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

What I will talk about
in the next 30 minutes

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

I work for a company
called

based

somewhere around here
nasa.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 apply what
already works in Japan in our mobile market?” The Shameless Advertising Part

“Wheel” [(h)wēl] 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

4 in 5 of them
on 3G Almost 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

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

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

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 Change Sources:
Dentsu, February 2009 Online (PC) 10% Mobile Newspapers 14% Magazines 7% Radio 3% TV 32% Transport 6% Ad Inserts 4% Direct Mail 7% Free Papers 6% PoS 3% YP 1% Other 5% -13% Japanese Advertising Market Expenditures 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 1,108 928 913 621 390 288 180 100 Mobile Advertising Media and production expenditures 2003-2011 in $ 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 Examples AXE “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 Examples Hange.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 Examples Sony 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 Examples Honda “K-tra” Source: Mobile Art Lab

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

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 Campaign Examples AXE “Chocoman Hunter” 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.

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 SNS Mobile Mail Blogs Reviews Attention Interest Search Action Share Word of Mouth Roles of Mobile Advertising From 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 Market 70 billion
US$

Mobile Advertising: 2%

It should be X times
that

There are still
huge 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 basic metrics 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