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Japan Adspend Sinks Still Further

News, 20 February 2002

Yet more bad news for the Japanese advertising industry, already flailing in the midst of recession.

According to Nippon’s largest agency Dentsu, national adspend in 2001 diminished by 0.9% to $45.7 billion (€52.2bn; £31.97bn). But in Japan, as with the ad community at large, 2000 was the highest-spending year ever – a point frequently overlooked by the doomsayers.

Dentsu, through whose coffers pass 25% of all Japanese advertising revenues, sees no light at the end of the tunnel in 2001, predicting that adspend will sag by a further 3.2%.

Magazines bore the brunt of last year’s ad famine, with revenues down by 4.3%. Newspapers fell 3.6%, neck-and-neck with radio, which lost 3.5%. However, TV advertising managed to hold its own, down just 0.5% , while internet advertising actually rose by 24.6%.

Among advertisers the biggest casualties were former high rollers, the IT and telecommunications sectors – down by 11.3%, their first decline in eight years. But auto industry ad revenues increased by 6% - the first rise in four years.

Amid the general economic murk, Dentsu discerns two glimmers: the expected upturn in the US economy and this summer’s World Cup soccerfest to be held in Japan and Korea

Data sourced from: BrandRepublic (UK); additional content by WARC staff