"2015 Japan Advertising Expenditures" Show Positive Growth for the Fourth Consecutive Year

On February 23, Dentsu Inc. released its "2015 (Heisei 27) Japan Advertising Expenditure" report, estimating Japan's total advertising expenditure and advertising costs by media type and industry sector.

Japan's total advertising expenditure for 2015 (January to December) reached 6.171 trillion yen, a 100.3% increase year-on-year, despite the economy remaining stagnant. This marks the fourth consecutive year of growth over the previous year's figures.

 

Characteristics of2015 Advertising Expenditures

1. Despite factors such as the Milan Expo, significant corporate earnings growth, and expectations of rising incomes, total advertising expenditure for 2015 reached 100.3% of the previous year. This was influenced by the rebound effect from the pre-consumption tax hike rush demand in the previous year, the aftermath of the "2014 Sochi Olympics" and the "2014 FIFA World Cup Brazil," slowing overseas economies, and sluggish personal consumption growth.

2. By medium, the combined "Four Major Media Advertising Expenditures" (newspaper advertising: 93.8% YoY, magazine advertising: 97.7%, radio advertising: 98.6%, TV media advertising: 98.8% YoY, total of terrestrial TV and satellite media-related) reached 97.6% YoY. Internet advertising expenditure (110.2% of the previous year) grew steadily, driven by advertising utilizing smartphones, video, and new ad technologies, leading the overall increase. Promotion media advertising expenditure was 99.1% of the previous year, but outdoor advertising, POP, exhibitions, video, and others increased.

3. By industry (four major media, excluding satellite media-related), six out of 21 industries saw increases.

・Major growth sectors included: "Precision Instruments & Office Supplies" (109.7% YoY, watches, fountain pens), "Information & Communications" (105.1% YoY, online games, online shops), "Energy, Materials & Machinery" (104.1% YoY, gas companies, electric power companies), "Food" (102.7% YoY, mail-order supplements, health foods), and "Transportation/Leisure" (102.2%, membership-based sports clubs, leisure parks/theme parks).

・Major declining sectors include "Hobbies & Sports Goods" (84.5% YoY, audio software, popular character toys), "Automobiles & Related Products" (89.0% YoY, kei cars, sedans, 2-box vehicles), "Beverages & Luxury Goods" (91.8% YoY, canned coffee, third-category beer), "Home Appliances/AV Equipment" (91.9% YoY, coffee makers, air purifiers, LCD TVs), "Household Goods" (92.7% YoY, functional mattresses, furniture, functional frying pans/pots), and "Real Estate/Housing Equipment" (95.0% YoY, general housing, rental housing).

 

Details on Japan 's 2015 Advertising Expenditures: http://www.dentsu.co.jp/news/release/pdf-cms/2016022-0223.pdf

Web Denpo article explaining "2015 Japan Advertising Expenditures" by Toshiyuki Kitahara, Senior Researcher, Media Innovation Research Department, DENTSU SOKEN INC.: http://dentsu-ho.com/articles/3708