Japan Mobile Web Case Study: mobagetown

Japan Mobile Web Case Studymobagetown

Christopher Billich

Mobile Media Investors ConferenceSan Francisco, December 9, 2008

I work for a company called

based

somewhere around here

What I will be talking about

1. Japanese Mobile Industry: Basics

2. The Biggest Mobile Service in Japan

3. What that has to do with us

102 million mobile subscribers

9 in 10 use theMobile Web

4 in 5 of them on 3G4 in 5 of them on 3G

Why that is

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Operators: benevolent dictators

High-spec handsets

No device fragmentation

Unwalled Gardens

Revenue sharefavoring contentowners

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Messaging is (almost) free $0,--

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40% of mobile data users on data flat rate plans

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Healthyobsession with user experience

Standardization

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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

(a few people even 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 have better things to do.Mobile Web Usage Frequency, 16-24 year-old users

Source: Infinita, April 2008

10-19

20-29

30-39 30%

37%

22%

21%

28%

42%

39%

23%

25%

TV Mobile PC Other

Especially if they are young.Which Medium matters most to you? - by Age Group

Source: NTT Advertising, 2007

Mobile Social NetworkingAwareness and Usage

2005

2006

2007

2008 19%

15%

10%

2%

46%

43%

49%

31%

35%

42%

41%

67%

No Awareness Awareness only Active Usage

Source: impress R&D, 2005-2008

Mobile Social NetworkingRevenue Projection 2005-2011 (US$ million)

Sources: Mobile Content Forum, Dentsu, Infinita

2005 2006 2007 2008 2009 2010 2011

Mobile Content (Total)Mobile Advertising (Total)Mobile SNS 4,624

743

5,267

1,283

863260

+14%

+73%

+232%

mobagetownThe Basic Idea: Free Games, SNS and Avatars

Source: DeNA Co., Ltd.

mobagetownBusiness Model

mobagetownMobile Advertising: Coca Cola Campaign

Source: Nikkei

Campaign Date: 05/07-06/07

Launched limited-time Coca Cola-branded version of social networking site mobagetown

Accessible only to double-registered users of mobagetown and Coca Cola Mobile

Reach top scores on Coca Cola-branded games to receive branded avatar items

Coca Cola-branded Decomail graphics to use in mobile emails to friends

“Coke Character” with avatar and blog

Campaign extensively promoted via tie-in with Coca Cola “The Coke Side of Life” TV campaign

Coca Cola-branded versionof mobagetown (above), branded games (top right),branded Decomail (left)

Source: DeNA Co., Ltd.

Almost 1 million sign-ups for Coca Coca mobile site

185 million page views

5.6 million page views on Coke character blog page alone

350,000 users connected with Coca Cola character as friends

190,000 comments posted to the Coke character blog

mobagetownMobile Advertising: Coca Cola Campaign

mobagetownMobile Advertising: UNIQLO Campaign

Source: DeNA Co., Ltd.

Campaign Date: April 2008

Download coupons for apparel retailer UNIQLO and redeem for discounts on relevant items at participating stores

Exclusive avatar items corresponding to the goods purchased via entering the unique product ID from price tag on mobagetown

Branded game, goal: “try on” the outfits that are being promoted as part of the campaign by jumping up to catch clothes flying out of a clothes dryer

mobagetownRevenues

0

10

20

30

40

50

60

FY07 Q2 FY07 Q3 FY07 Q4 FY08 Q1 FY08 Q2

10

0

0

2124

2420

11

12131717

14

131211107

US$ million Advertising* Affiliates Avatar Items Paid Content

* Includes standard advertising, tie-ups, search advertising, contextual text advertisingSource: DeNA Co., Ltd.

mobagetownMembers and Page Views

0

2

4

6

8

10

12

14

Mar 08 Dec 06 Sep 07 Jun 080

2

4

6

8

10

12

14

16

18

Mar 08 Dec 06 Sep 07 Jun 08

Million Billion2,126 PV/UU

1,272 PV/UU

Source: DeNA Co., Ltd.

mobagetownStrategic Evolution: Portal

Source: DeNA Co., Ltd.

mobagetownStrategic Evolution: Sophisticated Advertising Formats

Formats: Text ads relevant to search area

Compensation model: CPC

Pricing: bidding mechanism

Location-based advertising network “AdLocal” service provided by Cirius Technologies, Inc.

Advertisers can specify proximity (during an address- or map-based search)

Targeting: genre/product category, time of day, day of the week, area radius (1 to 10 km), weather (e.g. “show my advertising only if it is raining”)

mobagetownStrategic Evolution: Premium Games

Existing Games Strategy/Line-up Game Portal Strategy

+• Core: Casual games

• Offer all games for free to attract customers

★ Entry strategy

• Offer major licensed game titles

• Basic play free, premium charges

★ Create earnings from games

Source: DeNA Co., Ltd.

mobagetownStrategic Evolution: Online Casino

“Insert MobaGold”

Source: DeNA Co., Ltd.

mobagetownStrategic Evolution: Mobile Search Engine

“For search, too:mobagetown.”

“A new experience in mobile search.”

2007 2008 (est.) 2009 (est.) 2010 (est.) 2011 (est.)

494

371

262

16785

789736665576536

Non-searchSearch

mobagetownStrategic Evolution: Mobile Search Engine

Source: Dentsu, March 2008

Mobile Advertising Revenues, US$ million

Why I am telling you all this

Current time in San Francisco:11:20 am, Dec 9, 2008

Current time in Tokyo:04:20 am, Dec 10, 2011

Great Wall of ChinaJapan

Infinita Business Activities

1. Research

2. Mobile Strategy Workshops

3. Investment Advisory

4. Business Facilitation

Infinita Selected Clients

Thank you,and sorry I could not be there!

[email protected]

www.infinita.co.jp/en

www.slideshare.net/cbillich/slideshows