Abstract
One of the major issues related to the globalisation of advertising in Asia is the degree to which it is mediated by local realities. In Japan, the presence of the so-called global agencies is very limited, and very often global advertisers based in Japan, such as Sony and Toyota, work with Japan's mega-agencies for domestic advertising while relying on global agencies for most of the markets outside Japan. Why does such a division exist between the Japanese market and elsewhere? This article first addresses this question, and then proceeds to discuss recent changes in the behaviour of both the media and their audiences, and the challenges they pose to the advertising industry. Such changes are universal, but their threats to the advertising business are more acutely felt in Japan because of its peculiar business structure, as will be described. The article concludes with a discussion of the prospects for the Japanese advertising industry.
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