The Japanese advertising market is at last seeing an increase in expenditure.

Latest figures from agency giant Dentsu show the nation's adspend in 2004 rose by three percent to ¥5.86 trillion ($55.6bn, €42.4bn, £29.2bn), while forecasts for 2005 indicate it will increase by 1.4%.

The numbers have been boosted by last year's Athens Olympic Games and domestically by elections and a hot summer. Television advertising posted a 4.9% increase to ¥2.04 trillion while spending on internet ads expanded 53% to ¥181.4 billion.

Japan's advertising market experienced sluggish conditions in the previous three years due to poor economic performance. During that period agencies cast their nets further afield, encouraged by China's consumer boom.

The more robust domestic figures have boosted Dentsu's operating profits by thirty two percent for the nine month period until the end of December.

Data sourced from Wall Street Journal Online; additional content by WARC staff