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Advertising & Marketing in Japan

March 25, 2008
Blogs as a New Advertisement Vehicle Burgeon in Japan: Word-of-Mouth (WOM) Advertising Market to Grow as Large as 13.25 Billion Yen in Fiscal 2010

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Advertising market taking a form of word-of-mouth (WOM) information in blogs is expanding rapidly in Japan.  According to a research report put forth by Yano Research Institute Ltd, the market grew from 3.195 billion yen in fiscal 2007 (from Apr. 2007 to Mar. 2008) to 6.01 billion yen in fiscal 2008 (from Apr. 2008 to Mar. 2009), up 88% year-on-year.  It is expected to grow up to 13.25 billion yen in fiscal 2010 (from Apr. 2010 to Mar. 2011), 315% increase compared to fiscal 2007.

 

 


 

The followings are the elements supporting the market growth

1.         Increased number of bloggers

2.         Increased number of entering companies (both from businesses who used to employ face-to-face WOM and from PR firms)

3.         Increased number of product-testing projects (for research purposes)

4.         Increased use in cross-media marketing (as a part of marketing activities)

5.         Increased number and total amount of projects (increase in article numbers and overall enhancement in scale through cross media marketing)

6.         Increased needs by peripheral services, such as service to collect WOM articles in blogs

 

The followings are the challenges to be addressed

1.         Generate awareness and understanding of the service among clients/Generate detailed understanding of the service among advertising agents

2.         Create an across-the-industry standard to evaluate advertising effectiveness (including face-to-face WOM)

3.         Accumulate successful formulas by product category

4.         Display ‘Advertisement’ mark on sponsored projects

5.         Foster quality bloggers through industry-wide efforts

 

Other challenges for the business in terms of development is how to choose bloggers and position blogs in their overall strategy, and in terms of planning, how to create and preserve the attractiveness and characteristics of blogs.  The report also points out the importance of placing emphasis on overall planning capability flexible enough to be tailored to each project.

 

 

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Advertising & Marketing in Japan

March 25, 2008
Blogs as a New Advertisement Vehicle Burgeon in Japan: Word-of-Mouth (WOM) Advertising Market to Grow as Large as 13.25 Billion Yen in Fiscal 2010

PAGE 1/3

 

Advertising market taking a form of word-of-mouth (WOM) information in blogs is expanding rapidly in Japan.  According to a research report put forth by Yano Research Institute Ltd, the market grew from 3.195 billion yen in fiscal 2007 (from Apr. 2007 to Mar. 2008) to 6.01 billion yen in fiscal 2008 (from Apr. 2008 to Mar. 2009), up 88% year-on-year.  It is expected to grow up to 13.25 billion yen in fiscal 2010 (from Apr. 2010 to Mar. 2011), 315% increase compared to fiscal 2007.

 

 


 

The followings are the elements supporting the market growth

1.         Increased number of bloggers

2.         Increased number of entering companies (both from businesses who used to employ face-to-face WOM and from PR firms)

3.         Increased number of product-testing projects (for research purposes)

4.         Increased use in cross-media marketing (as a part of marketing activities)

5.         Increased number and total amount of projects (increase in article numbers and overall enhancement in scale through cross media marketing)

6.         Increased needs by peripheral services, such as service to collect WOM articles in blogs

 

The followings are the challenges to be addressed

1.         Generate awareness and understanding of the service among clients/Generate detailed understanding of the service among advertising agents

2.         Create an across-the-industry standard to evaluate advertising effectiveness (including face-to-face WOM)

3.         Accumulate successful formulas by product category

4.         Display ‘Advertisement’ mark on sponsored projects

5.         Foster quality bloggers through industry-wide efforts

 

Other challenges for the business in terms of development is how to choose bloggers and position blogs in their overall strategy, and in terms of planning, how to create and preserve the attractiveness and characteristics of blogs.  The report also points out the importance of placing emphasis on overall planning capability flexible enough to be tailored to each project.

 

 

PAGE 1 / 2 / 3