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NARI Surveys

Advertising Expenditure of Leading Corporations
(FY 2010)


Advertising Expenditure of 4,193 Leading Companies Closing Their Books in FY 2010 Surveyed

Total advertising expenditure on the rise: parent-only basis expenditure 2.3637 trillion yen (down 0.87% year-on-year), and 5.0898 trillion yen on a consolidated basis (up 2.3%). Effects of the March 11 disasters to show up in earnest in next year’s survey
NARI has compiled the advertising expenditures of leading corporations for FY 2010.
       Total advertising expenditures of leading corporations on a parent-only basis were 2.3637 trillion yen, down 0.87% year-on-year. For listed companies, expenditure was down 0.83% year-on-year to 2.1821 trillion yen. In both cases, expenditure declined for the fourth consecutive year, although the rate of decline was smaller than previously.
       On a consolidated basis, total advertising expenditure among leading companies was 5.0898 trillion yen, a 2.3% increase over the previous year. Listed companies’ expenditure was up 2.17% to 4.9439 trillion yen, the first increase in three years. Compared to FY 2009, when both parent-only and consolidated expenditure registered a double-digit drop compared to the previous year, expenditure is clearly on an upward trend. The consolidated basis increase is especially noteworthy.
       The impact of the March 11 earthquake and tsunami, occurring just before the end of the fiscal year, is apparent in the slight drop in parent-only expenditure, but its effect on a whole year basis was limited. The real effect of the disasters will become apparent in the results of the FY 2011 survey.

Survey of leading companies’ advertising expenditure based on securities reports filed with the Financial Services Agency
This study was conducted among all leading listed and some unlisted companies closing their books for FY 2010 (April 2010–March 2011) with an obligation to file securities reports with the Financial Services Agency (FSA), based on the NEEDS Nikkei Financial Data compiled by Nikkei Digital Media, Inc. The number of listed, parent-only basis companies surveyed was 3,627 along with 566 unlisted companies, giving a total of 4,193 companies. On a consolidated basis, 3,026 listed and 323 unlisted companies were surveyed, a total of 3,349 companies. NARI also added another 61 companies to the survey, which either did not list any advertising expenditure or have no FSA filing obligation but are active advertisers.
       One listed company with an FSA filing obligation, which suffered damage in the March 11, took advantage of a filing extension and was excluded from the survey.

Year-on-year expenditure up for 18 industries on a parent-only basis and 21 industries on a consolidated basis
The state of advertising expenditure in FY 2010 shows that companies have recovered quite a bit from the worldwide financial crisis of 2008 triggered by the collapse of Lehman Brothers. Leading companies’ sales on a parent-only basis were up 2.68% year-on-year to 408.8173 trillion yen and up 4.52% to 707.5279 trillion yen on a consolidated basis, the first shift to the positive column in three years. Parent-only advertising expenditure as a share of sales was 0.99% for leading companies (down 0.04 point year-on-year), a major improvement from the double-digit drop the previous year.
       Looking at 36 industries, 18 industries posted a parent-only base positive rate of increase year-on-year, 13 more than the previous year, while 16 industries had a negative rate of increase. No comparison was possible for the shipbuilding and insurance industries, since they did not post any advertising expenditure. Among industries with a strong positive rate of increase were rubber products (up 27.13%), warehousing (up 23.79%), steel products (up 22.90%), precision instruments (up 18.66%) and glass & ceramics (up 18.04%). In all of these industries, advertising expenditure the previous year had fallen sharply, so these figures can be seen as a rebound. Meanwhile, industries with large drops in the rate of increase were air transport (down 23.89%), real estate (down 22.96%), machinery (down 12.39%), banking (down 10.47%) and trading companies (down 10.05%). Among industries with heavy advertising expenditure, the spending rate was up 0.19% for retails, down 3.79% for foods, up 11.32% for electric machinery, and up 1.95% for services.
       On a consolidated basis, 21 industries registered a positive rate of increase compared to last year, an increase of 19 industries; only nine industries had a negative rate of increase. Six industries posted no advertising expenditure, so comparison was not possible. Industries with a large rate of increase were, in descending order, mining (up 60.00%), marine transport (up 30.00%), glass & ceramics (up 13.70%), securities (up 9.53%), and chemicals (up 6.28%). The top industries with a large rate of decrease were warehousing (down 22.58%), air transport (down 21.04%), machinery (down 18.93%), real estate (down 12.72%) and other financial services (down 12.26%).

Panasonic (parent-only) and Sony (consolidated) top the charts for three consecutive years
In terms of company rankings for advertising expenditure, Panasonic took first place for the third year running for spending 73.3 billion yen on a parent-only basis. Although this was a 4.87% drop year-on-year, the drop was less than the 14.78% decline in FY 2009. In second and third place were Kao and Toyota Motor, respectively, the same rankings as last year, although their spending was lower than last year. In fourth place was NTT DOCOMO, with Asahi Group Holdings in sixth place (figures for FY 2010 were for the former Asahi Beer), KDDI in eighth place and Mitsubishi Motors in ninth place. All these companies spent less on advertising than last year but fifth place Sharp, seventh place Tokyo Gas and tenth place TEPCO increased their spending in the double-digit range and moved up smartly in the rankings.
       On a consolidated basis, Sony was in first place for the third consecutive year (396.4 billion yen, up 3.36%), followed by Toyota Motor (308.9 billion yen, up 1.49%), Honda Motor (210.8 billion yen, up 7.16%) and Nissan Motor (187.4 billion yen, up 18.33%), all companies which spent more on advertising this year than last. Companies with extensive overseas operations occupy the top spots, and their strong advertising presence in foreign markets is also a reason why they spent more on advertising.


Top 10 Companies for Advertising Expenditure in FY 2010

Parent-only basis advertising expenditure
Rank
Company name
Sales
(million yen)
Advertising
expenditure
(million yen)
Year-on-year
comparison (%)
1
(1)
Panasonic
4,143,023
73,356
▲ 4.87
2
(2)
Kao
716,313
51,251
▲ 6.41
3
(3)
Toyota Motor
8,242,830
49,938
▲ 1.55
4
(6)
NTT DOCOMO
4,340,477
33,852
▲ 4.36
5
(10)
Sharp
2,431,217
33,236
16.88
6
(7)
Asahi Group Holdings
963,270
30,723
▲ 7.36
7
(14)
Tokyo Gas
1,329,833
29,388
19.96
8
(5)
KDDI
3,138,742
27,028
▲23.69
9
(9)
Mitsubishi Motors
1,472,198
27,002
▲ 6.01
10
(15)
TEPCO
5,146,318
26,903
▲ 10.45
Consolidated basis advertising expenditure
Rank
Company name
Sales
(million yen)
Advertising
expenditure
(million yen)
Year-on-year
comparison (%)
1
(1)
Sony
7,181,273
396,425
3.36
2
(2)
Toyota Motor
18,993,688
308,903
1.49
3
(3)
Honda Motor
8,936,867
210,803
7.16
4
(4)
Nissan Motor
8,773,093
187,490
18.33
5
(5)
Panasonic
8,692,672
156,894
4.00
6
(8)
Seven & i Holdings
5,119,739
101,218
0.83
7
(6)
Daiichi Sankyo
967,365
99,651
▲ 5.77
8
(10)
Bridgestone
2,861,615
96,886
1.25
9
(9)
Nintendo
1,014,345
96,359
▲ 3.85
10
(7)
Aeon
5,096,569
95,859
▲ 6.99

 (Figures in parentheses indicate previous year's ranking, ▲indicates a decrease.)