Cirius Location-Based Mobile Ad - A Lesson From Japan Presentation (Oct 08)

8/14/2019 Cirius Location-Based Mobile Ad - A Lesson From Japan Presentation (Oct 08)

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Location-

based MobileAd:

A LessonFrom Japan

Gen MiyazawaRen Ando

Cirius Technologies, Inc.

Oct 23, 2008


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Introducing speakers

Gen

Miyazawa Ren Ando

Founder and CEO

Established the companyin 2004 after graduatingThe University of Tokyo.Authored 3 books such asMobile 2.0, published in

Japan.

Director, ProductDevelopmentResponsible for ad serverproduct strategy,roadmap and engineeringstrategy.

Previously worked on web


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A little about us


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A mobile ad technology company.

Founded in 2004 in Tokyo.

Running a few mobile advertisementplatforms including AdLocal.

AdLocal is a location-based mobileadvertising service using GPS andCell-IDs.

About Cirius Technologies, Inc.


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Tell us a little about you

How familiar are you with the

Japanese market? Any specific impression of the

Japanese mobile market?

Any specific topics you are interestedin hearing today?


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1.Japanese mobile market trends

2.Japans rising mobile ad market

3.Location-based mobile ads and

Case Studies4.Opportunities for the European

mobile market

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Agenda


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Part I:Japanese Mobile MarketTrends


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Overview Japanese mobilemarket from these aspects;

Growth of the mobile population Paid contents

E-commerce

Video Real-world integration

Trends in 2009


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90% of the subscribers use the

mobile web.90% on 3G by 2008.

Almost 1/2 are GPS enabledphones.

Japanese mobile market quick

glance


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Mobile Subscriber Forecast (2004-2011)

Source: ROA Group

Japan mobile subscriber

growth

(K)

Penetration


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Mobile commerce market hit $

10B

Source:Ministry ofInternal AffairsandCommunications


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Popular mobile contents

Source:MobileContentForum (July

2007)

(Millions USD)


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Mobile Video and TVTV watching (w/ digital TV tuner) andvideo sharing will soon become a top

mobile entertainment.

You Tube on Nico Nico Video


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IC wallets integrated with mobile

phones

28.5 mil subscribers (as of Mar 31, 2008)

Public transportations, supermarkets, vending

machines


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Why did the market grow so

rapidly?

Broad coverage of 3G network

Flat-rate data plansOperators had more influence

upon mobile ecosystem than inGSM markets.


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A new regulation to put GPS for all3G phones

Top 2 operators have integrated

Google as default searchMassive growth of "non-official"

sites

Latest trends to promote mobilead market expansion


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Part II:Japanese Mobile Ad Market


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Overview Japanese Mobile Ad

Market from the aspectsbelow;

Market size Structural characteristics

Compensation models


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Mobile ad growth forecast in

Japan

unit: millions

USD


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Large "mobile / total" ad spend

ratio

1% of total 0.3% of total


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Large spending on display and

search ads

Source:Dentsu Inc. , Feb2008

eMarketer, Mar2008


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Preferred compensation models among

advertisers


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Sponsored listings are growing

rapidly


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Part III :

Location-based mobile adsand Case Studies


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The location-based mobile ad

platform

Cirius Technologies has started operating

the location-based mobile ad platform since2006.

The facts and case studies here are allbased on our experience on AdLocal


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Location Based Ad Service

"AdLocal"

Example AdLocaldisplayed at

Stanford

[AD] University Ave. No.1MexicanRestaurant 10% DiscountCoupon!

AdvertiserTarget range


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How AdLocal works

Advertisers PublishersAd

Campaign

Users

Location

Operators

[AD] University Ave. No.1MexicanRestaurant 10% DiscountCoupon!

MobilePhone

Ads areinserted

Landing Page or Click-To-Call


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Examples of Advertisers

Most successful categories of advertisers:Food & Restaurant Local Jobs andEmploymentEducational Institutions Beauty salons Cardealers


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Strong publisher network in

Japan

[PR]SALE!!10% Discount@Tokyo

[PR]No.1 Sushi Bar! Shibuya Sta.[PR]English Lessons at Shibuya[PR]SALE!! 10% DiscountCoupon

@niftyhttp://bousai.nifty.com

Excite Mobilehttp://mobile.excite.co.jp

Excite Japan

askU.comhttp://m.asku.comBandai Networks, Inc.

gogo.gshttp://m.gogo.gsgogolabs, Inc.

e-Nenpihttp://response.jp/enenpi/

IRI Commerce and

Technology, Inc*DoCoMo Official CP

tabelog.com

http://m.tabelog.comKakaku.com, Inc.

Moba-ge NTT-BJ i-
http://bousai.nifty.com/http://mobile.excite.co.jp/http://m.tabelog.com/http://m.tabelog.com/http://mobile.excite.co.jp/http://bousai.nifty.com/


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Proved performance for

advertisers

Non-Local Ads LocalAds(Average CTR for 12 month from mid-2007 to

mid-2008 )


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Proved performance for

publishers

(Average CPM for 12 month from mid-2007 to

mid-2008 )

Non-Local Ads LocalAds


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Case Studies


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A car manufacturertargeted their ads to the

areas near their dealers.

Actual Screen Image

A fast foodfranchiserpromoted their

franchisees.

Case Study 1 : Pinpointing

Market Areas


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Before:$1,000/stude

nt tutor hired

Case Study 2 : A home tutoring

companyAfter usingAdLocal:

$300/student tutorhired

The tutoring companytargeted universitycampuses.


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Combined with a big screen advertising indowntown Tokyo, to promote a new album

of a singer.

10,000 customersinteracted with this

campaign within 3

Case Study 3 : Simultaneous-ad

campaign


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Part IV:Opportunities for theEuropean mobile market


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Growing GPS enabled phones


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Print

AdvertisingTo Mobile

NewspaperInsertsFlyersFree paper

Free magazinesYellowpage ads

Print AdSpending

Printed local ads to shift mobile


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Potential partners

Mobile content providers (especiallyLBS)

Mobile network operators

Handset manufacturers

PND manufacturers


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Content ProvidersMonetize mobile apps andcontents.


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Operators

Operators can enable AdLocalplatform in their markets

By providing Cell-IDs to thepublishers in their ad network

No GPS-phone required


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Handset ManufacturersMonetize pre-installed apps withlocal ads

Widgets

Apps


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PND manufacturers

Another monetizing vehicle or value-add for PNDs

Distribute coupons


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Our New InternationalProduct is Coming Soon inSpring 2009


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Please contact us at:

[email protected]

Our temporary internationalsite:

http://www.cirius.co.jp/enNew international site:

http://ciri.us (from mid-


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APPENDIX


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Comparison To Contextual Ads

User

Azabu

area

Roppongi

area

$0.40 bid by store B

$0.30 bid b store A

$0.60 bidby store C

*Roppongi and Azabuare two areas in Tokyo

which are in the same


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Ad Impressions in Tokyo

Documents

Cirius Location-Based Mobile Ad - A Lesson From Japan Presentation (Oct 08)