Future Insight: Mobile Marketing in Japan

Future Insight: Mobile Marketing in Japan Forum IAB, Warsaw November 4, 2009 Christopher Billich

What I will talk about in the next 30 minutes

Why Mobile is huge in Japan Mobile as an Advertising Medium A few Campaign Examples Some Challenges

I work for a company called

somewhere around here nasa.gov

The Shameless Advertising Part which works for companies like

The Shameless Advertising Part

The Shameless Advertising Part Who all want to know One Thing:

The Shameless Advertising Part “How can we apply what already works in Japan in our mobile market?”

“Wheel” [(h)w ēl] circular object rotating on an axle need not reinvent

Why look for answers in Japan?

“It’s when a technology becomes normal, then ubiquitous, and finally so pervasive it’s invisible, that the really profound changes happen [...].”

109 million mobile subscribers

9 in 10 use the Mobile Web

Almost 5 of them on 3G 4 in all of them on 3G

Why that is istockphoto.com

Operators: benevolent dictators

High-Spec Handsets

No device fragmentation

Unwalled Gardens

Revenue share favoring content providers istockphoto.com

Content Provider Revenue Share 30-50% Carrier X 70% Android 70% iPhone 70% Nokia 90%

0 ,- - ¥ Messaging is (almost) free istockphoto.com

...yet extremely rich: 10,000 characters Mobile PC Multiple Links Emoticons Attachments

40% of mobile data users on data ﬂat rate plans istockphoto.com

The Low Entry Barrier Gym Membership Pricing Model

Some of the things people do with their phones in Japan

Payment Shopping Camera Coupon Books Navi Manga SNS Search Games VoD Music TV Radio

of course, if you really want to

You can still make phone calls.

...but most people have better things to do. Mobile Web Usage Frequency, 16-24 year-old users “At least daily”: 90% “More than an hour daily”: 61% 24% 22% 15% 16% 13% 4% 3% >3 hrs 2-3 hrs 1-2 hrs 30 min-1 hr Daily, <30 min Less than daily I don’t Source: Inﬁnita, April 2008

Japanese Advertising Market Expenditures by media type and year-on-year growth +12% PoS YP 1% Other 5% Online (PC) 10% 2% +60% 3% Free Papers 6% Mobile Direct Mail 7% Newspapers -13% 14% Ad Inserts 4% Transport 6% Magazines 7% Radio -11% 3% TV 32% -7% Advertising Spendings 2008,YoY Change -4% Sources: Dentsu, February 2009

Mobile Advertising Media and production expenditures 2003-2011 1,284 in $ million 1,108 913 928 621 390 288 180 100 2003 2004 2005 2006 2007 2008 2009 2010 2011 Source: Dentsu, 2003-2009

2003 1:20 Advertising Content

2008 1:5 Advertising Content

5 Outstanding Campaigns

Campaign Examples AXE “Wake-up Service, Inc.” Media: Mobile, Online, TV Agency: Bascule Inc. Client: Unilever/AXE Deodorant Date: February to March 2008 Sign up for campaign on AXE mobile site or PC site Set up personalized wake-up call times to mobile via PC website Immediately get conﬁrmation call to mobile, synched with video of girl on PC screen Collect 1 of 14 wake-up girl Flash wallpapers for your mobile as reward per each call - unlock “secret character” at the end Get free branded mobile application (alarm clock + “Tamagotchi Girl”) 200,000 UU and 1 million PV (ﬁrst 2 weeks) Source: Bascule Inc.

Campaign Examples Hange.jp “Half of Life is a Game” Media: Mobile, Online, OOH, TV Agency: GT Inc. Client: NHN Date: Summer 2008 (3 months) Phase 1: “Hangao” face morphing game (mobile email-based) Phase 2: TV and creative OOH campaign promoting the mobile site “Instant lottery” via NFC chip embedded in OOH ﬁgures 150,000 Hangao participants, 10% of which converted to Hange.jp users At peak, 9-fold increase in daily new subscriptions for Hange.jp After campaign, number of monthly new subscribers doubled Source: GT Inc.

Campaign Examples Sony Music “JUJU Pair Movie” Media: Mobile Agency: Mobile Art Lab Client: Sony Music Date: December 2008 to February 2009 5 “pair movie” episodes featuring the song downloadable for free from Sony Music mobile site Built-in viral element: social viewing experience Featured on front page of several newspapers 400,000 movie views in ﬁrst month Song downloaded 200,000 times in ﬁrst week 2 million (paid!) song downloads and 150,000 CD singles sold Source: Mobile Art Lab

Source: Mobile Art Lab

Campaign Examples Honda “K-tra” Media: Mobile, Online Client: Honda Date: Since November 2008, ongoing Virtual Mobile Hitchhiking Game, tied to real- world movements, with social component “Experience mobility through other people’s movements, and have fun in the process” More than 20,000 users and more than 2 million page views in ﬁrst 2 months Almost 1.8 million km “traveled” to date Source: Mobile Art Lab

Campaign Examples Honda “K-tra” Source: Mobile Art Lab

Campaign Examples AXE “Chocoman Hunter” Media: Mobile, Online, TV, OOH Agency: Bascule Inc. Client: Unilever/AXE Deodorant Date: September to November 2008 “Chocoman Hunter” campaign for “Dark Temptation” fragrance Collect Chocoman QR Codes to gather points (OOH and from friends’ mobiles’ screens) Prize: 1% of AXE sales during campaign period (amount could be checked online) Recruited friends automatically become competitors Source: Bascule, Inc.

Source: Bascule, Inc.

Mobile Advertising = Online Advertising, but on a smaller screen?

Well...

Mobile Search Enabled: 100% Usage: 44% Source: impress R&D, September 2008 Base: All Respondents, N= 3,178 (2008)

GPS Enabled: 55% Usage: 23% Source: impress R&D, September 2008 Base: All Respondents, N= 3,178 (2008)

Mobile NFC Enabled: 73% Usage: 18% Source: impress R&D, September 2008 Base: All Respondents, N= 3,178 (2008)

Payment (Prepaid & Credit)

Coupons/CRM

Flight Check-in

: “Lifestyle Infrastructure”

a.k.a.

Glued to the screen 24/7.

Roles of Mobile Advertising From attention to sharing Attention Interest Search Action Share URL TV Newspaper Transit PoS Mobile SNS Mobile Site Mobile Mail Radio OOH Magazines Mobile Search Mobile Tool PC Site Blogs Reviews PC Search Online Event Mobile Ads EC Site Word of Mouth

Attention Interest Search Action Share Broad Reach Targeted Reach Search PoS Social Mobile SNS Carrier Menu Fashion News&Sports Access Tools Mobile Email Ads QR Mobile Site TV Guide Short Codes !"#$!! Location/Maps Mobile SNS Visual Search Mobile Email NFC

Cool Stuff!

The problem is

Japan Advertising Market 70 billion US$

Mobile Advertising: 2%

It should be X times that

There are still huge challenges

Still early To still early. within It’s double next 4 years

Still haven’t really ﬁgured out the details of targeting

Still very basic metrics and measurements

Media buying is fragmented To double within next 4 years

It’s too cheap

Resistance is ﬁerce

Education is necessary

Speaking of which...

Check out www.inﬁnita.tv (it’s completely free)

Thank you! billich@inﬁnita.co.jp cbillich

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Future Insight: Mobile Marketing in Japan

by Infinita Inc. on Jan 27, 2010

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Future Insight: Mobile Marketing in Japan — Presentation Transcript