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

1. The Japanese Mobile App
Market 2014
Ad Japon, Inc.
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2. 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
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3. The Smartphone Market In Japan
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4. #1
From October of 2013, Japan is the most
lucrative mobile app market in the world.
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5. 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.
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6. 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.
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7. 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.
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8. 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.
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9. 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.
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10. 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.
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11. 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.
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12. 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.
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13. 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.
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14. Smartphone OS Share in Japan
Others
1%
Android
30%
iOS
69%
September~November 2013
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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.

15. The Mobile Advertising
Market In Japan
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16. 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.
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17. 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.
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18. 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)
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19. 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)
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20. 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
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• 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

21. 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.
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22. Ad Japon, Inc. is 100% owned by F@N Communications, Inc., which
has the Largest Ad Networks in Japan.
•
•
•
•
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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

23. Do You Have Any Questions?
For more information, please go to: http://adjapon.com/en
OR
You can also email us at sales-adjapon@adjapon.com
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