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Japan: Online ad revenue tops TV

March 12, 2020

Internet advertising revenue topped cash spent on TV ads for the first time in Japan in 2019.

Online ad revenue surged 19.7 per cent in the country last year, compared to 2018, to hit 2.1048 trillion yen (€18.05 billion), according to advertising agency Dentsu.

TV ad revenue from programmes fell to 1.8612 trillion yen, down 2.7 per cent from a year earlier.

As a whole, domestic ad buyers shelled out 6.9381 trillion yen in 2019 for promotion in mediums including internet, TV and newspapers.

Total ad revenue was up in 2019 for the eighth year in a row, rising 1.9 per cent compared to 2018 with the same condition.

Online revenue from targeted ads stemming from the records of users’ search results and ads on social media platforms also saw continued growth.

Ad revenue, excluding their internet ad revenue, declined for the fifth consecutive year for TV, newspapers, magazines and radio stations, sinking to 2.6094 trillion yen in 2019. Their combined earnings dropped by 93.2 billion yen, or 3.4 per cent, from 2018.

But not all was doom and gloom for traditional advertising providers. Ads offered on websites operated by TV stations, newspapers, magazines and radio stations raked in 22.9 per cent more in 2019 than the previous year, hitting 71.5 billion yen.

Deadly typhoons and extended periods of rainfall, combined with the introduction of the government’s consumption tax hike, led some businesses to cut back on advertising in 2019.

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