditures at 47.6%; Traditional media advertising expenditures grew 0.9% year on year to 2,336.3 billion yen, realizing year on year growth for the first time in three years

Dentsu Inc. (President & CEO: Takeshi Sano; Head Office: Tokyo) announced today the completion of its calendar year 2024 annual report on advertising expenditures in Japan, which includes a breakdown of estimated expenditures by advertising medium and industry. The main findings of the report are as follows.

Overview of Japanese Advertising Expenditures throughout 2024

• Throughout 2024, advertising expenditures grew 4.9% year on year to 7,673.0 billion yen, marking four consecutive years of growth and the third consecutive year of record high expenditures. On the back of strong corporate earnings, increased consumer confidence, global-scale events, and inbound tourism demand, growth was realized in all three categories of traditional media, internet advertising and promotional media, with the strongest growth in internet advertising.
• Internet advertising expenditures reached 3,651.7 billion yen, surpassing the previous year's total by 318.7 billion yen, a 9.6% increase. A further increase in demand for video ads, led by social media vertical video ads and connected TVs (internet-connected TVs) contributed to overall market expansion.
• Traditional media advertising expenditures grew 0.9% year on year to 2,336.3 billion yen, the first year on year increase in three years. Promotional media advertising expenditures continued their growth trajectory from last year, growing 1.0% to reach 1,685.0 billion yen. Growth was particularly vibrant in real-world advertising, covering everything from outdoor, transit, POP, and events/exhibitions/screen displays, etc. as the mobility of people returned to pre-pandemic levels.

Advertising Expenditures in Japan

Note: The categories of "Events" and "Merchandise-related EC Platforms" within Advertising Expenditures in Japan were added in 2019. Results up to 2018 have not been adjusted to reflect this change.

Overview of Advertising Expenditures by Medium
In Dentsu Inc.'s annual reports on advertising expenditures in Japan, expenditures are classified into three broad categories of advertising media: (1) Traditional media advertising expenditures (comprising advertising expenditures and their respective production costs for the categories of newspapers, magazines, radio, and television); (2) Internet advertising expenditures (comprising the categories of internet media costs, merchandise-related EC platforms within advertising expenditures in Japan, and internet advertising production costs); and (3) Promotional Media advertising expenditures (comprising advertising expenditures for the categories of outdoor, transit, flyers, direct mail, free newspapers, POP, and events/exhibitions/screen displays).

（1）Traditional media advertising expenditures amounted to 2,336.3 billion yen (up 0.9%)
Although there was a decrease in newspaper advertising expenditures, increases in magazine, radio and television advertising expenditures boosted total expenditures to the first year on year increase in three years.

（2）Internet advertising expenditures amounted to 3,651.7 billion yen (up 9.6%)
With growth particularly strong in video ads, internet advertising expenditures continued to expand, accounting for 47.6% of total advertising expenditures. Out of the total, internet media costs amounted to 2,961.1 billion yen, a double digit growth rate of 10.2% year on year.

In terms of digital advertising derived from traditional media, television media-related video advertising expenditures continued to grow, increasing 47.4% to 65.3 billion yen. Advertising expenditures for merchandise-related EC platforms were up 3.4% year on year to 217.2 billion yen, on the back of expanded online sales. Internet advertising production costs increased 8.6% to 473.4 billion yen, rising from the previous year mainly due to the expanding video advertising market.

（3）Promotional media advertising expenditures amounted to 1,685.0 billion yen (up 1.0%)
With burgeoning inbound tourism-related demand helping to restore the mobility of people to pre-pandemic levels, growth was realized in the categories of transit, outdoor and POP advertising. Expenditures on events/exhibitions/screen displays also exceeded the previous year on the back of increases in event planning for international clothing brands, hotels, corporate PR facilities, and auto-related stores/showrooms, contributing to growth in promotional media advertising expenditures overall.

TABLE 1
Advertising Expenditures by Medium (2022-2024)

TABLE 2
Sources of Media Expenditures

TABLE 3
Advertising Expenditures and Japan's Nominal GDP (2004-2024)

Notes:
1.The GDP figures are taken from the Cabinet Office's "Annual Report on National Accounts" and "Quarterly Estimates of GDP."
2.The method for estimating advertising expenditures in Japan was modified in 2007, and the data for 2005 and 2006 have been retroactively revised.
3.Since 2018, digital advertising carried by traditional media companies has been added to estimates for Internet Advertising Expenditures.
4.Since 2019, advertising expenditures for Merchandise-related EC Platforms within Advertising Expenditures in Japan have been added to estimates for Internet Advertising Expenditures, and Events advertising expenditures have been added to estimates for Exhibitions/Screen Displays.

TABLE 4
Advertising Expenditures by Industry in Traditional Media for 2024
(Traditional Media Only, Excluding Satellite Media-related Spending)

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