future insight: mobile marketing in japan

Future Insight:Mobile Marketing in Japan

Christopher Billich

Forum IAB, WarsawNovember 4, 2009

What I will talk about in the next 30 minutes

Why Mobileis huge in Japan

A fewCampaign Examples

SomeChallenges

Mobile as anAdvertising Medium

I work for a company called

based

somewhere around herenasa.gov

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 applywhat already works in Japanin our mobile market?”

The Shameless Advertising

Part

“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, thenubiquitous, and finally so pervasive it’s invisible, that the really profound changes happen [...].”

109 million mobile subscribers

9 in 10 use theMobile Web

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

Why that is

istockphoto.com

Operators: benevolent dictators

High-Spec Handsets

No device fragmentation

Unwalled Gardens

Revenue sharefavoring contentproviders

istockphoto.com

Carrier X Android iPhone Nokia 日本70%30-50% 90%70% 70%

Content Provider Revenue Share

Messaging is (almost) free ¥0,--

istockphoto.com

10,000 charactersMobile PCMultiple LinksEmoticonsAttachments

...yet extremely rich:

40% of mobile data users on data flat rate plans

istockphoto.com

The Low Entry Barrier Gym MembershipPricing Model

Some of the things people do with their phones in Japan

Music

SNS

Camera

VoD

Payment

Shopping

Radio

Search

Coupon

Navi

Games

TV

Books

Manga

of course, if you really want to

You can still make phone calls.

>3 hrs 2-3 hrs 1-2 hrs 30 min-1 hr Daily, <30 min Less than daily I don’t

3%4%

13%

16%

22%

15%

24%

“More than an hour daily”: 61%

“At least daily”: 90%

...but most people have better things to do.Mobile Web Usage Frequency, 16-24 year-old users

Source: Infinita, April 2008

Advertising Spendings 2008, YoY ChangeSources: Dentsu, February 2009

Online (PC)10%

Mobile

Newspapers14%

Magazines7%

Radio3%

TV32%

Transport6%

Ad Inserts4%

Direct Mail7%

Free Papers6%

PoS3%

YP1%

Other5%

-13%

Japanese Advertising MarketExpenditures by media type and year-on-year growth

+12%

-11%

-7%

-4%

2%+60%

2003 2004 2005 2006 2007 2008 2009 2010 2011

1,284

1,108

928913

621

390288

180100

Mobile AdvertisingMedia and production expenditures 2003-2011in $ million

Source: Dentsu, 2003-2009

2003

Advertising Content

1:20

Advertising Content

2008

1:5

5 Outstanding Campaigns

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)

Campaign ExamplesAXE “Wake-up Service, Inc.”

Source: Bascule Inc.

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

Campaign ExamplesHange.jp “Half of Life is a Game”

Source: GT Inc.

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

Campaign ExamplesSony Music “JUJU Pair Movie”

Source: Mobile Art Lab

Source: Mobile Art Lab

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

Campaign ExamplesHonda “K-tra”

Source: Mobile Art Lab

Campaign ExamplesHonda “K-tra”

Source: Mobile Art Lab

Media: Mobile, Online, TV, OOHAgency: Bascule Inc.Client: Unilever/AXE DeodorantDate: 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

Campaign ExamplesAXE “Chocoman Hunter”

Source: Bascule, Inc.

Source: Bascule, Inc.

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

Well...

Mobile SearchEnabled: 100%Usage: 44%

Source: impress R&D, September 2008 Base: All Respondents, N= 3,178 (2008)

GPSEnabled: 55%Usage: 23%

Source: impress R&D, September 2008 Base: All Respondents, N= 3,178 (2008)

Mobile NFCEnabled: 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.

TV

Radio

Online

Newspaper

OOH

Event

Transit

Magazines

Mobile Ads

URL

Mobile Search

PC Search

Mobile Site

PC Site

PoS

Mobile Tool

EC Site

Mobile SNSMobile Mail

BlogsReviews

Attention Interest Search Action Share

Word of Mouth

Roles of Mobile AdvertisingFrom attention to sharing

Interest Search Action Share

Broad Reach Targeted Reach Search

Access Tools

PoS

Mobile Site

Carrier Menu

!"#$!!

Mobile Email Ads

Mobile SNS

Fashion

News&Sports

TV Guide

Location/Maps

QR

Short Codes

Visual Search

NFC

Mobile Email

Mobile SNS

Attention

Social

Cool Stuff!

The problem is

Japan Advertising Market70 billion US$

Mobile Advertising: 2%

It should be X timesthat

There are stillhuge challenges

To double within next 4 years

It’s still early.

Still early

Still haven’t really figured out the details of targeting

Still very basicmetrics and measurements

To double within next 4 years

Media buying is fragmented

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