2017 Japan Advertising Expenditures Internet Advertising Media Expenditures Detailed Analysis

The text of the Dentsu Inc. news release distributed on March 28 is as follows.

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March 28, 2018

2017 Japan Advertising Expenditures: Detailed Analysis of Internet Advertising Media Costs

― D2C Inc./CCI/Dentsu Inc. Jointly Conduct Detailed Analysis of Internet Advertising Media Expenditures ―

● Display advertising and search advertising accounted for approximately 80% of total internet advertising media spending in 2017.

● Video advertising spending reached ¥115.5 billion in 2017 and is projected to expand to approximately ¥160 billion in 2018.

● Total internet advertising media spending in 2018 is projected to exceed ¥1.4 trillion, with mobile advertising spending surpassing ¥1 trillion.

Three Dentsu Group companies have released the "2017 Detailed Analysis of Japan's Internet Advertising Media Expenditures" (hereinafter referred to as this survey). This analysis breaks down the internet advertising media expenditures from Dentsu Inc.'s February 2018 "2017 Japan Advertising Expenditures" survey results by advertising type, transaction method, device, and other categories, and adds projections for 2018.

Within Japan's total advertising expenditure of ¥6.3907 trillion in 2017, "Internet Advertising Media Costs" amounted to ¥1.2206 trillion (117.6% year-on-year), continuing steady growth. Internet advertising is constantly evolving due to changes in communication environments, devices, platforms, and advancements in ad technology. In this survey, D2C Inc. and CCI, Dentsu Group companies operating in the internet advertising space, collaborated with Dentsu Inc. to investigate the breakdown of internet advertising media costs by advertising type, transaction method, and device—aspects not previously analyzed in "Japan's Advertising Expenditures."

While D2C Inc. and CCI had previously published results based on their independent 'Internet Advertising Market Size Estimation Survey' since 2015, this survey was conducted jointly with Dentsu Inc. as a detailed analysis of internet advertising media costs within 'Japan's Advertising Expenditures.' The survey methodology and content were revised for this edition.

Key Points of "2017 Japan Advertising Expenditures: Detailed Analysis of Internet Advertising Media Costs"

1. Display advertising (40.9%) and search advertising (39.6%) together account for approximately 80% of total internet advertising media costs. Video advertising reached ¥115.5 billion, representing 9.5% of the total.

2. By transaction method, the composition is: performance-based advertising (77.0%), reservation-based advertising (14.4%), and pay-per-performance advertising (8.6%).

3. By device, mobile advertising accounts for 68.1% and desktop advertising for 31.9%.

4 . Total internet advertising media spending in 2018 is projected to exceed ¥1.4 trillion, with mobile advertising alone expected to surpass ¥1 trillion.

5. Video advertising is projected to expand to approximately ¥160 billion in 2018.

 

For further details, please refer to the Dentsu Inc. News Release [PDF].

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Dentsu Inc. News Release
http://www.dentsu.co.jp/news/release/2018/0328-009505.html