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Japan is currently the second largest advertising market in the world after the US by expenditure, with an 8.8% share of the global US$452 billion pie, according to media services group ZenithOptimedia. The US has a 33% share. 2009 is seeing sliding advertising expenditures in traditional media in Japan – revenue from newspapers, magazines, radio and television for the fiscal year ended March declined 7.6% from a year earlier – in contrast to rising Internet advertising expenditure, which grew 16.3% year-on-year over the same period.
Japan
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Actual
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%
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Population
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128,269,933
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|
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Total Homes
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48,506,286
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|
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Household Size
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2.6
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|
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TV Homes
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48,367,440
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100
|
|
Multichannel Homes
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11,733,000
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24
|
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Internet Users
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94,000,000
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73
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Source: CASBAA, SNL Kagan, Internet World Statistics (as of September 2009)
Until recently, the major ad agencies relied on the massive media reach of terrestrial networks, but are now starting to take cable and satellite media more seriously. Subscription TV homes now number nearly 12 million but barriers to entry are significant for international broadcast groups, especially in terms of costs associated with getting distribution on the top cable and satellite platforms.
Turner, Discovery and Fox have built up positions since the 1990s and have now absorbed costs and generated enough weight in both subscriptions and advertising to start making real money. In 2009, Dentsu, which derives most of its income from dominating its domestic advertising market, said: “despite signs of recovery in certain areas, uncertainty remained in the Japanese economy".
Dentsu controlled Video Research first introduced people meter services to measure cable and satellite TV in Japan early in 2008. These ratings are not widely released. Media research in Japan is limited due to the prohibitively high cost of conducting such research. PAX provides a welcome, though not totally extensive, insight into the market and, amongst its highly affluent respondent base, reflects a subscription TV audience that travels extensively internationally with a far higher monthly household income than the average respondent.
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