digital marketing in japan opportunities for uk companies

copyright 2013 ADINNOVATION,INC. Confidential

Digital Marketing in Japan Opportunities for UK companies

UKTI Webinar


Agenda

1. About Us 2. The latest Japanese smartphone apps market 3. The latest Japanese smartphone advertising market 4. Business opportunities for UK companies in Japan 5. UK companies we are looking for as our partner

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About Us

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Corporate Profile

Ryoma Hosokawa Operating officer at Adinnovation [email protected] https://www.facebook.com/ryoma.hosokawa

Business Career Since 2005 worked for mobile Ad industry. In 2010, started to work for Dwango that provides NicoNico Douga (largest internet movie service in Japan). In 2012, joined Adinnovation Inc.

Adinnovation Inc.

Establishment : 15 Mar, 2010 Location : Roppongi,Minato-ku, Tokyo, Japan Contact : [email protected] Website: http://adinnovation.co.jp/ Facebook : https://www.facebook.com/adinnovation

- A Professional Marketing Firm for Smartphone Apps -

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mailto:[email protected]

https://www.facebook.com/ryoma.hosokawa

https://www.facebook.com/ryoma.hosokawa


http://adinnovation.co.jp/

http://adinnovation.co.jp/

https://www.facebook.com/adinnovation

https://www.facebook.com/adinnovation


Marketing

Marketing Channel 【Market Data】

A smartphone app store analysis company in Netherland.

We provide this data as an agent in Japan

・ Estimated download volumes ・ Estimated revenues etc…

We support the promotion which suited various environmental elements of a smartphone in the domestic and the global market

Marketing

Smartphone Media

Re-planning/optimisation

Real active users

Download

Expected active users

Effect meaturement/RO

I analysis

Marketing Support

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Media Consulting

Consulting

Consulting

コンサルティングメニュー例

広告メニューの精査・設計

広告売上目標の設定

媒体資料の改修

広告枠管理表の作成

広告売上管理表の作成

メディアレップ・代理店開拓

広告販売窓口の代行

決定案件の進行管理代行

レポート作成代行

当社主催セミナーでの媒体紹介

【Service Menu】【Consulting Service/Case study】

AppBank Kami Appri OCTOBA

We support media companies to maximise their ad reviews mainly for the leading app review sites. We can provide “one-stop-service” from sales strategy planning, product design, developing channel and total operation.

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ADSTORE TRACKING

Technology

【Clients】

Game developers, internet ad agencies(OEM) and social networking content providers(OEM).

Overseas Advertising

Analysis data on a user basis

In Japan In US and Europe

Possible ad networks/affiliate networks

We have our own original smartphone ad effective measurement tool called “ADSTORE TRACKING”. We can provide this system as OEM.

Technology

Quick view of PDCA/ROI

Measure up to “in-apps purchase” revenue.

Cover major international ad networks

One SDK to place an ad in multiple media

【Product Benefits】

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Latest Information

Raised￡1.06M as Series A round. We intend to expand the tracking solution made in Japan globally. Going to have a new tracking solution in Adtech London in this September.

If you'll come to Adtech and have an interest, I hope we can meet!

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The latest Japanese smartphone apps market

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Japanese Mobile Market

Japanese mobile market was like a Galapagos Islands...

For Western companies, Japan was a difficult country to enter.

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1.Variety of content Ringtone, wallpaper, decorated email, customized skin, music, movie, digital comics, social Game, etc. 2. Operator oriented Low commission Payment system 3. Business Model Monthly subscription

Japanese Mobile Market

These business models are changing dramatically in Japan now by the increase of smartphone users and the

popularity of smartphone app stores

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Smartphone Penetration in Japan

73.5

67.8

66.9

59.9

59.1

58.8

58.6

34.8

0.0 20.0 40.0 60.0 80.0

Spain

UK

Canada

UK

Italy

France

Germany

Japan

Smartphone Penetration

（May, 2013/Unit：％）

Source : comScore MobiLens May, 2013

The smartphone penetration in Japan in May, 2013 is 34.8%. More smartphone users and app business are expected.

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Market Size of iPhone/Android apps

£42,319,538

£52,823,562

£23,038,415

£50,381,698

£0

£10,000,000

£20,000,000

£30,000,000

£40,000,000

£50,000,000

£60,000,000

December, 2012 June, 2013

Total Revenue of Top 400 apps in Japan

iPhone

Android

Source : Distimo AppIQ/December 2012 & June, 2013

The Japanese smartphone apps market is growing rapidly. Growth rate from December, 2012 to June, 2013(6 months) iPhone : 124% Android : 218%

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Market Size of iPhone/Android apps

£54,949,441

£12,238,030

£52,823,562

£32,984,328

£4,149,609

£50,381,698

£0 £20,000,000 £40,000,000 £60,000,000 £80,000,000 £100,000,000£120,000,000

US

UK

Japan

Total Revenue of Top 400 apps (June, 2013)

iPhone

Android

Total revenue amount of the top 400 apps of iPhone and Android in June, 2013 in Japan was more than the US market.

Source : Distimo AppIQ/June, 2013

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The latest Japanese smartphone ad market

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Market Size of Smartphone Ads

163.8

565.1

767.1

1,003.9

1,211.8

1,352.6

1,455.9

2011 2012 2013 2014 2015 2016 2017

Smartphone Ad Market Value and Forecast

(Unit : ￡M)

In accordance with the smartphone apps market, the advertising market is also growing. The market value in 2013 is expected to be more than ￡760M.

Source : CyberZ & Seed Planning

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Type of Ads

23.0 73.7 82.9 96.7 115.8 125.0 135.5 51

138 201

268 329

381 426

88.8

351.3

482.9

639.5

767.1

846.7 894.1

2011 2012 2013 2014 2015 2016 2017

Type of Ads/Forecast

Affliate Display Listing

As for the type of ads, “Listing” is the top ad expenditure in Japan. It has more than 50% share of the total ad expenditure.

Source : CyberZ & Seed Planning

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The Opportunity of Japanese Market for UK companies

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Opportunities for UK Companies

For content providers;

Japanese smartphone apps market is huge and rapidly growing. Especially Google Play market.

Japanese smartphone users have started accepting the Western taste contents. Not to stick to Japanese contents any more. They are willing to pay money to quality contents

For ad agencies;

Some of Japanese content providers are successful in the global market. Therefore, they are looking for a good ad agency to support their marketing activities in the global market.

By the success of some of Japanese content providers outside Japan, many other Japanese content providers are planning to enter into the global market.

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Successful Western Smartphone Apps

“Clash of Clans” by Supercell in Finland

“Candy Crush Saga” by King.com in UK

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Successful Western Apps in Japan

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Released a Japanese version

Clash of Clans Released a Japanese version on 17th of June. The daily revenue after that went up to more than ￡50,000 a day. Started the in-game promotion with a Japanese app “Puzzle & Dragons”

Source : Distimo AppIQ

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Candy Crush Saga Released a Japanese version for both iPhone and Android The sales are growing and the daily total revenue of both iPhone and Android is about ￡70,000 a day.


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Successful Japanese Apps outside Japan

LINE Rage of Bahamut CocoPPa


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UK companies we are looking for as our partner

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Partner

Advertising agencies in UK which; • Specialises in smartphone apps ads and promotion • Owns games publishers/developers in UK as clients. • Have ability to plan and implement marketing programs for Japanese clients in UK.

Partnership scheme

Revenue share model Exchange of the market data Introduction and joint services for mutual clients in each market Joint sales and promotion of our smartphone ad analysis tool “ADSTORE TRACKING” in UK.

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copyright 2013 ADINNOVATION,INC. Confidential 27

Thank you very much for your attention

Please contact with;

[email protected]
