Interview with Nobuyuki Sakuma: The "Atmosphere" of Each Media. Special Discussion on "2023 Japan's Advertising Expenditures"

2023 Japan Advertising Expenditure Special Discussion. This year, we invited producer Nobuyuki Sakuma, who continues to create hit content across various media, as our guest. Ritsuya Oku from Dentsu Inc. Media Innovation Lab conducted the interview.

With the reclassification of COVID-19 to Category 5 leading to increased human mobility, Japan's advertising expenditure in 2023 reached a record high of 7.3167 trillion yen (see overview here ). Internet advertising accounted for 45.5% of this total (3.333 trillion yen).

Details on "2023 Japan Advertising Expenditures" (Dentsu Inc. News Release)

"2023 Japan Advertising Expenditures" Booklet Report (PDF)

 

Mr. Sakuma creates compelling content across television, radio, YouTube, and even program-related events. Reflecting on Japan's 2023 advertising expenditure, he shared his unique perspective on the characteristics of each media platform and its users, as well as the future of media!

<Table of Contents>
▼Is "High Ratings" Alone Enough to Attract Sponsors Nowadays?

▼Media Fragmentation. "User Experience" is Essential for Content Creation

▼The Era Demanding "Real" and "Live" in Content

▼Pursue "What Only That Medium Can Do"

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Analysis of "2023 Japan Advertising Expenditures"──COVID-19 downgraded to Category 5, boosting record-high spending. How did advertising budgets change during the pandemic?

Analysis of "2023 Internet Advertising Media Spending". Signs of change in video ad breakdown

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Is "High Ratings" No Longer Enough to Attract Sponsors?

Oku: Looking at the breakdown of Japan's 2023 advertising expenditure, internet advertising spending reached 3.333 trillion yen, a 107.8% increase year-on-year, while television media advertising spending was 1.7347 trillion yen, a 96.3% decrease year-on-year.

Factors behind the growth in internet advertising include the expansion of video streaming services and the proliferation of connected TVs (internet-connected television sets). In other words, the shift towards "video content viewed online" continues. Mr. Sakuma, how do you interpret these results?

Sakuma: Over the past few years, production costs in TV program making have been declining. COVID eliminated overseas shoots and large studio sets, leading to more talk shows. It's tough to create terrestrial TV programs that can compete with the multitude of video media platforms on a limited budget. Unless the content is exceptionally engaging, viewers won't watch live and will instead turn to online catch-up services.

Oku: It's becoming an era where program KPIs can't be measured by ratings alone, right?

Sakuma: I'm also noticing changes in program sponsors. Today's sponsors don't decide whether to provide support based solely on ratings anymore. For example, the TV Tokyo show I work on, "Achi Kochi Audrey," doesn't have particularly high terrestrial ratings, but its on-demand viewership numbers on TVer are strong. In the past, a show with low terrestrial ratings but strong streaming viewership might have been canceled. But now, because of its "strong streaming reputation," this program's commercial slots are selling well. Or take morning shows on other networks – we're seeing phenomena where programs with lower ratings attract more sponsors than their higher-rated rivals.

Oku: So sponsors now consider whether a program is worth advertising on based on more than just ratings alone. Mr. Sakuma, you recently produced a commercial. What did you feel after creating a terrestrial TV commercial yourself?

Sakuma: This time, the objective was clear: "We want to increase awareness of the service name." There wasn't a lot of information we absolutely had to cram in, so it wasn't too difficult to create. Producing the commercial itself was interesting work, but making a TV commercial myself made me realize something anew. It's that in this day and age, it might no longer be possible to turn the world upside down with just the impact of a single 15-second commercial. The commercials I saw during my youth had such strong impact individually, and some even had the power to change society. But that era is over.

Oku: So you mean the role of TV commercials within society has changed significantly?

Sakuma: Yes. To capture viewers' attention for a product or service today, you first need a compelling "story" for that product or service. I believe commercials should be seen merely as one element within that broader narrative.

Media fragmentation. User experience is essential for content creation

Oku: Mr. Sakuma, besides TV programs, since going independent you've been active in a wide range of areas: creating YouTube shows, hosting radio programs, organizing events. Expanding terrestrial broadcast content to platforms like TVer and YouTube is becoming commonplace. How do you perceive users across these different media?

Sakuma: The thing is, even when we distribute the same content across multiple platforms, I don't get the sense that users are crossing over to watch it. It feels like the audience is completely fragmented across each medium.

Oku: I see. Traditionally, the standard approach was to broadcast first on TV as the "first window," then expand that content across various media. But it seems difficult to chase two rabbits with that method anymore.

Sakuma: I don't think we're in an era anymore where you can just repurpose or expand a single, super-strong TV content across different media. You have to seriously create content that truly fits each specific platform; otherwise, it won't be accepted. In fact, there was a period where many YouTubers made the jump to terrestrial TV, but that kind of cross-media exposure has almost completely disappeared now, right? I think what happens now is that trends originating on TikTok sometimes spread to other media.

Oku: Users who enjoy YouTube don't necessarily want YouTubers to be active across various media.

Sakuma: Exactly. YouTube content feels closer to how TV used to spread. Viewers' lifestyles and regions are so diverse that covering something unique to Tokyo, for example, won't resonate much. Instead, featuring national chain stores or convenience stores gets a better response. The buzz around YouTubers collaborating with convenience store products symbolizes this. Conversely, TV programs are limited by lifestyle and region, targeting people at home on specific days and times.

Oku: Even so, the need to "go all out for each specific medium" must be tough from the creator's perspective. What points do you pay attention to when creating content, Sakuma-san?

Sakuma: First, tailoring the content concept to each medium is fundamental. My approach is to formulate hypotheses like "For this medium, this approach might work," then iterate and refine continuously. That said, in today's era, even well-formed hypotheses can't cover every eventuality.

Oku: What do you mean?

Sakuma: It means that if the creator lacks firsthand experience with the platform's user experience and insights, the content won't resonate. In the old TV industry, some producers could hit it big using only their own methodologies. But now it's the opposite—you must first understand the users' atmosphere and culture, immerse yourself in it to truly experience their perspective, and only then create content that will be accepted.

Oku: I see. So as content creators, applying established methodologies across different media is no longer feasible. Is it about thoroughly understanding each platform's tone and manner?

Sakuma: That's part of it, but understanding "what will make users dislike you" is incredibly important. It's about grasping the "vibe" of the users on that platform. To truly understand that, I feel you'd need to be an active user of that platform yourself for about two years.

It's similar to how you won't succeed if you jump straight into stocks (laughs). You develop a sense of which stocks will rise or fall based on experience, right? My friends who trade stocks say you won't develop that market sense until you've been doing it for about two years.

Oku: You know, sometimes you think, "This news will definitely make the stock go up," but the market has already priced in that news, and surprisingly, it doesn't go up (laughs).

Sakuma: When I took on YouTube and managed to get 1.8 million subscribers, it's true that I watched YouTube as a user, formed hypotheses, and refined my approach. But even more significant was raising a child in my thirties and learning a lot about current entertainment from my teenage daughter.

Oku: So you got to see the real sensibilities of young people up close.

Sakuma: Exactly. I'm glad we get along so well (laughs). She taught me a lot about VTubers and 2.5-dimensional musicals too. Last year, during the story of how the girl group "ME:I" was born from PRODUCE 101 JAPAN, I asked her which parts she got really into. Her insights are incredibly valuable.

An Era Demanding "Real" and "Live" in Content

Oku: What are your thoughts on the often-discussed trend of young people turning away from TV?

Sakuma: Nowadays, a lifestyle where people consume their favorite content whenever they want has become established. TV, which you can't watch whenever you want, is simply "inconvenient," isn't it? As a TV professional, I do feel that "if we can create strong content, it'll be fine." But with so much content flooding the world, unless you create something truly outstanding – something that stands head and shoulders above the rest – people simply won't watch it.

Oku: It seems like today's consumers, not just young people, fill every spare moment of their disposable time with various content and media, much like playing Tetris.

Sakuma: That's exactly the era we're in. And TV shows require significant investment and star power to produce, so they won't turn a profit unless they hit big. With YouTube, you can create content at lower cost, and you can even monetize within your own closed community – it offers flexibility. Well, that's why I came up with the opposite hypothesis: "What if we made a high-budget YouTube show twice a week? Couldn't we build a loyal viewership that way?"

Oku: So it was an experiment asking, "What happens if you spend money on YouTube?" And then actually gaining know-how while making it.

Sakuma: An experiment, yes. Looking at subscriber numbers, I suppose you could say it was successful, though the efficiency isn't great (laughs). I believe experiences like this become part of who you are, so I'm doing it. Regarding YouTube, I'm thinking more globally for the future.

Oku: It's truly impressive that Sakuma-san, who's been making TV for so long, entered the unknown world of YouTube and achieved results. I imagine creating content is that much harder because of it.

Sakuma: But the YouTube landscape is constantly shifting, and content trends change too. For example, watching top YouTubers lately, I notice their videos are getting longer per upload. I have a few hypotheses about why: one is that longer videos encourage fans to watch in multiple sessions rather than all at once, boosting total views. Another is that demand for VTuber-style "free talk" content seems to be growing. I imagine top YouTubers are responding to these trends by researching them using tools like YouTube Analytics and drawing from their own user experience.

Oku: So you need to be sensitive to change. I'd also like to ask about television. In a recent article, you mentioned that "it's okay to have programs that people dislike." In the past, the ideal was to create content that appealed to everyone, something "middle-of-the-road."

Sakuma: This isn't limited to TV. In today's era, trying to be liked by lying doesn't work. Modern viewers deeply dislike "media deceiving them." So, if everything looks too perfect, it feels fake, and people stop watching even genuinely successful content. If an actress was told, "You look beautiful," the standard response used to be, "I haven't done anything," as a form of modesty. But now, someone who says, "I work incredibly hard on my beauty routine!" gets more support.

Oku: So it's the authentic, unfiltered feel that gets support. In that sense, radio as a medium often features live broadcasts, and the relationship between the personality and the listeners has a unique intimacy. Mr. Sakuma, you also work as a radio personality. How do you perceive radio as a medium?

Sakuma: Radio's listener numbers can't compete with other media at all. So, content originating from radio has less power compared to streaming media. But when radio hosts events, many passionate fans gather. I think it's because they consistently speak live on the radio for two hours every day. When you talk non-stop for two hours, that person's genuine, unfiltered self inevitably comes through. I myself have been a huge radio fan since I was a kid, so I understand that feeling very well.

Oku: So you have that user experience within yourself.

Sakuma: Of course, linking media and events is important for TV and YouTube too. But I don't think you can achieve large turnouts unless you're simultaneously considering two things: the value viewers feel from that media or program, and the shared story between the listeners and the personality. And these two elements are also radio's strengths.

Oku: So the value of radio as a medium really lies in its "live quality," right? That's where the stories are born.

Sakuma: For "All Night Nippon 0 (ZERO)," the show I host, you can listen to the archives on radiko. But even so, that live quality is absolutely crucial. I speak with the intention of addressing those listening live. My goal is to make those listening live the happiest, and then make those listening via time-shift think, "I want to hear it live!"

There's definitely something you can't get from edited content, a kind of trust that only comes from being live. I think this is similar to the VTuber fandom. In the very beginning, VTubers released "fully packaged" (※) edited videos, a presentation style closer to TV. But when they started live streaming, their fanbase grew dramatically. I thought, "This is just like radio listeners."

I think there's an increasing demand for something you can only get by sharing the same moment. Lately, even on YouTube, content with strong archival value tends to get put off because people assume they can watch it anytime. That's why we're seeing more "urgent" or "live-streamed" projects, right?

※Finished package = Completely packaged. Refers to video and audio that have been fully edited and are ready for broadcast.

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Oku: "You can watch it anytime, so you never watch it." Television used to only have live broadcasts, but gradually shifted to airing pre-recorded and edited programs. Perhaps we're seeing a swing back in the opposite direction. For TV, live broadcasts of news and sports were the norm, but recently even major sporting events are increasingly streamed online via connected TVs and such.

Sakuma: Funding constraints probably play a role too. This isn't just about sports content; for example, real-time streaming of anime via video services has grown significantly. It's becoming like simultaneous global distribution through the internet. Traditional TV stations' strength was holding strong IP (intellectual property or intellectual property rights), but when global video streaming services join production committees from the start, it might become harder to hold IP that truly resonates worldwide.

We should pursue "what only that medium can do"

Oku: Mr. Sakuma, you've challenged yourself across various media. What would you like to try next?

Sakuma: I've been making comedy programs from my 20s to my 40s, but honestly, once I hit 50, I thought I might only be able to "reproduce" what I've done before. I feel like I'm entering the twilight years of my career as a TV director. So, I wondered how I could keep doing enjoyable work in my 50s. That's why I went freelance and started challenging myself across various media. Through that, I've gained clarity on my strengths and what I'm good at now. From my 50s onward, I want to actively pursue things I haven't done before.

Oku: So your goal is to stay active throughout your life? Could you share your outlook for each media platform?

Sakuma: What I've realized from working across different media is that it's crucial to create content that can only be done within that specific medium. Fundamentally, media doesn't just compete against other media. People in their 20s routinely spend significant time on dating apps, and many others are active on social media or constantly communicating. The challenge is how to capture their attention.

Oku: For creators, are there any hints that could help with content creation?

Sakuma: With IPs like anime, I feel that works which leverage distinctly Japanese elements or unique "quirks" found only in Japan tend to achieve global hits more often than those marketed specifically for global appeal. Similarly, in media content creation, I sense we're entering an era where works crafted by honing sensibilities cultivated within Japan become uniquely appealing to the world. Thinking this way, it's not such a hopeless time for creators, is it?

Oku: That's true. Scenes from everyday life that seem ordinary to Japanese people can become huge trends among overseas tourists. Watching international film festivals, I also sense that uniquely Japanese content is the kind that resonates most. Thank you so much for sharing these valuable insights!