The Japanese Mobile App Market 2014

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Information about The Japanese Mobile App Market 2014

Published on February 4, 2014

Author: adjapon



This slide was created to help international app developers and advertisers understand the current Japanese mobile app market.

The Japanese Mobile App Market 2014 Ad Japon, Inc. 1

Table Of Contents The Smartphone Market In Japan…………………………..Page 3 The Mobile Advertising Market In Japan…………………Page 15 About Ad Japon Inc.’s Services……………………………….Page 21 2

The Smartphone Market In Japan 3

#1 From October of 2013, Japan is the most lucrative mobile app market in the world. 4

Smartphone Users In Japan 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 2012 2013 In Japan, over 51 million people own a smartphone. Japan’s smartphone penetration increased from 28% to 42% in 2013. Their population is 127 million which means ~17.78 million more people are now using smartphones in Japan than last year. 5

Smartphone Adoption Rate In Japan That percentage is expected to grow from 42% to 62% in 2014 which will be a faster smartphone adoption rate than pretty much everyone else. 6

Gaming In Japan Gaming is currently the largest app market in Japan. Pretty much all of the biggest players in the Japanese app market use IAPs (in-app purchases). Japanese developers have become exceptionally adept at finding where people stop liking their game and then fixing it so that people like the game again. A higher quality development cycle and more dynamic IAPs are about the only way for developers outside Japan. 7

Games Downloaded 3X iOS 6X Android Games are downloaded on iOS devices in Japan three times the global average and Android games are downloaded six times the global average. 8

The Gaming Industry Is Still Growing There are 3.9 times as many games now than there were in 2012 for Japanese consumers, compared to 2.7 times for the rest of the world. 9

How Much A Successful App Makes In Japan Japan’s number 1 selling app, Puzzles And Dragons has over 23,000,000 downloads in Japan and an estimated revenue of $4,330,000 per day. 10

ARPPU $60 $50 $40 $30 $20 $10 $0 U.S. Japan Japan’s ARPPU (average revenue per paying user) is over $50, in comparison the U.S. ARPPU is $12 Japanese people are accustomed to paid services and charges, which explains the high ARPPU. 11

Globalization Of The App Market Unlike games that are played in browsers, apps can easily be formatted for any OS and for any language, making it very easy for a new app to break into a new geographic region. As app developers in the West are slowly breaking into the Japanese market, app developers in the East are also coming into the Western market, globalizing the mobile economy in a way we have never seen before. 12

On average, how long do you spend playing smartphone games each day? 60+ minutes 30-60 minutes Japan U.S. 0-30 minutes 0% 10% 20% 30% 40% 50% In Japan, over 30% of the people play smartphone games for over 60 minutes, compared to 21% in the U.S. 13

Smartphone OS Share in Japan Others 1% Android 30% iOS 69% September~November 2013 14 After Japan’s largest carrier NTT Docomo decided to release the iPhone in September 2013, the number of iPhone users has increased dramatically. According to the research by Kantar Worldpanel Comtech, 69% of people who purchased smartphones in Japan from Sep to Nov 2013 bought iOS phones. Whereas Android dominates the market in most of other countries.

The Mobile Advertising Market In Japan 15

Mobile Advertising In Japan In Japan, 44% of mobile phone owners click on ads they receive on their phones. In 2013, mobile advertising was worth over 1 billion dollars in Japan alone. That number is expected to double by 2017. 16

100 million Prediction of Japan’s smartphone ad market scale 2500 Performance based ads(Affiliate + Reward) 2000 1500 Display ads 1000 Paid search ads 500 0 2011 2012 2013 2014 2015 2016 2017 Source: CyberZ, Inc. - In 2012, over 60% of mobile ad spending was on paid search advertising. Paid search advertising is mostly used by real estate, education, travel and financial firms. - 30% is from display advertising. Display advertising is mostly used by app developers, e-books, travel and real estate agencies. - 10% is from incentivized advertising. Incentivized advertising is mainly used by app developers to get installs. 17

Characteristics of each programs from our mobile ad network in Japan CPC ad network CPI ad network (non-incentivized) ■Greater volume ■Low risk ■More active users ■Quality users from review app/sites* ■Needs larger budget to run ■High ARRPU* ■Less volume due to lack of publishers CPI ad network (Incentivized) ■Fast short term results ■Less active users=low ARRPU* ■Lower cost to run *ARRPU (Average Revenue Per Paid User) *review app/sites (app or websites which introduce apps with review comments) 18

Case Study 1 –Actual monthly figures of successful gaming apps in Japan- App Type Monthly Imps Average CPC Average CPA Casual Gaming App (puzzles, cards, etc.) Over 3.1 billion ¥5.01 ¥755.29 Hardcore Gaming App Over 1.1 (RPG, strategy, etc.) billion ¥9.62 ¥765 * Monthly imps, CPC and CPA will change depending on your overall budget * Apps are free downloads with IAPs (in-app purchases) 19

Case Study 2 -An successful app promotion in Japan- CPI campaign for Android • Start test marketing • Check the reviews and adjust/localize if required • Test effectiveness of each app icon or banner creatives by comparing the conversion rates Which one gets higher conversion? CPC campaign for Android CPC campaign for iOS 20 • Start the CPC campaign with a greater budget based on the result from the CPI campaign • Finally, start the ad campaign for iOS, based on the results from the Android campaigns

What can Ad Japon do? 1. We connect overseas advertisers with Japan’s leading media as an advertising dashboard for our CPC/CPI/CPA ad network. 2. We provide total solutions* that are focused on performance based campaigns *Total Solutions: Marketing Promotion  Knowledge and Experience ASO (App Store Optimization) Localization Our parent company, Fan Communications(JASDAQ:2461) has been providing CPA affiliate services which focus on ROI to respond to the advertiser’s demand since 1999. 21

Ad Japon, Inc. is 100% owned by F@N Communications, Inc., which has the Largest Ad Networks in Japan. • • • • 22 Smartphone Ad Network CPC Smartphone Over 40 billion monthly imps + 100,000 publishers • • • Install program for apps CPI Smartphone • • • • Affiliate Network CPA PC/Smartphone Over 1.5 million publishers + 13,000 advertisers • • • • Affiliate Network CPA and CPI Feature phone/Smartphon e Over 225,000 publishers + 4,000 advertisers

Do You Have Any Questions? For more information, please go to: OR You can also email us at 23

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