Japan looks to be finally showing signs of recovery, with major
advertising networks reporting strong growth in billings and profits
after two years of recession.
Dentsu saw a 12.4 per cent hike in gross profit to 198.7 billion yen
(US$1.9 billion) on the back of a 4.2 per cent rise in billings
to 1,348.3 billion yen (US$12.8 billion) in the 1999 fiscal
year.
In terms of media, Dentsu's non-consolidated billings increased by 5.3
per cent for newspapers, 3.1 per cent for magazines, 4.2 per cent for
television, but decreased by 3.7 per cent for radio.
Billings for the 1999 fiscal year were the second highest to date,
exceeded only by fiscal 1997, according to Dentsu's income report.
Adspend in the world's second-largest market after America started to
boom early last year because of the staggering growth rates posted by
telecommunications, Internet and Internet-related business.
Advertising activities were also boosted by the increase of venture
capital business in Japan after the government implemented aggressive
fiscal measures aimed at turning around the slumping economy and to open
more local market sectors to foreign investors.
Flourishing venture and foreign businesses in other categories,
particularly banks, also contributed to the lift in total adspend
following the economic slump.
Hakuhodo and Asatsu DK respectively experienced an 11 per cent and 9.6
per cent jump in billings.
