Dunban67 said:
Well every company that advertises tries to do that - so to tell a shareholder that is nt anything other than stating the obvious- As Kimishimi said, they have lowered thier marketing budget over the last few years to come in line with their lower revenue- and this latest fiscal year also saw lower revenue so they are having to figure out a smart way to market their products w in shrinming budgets and revenues- This Q and A just said they are talking about it again - but he did not say they will or will not lower it again just considering it- but if the NX is indeed coming out in Spring of next year the question should be how much will they be raising the marketing budget in order to launch a new console- a console that is probably the most important in ithe companies history or at least in the last 20 years- Marketing is a big complaint of the Wii U but if Nintendo is considering the same or even lower marketing budget than the year before ( a year in which they launched very little of anything) would not indicate they have learned their lesson on marketing- but we will see |
https://www.nintendo.co.jp/ir/en/stock/meeting/160629qa/03.html
I think one reason the question was asked was because of the article Tokyo Keizai wrote highlighting the percentage of revenue spent on advertising for the top companies in Japan. The average for companies surveyed was 3.5%, within the top 50 it was 4.3%.
Nintendo was the only videogame specific company in the top 50, and had spent 10% according to Tokyo Keizai Online. - http://toyokeizai.net/articles/-/82100?page=2
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Kimishima: We have been reviewing advertising expenses from the point of view of balancing revenue and expenses, and of whether the spending level is appropriate in proportion to our sales. As a result, we have reined in advertising expenses to a certain degree over the last few years, and this has helped to balance revenue and expenses. However, the whole point of advertising is to convey information appropriately to consumers, so we cannot simply cut spending. |
I think what Kimishima wants to do is keep that ratio not too far above 10.5% which is around the average for Nintendo for the last 5 years (see chart below). Though if you look at 2014 it was a higher percentage than 2012 (which was the Wii U launch year). With the NX coming out at the end of March a lot of the advertising push will fall under the new Fiscal Year (2017) and not FY 2016, thus allowing for a bigger budget because that new FY will also have higher revenue than the last.
| Fiscal Year | % of Revenue Nintendo spent on Advertising |
| 2015 | 9.97% |
| 2014 | 12.29% |
| 2013 | 9.62% |
| 2012 | 11.52% |
| 2011 | 9.50% |
