Traditional media in Japan is declining, with newspaper readership and advertising spending dropping sharply as people increasingly consume news and media digitally on smartphones and computers. While newspapers are launching digital formats on websites and mobile apps, social media is growing rapidly in Japan, with the most popular sites being Mixi, Twitter, YouTube, and blogs. The internet and smartphones have high penetration rates in Japan, influencing how advertising is delivered across media.

1. 2011/06/17Traditional media and social media in Japan Junichi Yagura

2. 2 Table of contents How is JPN media doing? How is JPN media different from other markets? More details on social/online media in JP

3. 3 How is JPN media doing overall?

4. 4 TV Radio Np Mag Internet (from PC) Internet (from Mobile) Media use (avg. hours per day) Total hours increased from prev. year.

5. 5 vs prev. year Ad spend Ad spending (yearly total) (JPY100 million) Ad value of media dropping after financial crisis in 09

6. 6 Ad spending (yearly total) All but internet dropping, with GDP

7. 7 Traditional media still reach wide audiences but ad value decreasing ROI important than ever. Metrics and analytics are essential. Everything going digital

8. 8 Japanese people are unique. REALLY?

9. 9 Preferred format - Newspaper Mobile phone PC US E-Book reader UK Germany Japan Smartphone MP3 Player Print Even newspapers, we want to read it on our mobile.

10. 10 Preferred format - Newspaper & Magazine Newspaper US UK Germany Japan PC Mobile E-Book reader MP3 Player Smartphone Print Magazine US UK Germany Japan PC Mobile E-Book reader MP3 Player Smartphone Print Magazines in digital format preferred

11. 11 Most impactful media for advertising Internet TV Smartphone Game DVD/Blu-ray OHM Movie Radio Newspaper Magazine Internet perceived highly influential.Newspaper and magazines not so

12. 12 Summary: Not surprisingly, JPN people love digital.

13. 13 Examples of JPN media going digital:

14. 14 Newspaper

15. 15 Newspaper readership (yearly total) Sports General daily Newspaper’s decline starts to sharpen

16. 16 Newspaper ad spending (yearly total) Sharpest decline of all types of media

17. 17 Newspaper in digital Nikkei Shimbun launched its “web” edition. Asahi Shimbun launched on iPad and iPhone Many big players finally shifting towards digital

18. 18 Social (online) media in JP

19. 19 Internet and mobile in Japan Population 120 million Internet penetrationrate 78.0％ 94 million (mobile 80 mil vs PC 85 mil) Number of InternetUsers Mobile phone penetration rate 89.3％ Number of mobile phone owners 113million Source ：World Bank(2010)、MIC(2010) 、CNNIC(2010)

20. 20 21 million users 20 million users SNS 21 million users 4 million users 11 million users BBS 29 million users Video Sharing 19 million users 10 million users Blog/Micro Blog

21. 21 Mobage

22. 22 (1,000 users) Users(PC only) (1,000 pv) Page views

23. 23 Men Women Sex 10s 20s 30s 40s 50s Age groups

24. 24 When approaching social media in Japan Use contents that are cross-device Be mindful of identity issue Select local networks in short and Facebook in mid-term