2007 Japanese advertising market

According to Dentsu’s 2007 Japanese advertising cost report, more money was spent on the Internet advertising (600 bil yen) than magazine ads (459 bil yen) for the first time in history.

The report shows that a total of 7019 bil yen was spent for advertising in 2007 in Japan, compared to 6940 bil yen in 2006. The ads spending for TV (1998 bil yen), magazine, newspapers (946 bil yen) and radio (167 bil yen) have been declined for the past 3 years. On the other hand, the ads spending for Internet has been growing rapidly for the past 4 years in Japan.

I think that the continue growth of Internet advertising market in Japan shows that the advertisers see more values in Internet advertising than other medias. Still, the total amount spent for Internet ads is less than 30% of what was spent for TV ads. I think that advertisers will shift more budget for Internet where they can measure the effectiveness of the ads. Also, I saw more TV ads that were made to point people to their website in 2007. In order to achieve the best results, it’s time to think about both off-line and on-line ads as one campaign, instead of treating them individually.