Is Google Really The Most Efficient Advertisement Media in Japan?

Introduction

Google, a global titan in search engines, also commands a significant presence in Japan’s digital advertising market. This raises an important question: is Google’s advertising efficiency superior to that of local Japanese ad media? This article explores the market share and effectiveness of various digital advertising platforms in Japan, providing insight into the strategic choices available to marketers.

Google’s Market Dominance and Local Competition

In Japan, Google holds the largest slice of the digital ad market at 34.6%, a testament to its global reach and robust advertising solutions. Another significant player is X (formerly Twitter), which captures 18% of the market. Meanwhile, social media giants like Facebook and TikTok have smaller stakes, garnering 5.7% and 3.7% respectively. Despite Google’s dominance, it’s important to note that Japanese local media collectively hold a substantial market share of 31.6%, featuring players such as Afio, UNICORN, Geniee, Dynalyst, and Appier.

Popular Media Used by Mobile Games

Different stages of mobile game marketing, from pre-registration through launch and post-launch phases, necessitate varied advertising strategies. Above you can see the popularly used media of mobile games in Japan for different steps of its growth from pre-registration, launching, and follow-up.

Budget Distribution Over OS

While Google might dominate the ad share, a strategic distribution of the advertising budget across platforms is advisable. A typical recommendation might include a 6:4 or 7:3 split between Android and iOS. For iOS, in particular, Japanese local media is popularly used (Afio, Appier, etc.) due to their better targeting features, which are better suited to the nuances of the Japanese iOS user base.

Challenges Ahead: Privacy Enhancements and Their Impact

Recent privacy enhancements introduced by both iOS and Android pose new challenges for advertisers. Local Japanese digital platforms, such as nend, have experienced a noticeable decline in advertiser interest and ad volume as a result. This shift is largely due to the reduced ability to rely on fingerprinting technologies, prompting advertisers to seek alternatives less dependent on invasive tracking methods.

Emerging Alternatives in the Advertising Space

As the advertising landscape evolves, new alternatives are gaining traction:

1. Apple Search Ads (ASA) and SKAdNetwork (SKAN) 4.0 are getting some attentions
2. Extended Cost Per Engagement (CPE) models through point sites are being explored for deeper user engagement
3. Marketing Mix Modeling (MMM) are becoming increasingly vital for large companies

Perhaps the global giants will take the more dominant shares in Japan in the near future.

Conclusion

While global platforms like Google, X, Meta, ASA, and TikTok currently outperform major Japanese platforms such as LINE and Yahoo in terms of market share, the local media landscape remains pivotal. For advertisers, the key lies in identifying the specific goals of their marketing campaigns and choosing the media platforms that align best with achieving these objectives. Understanding the unique attributes and advantages of each platform—whether global or local—is essential for maximizing advertising efficiency in Japan’s dynamic market.

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If this article interests you, you might want to join our upcoming webinar about Mobile Game Marketing in Japan!

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