II. Advertising Business
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1 II. Advertising Business The share of sales of newspaper advertising is decreasing, while that of inserts and DM is increasing Number of business establishments 4234 Number of employee 91,830 Annual sales,.billion yen Per business establishment,. million yen Per employee.million yen Advertisement of four media,.billion yen Advertisement of other than four media,.billion yen ration compared to2000down down down up up down up 1) Number of business establishments The number of business establishments in 2003 was 4,234, decreasing by 6.9% compared to the previous survey (2000). By headquarters or branch, the number of business establishments consisting of a single establishment was 2,508, which accounts for slightly less than 60%, a decrease of 9.5% compared to the previous survey. The number of headquarters was 672, decreasing by 6.8% id. On the other hand, the number of branches was 1,054, showing no major change from the previous survey. Number of business establishment by headquartern or branch 4,547 4, ,772 2, ,054 1, By employment scale, the number of small-scale business establishments with 1 4 employees was 1,133 (composition ratio 26.8%), that of business establishments with 5 9 employees was 1,158 (27.4% id.), and that of business establishments with employees was 1,005 (23.7% id.), indicating that business establishments with less than 19 employees account for slightly less than 80% of all establishments. On the other hand, the number of business establishments with 100 employees or more was 107 (composition ratio 2.5%).
2 Composition ratio of business establishment by scale of employee 4324 employees (2) Number of employees The number of employees in 2003 was 91,830, decreasing by 4.7% compared to the previous survey. By type of employment, the number of full-time employees was 80,358, accounting for more than 80% of the total. Among full-time employees, the number of regular employees was 70,066 (composition ratio 76.3%), and that of part-time employees was 10,292 (11.2% id.). The number of assigned or temporarily dispatched employees (accepted) was 2,744 (3.0% id.). By department, the number of employees in a management and sales department was 52,535 (57.2% id.), which accounts for slightly less than 60% of the total. The number of employees in production who engaged in producing advertisements was 14,787 (16.1% id.), that in SP, RP and others was 9,906 (10.8% id.), and that in media was 7,063 (7.7% id.). Number of employees 91, ,824 63, ,565 1, ,556 28, ,142 1, ,322 7, ,462 80, ,070 70, ,392 10, ,889 1, ,707 2, ,901 52, ,895 7, ,923 14, ,512 4, ,442 9, ,707 2,
3 (3) Annual sales The annual sales in this business in 2003 totaled 7,535.9 billion yen, decreasing by 3.4% compared to the previous survey. Annual sales by category of business 7,802,593 7,535, ,259,178 1,089, , , ,029,831 1,923, , , , , , , ,096,451 1,097, ,934 33, ,044,672 1,022, ,822 1,073, Trend of annual sales Note: As the number of business establishment was grasped in the survey of 1998, the ratio of 1998 compared to the previous year was calculated taking the time line into consideration. Every year survey untill 2000, then every three year survey afterwards.
4 Annual sales by category of advertising business By business category, the annual sales of advertisements among the four main media was largest for TV advertisements, which decreased by 5.2% compared to the previous survey and amounted to 1,923.6 billion yen. The annual sales of advertisements in newspapers was 1,089.5 billion yen, a decrease by 13.5% id. Annual sales of magazine advertisements was 587 billion yen, a decrease by 11.6% id. That of radio advertisements was billion yen, a decrease by 15.3% id. The annual sales of all four media decreased by 15.3% compared to the previous survey. Other than advertisements in the four main media, as for business categories of which composition ratio is high, SP, RP and events including culture events of companies and sales promotions totaled 1,023 billion yen, a decrease of 2.1% compared to the previous survey. On the other hand, others that increased largely by 19.1% compared to the previous survey amounted to 1,073 billion yen due to an increase in Internet and mobile advertising. The annual sales of inserts and direct mail was 1,097.7 billion yen, a slight increase of 0.1% compared to the previous survey, because education and culture-related and mail order sales were increasing. Annual sales by category of business 2003 Annual sales 7,535.9 billion yen As for year-on-year trend of the composition ratio of sales since 1991, the composition ratio of sales of newspaper advertisements, radio advertisements and outdoor advertisements have been decreasing, while those of inserts and direct mail and others have increased.
5 Trend of compostion ratio of annual sales by category of business News Four media advertisement Magazine TV % 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Radio Outdoor Insertion, direct mail Transportation Overseas SP PR Others By contracting partner By contracting partner, composition ratio of annual sales of manufacturing industry by contracting partner is the highest and the amount was 2,441.5 billion yen and the composition ratio was 32.4%. Then the amount of that of whole sales and retail was 1,131.4 billion yen and the composition ratio was 15.0%. The amount of that of services (other than rental and leasing service) was 1, billion yen ant the composition ratio was 13.4%, reflecting the increase of education business and medical services. The amount of that of information and telecommunication industry was 587 billion yen and the composition ratio was 7.8%, because of the prevalence of communication services such as ADSL and active advertisement via mobile phone Annual sales by contracting partner 7,535, ,441, ,131, , , , , ,009, , , , (note)the category of contracting partner was changed since 2003 because of the revison of Japan Standard Industrial Classification
6 (4) Annual operating cost The annual operating cost accrued in relation to the advertising business amounted to 7,166.1 billion yen (95.1% of the sales of the advertisement business). By cost breakdown, total salary paid amounted to 577 billion yen (composition ratio 8.1%), sub-contracting cost amounted to 2,116.2 billion yen (29.5% id.), media cost amounted to 3,285 billion yen (45.8% id.), rental cost amounted to 84.7 billion yen (1.2% id.), and other operating cost including advertising cost, packing and shipping cost, and depreciation cost amounted to 1,103.1 billion yen (15.4% id.). Annual operating cost of telemarketing business (5) Trend by prefecture By prefecture, the annual sales in Tokyo accounted for more than 60% of the nation-wide total, totaling 4,808.9 billion yen (composition ratio 63.8%), followed by Osaka of which annual sales were billion yen (11.7% id.), Aichi of which annual sales were billion yen (4.7% id.), Fukuoka of which annual sales were billion yen (3.0% id.) and Hokkaido of which annual sales were billion yen (1.8% id.). These top five prefectures accounted for 85.0% of the nation s total annual sales for advertising. Comparing the composition ratio in the ten prefectures of which annual sales was largest to that of the previous survey (2000), annual sales decreased in Hiroshima by 11.2% compared to the previous survey, and also decreased in such prefectures as Osaka (-9.0% id.), Fukuoka (-5.8% id.), Aichi (-5.1% id.), and Hyogo (-4.7% id.), while annual sales increased in such prefectures as Miyagi (+14.2% id.), Hokkaido (+9.5% id.), and Kanagawa (+0.9% id.). As for the number of business establishments, the number of business establishments was largest in Tokyo at 935, followed by Osaka (461), Aichi (298), Fukuoka (181), and Hiroshima (157). Annual sales by prefecture
7 Number of Number of business establishment by prefecture
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