Interpreting the Dialogue "2013 Japan Advertising Expenditures" Professor Hirokazu Oto, Sophia University × Ritsuya Oku, Senior Researcher, DENTSU SOKEN INC.

The recently published "2013 Japan Advertising Expenditure Report."
What meanings and challenges can be gleaned from the figures compiled this time? And what implications does this hold for future corporate strategy and communication business?
Mr. Ritsuya Oku of DENTSU SOKEN INC., who compiled the data, and Professor Yoshihiro Oto of Sophia University, an expert in media theory and information society studies, discussed these points.

　

 

■ Expectations for Abenomics Clearly Reflected in the Numbers

Oku: First , regarding total advertising expenditure: in 2013, it reached ¥5.9762 trillion, a 101.4% increase year-on-year. After a negative trend following the Lehman Shock, the consecutive year-on-year increases in 2012 and 2013 suggest a slight recovery trend.

 

Voice: Expectations for Abenomics are reflected in the advertising expenditure figures. Additionally, there was an increase in advertising volume anticipating a rush of demand before the consumption tax hike. While the start of terrestrial digital broadcasting boosted TV sales, I believe this also coincided with the replacement cycle for those TVs, ten years later. We're also seeing heightened purchasing interest in durable goods other than TVs, which should lead to further increases in advertising spending going forward.

 

Oku: Now , I'd like to hear your thoughts on each medium. First, the four mass media. The total was ¥2.7825 trillion, a 100.1% year-on-year increase. Breaking it down: Newspapers at ¥617.0 billion (98.8%), magazines at ¥249.9 billion (98.0%), radio at ¥124.3 billion (99.8%), and television at ¥1,791.3 billion (100.9%). If there are any key points behind these figures or your personal observations, Mr. Oto, please share them.

 

Oto: While newspaper revenue for the full year was slightly below the previous year, it has been recovering in the latter half. Including regional papers, companies are diversifying their efforts—such as placing ads in wrappers and special editions—and it seems these creative approaches are paying off. National papers are also focusing on their digital editions, but as an advertising medium, they're still at the starting gate. However, looking at students, we see a growing segment subscribing to digital editions rather than print as they prepare for job hunting. With this increase in digital natives in mind, the question is how to develop going forward.

 

Oku: Magazine sales were slightly down year-on-year, but business magazines performed particularly well.

 

Oto: I believe the Abenomics effect has significantly boosted business magazines. Additionally, they're covering diverse themes beyond just economic issues, broadening their appeal to a wider audience.

 

Oku: Radio remains largely flat in the Tokyo metropolitan area, but local stations are showing signs of recovery.

 

Oto: Radio has long been considered a tough market, but within that, stations are trying various approaches, like collaborating with multiple sponsors to create programs. Regional areas are actually more proactive than the metropolitan area.

 

Oku: One notable development is "radiko.jp," which lets you listen to radio online. Currently, 69 stations participate.

 

Oto: It feels like radio has entered a new phase. With the advancement of multi-channel offerings and the segmentation of listeners, we've entered an era where it's easier to attract advertisers.

 

Oku: TV saw accelerated growth in the latter half of the year . Spot advertising performed particularly well.

 

Oto: This highlights television advertising's characteristic of being most closely linked to economic sentiment. However, rather than simply celebrating the improved economy, the major challenge is how to connect this to the next phase of communication strategy.

■ An Era Demanding Media Planning Expertise

Oku: Regarding television-related media , satellite media reached ¥111 billion, a 109.6% year-on-year increase. It continues to show significant growth.

 

Oto: BS satellite channels have established their program distinctiveness, and I believe this reflects their perceived quality. However, recent growth in penetration rates has slowed, making the coming period critical. The key will be how to position their unique media value, distinct from terrestrial broadcasts, including through viewership surveys.

 

Oku: Regarding BS , plans were announced to automate contact rate surveys starting next spring. The challenge is how to leverage this for business expansion and service improvement. If we navigate this skillfully, there's ample potential for further growth.

 

Oto: This is a challenge common to CS as well: data standardization is essential. Establishing standardized data itself should enhance the advertising value of the medium.

 

Oku: While the rapid growth of internet advertising spending has slowed, it still reached 938.1 billion yen, a 108.1% increase year-on-year. Particularly noteworthy is the growth of performance-based advertising, represented by search-linked ads.

 

Oto: Programmatic advertising is a prime example, but now, collaboration between media outlets is becoming crucial for Japanese advertising. In other words, the strength of media planning is being tested. What sets today's youth apart from our generation is that their sense of empathy through media has shifted from TV and radio to online media. If we can create a model that effectively connects that empathy to the four mass media outlets, the value of advertising media will be further enhanced.

 

Oku: Promotion media also exceeded the previous year , reaching 2.1446 trillion yen. This marks the second consecutive year of growth. Areas performing particularly well included outdoor advertising, transit advertising, POP, and exhibitions.

 

Oto: Transit and outdoor advertising have matured with the spread of digital signage. I recall during a business trip to the regions, a local remarked, "The in-car vision screens on the Yamanote Line are amazing." That made me realize, "Ah, right. Those are a symbol of the big city landscape."

 

Oku: When we conduct group interviews with young people , they pay more attention to in-train ads like hanging advertisements than we might expect. In-train displays are one example, but as a relatively new medium, I think they have particularly strong appeal.

■ Collaboration between Mass Media and Online Media Becomes Increasingly Important

Oku: Now , looking ahead to the outlook after 2014, the rapid proliferation of smart devices is something we can't ignore. In our Tokyo metropolitan area survey, smartphone ownership among those in their early 20s jumped from around 60% two years ago to over 80%. Conversely, ownership of traditional mobile phones has decreased proportionally. As this media shift progresses, I believe the collaboration between the four mass media and online media, as Professor Oto mentioned earlier, will become increasingly important.

 

Oto: Traditionally, advertisers only needed to create ads for PCs and mobile phones. But with the diversification of devices, advertisers are now forced to rebuild their communication strategies. On the media side, there's also a movement to establish systems capable of delivering ads seamlessly across platforms. This includes collaboration between media outlets and even moves toward capital integration.

 

Oku: For media companies , we've entered an era where the same content must be distributed through multiple information channels. Sponsors, too, need to observe changes in user behavior and rethink how they deliver and combine their advertising. With signs of economic recovery now visible, this may be the perfect opportunity to experiment and try new approaches.

 

Oto: The Ministry of Internal Affairs and Communications is currently examining subtitling approaches for the smart TV era. Some major advertisers are already producing subtitled commercials. When we speak with consumer goods manufacturers implementing this, they express a strong sense of urgency. They even say, "We won't survive unless we try new things." Similarly, we must trial and accumulate evidence on how well domestic Japanese communication strategies translate overseas. Now is precisely the time to move forward without fear.

 

Oku: Companies actively pursuing new trials are very proactive, yet surprisingly, users often aren't aware of them. Bridging that gap could foster an environment where the next generation of media and services can thrive.

 

Oto: I believe the essence of the economy is "spirit." The clearest example is how China seemed to have greater economic power than Japan for over a decade. Yet, it only surpassed Japan in GDP very recently, right? What matters is which direction the vector is pointing. When the vector is pointing upward, you can see the sense of expectation for the future. The figures for "Japan's Advertising Expenditures" this time are precisely what foster that sense of expectation. That's where the meaning and interest lie in examining the percentage change compared to last year.

 

Oku: Thank you for sharing your valuable insights .