DENTSU INC.
FOR IMMEDIATE RELEASE February 24, 2015
-Total Expenditures Surpassed 6,000 Billion Yen for the First Time in Six Years, Internet Advertising Topped 1,000 Billion Yen for the First Time Ever, Spending Rose in 14 of 21 Industry Categories-
Dentsu Inc. (Tokyo: 4324; ISIN: JP3551520004; President & CEO: Tadashi Ishii; Head Office: Tokyo; Capital: 74,609.81 million yen) released today its annual report of advertising expenditures in Japan for the 2014 calendar year, including an estimated breakdown by medium and industry.
According to this report, Japan's advertising expenditures in 2014 totaled 6,152.2 billion yen, an increase of 2.9% over the previous year. Despite the effects of an increase in the consumption tax, overall spending on advertising posted year-on-year gains for a third straight year.
Overview of Advertising Expenditures during 2014
1. Advertising expenditures in 2014 were boosted by last-minute demand before the consumption tax increase in April and by spending related to the Sochi 2014 Olympic Games. Expenditures fell in response to the tax increase, but still maintained modest growth, thanks in part to the 2014 FIFA World Cup Brazil™. Expenditures for the year totaled 6,152.2 billion yen, marking the first time in six years that Japan's advertising market had surpassed the 6,000 billion yen level.
2. Broken down by medium, expenditures fell slightly in Newspapers (down 1.8%) and were unchanged in Magazines, but rose in Radio (up 2.3%) and Television* (up 2.8%; including both Terrestrial Television and Satellite Media-Related spending). As a result, overall spending in the traditional media posted a gain of 1.6%. The Internet advertising market (up 12.1%) reached the 1,000 billion yen level for the first time ever, driven by growth in
smartphone and video ads, and ads using new advertising technologies. Moreover,
1 / 7
Promotional Media (up 0.8%) also contributed to overall growth, expanding for the third year in a row.
* Starting in 2014, the Television category has been revised to include spending on both
Terrestrial Television and Satellite Media-Related advertising.
3. By industry category (for the traditional media, but excluding Satellite Media-Related spending), year-on-year spending rose in 14 of the 21 industry categories, and fell in 7 categories.
Major categories posting gains included Information/Communications (up 7.2% on increased placements related to satellite broadcasts, mobile phone rates and services, and smartphone-related services); Home Electric Appliances/AV Equipment (up 7.1% on growth in ads for electric vacuum cleaners, refrigerators and LCD televisions); Cosmetics/Toiletries (up 5.6% on placements related to shampoos and conditioners, and direct-marketed cosmetic lines for women); Automobiles/Related Products (up 3.4% on a rise in ads for wagons and imported SUVs); and Beverages/Cigarettes (up 2.0% on growth in advertising for domestic beer and happo-shu (low-malt beers)).
Expenditures fell in 7 of the 21 industry categories, including Hobbies/Sporting Goods (down 7.9% on weak demand for game and audio software ads); Education/Medical Services/Religion (down 4.4% on cutbacks in ads for vocational and other educational institutions, and correspondence education); Foodstuffs (down 3.2% on lowered spending in the areas of health foods, instant noodles and snack foods); Apparel/Fashion, Accessories/Personal Items (down 3.0% on reduced placements for women's clothing, and men's and women's shoes).
Advertising expenditures in the traditional media (including Satellite Media-Related spending) in the 2014 calendar year totaled 2,939.3 billion yen, up 1.6% from the previous year. Spending in Television (including both Terrestrial Television and Satellite Media-Related advertising) grew 2.8%.
Spending on Internet advertising reached 1,051.9 billion yen (up 12.1%) and held
firm throughout the year. Promotional Media also posted gains for a third straight year, up
0.8% to 2,161 billion yen.
A quarterly breakdown of advertising expenditures in the traditional media (including
Satellite Media-Related spending) showed that growth rates were rather weak from April
2 / 7
onward, but spending nevertheless remained positive throughout the year.
(Year-on-year, %)
2013 (Full Year) | Jan.- Jun. | Jul.- Dec. | Jan.- Mar. | Apr.- Jun. | Jul.- Sep. | Oct.- Dec. | |
Advertising Expenditures in the Traditional Media (including Satellite Media-Related Spending) | 100.4 | 99.2 | 101.7 | 98.7 | 99.6 | 102.2 | 101.3 |
Advertising Expenditures in the Traditional Media (including Satellite Media-Related Spending) | 2014 (Full Year) | Jan.- Jun. | Jul.- Dec. | Jan.- Mar. | Apr.- Jun. | Jul.- Sep. | Oct.- Dec. |
Advertising Expenditures in the Traditional Media (including Satellite Media-Related Spending) | 101.6 | 102.3 | 100.8 | 104.0 | 100.6 | 100.6 | 101.1 |
Advertising expenditures increased in 14 of the 21 industry categories surveyed during 2014, and declined in 7 categories. (Expenditures were higher in 8 of the 21 industry categories, but lower in 13 categories in 2013.)
Categories posting gains were Precision Instruments/Office Supplies (up 7.6%) on increased placements for wristwatches; Government/Organizations (up 7.3%) which saw higher spending by advertising-related organizations; Information/Communications (up 7.2%), helped by strong demand related to satellite broadcasts, mobile phone rates and services, and smartphone services; Home Electric Appliances/AV Equipment (up 7.1%) due to an increase in ads for electric vacuum cleaners, refrigerators and LCD televisions; Cosmetics/Toiletries (up 5.6%) on growth in ads for shampoos and conditioners, and direct-marketed cosmetic lines for women); Household Products (up 5.6%) on a rise in placements for measuring instruments for home use and specialized mattresses; Automobiles/Related Products (up 3.4%) on campaigns related to wagons and imported SUVs; Energy/Materials/Machinery (up 2.8%) on stronger demand for petroleum product and electricity ads; Real Estate/Housing Facilities (up 2.6%) on higher spending on ads for rental housing and home renovation; Beverages/Cigarettes (up 2.0%) helped by a rise in ads for domestic beer and happo-shu (low-malt beers); Food Services/Other Services (up 1.9%) on higher spending by law firms, and door-to-door delivery and moving services; Pharmaceuticals/Medical Supplies (up 1.7%) on ads for general health supplements and health drinks; Transportation/Leisure (up 0.9%) on spending related to theme parks and various events; and Distribution/Retailing (up 0.5%) on spending by direct marketing
businesses.
3 / 7
Expenditures fell in the following 7 industry categories: Hobbies/Sporting Goods (down
7.9%) on weak demand for game and audio software ads; Classified Ads/Others (down
7.3%) on decreased demand for classified and ad-hoc ads; Education/Medical Services/Religion (down 4.4%) on cutbacks related to vocational and other educational institutions, and correspondence education); Foodstuffs (down 3.2%) on lowered spending in the areas of health foods, instant noodles and snack foods); Apparel/Fashion, Accessories/Personal Items (down 3.0%) on reduced placements for women's clothing, and men's and women's shoes; Publications (down 2.4%) which saw fewer placements related to women's and home magazines, and language study materials; and Finance/Insurance (down 1.9%) which slipped due to reduced placements related to direct-marketed insurance products and housing loans.
Dentsu is the world's largest advertising agency brand. Led by Dentsu Inc. (Tokyo: 4324; ISIN: JP3551520004), a company with a history of 113 years of innovation, the Dentsu Group provides a comprehensive range of client-centric brand, integrated communications, media and digital services through its eight global network brands-Carat, Dentsu, Dentsu media, iProspect, Isobar, mcgarrybowen, Posterscope and Vizeum-as well as through its specialist/multi-market brands including Amnet, Amplifi, Data2Decisions, Mitchell Communications (PR), psLIVE and 360i.
The Dentsu Group has a strong presence in 124 countries across five continents, and employs around 40,000 dedicated professionals. Dentsu Aegis Network Ltd., its global business headquarters in London, oversees Dentsu's agency operations outside of Japan. The Group is also active in the production and marketing of sports and entertainment content on a global scale.
www.dentsu.com
# # # # #
Contact: Shusaku Kannan
Senior Manager
Corporate Communications Division
Telephone: (813) 6216-8042
E-mail: s.kannan@dentsu.co.jp
The full text of 2014 Advertising Expenditures in Japan is currently being compiled and will be available on
Dentsu's website at the end of March 2015. For reference, please refer to the tables on the following pages.
4 / 7
TABLE 1
Japan's GDP and Advertising Expenditures (2010−2014)Year | Gross Domestic Product (B) | Advertising Expenditures (A) | A / B (%) | ||
Year | GDP (¥ billion) | Compared to Previous Year (%) | Advertising Expenditures (¥ billion) | Compared to Previous Year (%) | A / B (%) |
2010 2011 2012 2013 2014 | 482,384.4 471,310.8 475,110.4 480,128.0 488,215.5 | 102.4 97.7 100.8 101.1 101.7 | 5,842.7 5,709.6 5,891.3 5,976.2 6,152.2 | 98.7 97.7 103.2 101.4 102.9 | 1.21 1.21 1.24 1.24 1.26 |
Notes:
The above figures for GDP are taken from the Cabinet Office's 'Annual Report on National Accounts' and
'Quarterly Estimates of GDP'.
All the above figures are for the calendar year.
TABLE 2
Advertising Expenditures by Medium (2012−2014)Media | Advertising Expenditures (¥ billion) | YoY Comparison Ratio (%) | Component Ratio (%) |
Media | 2012 2013 2014 | 2013 2014 | 2012 2013 2014 |
Traditional Media Newspapers Magazines Radio Television (Terrestrial Television) (Satellite Media-Related) | 624.2 617.0 605.7 255.1 249.9 250.0 124.6 124.3 127.2 1,877.0 1,902.3 1,956.4 1,775.7 1,791.3 1,834.7 101.3 111.0 121.7 | 98.8 98.2 98.0 100.0 99.8 102.3 101.3 102.8 100.9 102.4 109.6 109.6 | 10.6 10.3 9.8 4.3 4.2 4.1 2.1 2.1 2.1 31.9 31.8 31.8 30.2 30.0 29.8 1.7 1.8 2.0 |
Subtotal | 2,880.9 2,893.5 2,939.3 | 100.4 101.6 | 48.9 48.4 47.8 |
Internet (Advertising placement) (Advertising production) | 662.9 720.3 824.5 205.1 217.8 227.4 | 108.7 114.5 106.2 104.4 | 11.2 12.1 13.4 3.5 3.6 3.7 |
Subtotal | 868.0 938.1 1,051.9 | 108.1 112.1 | 14.7 15.7 17.1 |
Promotional Media Outdoor Transit Flyers Direct Mail Free Newspapers / Free Magazines POP Telephone Directories Exhibitions / Screen Displays | 299.5 307.1 317.1 197.5 200.4 205.4 516.5 510.3 492.0 396.0 389.3 392.3 236.7 228.9 231.6 184.2 195.3 196.5 51.4 45.3 41.7 260.6 268.0 284.4 | 102.5 103.3 101.5 102.5 98.8 96.4 98.3 100.8 96.7 101.2 106.0 100.6 88.1 92.1 102.8 106.1 | 5.1 5.1 5.1 3.4 3.4 3.3 8.8 8.5 8.0 6.7 6.5 6.4 4.0 3.8 3.8 3.1 3.3 3.2 0.9 0.8 0.7 4.4 4.5 4.6 |
Subtotal | 2,142.4 2,144.6 2,161.0 | 100.1 100.8 | 36.4 35.9 35.1 |
Total | 5,891.3 5,976.2 6,152.2 | 101.4 102.9 | 100.0 100.0 100.0 |
Note:
Advertising expenditures in Television were redefined in 2014, retroactive to 2012, to include spending on both Terrestrial Television and Satellite Media-Related advertising.
5 / 7
TABLE 3
Advertising Expenditures by Industry in the Traditional Media (2013−2014)(Unit: ¥10 million)
Indu | Media | Newspapers | Magazines | Radio | Terrestrial Television | Total | |||||||||
Indu | stry | Comparison Ratio 2013 2014 (%) | Comparison Ratio 2013 2014 (%) | Comparison Ratio 2013 2014 (%) | Comparison Ratio 2013 2014 (%) | Comparison Ratio 2013 2014 (%) | |||||||||
Energy / Materials / Machinery Foodstuffs Beverages / Cigarettes Pharmaceuticals / Medical Supplies Cosmetics / Toiletries Apparel / Fashion, Accessories / Personal Items Precision Instruments / Office Supplies Home Electric Appliances / AV Equipment Automobiles / Related Products Household Products Hobbies / Sporting Goods Real Estate / Housing Facilities Publications Information / Communications Distribution / Retailing Finance / Insurance Transportation / Leisure Food Services / Other Services Government / Organizations Education / Medical Services / Religion Classified Ads / Others | 628 5,528 2,099 1,694 3,450 1,627 600 608 1,662 1,163 1,174 2,846 5,647 3,570 7,439 2,304 9,991 2,125 1,327 2,820 3,398 | 701 5,865 2,167 1,816 3,405 1,379 718 568 1,552 1,225 1,080 2,803 5,469 3,415 7,392 2,121 9,733 2,081 1,385 2,527 3,168 | 111.6 106.1 103.2 107.2 98.7 84.8 119.7 93.4 93.4 105.3 92.0 98.5 96.8 95.7 99.4 92.1 97.4 97.9 104.4 89.6 93.2 | 126 1,410 1,380 743 3,071 6,568 915 685 849 555 1,420 802 300 1,096 946 630 1,647 599 229 965 54 | 148 1,354 1,321 769 3,077 6,602 999 662 916 537 1,377 760 255 1,054 1,027 584 1,785 538 292 885 58 | 117.5 96.0 95.7 103.5 100.2 100.5 109.2 96.6 107.9 96.8 97.0 94.8 85.0 96.2 108.6 92.7 108.4 89.8 127.5 91.7 107.4 | 274 999 514 1,078 452 65 55 152 933 202 274 587 664 725 877 934 980 1,335 849 439 42 | 265 1,008 565 1,011 418 75 65 148 1,050 218 241 661 660 758 777 898 973 1,675 822 400 32 | 96.7 100.9 109.9 93.8 92.5 115.4 118.2 97.4 112.5 107.9 88.0 112.6 99.4 104.6 88.6 96.1 99.3 125.5 96.8 91.1 76.2 | 1,462 19,272 16,695 11,230 21,012 3,472 1,264 4,088 13,266 4,936 7,359 7,268 2,377 18,941 10,011 12,894 8,358 10,170 744 3,845 466 | 1,446 18,123 17,043 11,396 22,651 3,326 1,268 4,548 13,759 5,262 6,716 7,580 2,385 20,864 10,178 12,834 8,681 10,210 881 3,905 414 | 98.9 94.0 102.1 101.5 107.8 95.8 100.3 111.3 103.7 106.6 91.3 104.3 100.3 110.2 101.7 99.5 103.9 100.4 118.4 101.6 88.8 | 2,490 27,209 20,688 14,745 27,985 11,732 2,834 5,533 16,710 6,856 10,227 11,503 8,988 24,332 19,273 16,762 20,976 14,229 3,149 8,069 3,960 | 2,560 26,350 21,096 14,992 29,551 11,382 3,050 5,926 17,277 7,242 9,414 11,804 8,769 26,091 19,374 16,437 21,172 14,504 3,380 7,717 3,672 | 102.8 96.8 102.0 101.7 105.6 97.0 107.6 107.1 103.4 105.6 92.1 102.6 97.6 107.2 100.5 98.1 100.9 101.9 107.3 95.6 92.7 |
Total | 61,700 | 60,570 | 98.2 | 24,990 | 25,000 | 100.0 | 12,430 | 12,720 | 102.3 | 179,130 | 183,470 | 102.4 | 278,250 | 281,760 | 101.3 |
6 / 7
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
Terrestrial Television
Time rates and production costs of private terrestrial 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).
InternetPlacement (includes mobile advertising) and production costs (includes production costs for banner ads as well as website set-up costs related to products, services and ad campaigns) for Internet sites.
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.
7 / 7
|
distributed by
|
