Download 2010.11.29 Japan Makes Ideal Proving Ground for Digital Marketing

November 29, 2010
Japan Makes Ideal Proving Ground for Digital
Marketing Innovations
By Debbie Howard
Japan is without a doubt the hottest laboratory in the world for
consumer connectivity. There are some 69 million subscribers who
use mobile data services, putting mobile Internet penetration in
Japan at twice the level in the U.S. or top European countries. And
despite the brutal recession of the last couple of years, Japanese
online sales are thriving and have increased by 17% annually since
2005. By 2015, Japan’s online retail market is projected to grow as
large as $70 billion.
One interesting way to gauge the increasing significance of "all
things digital" is through the health of mobile marketing and
advertising expenditures. In 2009, outlays on mobile marketing and
advertising reportedly totaled ¥103 billion, demonstrating a 13%
year-on-year growth rate. It should be noted that this was considered
low, presumably as a result of the poor economy; growth in the
previous year had been 59%.
Thinking ahead, Dentsu Inc., which is said to be the world’s largest
advertising agency, recently announced a partnership with Apple
Inc. of the U.S. for sales of the iAd smartphone ad network in Japan.
Dentsu also recently announced its establishment of a ¥10 billion
investment fund that will target a broad range of digital businesses
with foreign and domestic partners. Believe me, Dentsu is well aware
of the market’s potential.
Looking at the digital space as yet another media channel (or set of
channels), it is clear that:

More consumers are constantly exposed to information and
promotional offers through increasingly user-friendly and
mobile devices (i.e. devices that can access the Internet, be they
laptops, smartphones, tablets, PDAs, etc.).

Consumers’ relationships with products and brands are
changing, and the "path to purchase" is becoming more
complex and nuanced. "Social" aspects (i.e. blogs, social
networks, etc.) are playing an increasingly important role in
how consumers evaluate, purchase, and share opinions about
brands.

Marketers today are scrambling to "meet the consumer halfway"
with new ways of communicating, interacting and selling via
the various connected devices available.
There are many interesting examples of how companies are
incorporating digital-based strategies into their marketing and
communications activities with customers and prospective customers.
American firm Twitter Inc.’s social networking environment –
centered on short messages of up to 140 characters – has rapidly
become even more well leveraged in Japan than in its home market.
Not surprisingly, companies are finding new a different ways of
using it.
Coca-Cola (Japan) Co. promoted both its Georgia Espresso Blux and
its new "self care" drink called Love Body via accounts on Twitter;
both were multidimensional campaigns involving creative use of
"tweeting" as well as interrelated use of subway ads and TV
commercials.
U.S. computer maker Dell Inc. reportedly reaches Twitter users in 12
countries; the number of users who have signed up to received the
firm’s messages has grown steadily over the past several months, to
1.5 million.
Other companies actively working to engage current and potential
customers via the digital space are diverse, ranging from bricks-andmortar convenience store chains like Seven-Eleven Japan Co. and
Lawson Inc. to high-end foreign luxury brands such as Burberry
and Polo Ralph Lauren.
Worldwide, approximately 80 of the Fortune Global 100 companies
are reportedly using at least one of the social media platforms to
actively engage with stakeholders. Considering its high degree of
mobile adaptation and device sophistication, Japan appears to offer
multinational companies a fertile environment for honing digital
marketing strategies that can in turn be used elsewhere in the world.