10 FACTS ABOUT JAPANESE MOBILE APP MARKET- THE MOST LUCRATIVE GAMING APP MARKET IN THE WORLD

AYA YAMADAOVERSEAS BUSINESS REPRESENTATIVE

AT 　　 　　　　 ADINNOVATION. INC.

HTTP://ADINNOVATION.CO.JP/ENHTTP://WWW.LINKEDIN.COM/PROFILE/VIEW?ID=176513162

About Us

Mar, 2010 　 Established Jul, 2013 　 Raised $1.6 million USD Jan, 2014 　 Partnered with Digital Advertising Consortium

We have supported over 4 digital numbers of applications as of Apr 2014.Contacts:info@adinnovation.jphttp://adinnovation.co.jp/en/ http://www.linkedin.com/company/adinnovation-inc 　

Leading Marketing Firm For Smartphone Apps

Aya Jennifer Yamada (Аюша)

Overseas Business Representative at Adinnovation. Inc

Business Careers Apr, 2011 Rakuten, Inc.Web application engineerQA & localization lead for Kobo, Toronto-based eBook company

Nov, 2013 　 Adinnovation, Inc.Representative of overseas business developmentStaying in Moscow!

100 Facts About Japanese Market - the most lucrative gaming app market in the world

10 Facts About Japanese Market - the most lucrative gaming app market in the world

Oct, 2012 Oct, 2013050

100150200250300350400

Combined iOS App Store & Google pLay monthly App revenue

Inde

xed

Reve

nue

JapanUS

South KoreaUK

#1 TOP Market In The World

Source: http://inbound.appannie.com/japan-spotlight-revenue-inflection-point

Source: http://www.gungho.co.jp/ir/uploads/irk20140326.pdf

Puzzles and Dragons 26 Million Downloads (Total)

100 Million USD /month (Estimated OP)

Free-to-play >> Paid AppsIn App Purchase >> Paid Install

#2 Because Of Gaming Apps

Source: http://jp.techcrunch.com/2014/03/26/jp20140325-japan-smartphone-app-market/

2012 2013$0.0

$2.0

$4.0

$6.0

$8.0

$10.0

$12.0

$9.6

$10.8

$3.0$5.4

All Games (incl. S & H) Smartphone Games

(Billion USD)

+ 178% YoY

Consumer Games

2.5 Billion USD

#3 Bigger Than Consumer Game Market

Source: http://jp.techcrunch.com/2014/03/26/jp20140325-japan-smartphone-app-market/

2012 2013 2014$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

$7.00

$1.31 $3.12 $4.20 $1.70

$2.25 $2.25

Market Size Of Smartphone Gaming App (Native Apps Vs. Browser Games)

Native Apps MarketBrowser Games Market

(Billion USD)

+ 237% YoY

+ 133% YoY

#4 Native Apps > Browser Games

Source: http://www.videoi.co.jp/release/20140225.html　

Aug, 2011

Feb, 2012

Aug, 2012

Feb, 2013

Aug, 2013

Feb, 2014

0.0

20.0

40.0

60.0

80.0

100.0

120.0

73.7 68.4 59.8 54.1 46.0 41.9

18.9 27.0 34.7 40.2 49.2 54.0

Ownership of Feature phone/ pHS Vs. Smart Phone

Feature phone & PHS Smartphone(%)

= 69 million users

#5 Smartphone Coverage Is Still Growing

Source: http://www.videoi.co.jp/release/20140227.html　

iPhone

8%Non

iPhone37%

NTT docomo

45%

iPhone

17%Non iPhone　 16%

iPhone

14%

au30%

Softbank

23%

Other Ops2% Non

iPhone6%

40% Of Them Uses iPhone

#6 Wide Range Of Target Users

Source: http://hitracking.net/blog/news/infographicsmartphone-gaming-in-japan-surprisingly-untouched-by-outside-developers/ 　

Based On The History Of Monthly Subscription As Feature Phone Purchase

Ringtone

Games

Comics

Source: https://www.mcf.or.jp/press/images/mobilecontent_market_scale2011.pdf　

2008 2009 2010 2011

4.7 5.4 6.2 6.4

Wallpaper

Decorated Email

(Market Size Of Digital Contents, Billion USD)

1999 -

2002 -

2007 -

2004 - 2007

-

#7 PR Campaign, Before & After LaunchBasic Marketing method

【 AD media 】CPI AD, ADNWSucceeded AD in Phase 1 & 2

【 AD media 】CPI Reward AD(Incentivized Ad)

【 Ad Media 】Pre Registration, Reviews media, and Free actions

【 Measures schedule 】

Ranking

Launch ～ 1st Month

DLnumber

Ranking

When rankings rise effect settled

For Potential users For Royal Users

Phase 1

Phase ２

Phase ３For Expected users

Wall Jack In Shibuya Sta.

Yamanote Line TV Commercial

#8 Even At The Station, TV Commercial, etc…

Eye-catchy Digital Ads

Strategy Guides

#8 Even At The Station, TV Commercial, etc…

Nyanko Daisenso(Cat Wars)20 million DLs

Magician and Wiz ofthe Black Cat27 million DLs © Colopl© Ponos

#9 More Like Service Industry, Not Manufacturing

High ARPU or

Law ARPU

Keyword

Position Map High ARPU

Law ARPU

Large DAU

Small DAU

© GungHo Online Entertainment

Be Strategic To Acquire Japanese Users

Promotion

MonetizationAnalytics

Source: http://www.distimo.com/leaderboards/google-play-store/japan/all-games/free/month　

500,000 USD +per month, per title, ranked within

#100

‘Small is the new Big’

#10 Be accurate and attentive to details.

Happy Pockets

Happy TurnHappy

Powders

Contact Us!info@adinnovation.jp

http://adinnovation.co.jp/en/

http://www.linkedin.com/company/adinnovation-inc-