The mobile market in Japan is changing. This presentation by Mitsue-Links will focus on the key trends and prospects for the future.

1. MMA Forum Asia : Singapore 2012
Implications for Japan
This presentation was produced by the Corporate Development Department at Mitsue-Links.
The presentation is owned by Mitsue-Links Co. Ltd.

2. Outline
• Is this the “Year of Mobile”? …the Growth of
Smartphones in Japan (background)
• Wow … that’s impressive! - some Interesting
Campaigns and Ideas (what`s happening)
• The Future… Perhaps? (conclusions)

3. Has the Smart Mobile Era Arrived?
Yes… and …No! Smartphone ownership is on the rise
in Japan … but has someway to go …
Q1 2011 Q1 2012
6%
20%
Source: Google 2012

4. … and by next March the number will almost double.
67%
62%
56%
48%
38%
20%
7%
3%
1%
Mar 2009 Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017
Percentage of mobile phone contracts in Japan that will be smartphone
Source: MM Research Institute 2012

5. Japan is catching up with leading Asian economies …
200
180
Levels of Mobile and
160
Smartphone ownership (%)
140
Total Mobile
120 Urban Smartphone
Total Smartphone
100
80
60
40
20
0
…and when Japan’s ownership of smartphones matches
the levels seen in HK and Singapore...
Source: adapted from MMA 2012

6. … media consumption will be among the highest in the
world.
86%
80%
75% 76% 76%
72%
70%
60% Percentage of
Smartphone
47%
Users Actively
Using the
Internet Over
22% Past 30 Days
China Hong Kong Taiwan Japan Korea Australia Malaysia Indonesia Singapore Thailand
(Base: China=1619, Hong Kong=897, Taiwan=853, Japan=1089, Korea 1145, Australia=1063, Malaysia=800, Indonesia=1292, Singapore=848, Thailand=1011)
Chart highlighting the impact smartphones will have on media consumption in Japan
Source: Nielson/MMA 2012

7. Used Everywhere
99% at home
88% on the go
Social Networks Search
Visit - 63% 68% search on
Once a Day -41% smartphones everyday
trends in
Smartphone
usage in Japan
Multi-Activity Portal
Video Communication - 88%
Watch - 76% Stay Informed - 63%
Play Games – 87%
Commerce Apps
Research – 100% Average – 40
Buy – 39% Past Week - 8
Source: data from Google 2012

8. This increased media consumption on smartphone will
lead to more exposure to marketing and increased
customer relationship management.
Reach
ROI
Relevance
Content must be relevant and reach the target
audience for optimum return on investment.

9. Advertising Spend vs Mobile Time
US advertising spend versus consumer time spent per media (2011)
43
40
29
22 23
16
11 9
6
1
tv print web radio mobile
spend per media (%) time per media (%)
Not keeping up with usage rates … is an explosion in
spend on mobile imminent?
Source: Somo (VSS, Mary Meeker, comScore, Alexa, Flurry Analytics) 2012

10. Concepts that are considered for optimum mobile
engagement between brands and consumers.
Source: Adapted from MMA 2012

11. What is happening outside Japan?
Case 1: Tesco Home Plus - South Korea
http://www.youtube.com/watch?v=fGaVFRzTTP4
Image Source: Digital Times

12. Case 2: Google / Coca-Cola Re:Brief - Global
• http://www.youtube.com/watch?v=45Z-GevoYB8
Image Source: Conectados

13. Case 3: The North Face – China
• http://www.youtube.com/watch?v=6ktKwssCH-Y
Image Source: Coloribus

14. Case 4: Heineken - Europe
• http://www.youtube.com/watch?v=uYnE7UTPWnc
Image Source: AKQA

15. The Future … Perhaps
Some of the key trends that the growing smartphone market in Japan is
likely to see:
• More Spend.
• Businesses will think carefully about adding value. They will aim to create
brand utility rather than brand advertising.
• Location and Social based services, targeting and discovery.
• Deeper and more innovative levels of engagement, for example the
iButterfly augmented reality platform.
http://www.youtube.com/watch?v=7IcnOSXfmLU&feature=related / http://www.youtube.com/watch?v=TWcX3LkgUW0
• Mobile being seen as being used for Part of a multi-screen platform.

16. Readings / References
Emmanouel, S. (2012): Creating Compelling Mobile Strategies, Somo.
Google (2012): Our Mobile Planet: Japan – Understanding the Mobile Consumer (May 2012), Google.
Harun, H. (2012): Consumer Trends in Mobile Media and Mobile Advertising, Nielson.
MM Research Institute (2012): ス マ ー ト フ ォ ン 市 場 規 模 の 推 移 ・ 予 測 （ 12 年 3 月 ） ,
http://www.m2ri.jp/newsreleases/main.php?id=010120120313500
And notes taken from MMA Forum - Singapore 2012.