"2014 Japan Advertising Expenditures" totaled ¥6.1522 trillion, a 102.9% increase year-on-year. ● Total advertising expenditure exceeded ¥6 trillion for the first time in six years. ● Internet advertising expenditure surpassed ¥1 trillion for the first time. ● 14 out of 21 industries exceeded the previous year's figures.
On February 24, Dentsu Inc. released its "2014 (Heisei 26) Japan Advertising Expenditures," estimating Japan's total advertising spending and advertising expenditures by media type and industry.
Japan's total advertising expenditure for 2014 (January to December) was ¥6.1522 trillion, a 102.9% increase year-on-year. Despite the impact of the consumption tax hike, this marked the third consecutive year of year-on-year growth for the full year.
Read the Web Dentsu News commentary article on "2014 (Heisei 26) Japan Advertising Expenditures" by Toshiyuki Kitahara, Senior Researcher, Media Innovation Research Department, DENTSU SOKEN INC., here: http://dentsu-ho.com/articles/2225
Characteristics of Advertising Expenditures in2014 (Heisei 26)
1. Total advertising expenditure in 2014 grew initially due to pre-consumption tax hike demand and events like the 2014 Sochi Olympics. Although there was a reactionary decline following the tax hike, it continued to grow gradually, supported by events like the 2014 FIFA World Cup Brazil. For the full year, the market size exceeded ¥6 trillion for the first time in six years.
2. By medium: "Newspaper advertising expenditure" (98.2% of previous year), "Magazine advertising expenditure" (100.0%), "Radio advertising expenditure" (102.3%), and "Television media advertising expenditure"* (102.8% of previous year, total of terrestrial TV and satellite media-related). Consequently, "Mass media advertising expenditure" was 101.6% of the previous year. "Internet advertising expenditure" (112.1% YoY) grew, driven by smartphone, video advertising, and new ad technology-based ads, becoming a market exceeding 1 trillion yen for the first time. Furthermore, "promotional media advertising expenditure" (100.8% YoY) also exceeded the previous year for the third consecutive year, contributing to the overall increase.
3. By industry (four mass media types, excluding satellite media-related), 14 out of 21 industries exceeded the previous year.
・Major growth sectors included: "Information & Communications" (107.2% year-on-year, driven by satellite broadcasting, mobile phone service fees, smartphone services, etc.), "Home Appliances & AV Equipment" (107.1%, driven by electric vacuum cleaners, electric refrigerators, LCD TVs, etc.), "Cosmetics & Toiletries" (105.6%, up due to increased sales of shampoo & conditioner, mail-order women's cosmetics lines, etc.), "Automobiles & Related Products" (103.4%, up due to increased sales of wagons, imported SUVs, etc.), and "Beverages & Luxury Goods" (102.0%, up due to increased sales of domestic beer, low-malt beer, etc.).
・Major declining sectors included "Hobbies & Sports Goods" (92.1%, down due to game software, audio software, etc.), "Education, Medical Services, and Religion" (95.6%, down due to declines in vocational schools, various schools, correspondence courses, and other education-related items), "Food" (96.8%, down due to declines in health foods, instant noodles, snack foods, etc.), and "Fashion and Accessories" (97.0%, down due to declines in women's clothing, men's and women's shoes, etc.).
*Classification changed from 2014, with "Terrestrial TV + Satellite Media" reclassified as TV media advertising expenditure.
1. Trends in Total Advertising Expenditures
Total advertising expenditure in 2014 was ¥6,152.2 billion, a 2.9% increase year-on-year, marking the third consecutive year of growth.
2. Overview of Advertising Expenditures by Medium
"Mass Media Advertising Expenditures" (including satellite media-related) totaled ¥2,939.3 billion, a 101.6% increase year-on-year. Of this, "Television Media" (terrestrial TV + satellite media-related) increased by 102.8%.
Internet advertising expenditure reached ¥1.0519 trillion, showing robust growth at 112.1% year-on-year. Promotion media advertising expenditure also exceeded the previous year for the third consecutive year, reaching ¥2.161 trillion, a 100.8% increase.
Looking at "advertising expenditures for the four major media" (including satellite media) by quarter, growth rates were somewhat weaker from April onward, but remained positive throughout the year.
(Year-on-year / Same period last year, %)
The situation by medium is as follows.
<Newspaper Advertising Expenditures: ¥605.7 billion (98.2% YoY)>
・Although spending grew significantly before the consumption tax hike, it has not recovered since April due to the economic downturn. While positive factors like the 2014 Sochi Olympics and the House of Representatives election existed, annual spending failed to reach a year-on-year increase.
・Advertising increased in " Precision Instruments & Office Supplies" (watches), "Energy, Materials & Machinery" (notably B2B advertising), "Pharmaceuticals & Medical Supplies," and mail-order-type "Food" (health foods) and "Beverages & Luxury Goods" (health drinks). Conversely, "Fashion & Accessories" and "Information & Communications" saw declines.
<Magazine Advertising Expenditures: ¥250 billion (100.0% year-on-year)>
・Although the industry environment remains challenging, some sectors saw advertising expenditure growth, resulting in overall spending matching the previous year.
・Sectors with high market share, such as "Fashion & Accessories" and "Cosmetics & Toiletries," performed steadily, while "Automobiles & Related Products" and "Transportation & Leisure" were also active.
＜Radio Advertising Expenditures: ¥127.2 billion (102.3% YoY)＞
・Spending remained flat in the Tokyo metropolitan area, while continued growth in the Kansai, Chubu, Hokkaido, and Kyushu regions boosted overall figures.
・"Precision Machinery & Office Supplies" saw increased radio use driven by rising advertising demand from office operators. "Real Estate & Home Equipment" also performed well due to growing demand for home purchases and renovations. "Automobiles & Related Products" saw strong growth, with increased advertising not only for domestic cars but also for imported vehicles.
・radiko.jp (Radiko) reached 13 million monthly unique users. Radiko Premium (area-free paid service), launched in April 2014, gained 170,000 members.
<TV Media Advertising Expenditures(Terrestrial TV + Satellite Media Related):¥1.9564 trillion (102.8%YoY)>
【Terrestrial TV】: ¥1,834.7 billion (102.4% YoY)
・Program (Time) Advertising (101.2% YoY) showed positive growth, driven by strong performance in sports programming such as the "2014 Sochi Olympics," "2014 FIFA World Cup Brazil," and "2014 Asian Games Incheon, South Korea," as well as steady demand for regular programming.
・Spot advertising (103.2% YoY) saw significant growth in January-March due to pre-consumption tax hike demand. Although it fell below the previous year's level in April, the market picked up again from May and remained strong through the end of the year. By industry, sectors showing increases included: * Information & Communications (significant growth from smartphone-related and game app ads) * Cosmetics & Toiletries (increases from shampoo & conditioner ads) * Pharmaceuticals & Medical Supplies (increases from DTC [Direct to Consumer] ads and energy drink ads)
[Satellite Media-Related] was ¥121.7 billion (109.6% year-on-year)
・Double-digit growth in the first half, with strong performance continuing in the second half.
・By industry, general mail order, health foods, finance/insurance, beauty-related products, and beverages performed well throughout the year. Before the consumption tax hike, "Automobiles/Related Products" and "Home Appliances/AV Equipment" also increased.
◆BS broadcasting: ¥83.15 billion (112.8% YoY)
・Numerous popular sports programs were scheduled, attracting more first-time advertisers. Increased media recognition also drew advertisers from outside the Tokyo metropolitan area.
◆CS broadcasting: ¥21.20 billion (104.5% year-on-year)
・Advertising on sports, movie, and terrestrial key station channels performed well.
◆CATV broadcasting: ¥17.32 billion (103.4% YoY)
・Advertising on community channels increased.
<Advertising Production Costs for Four Mass Media:¥312.1 billion (101.0%YoY)> (Excluding satellite media-related costs)
Note: Advertising costs for newspapers, magazines, radio, and terrestrial TV include advertising production costs.
・Of this, terrestrial TV commercial production costs were ¥217.0 billion (101.1% YoY).
・Although spending weakened somewhat from April onward due to the aftermath of the 2014 Sochi Olympics and pre-consumption tax hike demand, it gradually recovered in the second half of the year, exceeding the previous year's level.
・By industry, "Automobiles and Related Products" and "Finance and Insurance" performed strongly.
<Internet Advertising Expenditures (Media Fees + Advertising Production Fees):¥1.0519 trillion (112.1%YoY)>
【Internet Advertising Media Costs】: ¥824.5 billion (114.5% YoY)
・Of this, programmatic advertising expenditure was ¥510.6 billion (123.9% YoY)
・Looking at the overall Internet advertising media cost market, growth in the smartphone market, video advertising, and the penetration of ad delivery utilizing new technologies provided support, resulting in a growth rate exceeding the previous year. Examining the market breakdown, block-sold advertising and affiliate advertising remained steady, while programmatic advertising grew significantly.
・For display advertising, while targeting products on portal site inner pages increasingly shifted to programmatic advertising, spending exceeded the previous year. This was driven by the use of large-scale and rich media ads to meet advertiser demand for brand-building, the adoption of smartphone advertising, and the emergence of new media such as curated media. Furthermore, responding to the diversification of marketing needs and the dispersion of user media exposure, the use of various specialized sites focused on specific genres expanded. Beyond traditional tie-ups, native advertising and content marketing began taking root. Furthermore, numerous new trends gained momentum, including the use of video advertising across both PCs and smart devices. nbsp; & nbsp;
・The search-linked advertising market, which accounts for the majority of performance-based advertising spending, saw PC search growth level off.
, while smartphone and tablet searches grew significantly, resulting in steady overall growth. Another area showing substantial growth is DSP (a system that helps maximize advertising effectiveness from the advertiser's perspective). This method, which enables broad and efficient ad delivery through real-time bidding, has become widespread.
・The proliferation and expansion of DSPs and SSPs (Systems that help maximize advertising efficiency from the publisher's perspective) created an environment where advertisers could more readily utilize the ad inventory held by individual sites. Furthermore, new initiatives progressed, such as using DMPs (Systems that analyze and process accumulated data to optimize ad delivery) to support DSP delivery.
・Video performance-based advertising expanded, primarily driven by advertisers using it for branding purposes.
※Performance-based advertising refers to advertising methods that automatically or instantly support ad optimization through platforms processing vast amounts of data. This includes search-linked ads and some ad networks, with newly emerged DSPs/ad exchanges/SSPs being typical examples. Note that block-sold ads, tie-up ads, and affiliate ads are not included in performance-based advertising.
【Internet Advertising Production Costs】: ¥227.4 billion (104.4% year-on-year)
・Although the number of projects increased, growth slowed compared to the previous year's 106.2% growth rate. This was due to a continued decrease in large-scale campaigns and a decline in production unit costs.
・Corporate websites, e-commerce sites, and membership sites continued to grow from the previous year, driven by factors such as the further proliferation of smartphones.
<Promotional Media Advertising Expenditures:¥2.161 trillion (100.8%year-on-year)>
・Increased for the third consecutive year.
・"Outdoor advertising" and "transportation advertising" increased due to event promotions targeting social media information dissemination and digital signage.
・Media such as "DM" (direct mail), which is seeing increased activity in unaddressed mail; "Free Papers/Free Magazines," which gained attention for their print-and-web collaborations; and "POP" (point-of-purchase advertising), which focuses on the individual consumer's perspective, remained steady. Additionally, "Exhibitions/Video, etc.," which saw growth in display advertising at commercial facilities due to development, contributed to the overall increase.
◆ Outdoor Advertising: ¥317.1 billion (103.3% year-on-year)
・Billboards saw a slight increase, exceeding the previous year due to rising production costs such as building materials and construction expenses.
・Neon signs showed a declining trend due to renovations and repairs, while LED signs grew.
・Poster boards were actively utilized by industries such as "Beverages & Luxury Goods," "Automobiles & Related Products" (including imported vehicles), "Finance & Insurance," and music, TV programs, and movies.
・Large-screen displays saw strong advertising from "Beverages & Luxury Goods." Advertising from airlines, game software, and game hardware also increased.
・Stadium signage saw few new installations, but spot advertising associated with events like the Professional Baseball All-Star Game and Climax Series performed well.
・Advertising banners decreased due to building renovations in some areas, though some regions saw strong performance.
・Commercial facility media saw advertising aligned with various facility events throughout the year.
◆ "Transportation Advertising" totaled ¥205.4 billion (102.5% year-on-year)
・New installations and expansions of digital signage continued in train interiors and station concourses, performing well. Conversely, in-car media such as hanging ads, window-top ads, and door-side ads decreased.
・Airport-related advertising grew, with activity intensifying in anticipation of 2020.
・By industry, "Beverages & Luxury Goods," "Finance & Insurance," and "Information & Communications" (smartphone apps) remained robust.
◆ "Inserted advertisements" totaled ¥492 billion (96.4% of the previous year)
・From January to March, there was a rush of demand ahead of the consumption tax hike in sectors like "Automobiles and Related Products" (dealerships), "Distribution and Retail" (small supermarkets), home renovations, job recruitment, and health foods. However, a decline has continued since April.
・Notable declines were seen in large electronics retailers, GMS (large supermarkets), "Fashion/Accessories," cram schools/prep schools, and real estate sales.
・The number of inserts and paper sizes continued to shrink.
・By region, all areas except Tohoku recorded lower figures than the previous year.
◆ "Direct Mail" (DM): ¥392.3 billion (100.8% year-on-year)
・Although caution was observed regarding personal information handling, DM was recognized as an efficient and personalized advertising medium for existing customers, leading to a slight increase.
・Furthermore, marketing activities using paper media, anticipating an aging society, were reevaluated, leading to increased demand, particularly in regional areas, for catalog sales and mail-order businesses.
◆ "Free Papers/Free Magazines": ¥231.6 billion (101.2% YoY)
〇Free papers: ¥75.4 billion (101.1% year-on-year)
・Last-minute demand was seen, primarily for high-priced goods and services like "real estate and home appliances." Job listings and hospital information also increased.
〇Free Magazines: ¥156.2 billion (101.2% of previous year)
・While circulation declined in the Tokyo metropolitan area due to the shift to web platforms, free magazines gained attention in regional cities, including those promoting tourism, leading to an increase.
◆POP: ¥196.5 billion (100.6% year-on-year)
・Saw a slight increase due to last-minute demand before the consumption tax hike and a recovery trend in consumption during the latter half of the year.
・By industry, "Real Estate & Home Furnishings," "Automobiles & Related Products," and "Finance & Insurance" remained robust.
◆ "Telephone Directory Advertising": ¥41.7 billion (92.1% of same period last year)
・While declining in metropolitan areas, demand remains strong in regional areas as a locally focused medium.
◆ "Exhibitions, Video, and Other" was ¥284.4 billion (106.1% YoY)
・Growth was driven by robust demand for display advertising associated with the development of large commercial facilities, as well as content-focused exhibitions like game shows. Rising material costs also contributed to the increase in advertising expenditure.
3. Advertising Expenditures by Industry
In 2014, advertising expenditure increased in 14 out of 21 industries and decreased in 7 (in 2013, it increased in 8 industries and decreased in 13).
Industries with increases (14 industries): "Precision Instruments & Office Supplies" (107.6% YoY, driven by watches, etc.), "Government Agencies & Organizations" (107.3% YoY, driven by advertising-related groups, etc.), "Information & Communications" (107.2% YoY, driven by satellite broadcasting, mobile phone billing services, smartphone services, etc.), "Home Appliances & AV Equipment" (107.1%, up due to increased sales of electric vacuum cleaners, electric refrigerators, LCD TVs, etc.), "Cosmetics & Toiletries" (105.6%, up due to increased sales of shampoo & conditioner, mail-order women's cosmetic lines, etc.), "Household Goods" (105.6%, up due to household weighing scales, functional mattresses, etc.), "Automobiles & Related Products" (103.4%, up due to wagons, imported SUVs, etc.), "Energy, Materials & Machinery" (102.8%, up due to gasoline, electricity, etc.), "Real Estate & Home Equipment" (102.6%, increase in rental housing, home renovations, etc.), "Beverages & Luxury Goods" (102.0%, increase in domestic beer, low-malt beer, etc.), "Food Services & Various Services" (101.9%, increase in law firms, delivery/moving services, etc.), "Pharmaceuticals & Medical Supplies" (101.7%, increase in over-the-counter medicines, energy drinks, etc.), "Transportation & Leisure" (100.9%, increase in amusement parks, theme parks, various events, etc.), and "Distribution & Retail" (100.5%, increase in mail order sales, etc.).
Declining sectors (7 sectors) were: "Hobbies & Sports Goods" (92.1%, decrease in game software, audio software, etc.), "Information & Other" (92.7%, decrease in information services, temporary goods, etc.), "Education, Medical Services & Religion" (95.6%, decrease in education-related sectors like vocational schools, various schools, correspondence courses), "Food" (96.8%, decrease in health foods, instant noodles, snacks, etc.), "Fashion/Accessories" (97.0%, decrease in women's clothing, men's/women's shoes, etc.), "Publishing" (97.6%, decrease in women's/home magazines, language learning materials, etc.), and "Finance/Insurance" (98.1%, decrease in mail-order insurance, mortgages, etc.).
Dentsu Inc. News Releasehttp://www.dentsu.co.jp/news/release/2015/0224-003977.html
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