search, both pushed by the operators, makeoff-deck sites easily accessible as well.A factor that is particular to Japan is the powerbalance between operators and handsetmanufacturers. All handsets are SIM-lockedand exclusive to the operator, who controlsdevelopment and handles distribution. Thisgives carriers an elsewhere unheard-of level ofcontrol over the rollout of handset features andresults in a homogeneous distribution offeatures across the device base. Thus, Japanhardly has the problems of devicefragmentation causing the rest of the worldheadaches.Operators work together to create commonstandards and have steadily introduced onetechnological feature after another, enablinginnovative content and services, many of themcrucial to making mobile advertising asuccess. Examples include: Mobile email withfull HTML support since the very early days ofthe medium (as opposed to creativelyrestrictive SMS), robust mobile browsers, anda cross-carrier emoticon library - not to forgetphone cameras, QR Code readers, MobileFlash, GPS, 1seg digital terrestrialbroadcasting technology and FeliCa (RFID)chips for contactless transactions.While the particular nature of the operator-handset manufacturer relationship in Japanhas historical roots and cannot be replicated inother markets, other factors driving mobileinternet usage, and in turn mobile advertising,apply everywhere.
How did mobile advertising develop inJapan?
No structured approach to mobile marketingexisted during the first few years after theemergence of the medium with NTTDoCoMo
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s 1999 launch of i-Mode. The marketwas fragmented with an abundance of playersand formats, as a consequence, marketershesitated to pursue the mobile opportunity.
Standardization and cross-industryefforts
To solve this problem, each of the operatorsestablished a joint subsidiary with one of themajor advertising agencies. These jointsubsidiaries serve three main purposes:(1)to develop and implement standards informats, targeting and metrics,(2)to act as sales representatives for operator-owned services and content providers
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on-deck sites,(3)to work with the operator in developing newproducts and services that spawn newmobile advertising opportunities.It should be emphasized here that the operatorsubsidiaries work together closely with eachother, as well as with the mobile content andmedia industries. So well-oiled a machine isthe system that advertisers are able to bookcampaigns across all three operators throughany one of their joint subsidiaries, keepingtransaction costs for marketers to a minimum.In addition to this construct, non-operatormedia sales reps market some of the officialsites as well, this is specifically the case forsome of the larger content providers.Independent agents cater to the plethora ofoff-deck sites, often in the form of GoogleAdSense-type affiliate ad networks. Off-decksites operate on the same basic format,targeting and metrics standards as on-deckones, with slight variations.
The early days: banners and email
Until about two years ago, mobile marketersrelied mostly on banner ads, text ads andmobile email advertising. One of the moreprominent operator initiatives from this era isthe Tokusuru Menu, which lists campaigns andpromotions on the deck.Another one are carrier-driven, opt-in mobilenewsletters that aggregate promotions andcampaigns from different advertisers.Needless to say, many off-deck sites use opt-in newsletters as promotional tools for theirown and third-party advertising as well.However, in light of operators
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strict anti-spammeasures and consumers
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increasing warinessof message overload, mobile email advertisinghas been decreasing in popularity.
21st Century Mobile Marketing www.infinita.co.jp/research Page 2 of 6
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