The yen has dipped nearly 25% against the US dollar since November, after Japan unveiled a series of aggressive moves to spur growth in its economy.

The Japanese currency has come close to the 100 yen to a US dollar mark in recent days, but has been unable to breach that level.
Analysts said that on Thursday, strong data out of the US, which showed that first-time applications for unemployment insurance had fallen to the lowest level in more than five years, had helped the yen pass the mark.

They said the data triggered hopes of a sustained recovery in the US economy, resulting in investors ditching safe-haven assets such as the yen in favor of the US dollar.

A weakening Japanese currency opens a window for international investors to profit on two fronts. With the central bank’s main interest rate target near zero, they can borrow the yen cheaply, and then lend it abroad. Some of these Japanese companies were profitable at 78 yen to the dollar, so the dollar at 100 yen would be a boon for the corporate sector.

However, some analysts have warned of the risks associated with these aggressive measures and the yen’s continued weakness.
They say that if Japan’s economy does not start showing signs of a recovery, and with interest rates in the country close to near zero, it may see a rise in “carry-trades”.

This happens when traders around the world borrow yen at very low interest rates and use it to buy currencies to invest in countries where interest rates are higher.

Such trades have no impact on the real Japanese economy, but they result in the yen weakening further.

It will take time for competitors to Japanese companies to feel the effects but there were larger concerns to consider: By injecting such a large amount of money into the global financial system, you may end up distorting prices in such a way that it causes distortions in the real economy.

The lesson after the Japanese investment bubble collapsed in 1990 was “never own equities again.” But today’s Japanese investors are more cautious than those of a generation ago.

Advances in television technology, most specifically the arrival of interactive television, has meant the number of ways in which broadcasters can generate advertising revenue has increased, giving birth to advanced advertising methods. It has also meant that television, as a mode of advertisement, has been rejuvenated.

Advanced technology has meant that advertising has become advanced also, with interactive capabilities on digital transmissions allowing viewers to choose, not only the programmes they want to watch, but also the advertisements to view. This freedom of choice arrived initially when the ability to skip advertisements was introduced, a feature that effectively replaced the desire to leave the room during ad breaks. This lack of love for the television advert has long been known by the industry, as has the knowledge that the effectiveness of a television ad was low.

Returns on an investment in a traditional television advertisement campaign are low because the message is sent to everyone watching, a large proportion of which are simply not in the market. For example, if 2 million people are watching the Monday night film, only a tiny percentage of those are likely to be thinking about buying a new car. And, of that number, only a small percentage would be in the market to by a Lexus car. Therefore, Lexus can expect a low return on their television ad.

However, thanks to targeted advertising on digital television services it is now possible for only those interested in a Lexus to choose to view the advertisement. Of course, the advertisement itself must still be created for a considerable cost, but the chances of a better return are significantly increased. This is because the ad is targeted at specific viewers, with viewers of a programme on the history of the motor car likely to be watched by people who have an interest in motor cars.

By targeting this programme, there is a greater likelihood that viewers will be interested in buying a new car with advanced features, perhaps even a Lexus. Now, instead of a tiny percentage of 2 million viewers, a significant percentage of 2,000 viewers who have chosen to look at the advertisement will actually purchase or, at least, consider and enquire about purchasing the car.

Ad insertion brings the advantage a step further, with viewers able to delve into further information through the digital capabilities of the set top box. Windows of information can be brought up, providing details on sales promotions in certain areas or regions, specifics of the particular Lexus shown in the advertisement, or even the full range of Lexus cars and their prices. In essence, the viewer can access a complete brochure through the digital platform. It is also possible for viewers to look at what other car manufacturers have to offer, with advertisements associated with the core topic the priority.

With the benefits of advanced advertising clear to see, advertisers are quick to turn to the capabilities that interactive television is providing. But the advances in digital interactive television have created even more advertising opportunity. Not only has content targeted advertising meant that the rate of return on advertisements has been greatly improved, but the arrival of dynamic ad insertion now means that more companies can take advantage of programming relating to their own products. This, in turn, means the potential for an increase in advertisement revenue for broadcasters is there.