Home > Surveys and Research > Advertising Expenditure of Leading Corporations (FY 2009)

NARI surveyed and compiled advertising expenditures by leading corporations which closed their books in FY 2009 (the fiscal year running from April 2009 to March 2010). Both parent-only and consolidated financial data were compiled.

FY 2009 survey results show a parent-only based corporate advertising expenditure decrease of 14.23% year-on-year to 2, 518.1 billion yen, while consolidated-based advertising expenditures decreased 13.45% year-on-year to 5,053.6 billion yen.
NARI has compiled the advertising expenditures of leading corporations for FY 2009. Total advertising expenditures on a parent-only reporting basis decreased 14.23% year-on-year to 2, 518.1 billion yen, a decrease for the third consecutive year.
       On a consolidated basis, expenditures dropped 13.45% to 5,053.6 billion yen, in this case, representing a decrease for the second consecutive year.
       In this survey, NARI compiled and analyzed advertising-related expenditures such as advertising and sales promotion costs, respectively, as well as sales and ordinary income, based on financial data procured from NEEDS (Nikkei Economic Electronic Databank System). This database is compiled from securities reports that were submitted to the Financial Services Agency (FSA), including both listed companies and those unlisted companies required to file with the FSA. On a parent-only reporting basis, 4,321 companies were included and on a consolidated-reporting basis, 3,434 companies were included. Moreover, NARI individually surveyed companies not listing advertising expenses as well as those without FSA filing requirements that nevertheless pursued significant advertising activities. NARI incorporated both sets of data in its analysis.
       Since the FY 2008 survey, NARI has compiled data on a parent-only reporting basis as well as a consolidated-reporting basis. An overview of corporate advertising expenditures is difficult to grasp on a parent-only basis alone, due to increased employment of holding companies and expanded advertising in overseas markets. In the case of parent-only based reporting, since data is affected by individual subsidiaries, the ratio of advertising expenditures surpassing industrial perimeters increases, necessitating examination of actual industry circumstances as well as the scope of industrial advertising costs.

First double-digit drop since the survey’s inception, with year-on-year expenditures increasing in only five industries (parent-only basis)
In FY 2009, Japan felt the full effects of the global economic downturn, with many companies cutting advertising expenditures far more drastically than in the previous year. These cuts were found in both parent-only and consolidated reporting, and represented the first recorded double-digit decrease since the FY1961 survey (on a parent-only basis).
       Of 36 industries examined on a parent-only basis, only five (marine transportation, pharmaceuticals, gas, oil and foods) had positive growth year-on-year. This figure is down from 11 industries in the FY 2008 survey. Advertising expenditures dropped in 30 industries compared to FY 2008 results. Data for the shipbuilding industry could not be compared, as advertising expenditures were not appropriated. On a consolidated-reporting basis, only two industries—pharmaceuticals and foods—posted positive growth year-on-year, while 27 industries decreased advertising expenditures and seven industries had no disclosure on a consolidated basis.

Panasonic takes top place on a parent-only basis, Sony on a consolidated basis, for the second year in a row
With respect to individual corporate advertising expenditures, Panasonic took top place with 77.1 billion yen on a parent-only reporting basis, nevertheless reflecting a significant 14.7% year-on-year decrease. Both Toyota Motor and Honda Motor, respectively ranking second and third in FY 2008, fell this year following large advertising cuts. Kao, showing only slightly decreased advertising compared with FY 2008, rose from fourth to second place. Of the top 10 companies, eight decreased advertising expenditures vis-à-vis FY 2008, with seven posting double-digit decreases. Astellas Pharma, ranking eighth, pooled promotion and advertising expenditures, explaining a greatly increased “advertising expenditures” posting.
       On a consolidated-reporting basis Sony took first place for the second year in a row (383.5 billion yen, a 12.1% decrease). Toyota Motor spent 304.3 billion yen, a 21.8% decrease. Honda Motor had expenditures of 196.7 billion yen, a 34.7% decrease. Finally, Nissan Motor, spent 168.4 billion yen, a 29.1% decrease. Companies aggressively conducting business activities overseas are in the top ranks. However, all of these corporate entities have drastically decreased their advertising expenditures (see the chart below).


Top 10 Companies for Advertising Expenditure in FY 2009