News

Japanese digital ad spend hits one trillion yen, as print sinks further

Digital advertising expenditure in Japan grew by 13 per cent to hit one trillion yen (US$8.9 billion) last year, according to Dentsu. Ad spend on smartphones and apps, alongside online commercials, helped drive the country’s overall expenditure up by 1.9 per cent to reach 6.3 trillion yen ($55.8 billion).

However, despite small increases in spend on television (1.7 per cent) and radio (2.5 per cent), overall expenditure on traditional media dipped by 0.4 per cent. This was attributable to steep declines in print media spends, with ad expenditure on magazines falling by 9 per cent and newspaper spending falling by 4 per cent.

Last summer’s Olympic and Paralympic Games in Rio de Janeiro, plus the G7 Summit held in Shima, Japan, were cited as strong contributing factors in the market’s growth.

However other negative elements such as an appreciation of the yen and falling stock prices, in combination with global conflicts and terrorist attacks, were said to have dampened the potential for increased growth somewhat.

Recent shake-ups within the Japanese energy market that led to the liberalisation of regional utilities monopolies contributed to a 41 per cent rise in campaigns by power companies, the report added.
Meanwhile, advertising expenditure in the real estate and home improvement sector witnessed a rise of 6.7 per cent. At the same time, ad spends declined across a number of consumer areas including  watches, digital cameras and fashion items – all posting steep declines ranging between 13 to 10 per cent.

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