Dentsu: Japan Ad Economy Expands For First Time In Five Years, Remains Unpredictable

by Joe Mandese @mp_joemandese, May 14, 2013

Japan’s advertising economy expanded 3.2% in 2012, marking the first increase in five years for one of the world’s most developed ad markets, according to estimates released this morning as part of Tokyo-based agency holding company Dentsu’s first-quarter earnings statement. The quarter, the last of Dentsu’s fiscal year, saw net sales expand 2.5% over the same quarter in 2012.

While demand for advertising, especially TV advertising time, showed a “strong upturn” during the second quarter as Japan’s ad market continued to rebound from the lingering effects of the earthquake and tsunami, Dentsu said other macroeconomic issues -- including economic tumult in Europe and a slowdown in China, as well as overall uncertainty in the world’s economy -- means that ad demand “started slow” and the outlook will remain “unpredictable.”

In terms of specific media, Dentsu said “traditional media” expanded 2.9% during 2012, while “promotional media” rose only 1.4%. Satellite television was the fastest-growing sector, rising 13.7% over 2011, while Internet advertising also beat the overall marketplace, expanding 7.7%.

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