What’s Hot: Japan Marcom Activities
Being an active marketing agency in Japan, we’re constantly exposed to the latest industry chatter and trends. Here’s a quick look at what’s hot behind the scenes along with some of our own insights…
Social media reigns supreme
Among all the digital marketing activities in Japan today, social media is receiving the most attention from audiences, lifestyle brands, advertisers, and agencies.
Despite, or arguably due to, the continued negative impacts of the pandemic (including difficulty holding events), almost 70% of companies in Japan said they planned to increase spending on social media this year. Just 1.6% said they would reduce spending.
Huge increase in social media advertising spend
In 2021, advertising spends on social media in Japan increased by 134.3% which accounted for 35.4% of total media spend on internet advertising. Spending on social media ads is projected to continue with significant growth, meanwhile by the end of 2022, spend on internet advertising overall is predicted to increase by 115% according to a report by advertising giant, Dentsu.
Data source: “2021 Internet Advertising Expenditure Report” Dentsu , March 2022
User behavior on social media
Social media use remains active and prevalent as ever (Japan is the biggest market for Twitter outside of the U.S. with around 59 million active monthly users). However, at An-yal, we’ve observed marked differences in how audiences participate or engage on social platforms compared with markets such as the U.S. and U.K.
For one, despite the habitual daily browsing, audiences tend to remain anonymous, less actively express themselves, or don’t feel the need to ‘way in’ and have their say. Twitter is a standout, with trending topics on Twitter Japan triggering users’ opinions and random thoughts.
However, what we rarely see is huge engagement on content from even the most popular brands relative to the size of their audience. It is apparent, though, that users are engaged and are readily consuming their content.
Rethink engagement metrics
Through analyzing our brands’ campaign performance, we constantly observe that seemingly reserved audiences suddenly become wildly active when there is an opportunity to ‘win’. Then appear multiple comments, shares, likes, emoji-stuffed reactions, and some very humorous begging tactics!
From the examples below, it’s also apparent just how savvy users are in persuading (or bribing) brands with offers of loyalty, sharing content on multiple platforms, posting decorative images of the prize if they are chosen as a winner, or claiming that they deserve to win because they recently gave birth…
Using standard engagement metrics to measure the performance of a broader strategy may misleadingly result in a lower overall rate if fewer of this type of campaign are included. But, we do not recommend a giveaway-saturated approach as it may subsequently diminish the users’ anticipation, excitement, and desire. A situation that can quickly lead to declining brand value.
TikTok in 2023
According to experts and general chatter, TikTok is the hot topic and primary strategic direction for social marketing in 2023. More brands from various industries have finally started taking advantage of the platform but currently there’s still many well-known lifestyle brands that do not have a significant presence on TikTok Japan, if at all.
Just this year, An-yal developed and launched multiple TikTok channels for different clients. We compared TikTok like-for-like with Instagram and found some positive early results.
Audience growth rate: +30%
Organic reach on feed content: +35%
Engagement on promoted content: +41%
Challenges
A major challenge for brands is their need to consistently create TikTok-specific short-form videos with the crucial interactive components that the platform provides. Also the ability to reach and retain ideal audiences in a cost-effective way.
Collaborating with TikTok creators can help fill that void, but as users become more accustomed and the platform becomes more saturated, brands will also need to continuously produce better quality, more eye-catching or intriguing content
Undoubtedly, this is also necessary for higher performance in paid promotions or advertising. So again, next year, expect “quality short-form video” and creator collaborations to continue as key activations (particularly for lifestyle brands) in the Japanese market.
Based in Tokyo, An-yal is the leading independent advertising agency for global lifestyle brands in Japan and worldwide. Contact us to get ahead with your integrated marketing and creative needs.
