Now is time to talk about some advertising agencies in Japan.
But first let’s talk about advertising in Japan, in the chart below is possible to see the advertising revenue by Media:
(Joho Media Hakusho 2007)
Television is still the major media in Japan, but the world of the Internet is a challenge in this sense, because advertising on the Internet is still small, and advertising space there in most cases is cheap.
However, the Internet is growing, also as an advertising medium, and new business models are being sought. Already in 2004, the Internet surpassed radio in advertising income.
The advertising market in Japan is controlled by two major advertising agencies, Dentsu and Hakuhodo. Almost all sales of advertising space in the mass media is sold and bought through these agencies which are also the major producers of advertising contents and as well as being producers of television programs. Their relationship with television is strong, such that should the position of television change in the media markets, the advertising agencies will also experience trouble in gaining revenues.
The digitalization of television, and at this stage especially the mobile television, has brought new issues onto the table. Advertising agencies and service providers are eagerly seeking new business models to provide enough revenue in the changing environment. The biggest pressure comes to programming and to the basic question of “how to produce better programs”. Currently advertising agencies in Japan are building dramas with commercials inserted into the drama plotline or making advertisements themselves into dramas or short films. In addition, advertising with moving visual images on the Internet is developing fast.