Rediscovering the strengths of traditional media and developing advertising strategies tailored to each medium's characteristics [Part 2]

Continuing from last time, DENTSU SOKEN INC.'s Ritsuya Oku, together with Tokyo University Graduate School Professor Yoshiaki Hashimoto, an expert on Japanese information behavior, explores the current state of the advertising market and trends and challenges for 2015.

Advertising that integrates with other media, assuming smartphone usage

Okubo: Radio advertising reached ¥127.2 billion, a 102.3% increase. While flat in the Tokyo metropolitan area, it showed growth in Kansai, Chubu, Hokkaido, and Kyushu. By industry, "Precision Equipment & Office Supplies" saw growth, partly due to rising advertising demand from office operators.

Hashimoto: I believe radio's growth is linked to usage behavior. Our survey shows a slight upward trend from 2013 to 2014, with average listening time in 2014 being 2.2 minutes for teens and 7.3 minutes for those in their 20s. In my own interactions with students at university, I hear comments like, "While I could search for songs online, it feels like too much trouble to choose them myself. I actually prefer listening to programs by DJs or personalities whose tastes match mine."

Furthermore, late-night radio broadcasts once held a unique charm: relatively unknown talents would gain listener support and rise to prominence. Now, even among young people, this distinct radio experience and the inherent appeal of radio itself seem to be undergoing a reappraisal.

"radiko.jp" has also gained attention as a new medium, now enabling listeners to tune into broadcasts nationwide.

Next is the internet. Internet advertising expenditure exceeded 1 trillion yen for the first time, reaching 1.0519 trillion yen, a 112.1% increase year-on-year. Performance-based advertising services, in particular, performed strongly.

Hashimoto: According to our research, internet usage has continued to grow since 2010, so the increase in advertising spending aligns with actual usage patterns.

Personally, I've noticed that when searching, targeted ads based on individual behavior and attributes appear instantly – truly astonishing technology. It's entirely understandable that advertising spending grows alongside such advanced technological development.

However, it's a bit of a shame—or perhaps I should say, I sometimes feel resistant to seeing ads based on what I searched for just a little while ago. It also feels a bit uninteresting. For example, when I'm looking for travel destinations, I think, "I don't need that information anymore. I decided not to go there," or "Maybe I want to go to a different country now." I hope we don't forget the serendipitous aspects we discussed earlier regarding newspapers.

Looking at smartphone usage rates, 89% of teens and 93% of those in their 20s own one. In this era where nearly everyone has a smartphone and is constantly checking it, we should plan advertising that integrates with various media like TV based on this reality. Focusing on advertising through social media will also become increasingly important.

Oku: Regarding promotional advertising, it's 100.8% year-on-year, totaling 2.161 trillion yen. There are various media groups within promotional media. What are your impressions?

Hashimoto: Personally, what made a strong impression on me was the station poster advertising featuring an up-and-coming actress. I think many people were startled and looked at it, and judging by the actress's subsequent exposure, that station poster advertising can be said to have been one of the catalysts. Posters that capture everyone's attention have an effect that other media don't have. I feel like it reminded us of that once again.

Another point: While many people use smartphones inside trains now, it's difficult in crowded trains, so many people watch the in-train video screens. I think this represents an interesting new medium with significant growth potential.

Expected Advertising Market Growth Fueled by Rising Consumer Sentiment

Oku: Advertising spending is often called a leading indicator, a figure that precedes the times. How do you view the trends and challenges for 2015?

Hashimoto: The current situation is favorable for many companies, and with the consumption tax hike postponed, the economy should continue improving. With the 2020 Olympics approaching, we can expect consumer sentiment to rise. This past Chinese New Year also saw a significant increase in Chinese tourists, showing tangible effects. Considering all this, I believe advertising spending is highly likely to continue growing.

Another point is "utilize diverse media." If conveying the message "we won the battle," it should be promoted not just via radio, but equally through films, theater, and rakugo storytelling.

Of course, post-war propaganda was not desirable, but the approach itself shares common ground with today's advertising industry. As we enter the full-fledged multimedia era, I believe we should revisit Douve's principle of association. Linking one product to multiple messages and conveying them simultaneously. Utilizing the internet, TV, radio, newspapers – all simultaneously, leveraging every medium to comprehensively strengthen the impression. We need to re-recognize the strengths of each medium and develop advertising strategies that organically link various media.

The internet has stabilized, and television is performing well. As the media usage environment enters a period of stability, I believe the prosperity will continue by reevaluating the strengths of traditional media and developing advertising strategies tailored to each medium's characteristics. I expect to see advertisements that leverage the unique appeal of each medium – the immersive experience of television's large screen, the serendipity of newspapers, the tactile quality captured by magazine photography, and radio's conversational, community-like approach – while also introducing unexpected elements.

Oku: As you pointed out, a generation ago we had the term "media mix." Today, it's precisely about mastering how to use media. We must consider expression or messaging tailored to each medium's role. Furthermore, the media themselves are evolving. Television has elements conveyed through broadcast and elements conveyed online; Radiko has elements conveyed through broadcast and elements conveyed online. If we are to use media to solve advertisers' challenges, we must approach it in a layered, multi-dimensional, or multifaceted way. Also, with the increase in "multi-tasking" and parallel usage, we must put our heads together and propose how to effectively integrate advertising and messaging.

Thank you for your time today.