Internet advertising catching up to magazine advertising February 22, 2007Posted by fukumimi in Economy & Business, Internet, Japan, Media.
[note: title and some text edited because it was pointed out that I can’t read 4 digit numbers properly…]
Dentsu, the Japanese advertising agency, has released statistics for the Japanese advertising market. Link
The total market size was just shy of 6 trillion yen (5.9954 trillion yen), which equates to around $50 billion, a 0.6% increase on the previous year.
Breakdown by medium shows that of the mass media channels (total 3.58 trillion yen), TV has the largest share at 2 trillion yen, newspapers at 999 billion yen, magazine advertising at 389 billion yen, and radio at 174 billion yen.
All 4 mass media posted year-on-year decreases, with newspapers taking the biggest hit (down 3.8%, TV was down 2%, and the others were also between 1-2% down).
On the other hand, most of the sales promotion (SP) advertising market (total 2 trillion yen), posted growth, with OOH, transportation and POP sectors posting the strongest growth of more than 3% each.
The big story is that internet advertising posted 363 billion yen in sales in 2006, 29.3% year-on-year growth, and
now surpasses is on track to overtake (edited) the magazine advertising market. (The growth is down from 54.8% the previous year, though) Internet advertising accounted for 6% of the total advertising spend. The numbers for internet advertising include mobile internet, which is already a well established market in Japan.
I’ve always wondered if people not on flat rate data packages get annoyed by the fact that they are paying to have advertising displayed on their screens. I would have thought that banner ads (which is common on the mobile screen) account for a significant amount of data.