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Advertising Expenditures in Japan

Overview of Advertising Expenditures in Japan for 2016

Total advertising expenditures rose 1.9%, to ¥6,288.0 billion

Japan’s advertising expenditures for 2016 totaled ¥6,288.0 billion, an increase of 1.9% compared with the previous year’s figure. The gradual expansion of Japan’s economy in calendar 2016 saw overall spending on advertising post year-on-year gains for a fifth consecutive year.

General Characteristics of Advertising Expenditures during Calendar 2016

  1. Factors that had been expected to have a positive impact on advertising expenditures in 2016 include gradual growth in the Japanese economy; the 2016 Summer Olympic and Paralympic Games in Rio de Janeiro; the G7 2016 Ise-Shima Summit; and an upswing in marketing activities, in particular driven by the expansion of Internet advertising. However, expectations were dampened by such factors as weak domestic demand, thought to have been caused by natural disasters, uncertainty concerning the future, and other factors; a slackening in corporate performance accompanying appreciation of the yen and falling stock prices; as well as the emergence of such risk factors as terrorism and a protectionist climate worldwide. Together, these factors contributed to advertising expenditure growth of 1.9% for the full calendar year.
  2. Broken down by medium, advertising expenditures fell in Newspapers (down 4.4%), Magazines (down 9.0%), Radio (up 2.5%), and Television (up 1.7%; including both Terrestrial Television and Satellite Media-Related spending). As a result, overall spending in the traditional media posted a slight decline of 0.4%. In the Internet advertising market (up 13.0%), ads directed at smartphones, as well as video ads and ads using new advertising technologies and data applications continued to expand. Thus growth in the Internet medium remained the key driver for advertising expenditures overall. Although spending on Promotional Media decreased (down 1.1%), growth was recorded for Outdoor as well as Exhibitions/Screen Displays and other sub-categories.
  3. By industry category (for traditional media, but excluding Satellite Media-Related spending), year-on-year spending rose in 9 of the 21 industry categories.
    Major categories posting gains included Energy/Materials/Machinery (up 41.0% on campaigns for electric power companies (new market entrants) and gas companies); Home Electric Appliances/AV Equipment (up 9.7% on increased advertising for hair styling and beauty appliances, refrigerators and 4K televisions); Real Estate/Housing Facilities (up 6.7% on increased placements for general housing and kitchen units); Pharmaceuticals/Medical Supplies (up 4.2% on increased advertising for general health supplements, contact lenses and general gastro-intestinal medicines); and Foodstuffs (up 3.5% on increased placements for direct-marketed dietary supplements, health foods and chocolate).
    Major categories posting declines included Precision Instruments/Office Supplies (down 13.8% on decreased placements for wristwatches and digital cameras); Apparel/ Fashion, Accessories/Personal Items (down 10.0% on decreased advertising for women’s clothing and casual wear); Automobiles/Related Products (down 6.0% on weaker advertising for K-cars (engine displacement up to 660 cc), imported station wagons/hatchbacks, and station wagons); Education/Medical Services/Religion (down 5.5% on fewer placements for correspondence education programs and schools); and Beverages/Cigarettes (down 5.3% on lower placements for beer-like alcoholic beverages).

In calendar 2016, Japan’s nominal gross domestic product (GDP) grew 1.3%. Advertising expenditure for the year rose to 1.17% of nominal GDP, compared with 1.16% in 2015.

2016 Advertising Expenditure Component Ratios by Medium

Full Report
Advertising Expenditures in Japan 2016 (551KB)