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Advertising Expenditures in Japan

Overview of Advertising Expenditures in Japan for 2017

Total advertising expenditures rose 1.6%, to ¥6,390.7 billion

Japan’s advertising expenditures for calendar 2017 totaled ¥6,390.7 billion, an increase of 1.6% compared with the previous year’s figure. Overall advertising expenditure increased for a sixth consecutive year, as the nation experienced the secondlongest period of continuous post-war economic growth.

General Characteristics of Advertising Expenditures during Calendar 2017

  1. The 1.6% full-year growth rate for overall advertising expenditures in 2017 was underpinned by sustained, gradual expansion in the Japanese economy, which benefitted from the convergence of an array of positive factors. These include recovery in the global economy, rising corporate earnings, an improvement in the employment environment, weakening of the yen exchange rate, and a vigorous stock market. In particular, robust spending in Internet advertising drove overall expenditure growth. Across the advertising market as a whole, the transformation to digital advertising media advanced on a range of fronts, as integrated communication platforms that leveraged the particular characteristics of each medium became more conspicuous.
  2. Broken down by medium, advertising expenditures fell in Newspapers (down 5.2%), Magazines (down 9.0%), and Television (down 0.9%; including both Terrestrial Television and Satellite Media-Related spending), and rose in Radio (up 0.4%). As a result, overall spending in the traditional media posted a decline of 2.3%. In Internet advertising expenditures (up 15.2%), growth of performance-based ads and video ads directed at users of mobile devices was particularly strong. Hence, growth in the Internet medium remained the key driver for advertising expenditures overall. Although spending on Promotional Media decreased (down 1.5%), growth was recorded for Outdoor, POP, and Exhibitions/Screen Displays and other sub-categories.
  3. By industry category (for the traditional media, but excluding Satellite Media-Related spending), year-on-year spending rose in 6 of the 21 industry categories.
    Major categories posting gains were Real Estate/Housing Facilities (up 8.9% on increased placements for general housing); Energy/Materials/Machinery (up 8.0% on placements for ads related to gas market liberalization); Information/Communications (up 1.7% on increased placements for web content and smartphones); and Automobiles/Related Products (up 1.5% on stronger advertising for station wagons/hatchbacks, K-cars (engine displacement up to 660 cc) and SUVs).
    Major categories posting declines included Home Electric Appliances/AV Equipment (down 11.4% on decreased advertising for vacuum cleaners, and hair styling and beauty appliances); Precision Instruments/Office Supplies (down 11.2% on decreased placements for wristwatches and digital cameras); Distribution/Retailing (down 9.7% on decreased placements for general merchandise stores and convenience stores); Government/ Organizations (down 8.1% on fewer placements for advertising industry organizations and foreign/Japanese government and public agencies); Apparel/Fashion, and Accessories/ Personal Items (down 8.0% on decreased advertising for casual wear).

In calendar 2017, Japan’s nominal gross domestic product (GDP) grew 1.4%. Advertising expenditure for the year amounted to 1.17% of nominal GDP, unchanged from the corresponding figure for 2016.

2017 Advertising Expenditure Component Ratios by Medium

Full Report
Advertising Expenditures in Japan 2017 (606KB)