Dentsu Inc. released its calendar year 2017 annual report on advertising expenditures in Japan, including an estimated breakdown by medium and industry.
Based on Dentsu's survey, Japan's advertising expenditures for 2017 totaled 6,390.7 billion yen, an increase of 1.6% compared with the previous year's figure. Accompanying Japan's continuing economic growth in calendar 2017, overall spending on advertising posted year-on-year gains for a sixth consecutive year.
日本の広告費2017（億円） Ad Expenditure 2017（JPY'100million）
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.
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% including medium expenditures and production costs), 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.
Internet Advertising Medium Outlook
Spending on Internet advertising (medium expenditures and production costs) reached 1,509.4 billion yen (up 15.2%), posting double-digit growth for the fourth consecutive year. In particular, there was a further acceleration in growth for performance-based ads and video ads aimed at users of mobile devices. Internet advertising expenditures accounted for 23.6% of spending in all media, a rise of 2.8 percentage points compared with 2016. Internet advertising medium costs amounted to 1,220.6 billion yen (up 182.8 billion yen, or 17.6%).