Japan online advertising doubles in 2000

Spending on online advertising in Japan more than doubled in 2000, although it still represents less than one percent of all advertising expenditure, according to the results of an annual survey by Dentsu Inc., a major Japanese advertising agency.

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Dentsu estimated spending on online advertising hit 59 billion yen (US$508.6 million) in 2000, up 144.8 percent on 1999, making it the fastest-growing category of all tracked by Dentsu. At that level online advertising represented just under one percent of Japan's total 6.1-trillion yen advertising market, the company said in a statement.

Japan's total advertising market saw growth of 7.2 percent in 2000, the first growth in three years, thanks to a variety of factors, Dentsu said. Investment in IT by major companies on the back of the country's gradual economic recovery led to higher spending by IT companies. Spending by companies in the information/communications sector rose 33.6 percent to 331.2 billion yen, while that of companies in the home appliance and audio-visual goods field increased by 8.6 percent to 88.3 billion yen.

Of all advertising media, only outdoor and telephone directory advertising registered drops in 2000. Television remains Japan's leading medium, with spending hitting 2.1 trillion yen in 2000, up 8.7 percent, ahead of newspapers, which saw a 8.1 percent increase to 1.2 trillion yen.

For the current year, Dentsu said it expects the market for advertising in radio, TV, magazines and newspapers to expand 4.3 percent to 4.1 trillion yen on the back of increased spending, particularly by information and communications related companies reacting to the rapid growth in cellular telephone and Internet use.

Dentsu, in Tokyo, can be contacted at +81-3-5551-5599, or via the Web at http://www.dentsu.co.jp/.

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