How Did Japan's Advertising Expenditures Move in 2011?

〈 Publication Date: April 27, 2012 〉

This Insight Memo introduces the "2011 Japanese Advertising Expenditures" report published in February 2012.

・The year 2011 saw the Japanese economy directly impacted by the March 11 Great East Japan Earthquake, the European financial crisis, the sharp appreciation of the yen, and disruptions to manufacturing production and distribution systems caused by the floods in Thailand. It was also a turbulent year for the advertising market. While the year began with signs of recovery, the mood of advertising restraint following the earthquake led to a decline in advertising spending. Total advertising expenditure reached ¥5,709.6 billion, a 97.7% year-on-year figure, falling below the previous year's level. However, a swift recovery was seen in the October-December quarter, with advertising spending across the four major media outlets exceeding the same period the previous year.

・By medium, spending decreased for "TV" (99.5% of the previous year), "Newspapers" (93.7%), "Magazines" (93.0%), "Radio" (96.0%), and promotional media (95.4%). Within this, internet advertising and satellite media advertising exceeded the previous year's results, showing solid growth.

Advertising Expenditures by Medium and 2011 Advertising Expenditures

 

■ Satellite Media: Market Expansion and Rapid Growth Due to Digital Terrestrial Transition

・Satellite media advertising expenditure grew by 113.6% year-on-year, showing double-digit growth. This was driven by increased household adoption of satellite media due to replacements with triple-band compatible flat-screen TVs following the digital terrestrial transition, and the success of targeted programming strategies. The breakdown shows BS at ¥53.29 billion (124.2% year-on-year), CS at ¥19.26 billion (102.2%), and CATV at ¥16.56 billion (99.8%), with BS broadcasting experiencing particularly rapid growth.

■ The Year of the Smartphone – The Changing Internet Advertising Landscape

・Internet advertising media spending, which showed steady growth in 2010, experienced some impact from the Great East Japan Earthquake. This included voluntary restraint or postponement of advertising campaigns and promotions, as well as a reduction in available advertising slots. However, the overall impact remained relatively minor.

・However, in mobile advertising, the rapid proliferation of smartphones led to a contraction in the traditional feature phone market. Consequently, advertising budgets shifted toward smartphone-related content development and app production.

・Internet advertising is not only expanding through portal sites but also gaining attention for new approaches utilizing technologies like ad exchanges, in addition to rich content, social media, behavioral targeting, and affiliate marketing. The evolution of digital communication technologies is driving increasing diversification of methods, supporting the market's continued overall growth.

Trends and Breakdown of Internet Advertising Expenditures