Dentsu Inc. (TOKYO:4324)(ISIN:JP3551520004)(President & CEO: Tadashi Ishii; Head Office: Tokyo; Capital: 58,967.1 million yen) released today its annual report of advertising expenditures in Japan for the 2012 calendar year, including an estimated breakdown by medium and industry.
According to this report, Japan's advertising expenditures in 2012 totaled 5,891.3 billion yen, an increase of 3.2% over the previous year. Overall spending on advertising began to fall in 2008 (down 4.7%) as a result of the simultaneous global recession precipitated by the financial crisis in the United States. Yearly spending continued to decline in 2009 (down 11.5%), 2010 (down 1.3%), and 2011 (down 2.3%), but bounced back in 2012 (up 3.2%), benefiting from a resumption in spending that had been delayed or postponed after the Great East Japan Earthquake and Tsunami. Japan's advertising expenditures increased in 2012 for the first time in five years.
Overview of Advertising Expenditures during 2012
- Ad placements recovered strongly during the second half of 2011 on reconstruction-related demand after the Great East Japan Earthquake and Tsunami, and this trend carried over through the first half of 2012. After the London 2012 Olympic Games, however, a slowdown in the overall economy depressed advertising expenditures. This was caused by a number of factors, including a fall in consumer spending after the discontinuance of the tax reduction and subsidy program for eco-car purchases, the high value of the yen, economic stagnation in Europe, and a decline in exports. Nevertheless, for the year as a whole advertising expenditures totaled 5,891.3 billion yen, a gain of 3.2% from the previous year; this was the first annual increase in five years. A strong recovery in ad placements pushed spending in the traditional media to 2,779.6 billion yen, exceeding the level achieved in 2010 before the Great East Japan Earthquake and Tsunami.
- Broken down by medium, expenditures were higher in Television (up 3.0%), Newspapers (up 4.2%), and Magazines (up 0.4%), and held steady in Radio (down 0.1%). Overall spending in the traditional media was up 2.9%. Advertising in Promotional Media also grew (up 1.4%). Satellite Media-Related spending posted double-digit growth (up 13.7%) for a third straight year, boosted by placements related to the London 2012 Olympic Games. Internet advertising again posted solid gains (up 7.7%).
- By industry category (for the traditional media), expenditures grew in 16 of the 21 industry categories, including Automobiles/Related Products (up 26.9% on increased placements for K-cars [engine displacement up to 660cc] and 2-box vehicles), Information/Communications (up 10.5% on expenditures related to smartphone services, satellite broadcasting, and web content advertising), and Beverages/Cigarettes (up 7.0 % on expenditures related to beauty and energy drinks, lactic acid drinks, and carbonated beverages). In contrast, expenditures fell in 5 of the 21 industry categories, including Government/Organizations, where spending fell dramatically (down 69.4%) compared with 2011, which had seen a massive increase in public service placements by advertising organizations after the Great East Japan Earthquake and Tsunami; and Classified Ads/Others (down 19.8% on declines in placements by corporate groups as well as the movie and theater industry).
? Outline of Advertising Expenditures by Medium
Advertising
expenditures in the traditional media grew 2.9% compared with the
previous year, reaching a total of 2,779.6 billion yen. Spending rose
not only in Television (up 3.0%), but also in Newspapers and Magazines.
Promotional Media advertising also posted gains (up 1.4%). Satellite
Media-Related advertising expenditures were up 13.7%, boosted by demand
related to the London 2012 Olympic Games. Internet advertising showed
solid gains, up 7.7% year on year.
? Quarterly Breakdown of Growth in Advertising Expenditures in the
Traditional Media in 2012
A quarterly breakdown of advertising
expenditures for the traditional media in the 2012 calendar year showed
that spending rose steadily during the first half of the year, but fell
below previous-year levels during the last six months as the overall
economy weakened.
(Year-on-year, %) | ||||||||||||||
2012 |
Jan.- |
Jul.- Dec. |
Jan.- Mar. |
Apr.- Jun. |
Jul.- Sep. |
Oct.- Dec. | ||||||||
Advertising | 102.9 | 107.8 | 98.3 | 105.2 | 110.6 | 98.8 | 97.8 | |||||||
? Outline of Advertising Expenditures by Industry (21 Categories,
Traditional Media Only)
Advertising expenditures increased in
16 of the 21 industry categories surveyed during 2012, and declined in 5
categories.
Two industry categories posted double-digit gains: Automobiles/Related Products (up 26.9%) on increased placements for K-cars and 2-box vehicles, and Information/Communications (up 10.5%) on expenditures related to smartphone services, satellite broadcasting, and web content advertising. Expenditures also rose in Precision Instruments/Office Supplies (up 9.7%), aided by growth in placements for digital SLR cameras and wristwatches; Distribution/Retailing (up 8.6%), which saw stronger demand for general merchandise store and direct marketing advertising; Transportation/Leisure (up 8.2%) on a recovery in outlays by travel agencies, hotels and inns; Apparel/Fashion, Accessories/Personal Items (up 7.6%), due to increased spending on ads for women's clothing and shoes; Beverages/Cigarettes (up 7.0%) on expenditures related to beauty and energy drinks, lactic acid drinks, and carbonated beverages; Foodstuffs (up 6.4%), led by health foods and beauty-related food products; Food Services/Other Services (up 4.4%), which saw increased placements for ladies' wigs and aesthetic salons; Real Estate/Housing Facilities (up 4.1%) on an upsurge in demand for household fixtures and condominium advertising; Cosmetics/Toiletries (up 4.0%), boosted by growth in ads for skin toners and emulsions; Pharmaceuticals/Medical Supplies (up 3.4%), helped by a rise in corporate advertising by pharmaceutical companies, and in placements related to eyeglasses; Education/Medical Services/Religion (up 3.2%), which recorded increased spending on ads for English conversation and language schools, preparatory and tutoring schools, and correspondence education; Publications (up 3.0%) on higher placements for hardcover books, corporate advertising by publishers, and ads for hobby-related magazines; Finance/Insurance (up 2.7%) on the strength of corporate advertising by insurance companies, and ads for credit card loans; and Household Products (up 1.2%), led by placements for furniture and kitchen accessories.
Advertising expenditures fell in five industry categories, most notably in Government/Organizations (down 69.4%). This category saw a massive increase in public service ad placements by advertising organizations in 2011 after the Great East Japan Earthquake and Tsunami, but spending dropped back significantly in 2012; Classified Ads/Others (down 19.8%) on declines in placements by corporate groups as well as the movie and theater industry; Energy/Materials/Machinery (down 3.7%) on cutbacks by electric power and gas companies; Hobbies/Sporting Goods (down 1.9%), hurt by weakness in the areas of video software, pachinko machines and "pachi-slo" slot machines, and game software; and Home Electric Appliances/AV Equipment (down 0.7%), which saw a fall in demand for placements related to LCD televisions and Blu-ray disc recorders.
The full text of 2012 Advertising Expenditures in Japan is currently being compiled and will be available on Dentsu's website at the end of March 2013. For reference, please refer to the tables on the following pages.
TABLE 1 | ||||||||||
Japan's GDP and Advertising Expenditures (2008?'2012) | ||||||||||
Year | Gross Domestic Product (B) | Advertising Expenditures (A) |
A / B | |||||||
GDP |
Compared |
Advertising |
Compared | |||||||
2008 | 501,209.3 | 97.7 | 6,692.6 | 95.3 | 1.34 | |||||
2009 | 471,138.7 | 94.0 | 5,922.2 | 88.5 | 1.26 | |||||
2010 | 482,384.4 | 102.4 | 5,842.7 | 98.7 | 1.21 | |||||
2011 | 470,623.2 | 97.6 | 5,709.6 | 97.7 | 1.21 | |||||
2012 | 475,729.0 | 101.1 | 5,891.3 | 103.2 | 1.24 |
Notes:
? The above figures for GDP are those released
in the Cabinet Office's 'Annual Report on National Accounts' and 'GDP
Estimates'.
? All the above figures are for the calendar
year.
TABLE 2 | ||||||||||||||||
Advertising Expenditures by Medium (2010?'2012) | ||||||||||||||||
Media |
Advertising Expenditures |
YoY Comparison |
Component Ratio | |||||||||||||
2010 | 2011 | 2012 | 2011 | 2012 | 2010 | 2011 | 2012 | |||||||||
Traditional Media | ||||||||||||||||
Newspapers | 639.6 | 599.0 | 624.2 | 93.7 | 104.2 | 11.0 | 10.5 | 10.6 | ||||||||
Magazines | 273.3 | 254.2 | 255.1 | 93.0 | 100.4 | 4.7 | 4.4 | 4.3 | ||||||||
Radio | 129.9 | 124.7 | 124.6 | 96.0 | 99.9 | 2.2 | 2.2 | 2.1 | ||||||||
Television | 1,732.1 | 1,723.7 | 1,775.7 | 99.5 | 103.0 | 29.6 | 30.2 | 30.2 | ||||||||
Subtotal | 2,774.9 | 2,701.6 | 2,779.6 | 97.4 | 102.9 | 47.5 | 47.3 | 47.2 | ||||||||
Satellite Media-Related | 78.4 | 89.1 | 101.3 | 113.6 | 113.7 | 1.3 | 1.6 | 1.7 | ||||||||
Internet | ||||||||||||||||
(Advertising placement) | 607.7 | 618.9 | 662.9 | 101.8 | 107.1 | 10.4 | 10.8 | 11.2 | ||||||||
(Advertising production) | 167.0 | 187.3 | 205.1 | 112.2 | 109.5 | 2.9 | 3.3 | 3.5 | ||||||||
Subtotal | 774.7 | 806.2 | 868.0 | 104.1 | 107.7 | 13.3 | 14.1 | 14.7 | ||||||||
Promotional Media | ||||||||||||||||
Outdoor | 309.5 | 288.5 | 299.5 | 93.2 | 103.8 | 5.3 | 5.1 | 5.1 | ||||||||
Transit | 192.2 | 190.0 | 197.5 | 98.9 | 103.9 | 3.3 | 3.3 | 3.4 | ||||||||
Flyers | 527.9 | 506.1 | 516.5 | 95.9 | 102.1 | 9.0 | 8.9 | 8.8 | ||||||||
Direct Mail | 407.5 | 391.0 | 396.0 | 96.0 | 101.3 | 7.0 | 6.8 | 6.7 | ||||||||
Free Newspapers /
Free Magazines | 264.0 | 255.0 | 236.7 | 96.6 | 92.8 | 4.5 | 4.5 | 4.0 | ||||||||
POP | 184.0 | 183.2 | 184.2 | 99.6 | 100.5 | 3.2 | 3.2 | 3.1 | ||||||||
Telephone Directories | 66.2 | 58.3 | 51.4 | 88.1 | 88.2 | 1.1 | 1.0 | 0.9 | ||||||||
Exhibitions /
Screen Displays | 263.4 | 240.6 | 260.6 | 91.3 | 108.3 | 4.5 | 4.2 | 4.4 | ||||||||
Subtotal | 2,214.7 | 2,112.7 | 2,142.4 | 95.4 | 101.4 | 37.9 | 37.0 | 36.4 | ||||||||
Total | 5,842.7 | 5,709.6 | 5,891.3 | 97.7 | 103.2 | 100.0 | 100.0 | 100.0 | ||||||||
TABLE 3 | |||||||||||||||||||||||||||||||
Advertising Expenditures by Industry in the Traditional Media | |||||||||||||||||||||||||||||||
(2011?'2012) | |||||||||||||||||||||||||||||||
(Unit: ¥10 million) | |||||||||||||||||||||||||||||||
Media | Newspapers | Magazines | Radio | Television | Total | ||||||||||||||||||||||||||
Industry | 2011 | 2012 |
Comparison | 2011 | 2012 |
Comparison | 2011 | 2012 |
Comparison | 2011 | 2012 |
Comparison | 2011 | 2012 |
Comparison | ||||||||||||||||
Energy / Materials / | 551 | 640 | 116.2 | 166 | 126 | 75.9 | 241 | 283 | 117.4 | 1,766 | 1,575 | 89.2 | 2,724 | 2,624 | 96.3 | ||||||||||||||||
Foodstuffs | 5,222 | 5,561 | 106.5 | 1,421 | 1,553 | 109.3 | 1,154 | 1,163 | 100.8 | 18,822 | 20,052 | 106.5 | 26,619 | 28,329 | 106.4 | ||||||||||||||||
Beverages / | 2,019 | 2,344 | 116.1 | 1,212 | 1,386 | 114.4 | 577 | 532 | 92.2 | 15,813 | 16,725 | 105.8 | 19,621 | 20,987 | 107.0 | ||||||||||||||||
Pharmaceuticals / | 1,762 | 1,700 | 96.5 | 708 | 836 | 118.1 | 993 | 1,039 | 104.6 | 10,891 | 11,272 | 103.5 | 14,354 | 14,847 | 103.4 | ||||||||||||||||
Cosmetics / | 2,726 | 3,130 | 114.8 | 3,350 | 3,353 | 100.1 | 467 | 411 | 88.0 | 21,144 | 21,889 | 103.5 | 27,687 | 28,783 | 104.0 | ||||||||||||||||
Apparel / Fashion, | 1,641 | 1,675 | 102.1 | 6,200 | 6,483 | 104.6 | 68 | 66 | 97.1 | 2,909 | 3,421 | 117.6 | 10,818 | 11,645 | 107.6 | ||||||||||||||||
Precision | 479 | 530 | 110.6 | 828 | 914 | 110.4 | 35 | 52 | 148.6 | 1,288 | 1,390 | 107.9 | 2,630 | 2,886 | 109.7 | ||||||||||||||||
Home Electric | 747 | 687 | 92.0 | 758 | 646 | 85.2 | 176 | 163 | 92.6 | 3,768 | 3,916 | 103.9 | 5,449 | 5,412 | 99.3 | ||||||||||||||||
Automobiles / | 1,403 | 1,444 | 102.9 | 831 | 866 | 104.2 | 777 | 852 | 109.7 | 9,970 | 13,311 | 133.5 | 12,981 | 16,473 | 126.9 | ||||||||||||||||
Household Products | 1,017 | 1,149 | 113.0 | 467 | 471 | 100.9 | 174 | 183 | 105.2 | 4,763 | 4,693 | 98.5 | 6,421 | 6,496 | 101.2 | ||||||||||||||||
Hobbies / | 1,295 | 1,279 | 98.8 | 1,455 | 1,486 | 102.1 | 306 | 314 | 102.6 | 8,005 | 7,774 | 97.1 | 11,061 | 10,853 | 98.1 | ||||||||||||||||
Real Estate / | 2,853 | 2,917 | 102.2 | 826 | 749 | 90.7 | 446 | 502 | 112.6 | 6,320 | 6,701 | 106.0 | 10,445 | 10,869 | 104.1 | ||||||||||||||||
Publications | 5,696 | 5,702 | 100.1 | 306 | 297 | 97.1 | 670 | 606 | 90.4 | 2,277 | 2,611 | 114.7 | 8,949 | 9,216 | 103.0 | ||||||||||||||||
Information / | 3,831 | 3,903 | 101.9 | 1,584 | 1,346 | 85.0 | 782 | 847 | 108.3 | 16,003 | 18,429 | 115.2 | 22,200 | 24,525 | 110.5 | ||||||||||||||||
Distribution / | 6,943 | 7,563 | 108.9 | 1,044 | 996 | 95.4 | 816 | 876 | 107.4 | 9,891 | 10,862 | 109.8 | 18,694 | 20,297 | 108.6 | ||||||||||||||||
Finance / Insurance | 2,310 | 2,105 | 91.1 | 754 | 600 | 79.6 | 946 | 937 | 99.0 | 10,111 | 10,857 | 107.4 | 14,121 | 14,499 | 102.7 | ||||||||||||||||
Transportation / | 9,678 | 10,219 | 105.6 | 1,524 | 1,491 | 97.8 | 953 | 1,023 | 107.3 | 7,372 | 8,390 | 113.8 | 19,527 | 21,123 | 108.2 | ||||||||||||||||
Food Services / | 1,988 | 1,942 | 97.7 | 679 | 625 | 92.0 | 1,178 | 1,261 | 107.0 | 8,511 | 9,068 | 106.5 | 12,356 | 12,896 | 104.4 | ||||||||||||||||
Government / | 1,265 | 1,450 | 114.6 | 209 | 212 | 101.4 | 1,204 | 882 | 73.3 | 8,195 | 783 | 9.6 | 10,873 | 3,327 | 30.6 | ||||||||||||||||
Education / Medical | 2,785 | 2,891 | 103.8 | 1,048 | 1,022 | 97.5 | 479 | 445 | 92.9 | 3,267 | 3,465 | 106.1 | 7,579 | 7,823 | 103.2 | ||||||||||||||||
Classified Ads / |
3,689 |
3,589 |
97.3 |
50 |
52 |
104.0 |
28 |
23 |
82.1 |
1,284 |
386 |
30.1 |
5,051 |
4,050 |
80.2 | ||||||||||||||||
Total | 59,900 | 62,420 | 104.2 | 25,420 | 25,510 | 100.4 | 12,470 | 12,460 | 99.9 | 172,370 | 177,570 | 103.0 | 270,160 | 277,960 | 102.9 | ||||||||||||||||
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: Time rates and production costs of private 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). |
Internet: Placement and production costs for Internet site and mobile in-app advertising (includes production costs for banner ads as well as website set-up costs related to products, services and ad campaigns). |
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. |
About Dentsu Inc.
Founded in 1901, Dentsu Inc. has held the
position of the world's largest single-brand agency for 40 years.
Through its unique "Integrated Communication Design" approach, Dentsu
offers multinational clients the most comprehensive range of advertising
and marketing services in the industry. While continuing to pursue
innovation in the digital arena, Dentsu is active in the production and
marketing of sports, movies, anime and other entertainment content on a
global scale. The Dentsu Group has more than 6,000 clients and around
22,000 employees worldwide.
Dentsu News: http://www.dentsu.com/news/index.html
Dentsu
Inc.: http://www.dentsu.com/index.html
Dentsu Inc.
Shusaku Kannan, (813) 6216-8042
Senior Manager
Corporate
Communications Division
s.kannan@dentsu.co.jp