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Advertising Expenditures in Japan

Overview of Advertising Expenditures in Japan for 2018

Total advertising expenditures rose 2.2%, to ¥6,530.0 billion

Japan’s advertising expenditures for calendar 2018 totaled ¥6,530.0 billion, an increase of 2.2% compared with the previous year’s figure. Overall advertising expenditure increased for a seventh consecutive year, as the nation experienced what is being hailed as Japan’s longest period of continuous economic growth in the post-war era.

General Characteristics of Advertising Expenditures during Calendar 2018

  1. Sustained, gradual expansion in the Japanese economy underpinned the full-year growth rate of 2.2% for overall advertising expenditures in 2018. Although the Japanese economy faced many challenges, such as uncertainty in the outlook for the global economy, frequent natural disasters, as well as weakness in personal consumption and income sentiment, economic growth was buttressed by such factors as robustness in corporate earnings and the employment environment. Furthermore, the continued favorable performance by Internet advertising drove overall advertising expenditure growth. The market as a whole may be characterized as being in the midst of a structural transformation.
    The year saw further advances in the area of integrated solutions, which utilize a mixture of Internet and traditional media to address challenges that cannot be solved by Internet-based advertising alone. Efforts to further bolster the strengths of each medium by leveraging data and technology became more conspicuous.
  2. Broken down by medium, advertising expenditures fell in Newspapers (down 7.1%), Magazines (down 9.0%), Radio (down 0.9%), and Television (down 1.8%; including both Terrestrial Television and Satellite Media-Related spending). As a result, overall spending in the traditional media posted a decline of 3.3%. Internet advertising expenditures (up 16.5%) achieved robust growth centering on performance-based advertising. An additional key factor was an increase in digital advertising carried by traditional media companies* (estimates for this category are included in the report for the first time in 2018, and the provisional estimates for 2017 are not disclosed). Consequently, Internet advertising was the major driver contributing to growth of the advertising market as a whole. In Promotional Media (down 0.9%), Transit, POP, and Exhibitions/Screen Displays recorded growth compared with the previous year.

    * Digital advertising carried by traditional media companies refers to advertising on Internet media properties operated by companies in the four major traditional media. Specifically, it refers to advertising expenditures on Newspapers Digital, Magazines Digital, Radio Digital, and Television Media Digital. These digital advertising expenditures are not included in estimates given for the traditional media. Television Media Digital includes a further sub-category of “Television media-related video advertising,” which refers to advertising expenditures on video streaming-type media, including catch-up TV services.

    Advertising Expenditures by Medium for 2018
    Media Advertising Expenditures
    (¥ billion)
    YoY Comparison Ratio (%) Component Ratio (%)
    Traditional Media
      Newspapers 478.4 92.9 7.3
    Magazines 184.1 91.0 2.8
    Radio 127.8 99.1 2.0
    Television 1,912.3 98.2 29.3
      Terrestrial Television 1,784.8 98.2 27.3
    Satellite Media-related 127.5 98.1 2.0
    Subtotal 2,702.6 96.7 41.4
    Digital advertising carried
    by traditional media companies
    58.2 - 0.9
      Newspapers Digital 13.2 - 0.2
    Magazines Digital 33.7 - 0.5
    Radio Digital 0.8 - 0.0
    Television Media Digital 10.5 - 0.2
      Television media-related video advertising 10.1 - 0.2
    Subtotal 1,758.9 116.5 26.9
    Promotional Media
      Outdoor 319.9 99.7 4.9
    Transit 202.5 101.1 3.1
    Flyers 391.1 93.8 6.0
    Direct Mail 367.8 99.4 5.6
    Free Newspapers / Free Magazines 202.1 94.6 3.1
    POP 200.0 101.3 3.1
    Telephone Directories 26.6 90.5 0.4
    Exhibitions / Screen Displays 358.5 105.8 5.5
    Subtotal 2,068.5 99.1 31.7
    total 6,530.0 102.2 100.0
  3. By industry category (for the traditional media, but excluding Satellite Media-Related spending), year-on-year spending rose in 5 of the 21 industry categories.
    Major categories posting gains included Precision Instruments/Office Supplies (up 23.2% on increased placements for magnifying spectacles); and Food Services/Other Services (up 4.0% on increased advertising for restaurants and temporary job placement agencies).
    Major categories posting declines included Publications (down 12.8% on decreased placements related to publication releases, and women’s and home magazines).

In calendar 2018, Japan’s nominal gross domestic product (GDP) grew 0.6%. Advertising expenditure for the year amounted to 1.19% of nominal GDP, an increase of 0.02 percentage points compared with 2017.

2018 Advertising Expenditure Component Ratios by Medium

Full Report
Advertising Expenditures in Japan 2018 (592KB)