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Internet advertising identified as growing rival to TV ads in Japan

Data from Japan

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Internet advertising continues to grow in Japan as marketers find that targeted search-based ads are very effective.

A study by advertising giant Dentsu found that total ad spending in Japan in 2018 rose 2.2% from the previous year, to 6.53 trillion yen, reflecting the slight economic expansion. This is the seventh consecutive year-over-year increase.

Ad spending in the four major media (TV, radio, magazines and newspapers) fell 3.3% year-on-year, totaling 2.7 trillion yen. Internet ad spending, meanwhile, rose 16.5% to 1.76 trillion yen. Online advertising has seen double-digit growth for five consecutive years, increasing overall ad spend. Advertising agencies are increasingly looking to measure the effects of ad spend and prioritize targeted advertising, while “programmatic advertising” based on Internet viewing histories and search records is on the rise.

Television commercials have long been the dominant form of advertising, but now Internet advertising has become a fierce rival. Although online ads only accounted for 5.5% of all ads in 2005, by 2018 their share had risen to 26.9%.

The breakdown of online advertising spending reveals that ads placed on digital versions of the four major media types, including online versions of newspapers and magazines, totaled 58.2 billion yen in 2018.

(Translated from Japanese. Banner photo © Pixta.)

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