MAM

Ad expenditure down 2.3% in Japan: Dentsu

MUMBAI: Japan‘s advertising expenditure in 2011 totaled 5,709.6 billion yen, a decrease of 2.3 per cent compared with the previous year, according to a report released by Dentsu.


The ad expenditure rebounded in 2004 after a three-year decline, due to a recovery in the Japanese economy and the rapid proliferation of digital home electric appliances.


Spending continued to grow in 2005 (up 2.9 per cent), 2006 (up 1.7 per cent) and 2007 (up 1.1 per cent), but fell by 4.7 per cent in 2008 as a result of the financial crisis in the United States and ensuing simultaneous global recession.


Annual spending shrank further in 2009 (down 11.5 per cent) and 2010 (down 1.3 per cent), and dropped slightly again in 2011, largely due to the impact of the Great East Japan Earthquake and Tsunami.


In 2011 the Japanese economy was battered by a number of factors that adversely affected advertising spending, including the March 11 Great East Japan Earthquake and Tsunami, the financial crisis in Europe, a sharp rise in the value of the yen, and major flooding in Thailand, which disrupted production and logistics systems in the manufacturing sector.


In particular, after the earthquake and Tsunami many companies cut back on their advertising activities out of respect for the victims of the disaster. As a result, overall ad expenditures totaled 5,709.6 billion yen, a decline of 2.3 per cent from the previous year, Dentsu said in its annual report which provided an estimated breakdown of the ad expenditures in Japan for the 2011 calendar year.


However, placements recovered strongly during the second half of 2011, and spending in the traditional media during the October-December quarter was even higher than during the same period in 2010, which also recorded robust growth.


Broken down by medium, expenditures were lower in Television (down 0.5 per cent), Newspapers (down 6.3 per cent), Magazines (down seven per cent) and Radio (down four per cent).


Overall spending in the traditional media declined by 2.6 per cent. In other media, advertising in Promotional Media also fell (down 4.6 per cent). Satellite Media-related spending posted double-digit growth (up 13.6 per cent) as the switch to digital terrestrial broadcasting boosted demand for television sets equipped with 3-band tuners.


Internet advertising continued to grow (up 4.1 per cent), due in part to the development of new advertising modalities targeting social media.


By industry category (for the traditional media), expenditures grew in 5 of the 21 industry categories, including Apparel/Fashion, Accessories/Personal Items, where placements were higher for women‘s clothing and handbags; Distribution/Retailing, as a result of a rise in spending by direct marketing companies and convenience stores; Information/ Communications, on growth in smartphones and related services, and web content advertising; and Government/Organizations, due to an increase in ad placements by Advertising Council Japan.


In contrast, expenditures fell in 16 of the 21 industry categories, including Beverages/Cigarettes, where spending for domestic beer and shochu (a distilled liquor) declined; and Home Electric Appliances/AV Equipment, which saw weaker demand for LCD and plasma televisions.


A quarterly breakdown of advertising expenditures for the traditional media in the 2011 calendar year shows that spending recovered steadily in the second half of the year, and was higher in the October--December quarter than during the same period in 2010.


The industry categories posting gains were Apparel/Fashion, Accessories/Personal Items (up 6.8 per cent), on increased placements for women‘s clothing and handbags; Distribution/Retailing (up 2.6 per cent), due to stronger demand for direct marketing and convenience store advertising; Real Estate/Housing Facilities (up 1.5 per cent), as a result of an increase in corporate advertising by housing manufacturers, and placements related to solar power systems; Information/Communications (up 0.5 per cent), thanks to growth in smartphones and related services, and web content advertising; and Government/Organisations (up 166.4 per cent), as a result of an increase in ad placements by Advertising Council Japan.


On the other hand, five industry categories posted double-digit declines. These were Home Electric Appliances/AV Equipment (down 25.7 per cent), on reduced placements for LCD televisions, plasma televisions and batteries; Energy/Materials/Machinery (down 20.6 per cent), due to a sharp decline in advertising by electric power companies; Food Services/Other Services (down 10.9 per cent), which was hurt by cuts in spending on ads for ladies‘ wigs and ads for legal services; Precision Instruments/Office Supplies (down 10.6 per cent), as the result of a drop in digital camera advertising; and Hobbies/Sporting Goods (down 10.2 per cent), where demand was weak for pachinko machines and "pachi-slo" slot machines, and for audio software ads.


Advertising expenditures were also lower in Beverages/Cigarettes (down 9.9 per cent), due to reduced spending on domestic beer, happo-shu (low-malt beer), no-malt "third category" beer and shochu; Finance/Insurance (down 8.2 per cent), which was impacted by cutbacks in advertising for direct-marketed medical insurance, corporate advertising by insurance companies and ads for investment funds; Foodstuffs (down 7.6 per cent), where fewer ads were placed for instant noodles, tsukudani (food boiled down in sweetened soy sauce to preserve it) and beauty-related food products; Transportation/Leisure (down 7.5 per cent), as overall travel-related advertising was depressed, especially on the part of hotels and travel agencies; Education/Medical Services/Religion (down 7.3 per cent), which saw reductions in advertising for schools and correspondence education; Cosmetics/Toiletries (down 3.8%), where spending fell on cosmetics series for women, facial cleansers and hairdressing products; Pharmaceuticals/Medical Supplies (down 1.7 per cent), on lower demand for medicines for intestinal disorders, mouthwashes and sore throat remedies; and Automobiles/Related Products (down 1.4 per cent), due to reduced placements for sedans, mono-box minivans and sports coupes.

Latest Reads

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/02/28/World-Hyatt.jpg?itok=1fVpGiDt
MullenLowe's Hyatt campaign launched at Oscars

MUMBAI: Hyatt Hotels Corporation has announced the launch of World of Hyatt, Hyatt’s new global platform grounded in the simple idea that a little understanding goes a long way. This reflects Hyatt’s purpose and reaffirms its commitment to building genuine and trusted experiences and engaging its...

MAM Media and Advertising Ad Campaigns
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/02/28/Triangular-Plastic-Crayons_0.jpg?itok=kSW-xyE3
Kokuyo Camlin unveils funky stationery

MUMBAI: Kokuyo Camlin Ltd (formerly known as Camlin Ltd) premier stationery and art marketer recently launched funky and innovative products for school children. From the unique triangular plastic crayons to some other cool stationery products. Triangular Crayons!

MAM Marketing Brands
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/02/28/Kabir-Bedi-Sightsavers.jpg?itok=YUzlGeRi
Kabir Bedi is Sightsavers' brand ambassador

MUMBAI: Sightsavers, a leading global development organisation working in over 30 countries to combat avoidable blindness and promote equal opportunities for visually impaired announced its association with internationally acclaimed actor and director, Kabir Bedi as its brand ambassador.

MAM Marketing Brands
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/02/28/Max-Emerging-Star-17.jpg?itok=xV7DmWkw
Max Fashion launches 'Max Emerging Star'

MUMBAI: Max, a leading international fast fashion brand, has announced its new property ‘Max Emerging Star’ which will serve as the perfect platform for India’s aspiring actors, dancers and fashion enthusiasts to fulfill their dreams and get groomed for superstardom. The contest is focused on the...

MAM Marketing Brands
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/02/27/Raj-Nayak%20%281%29.jpg?itok=8WKUGJMz
Abby Awards 2017 shortlists to be available for review

The iconic and pioneering Creative Awards - Abby 2017 has set another benchmark in transparency and efficacy. After receiving the highest ever number of creative entries, the first round of the prestigious Abby awards judging is presently on in multiple locations. The shortlists selected by the...

MAM Marketing MAM
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/02/27/star-plus%20%281%29.jpg?itok=a3XZn0Yb
Star Plus brings 'Nayi Soch' with Aamir for Women's day

MUMBAI: Star India has constantly endeavoured to inspire social change through its thought-provoking programming, and this mission is reflected in the journey of its ‘Nayi Soch’ (new thinking) campaigns, which have continued to positively impact millions of lives.

MAM Media and Advertising Ad Campaigns
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/02/27/Priyanka-Chopra.jpg?itok=GDkjmIHa
Delhi HC says it can't decide shampoo quality as stated in ads

NEW DELHI: A Delhi court has sent a message to petitioners that it would turn into a lab if it starts entertaining all claims made in media adverts by companies about their products.

MAM Marketing MAM
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/02/27/Rashmi-Daga_0.jpg?itok=UTWu6_tJ
#TrySomethingNew from FreshMenu.com

MUMBAI: FreshMenu.com, one of the leading online restaurants, recently launched its online campaign, #TrySomethingNew .The series features inspiring young individuals who have dared to try something different in their lives.

MAM Media and Advertising Ad Campaigns
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/02/24/Nishi%20Kant-800x800.jpg?itok=uIvLqDHm
Dentsu Webchutney ropes in Nishi Kant as EVP & Mumbai head

MUMBAI: Dentsu Webchutney, a digital agency from the Dentsu Aegis Network, has appointed Nishi Kant as EVP & Branch Head- Mumbai. Kant will lead the charge for the agency’s Mumbai office. He will be reporting to Dentsu Webchutney co-founder & CEO Sidharth Rao. This is Nishi’s second stint...

MAM Media and Advertising People

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories