David Blecken
Feb 23, 2018

Mobile and video drive Japanese adspend growth: Dentsu

Digital advertising now accounts for nearly a quarter of total spending.

Mobile and video drive Japanese adspend growth: Dentsu

Japanese advertising spend rose 1.6% year-on-year to almost 6.4 trillion yen (US$59.8 billion) in 2017, according to a report by Dentsu.

Dentsu said total spending increased for a sixth consecutive year, supported by a strengthening domestic economy. The OECD points to 1.5% growth in Japan in 2017, and forecasts growth of around 1% for the next two years.

Digital media gives the most cause for optimism. Spending on online channels was up 15.2% to 1.5 trillion yen ($14 billion), with performance and mobile-oriented video advertising especially strong, Dentsu said. The increase marks the fourth straight year of growth. Dentsu said internet advertising accounted for nearly 24% of total spending.

At the same time, traditional media spending continued to decrease, falling 2.3% overall. Spending on TV fell by 0.9%; newspapers by 5.2%; and magazines by 9%. Promotional media spending also fell 1.5%.  Radio grew marginally for a second consecutive year (0.4%). 

The home appliances sector cut spending the most (11.4%). But despite the downward trend, six out of 21 industry sectors, including automotive, spent more on traditional media.

Source:
Campaign Japan

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