Japanese Mobile Market Overview

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Geeks On A Plane

Overview of Japanese Mobile Market which is introduced by Gen Miyazawa at Startonomics Tokyo on 9th June 2009.

Technologie Business

2008.5.29

Geeks on a Plane.

Overview of the Japanese
Mobile Market.

CiriusTechnologies, Inc
Founder&CEO
Gen Miyazawa

2008.5.29

About Cirius Technologies, Inc.

A mobile ad technology company.
Founded in 2004 in Tokyo.
Running several mobile advertisements
platforms including “AdLocal”.
Launched new U.S. subsidiary at Sunnyvale
“plug and play tech center” in Oct. 2008.

-2-

2008.5.29

Japanese Mobile Market Trends

2008.5.29

Japanese mobile market quick glance

85% of mobile phone subscribers use
online services.
96% on 3G & 35% on 3.5G.
50% of subscribes on flat-rate data
plans.
55% are GPS enabled phones.
Keitai Hakusho 2008

2008.5.29

Why did the market grow so rapidly?

Broad coverage of 3G network.
Flat-rate data plans.
Operators had more influence upon mobile
ecosystem than in GSM markets.
Many people commute by train and use
mobile in the train.

2008.5.29

Latest trends of operators

DoCoMo is going to be a recommendation
platform.
iPhone is putting up a good fight, but the
market size is still small in Japan.
Monthly subscription plan is important.
Mobile traffic is growing larger than PC
traffic.

2008.5.29

Latest trends : Mobage-town
• Mobile PV: 15B (per month) *1
• Over 13M members
•Acquire many users by offering many free
mini games
•Users need virtual money (moba-gold) to
play games
•High CTR
•Provide a site called “MobaMingle” in the
US
•Super Galapagos Strategy

*1 Mar 2009 data

2008.5.29

Latest trends of mobile site : mixi
• Mobile / PC PV: 10B / 4.2B (per month) *1
• Over 16.8M members
• Their advertisement revenues appeared to slow down
during the recession
• First major mobile SNS supporting OpenSocial
• They are going to open their advertisement platform and
payment platform to developers

*1 Feb 2009 data

2008.5.29

Latest trends of mobile site : GREE
• Mobile / PC PV: 10B / 0.1B (per month) *1
• Over 10M members
• virtual pets “Clinoppe(クリノッペ) “and
Fishing game “Tsurisuta(釣りスタ)” drive their traffic
• Charging users for digital content is working well.

*1 Feb 2009 data

2008.5.29

Mobile ad growth forecast in Japan
Mobile ad spending
1400
Unit:millions USD
Mobile Ad Spending
1200
1000 unit: millions USD
800
600
400 1108 1284
744 928
200 288 390 556
0

2005 2006
2007 2008 2009 2010 2011
Source: seed planning: Mar 2008

2008.5.29

Latest trends of mobile market: E-Books
• Mobile e-books market size:30M USD
(2.5 times as large as the last year's)
•Publishers started to provide
their content positively
•Distribution channel was well- Free content
Paid content 11632
regulated for the distribution e-
content. 3653
•Content lineup grown widely

Oct 2007 Oct 2007

Impress R&D：9 July 2009

2008.5.29

Latest trends of mobile market: E-Commerce
1,150

• Mobile EC market :1,150M USD
Billion yen

2008

Commerc Services Transactions
e
July 2008

2008.5.29

Latest trends of mobile market: E-Commerce
• Tokyo Girl’s Collection
• Young mobile users spread fashion trends
• The audience can buy the garments worn by
the models via mobile phones.

2008.5.29

Fast-food chains focus on Mobile

Reducing TV commercials and reallocating
budget to mobile ads.

2008.5.29

Thank you
contact: gen@cirius.co.jp
Facebook: Gen Miyazawa

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Japanese Mobile Market Overview

1. 2008.5.29 Geeks on a Plane. Overview of the Japanese Mobile Market. CiriusTechnologies, Inc Founder&CEO Gen Miyazawa

2. 2008.5.29 About Cirius Technologies, Inc. A mobile ad technology company. Founded in 2004 in Tokyo. Running several mobile advertisements platforms including “AdLocal”. Launched new U.S. subsidiary at Sunnyvale “plug and play tech center” in Oct. 2008. -2-

3. 2008.5.29 Japanese Mobile Market Trends

4. 2008.5.29 Japanese mobile market quick glance 85% of mobile phone subscribers use online services. 96% on 3G & 35% on 3.5G. 50% of subscribes on flat-rate data plans. 55% are GPS enabled phones. Keitai Hakusho 2008

5. 2008.5.29 Why did the market grow so rapidly? Broad coverage of 3G network. Flat-rate data plans. Operators had more influence upon mobile ecosystem than in GSM markets. Many people commute by train and use mobile in the train.

6. 2008.5.29 Latest trends of operators DoCoMo is going to be a recommendation platform. iPhone is putting up a good fight, but the market size is still small in Japan. Monthly subscription plan is important. Mobile traffic is growing larger than PC traffic.

7. 2008.5.29 Latest trends : Mobage-town • Mobile PV: 15B (per month) *1 • Over 13M members •Acquire many users by offering many free mini games •Users need virtual money (moba-gold) to play games •High CTR •Provide a site called “MobaMingle” in the US •Super Galapagos Strategy *1 Mar 2009 data

8. 2008.5.29 Latest trends of mobile site : mixi • Mobile / PC PV: 10B / 4.2B (per month) *1 • Over 16.8M members • Their advertisement revenues appeared to slow down during the recession • First major mobile SNS supporting OpenSocial • They are going to open their advertisement platform and payment platform to developers *1 Feb 2009 data

9. 2008.5.29 Latest trends of mobile site : GREE • Mobile / PC PV: 10B / 0.1B (per month) *1 • Over 10M members • virtual pets “Clinoppe(クリノッペ) “and Fishing game “Tsurisuta(釣りスタ)” drive their traffic • Charging users for digital content is working well. *1 Feb 2009 data

10. 2008.5.29 Mobile ad growth forecast in Japan Mobile ad spending 1400 Unit:millions USD Mobile Ad Spending 1200 1000 unit: millions USD 800 600 400 1108 1284 744 928 200 288 390 556 0 2005 2006 2007 2008 2009 2010 2011 Source: seed planning: Mar 2008

11. 2008.5.29 Latest trends of mobile market: E-Books • Mobile e-books market size:30M USD (2.5 times as large as the last year's) •Publishers started to provide their content positively •Distribution channel was well- Free content Paid content 11632 regulated for the distribution e- content. 3653 •Content lineup grown widely Oct 2007 Oct 2007 Impress R&D：9 July 2009

12. 2008.5.29 Latest trends of mobile market: E-Commerce 1,150 • Mobile EC market :1,150M USD Billion yen 2008 Commerc Services Transactions e July 2008

13. 2008.5.29 Latest trends of mobile market: E-Commerce • Tokyo Girl’s Collection • Young mobile users spread fashion trends • The audience can buy the garments worn by the models via mobile phones.

14. 2008.5.29 Fast-food chains focus on Mobile Reducing TV commercials and reallocating budget to mobile ads.

15. 2008.5.29 Thank you contact: gen@cirius.co.jp Facebook: Gen Miyazawa

Japanese Mobile Market Overview

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