Dentsu Predicts Surge in Japanese Online Ad Market

19 April 2007

TOKYO: Japanese-headquartered marketing services giant Dentsu is predicting a significant rise in domestic online advertising by 2011. Its research arm, Dentsu Communication Institute, estimates spending on the web will double to ¥755.8 billion ($6.37bn; €4.68bn; £3.1bn) in 2011, from ¥363bn last year.

Web advertising will grow at an annual average rate of 15.8% through the next five years. In 2006 online took around 6% of Japan's ¥6 trillion adspend.

The company forecasts that online ads, including banner ads, video streaming and messages sent to registered email addresses, will by 2011 account for ¥400.9bn - more than half of total web advertising.

Search advertising is predicted to account for nearly 30% of all online activity. Around 17%, or ¥128.4bn, is expected to be spent on ads for web services through mobile devices in 2011, three times last year's figure.

Denstu's latest data also show that marketers spent ¥2.01tn on television commercials in 2006, account-ing for 33.6% of total adspend. Newspapers' share of the ad market was 16.7%, while spending in magazines accounted for 6.5% of the total.

Data sourced from Asahi Shimbun Online; additional content by WARC staff