Mobile Marketing: Lessons From Japan and Korea

SUMMARY

In 2005, revenues from mobile advertising in Japan grew by 60%, generating a € 200 million market within four years. Similar revenues were not achieved with Internet advertising until year five but this now represents a € 2 billion market in Japan. Korea too is seeing significant growth in mobile advertising and this market is forecast to grow strongly again in 2006, to € 50 million.

This paper analyses the developments in both these markets that have enabled mobile advertising to grow at a more aggressive pace than that seen in Europe. We provide a critical assessment of the initiatives that have contributed to accelerated development in these markets. We detail the roles of the key players (operators and mobile marketing agency partners) and explain how this vibrant market has developed.

Case illustrations are provided which demonstrate campaign and media platform innovations that have delivered campaign results far in excess of expectations. We show how the pricing philosophy adopted in both these markets has helped to quickly deliver a low cost environment for brands and consumers to 'relate' through mobile marketing. Finally we reveal how mobile operators in these markets hope to generate increased revenues once the foundation for a successful mobile marketing industry, (capable of challenging TV and Internet media) has been established.

TABLE OF CONTENTS

1 Overview

2 Japan

• 2.1Market Overview
• 2.2Why is Mobile Marketing taking off in Japan?
  • 2.2.1Mobile marketing Catalysts
• 2.3Two Platforms for Mobile Marketing
  • 2.3.12G
  • 2.3.23G
  • 2.3.3Increased interest from traditional industries
• 2.4Case Illustration: D2 Communications (D2C)
  • 2.4.1Service line-up
  • 2.4.2Main portal
  • 2.4.3Mobile EPG advertising
  • 2.4.4'Message Free' push advertising
  • 2.4.5Profit number
  • 2.4.6DoCoMo Coin
• 2.5Some Conclusions on Japan

3 South Korea

• 3.1Market overview
  • 3.1.1General figures
  • 3.1.2Opt-in regulation
• 3.2Case Illustration: AirCROSS
  • 3.2.1Company overview
  • 3.2.2Services line-up
  • 3.2.3Some Integrated Multi Channel campaigns
• 3.3Case Illustration: KTF Mhows
  • 3.3.1Company overview
  • 3.3.2Mobile Business Card
  • 3.3.3Hot Code
  • 3.3.4KTF **4
  • 3.3.5Mobile search Ads
  • 3.3.6Mobile Promotion
  • 3.3.7Some campaign illustrations

4 Lessons Learned

• 4.1Introduction
• 4.2Knowing your customers
• 4.3Getting permission
• 4.4Monitoring Impacts
• 4.5Timing & Relevance
• 4.6Extending Service Adoption/Penetration
• 4.7Key Enablers
  • 4.7.1Flat rate data plans
  • 4.7.2Service Access Speed
  • 4.7.3Developing Innovative Message Delivery Platforms
• 4.8Operator Revenues