Business Career Since 2005 worked for mobile Ad industry. In 2010, started to work for Dwango that provides NicoNico Douga (largest internet movie service in Japan). In 2012, joined Adinnovation Inc. Confidential copyright 2013 ADINNOVATION,INC. 4
Marketing Support We support the promotion which suited various environmental elements of a smartphone in the domestic and the global market Marketing Marketing Marketing Channel 【Market Data】 Expected active Smartphone Media Real active users users Download A smartphone app store analysis company in Netherland. We provide this data as an agent in Japan ・ Estimated download volumes Effect ・ Estimated revenues meaturement/RO I analysis etc… Re-planning/optimisation
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Media Consulting We support media companies to maximise their ad reviews mainly for the leading app review sites. We can provide “one-stop- service” from sales strategy planning, product design, developing channel and Consulting total operation. Consulting 【Service Menu】 【Consulting Service/Case study】 コンサルティングメニュー例 AppBank Kami Appri OCTOBA 広告メニューの精査・設計 広告売上目標の設定 媒体資料の改修 広告枠管理表の作成 広告売上管理表の作成 メディアレップ・代理店開拓 広告販売窓口の代行 決定案件の進行管理代行 レポート作成代行 当社主催セミナーでの媒体紹介 Confidential copyright 2013 ADINNOVATION,INC. 6
ADSTORE TRACKING We have our own original smartphone ad effective measurement tool called “ADSTORE TRACKING”. We can provide this system as OEM. Technology Technology 【Product Benefits】 Ove On rs e eas SDK Ad to ve pl rtisin ace g an ad in Qu Co ick ve r view majo of PD r inte C rnA/RO atio I nal multiple media ad networks Analysis data on a user Measure up to “in-apps basis purchase” revenue. Possible ad networks/affiliate networks In Japan In US and Europe 【Clients】 Game developers, internet ad agencies(OEM) and social networking content providers(OEM). Confidential copyright 2013 ADINNOVATION,INC. 7
Latest Information Raised￡1.06M as Series A round. We intend to expand the tracking solution made in Japan globally.
Going to have a new tracking solution in Adtech London in this September.
If you'll come to Adtech and have an interest, I hope we can meet! Confidential copyright 2013 ADINNOVATION,INC. 8
The latest Japanese smartphone apps market Confidential copyright 2013 ADINNOVATION,INC. 9
Japanese Mobile Market Japanese mobile market was like a Galapagos Islands...
For Western companies, Japan was a difficult country to enter. Confidential copyright 2013 ADINNOVATION,INC. 10
Japanese Mobile Market 1.Variety of content Ringtone, wallpaper, decorated email, customized skin, music, movie, digital comics, social Game, etc.
2. Operator oriented Low commission Payment system
3. Business Model Monthly subscription
These business models are changing dramatically in Japan now by the increase of smartphone users and the popularity of smartphone app stores Confidential copyright 2013 ADINNOVATION,INC. 11
Smartphone Penetration in Japan The smartphone penetration in Japan in May, 2013 is 34.8%. More smartphone users and app business are expected. Smartphone Penetration （May, 2013/Unit：％） 0.0 20.0 40.0 60.0 80.0 Spain 73.5 UK 67.8 Canada 66.9 UK 59.9 Italy 59.1 France 58.8 Germany 58.6 Japan 34.8 Source : comScore MobiLens May, 2013 Confidential copyright 2013 ADINNOVATION,INC. 12
Market Size of iPhone/Android apps The Japanese smartphone apps market is growing rapidly.
Growth rate from December, 2012 to June, 2013(6 months) iPhone : 124% Android : 218%
Total Revenue of Top 400 apps in Japan £60,000,000 £52,823,562 £50,381,698 £50,000,000 £42,319,538 £40,000,000 £30,000,000 iPhone £23,038,415 Android £20,000,000 £10,000,000 £0 December, 2012 June, 2013 Source : Distimo AppIQ/December 2012 & June, 2013 Confidential copyright 2013 ADINNOVATION,INC. 13
Market Size of iPhone/Android apps Total revenue amount of the top 400 apps of iPhone and Android in June, 2013 in Japan was more than the US market.
Total Revenue of Top 400 apps (June, 2013) £0 £20,000,000 £40,000,000 £60,000,000 £80,000,000 £100,000,000£120,000,000 US £54,949,441 £32,984,328 iPhone £4,149,609 UK Android £12,238,030 Japan £52,823,562 £50,381,698 Source : Distimo AppIQ/June, 2013 Confidential copyright 2013 ADINNOVATION,INC. 14
The latest Japanese smartphone ad market Confidential copyright 2013 ADINNOVATION,INC. 15
Market Size of Smartphone Ads In accordance with the smartphone apps market, the advertising market is also growing. The market value in 2013 is expected to be more than ￡760M.
The Opportunity of Japanese Market for UK companies Confidential copyright 2013 ADINNOVATION,INC. 18
Opportunities for UK Companies For content providers; Japanese smartphone apps market is huge and rapidly growing. Especially Google Play market.
Japanese smartphone users have started accepting the Western taste contents. Not to stick to Japanese contents any more.
They are willing to pay money to quality contents For ad agencies; Some of Japanese content providers are successful in the global market. Therefore, they are looking for a good ad agency to support their marketing activities in the global market.
By the success of some of Japanese content providers outside Japan, many other Japanese content providers are planning to enter into the global market. Confidential copyright 2013 ADINNOVATION,INC. 19
Successful Western Smartphone Apps “Candy Crush Saga” by King.com in UK
“Clash of Clans” by Supercell in Finland
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Successful Western Apps in Japan Confidential copyright 2013 ADINNOVATION,INC. 21
Successful Western Apps in Japan Clash of Clans Released a Japanese version on 17th of June. The daily revenue after that went up to more than ￡50,000 a day. Started the in-game promotion with a Japanese app “Puzzle & Dragons”
Released a Japanese version Source : Distimo AppIQ Confidential copyright 2013 ADINNOVATION,INC. 22
Successful Western Apps in Japan Candy Crush Saga Released a Japanese version for both iPhone and Android The sales are growing and the daily total revenue of both iPhone and Android is about ￡70,000 a day.
Successful Japanese Apps outside Japan LINE Rage of Bahamut CocoPPa Source : Distimo AppIQ Confidential copyright 2013 ADINNOVATION,INC. 24
UK companies we are looking for as our partner Confidential copyright 2013 ADINNOVATION,INC. 25
Partner Advertising agencies in UK which; • Specialises in smartphone apps ads and promotion • Owns games publishers/developers in UK as clients. • Have ability to plan and implement marketing programs for Japanese clients in UK.
Partnership scheme Revenue share model Exchange of the market data Introduction and joint services for mutual clients in each market
Joint sales and promotion of our smartphone ad analysis tool “ADSTORE TRACKING” in UK.