Internet ad sales nearly double in Japan

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TOKYO--Advertising on the Internetin Japan in 1998 increased by 88% to hit an estimated 11.39 billion yen ($96.5 million), compared to the figure tallied the year before, Japanese advertising giant Dentsu Inc. announced.

Dentsu estimates a nearly two-fold growth in Internet advertising in Japan for the 1999 calendar year, with the figure forecast to be $167.8 million. Dentsu compiled its estimates based on the combined total of advertising placement on the Internet and production spending.

In 1997, Internet ad spending in Japan was at $51.1 million and in 1996 it was $13.6 million, Dentsu said.

The research covers expenditures carried out for the production and placement of Internet advertising for the domestic market by information providers operating in Japan. The study defines Internet advertising as a medium with independent content and clearly understood advertising rates. It includes ads placed on the sites of conventional media companies, search engines, entertainment-related sites, information technology companies, member-only sites and ads placed on Internet gateway networks.

The definition does not include revenue from server rentals, mall services and directory links.

Copyright March 1999, Crain Communications Inc.

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