Cracking the Code of Japanese Consumer Behavior
In recent years, Japan has seen significant growth in its digital marketing industry, making it an attractive market for businesses looking to expand their digital marketing efforts. Japan is one of the most connected countries in the world, with 93.4% of the country's total population who uses the Internet in 2021, according to Statista. This means that there are around 118.5 million internet users in Japan. Japan's internet penetration rate has been consistently high over the past decade, with an average growth rate of around 2-3% per year.
The mobile penetration in Japan is also very high, with a smartphone penetration rate of 78.3% in 2021, or around 99 million smartphone users. The number of smartphone users in Japan has been steadily increasing over the past decade, with an average growth rate of around 3-4% per year. Digital Marketing has overpowered traditional media marketing for advertising brands in Japan, with 43% of Japanese consumers discovering brands online compared to 32% who discover brands on TV.
One of the reasons for Japan's high internet penetration rate is the country's advanced telecommunications infrastructure along with its popularity of messenger apps. Japan has invested heavily in its telecommunications infrastructure over the years, resulting in a highly developed broadband network that provides fast and reliable internet access to most parts of the country.
Digital marketing strategies that may work in other countries, such as the US, may not work in Japan. One typical example is Email marketing campaigns, which tend to have a very high ROI in many western countries. Amazon Japan typically sends 2-3 marketing emails a day, spamming their email inboxes. Japanese internet users are now turned off by email campaigns.
Social Media Usage in Japan
Social media marketing is an important aspect of digital marketing in Japan. According to Datareportal, there were around 73.5 million social media users in Japan in 2021, representing a social media penetration rate of 57%. The most popular social media platforms in Japan include LINE, Twitter, Instagram, and Facebook.
LINE is particularly popular in Japan, with a user base of around 86 million in 2021. LINE is a messaging app that also offers a range of other services, such as games, news, and shopping. Businesses can use LINE to connect with consumers through official accounts, which allows them to send messages and offer promotions to users who have added their accounts. According to Datareportal, 7 out of 10 internet users use LINE regularly and typically spend about 10 hours a month using the web app.
Twitter is also popular in Japan, with around 51 million users in 2021. Twitter is a popular platform for news and entertainment in Japan, and many celebrities and public figures have a strong presence on the platform. Instagram is also popular in Japan, with around 27 million users in 2021. Instagram is popular among younger users in Japan and is often used for sharing photos and videos.
E-commerce in Japan
E-commerce is a rapidly growing sector in Japan, with more and more consumers turning to online shopping. According to Statista, the e-commerce market in Japan was valued at around $165.7 billion in 2020 and is projected to reach $196.7 billion by 2025.
One of the most popular e-commerce platforms in Japan is Rakuten, which is often referred to as the "Amazon of Japan". Rakuten offers a range of products and services, including online shopping, travel, and finance. Rakuten has a large user base in Japan, with around 105 million registered users in 2021.
Other popular e-commerce platforms in Japan include Amazon Japan, which is a subsidiary of Amazon.com, and Yahoo! Shopping, which is operated by Yahoo! Japan.
Amazon Japan is popular among consumers who are looking for a wide range of products and fast delivery, while Yahoo! Shopping is popular among consumers who are looking for bargains and deals. According to HubSpot's Global Web Index (GWI) for 2022, 55% of Japanese consumers are willing to purchase a product with a discount or coupon compared to the global average of 39%. This makes time-limited marketing campaigns a popular choice of advertisements for products and services.
Search Engine Usage in Japan
Search engines are an important source of traffic for many websites in Japan. According to Statcounter, Google is the most popular search engine in Japan, with a market share of around 89% in 2021. Yahoo! Japan is the second most popular search engine in Japan, with a market share of around 7%.
One of the reasons for Yahoo! Japan's popularity in Japan is the fact that it offers a range of services beyond just being a search engine. Yahoo! Japan also offers news, shopping, and finance and is also available in Japanese, which makes it more accessible for Japanese speakers who may prefer to use a search engine in their own language.
Digital Advertising in Japan
Digital advertising is an important aspect of digital marketing in Japan, with many businesses using a range of digital advertising channels to reach their target audience. According to eMarketer, the total digital ad spending in Japan was around $14.8 billion in 2020 and is expected to reach $16.5 billion by 2024.
One of the most popular digital advertising channels for the Japanese market is search engine marketing (SEM). SEM involves bidding on keywords in search engines such as Google and Yahoo! Japan in order to appear at the top of the search results for specific queries. SEM is particularly effective for businesses that are looking to target users who are actively searching for their products or services.
Social media advertising is also popular in Japan, with many businesses using platforms such as Facebook, Instagram, and Twitter to reach their target audience. Social media advertising allows businesses to target users based on a range of factors, such as age, location, interests, and behaviors. This makes it an effective way to reach specific audiences with targeted messages, especially when paired with influencer marketing strategies.
Display advertising is another popular digital advertising channel in Japan, with many businesses using banner ads and other display ad formats to reach their target audience. Display advertising can be effective for building brand awareness and driving traffic to a website, as well as for promoting specific products or services.
Conclusion
Japan has a highly developed digital infrastructure, which has led to high rates of internet and mobile penetration. Social media and e-commerce are rapidly growing sectors in Japan, and businesses that are looking to expand their digital marketing efforts should consider targeting these channels. Search engines are also an important source of traffic for many websites in Japan, and businesses that are looking to reach users through search should consider using SEM to target specific keywords.
Penetrating the Japanese market can often be expensive and very time-consuming. Without understanding the Japanese consumers and just translating your brand will most likely end in failure. Even large, multi-billion dollar companies, such as Walmart, learned that the hard way. Hiring a specialized digital marketing agency that specializes in the Japanese digital advertising market can help you increase your brand's outreach in Japan. For example, Miyabi's digital marketing services can help your brand connect to the Japanese consumer's values and trends.
Finally, digital advertising is an important aspect of digital marketing in Japan, and businesses that are looking to reach their target audience through advertising should consider using a range of channels, including search engine marketing, social media advertising, and display advertising.
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