Author: aix

Introduction

Japan’s mobile advertising market is one of the most lucrative and competitive in the world. With high smartphone penetration and a user base that demonstrates strong spending habits, mobile marketers must constantly adapt to new trends and technologies to stay ahead.

As a UA (User Acquisition) manager, understanding the latest developments in this evolving landscape is crucial for maximizing campaign performance and achieving sustainable growth.

Market Growth and Spending Trends

The Japanese mobile advertising market continues to expand, with total ad spend reaching 17.9 billion USD, making it the third-largest globally after the US and China (Source: Data.ai, 2023).

This growth is fueled by increased mobile app usage, rising consumer engagement with digital content, and the shift toward performance-based marketing strategies.

Key Insights:

• High-Value Market: Japan’s mobile Average Revenue Per User (ARPU) is 149 USD, which is nearly three times higher than in the US (Source: Business of Apps, 2021).
• Diverse and Engaged Users: 90.1% of Japan’s population uses smartphones, providing an extensive reach for advertisers (Source: Ministry of Internal Affairs and Communications).
• Gaming Dominates: Mobile gaming continues to be a dominant sector, accounting for 60%+ of total app revenue in Japan.

Shift from CPI to CPE Models

Traditionally, Cost-Per-Install (CPI) campaigns were the go-to strategy for user acquisition in Japan. However, there has been a noticeable shift toward Cost-Per-Engagement (CPE) models, driven by advertisers seeking higher retention rates and better quality users based on the ROAS or ROI.

Why CPE is Becoming the Standard:

✅ Better ROI: Advertisers pay only for meaningful user interactions rather than just installs.

✅ Higher Retention: Engaged users demonstrate stronger long-term retention and monetization potential.

✅ Fraud Reduction: CPE campaigns minimize the risk of fraudulent installs and bot-driven traffic.

The Rise of Reward-Based Advertising to the oversea app service players in Japan.

Reward-based advertising has gained traction in Japan, especially through platforms like Rocket A, which incentivizes users with redeemable points. This model effectively lowers the barrier for initial engagement while fostering a habit-forming user experience based on points.

One of the driving forces behind reward-based advertising in Japan is the stablization of Poikatsu (ポイ活) culture, where users actively participate in point accumulation activities through various apps and services.

Poikatsu enthusiasts engage with mobile ads and reward-based promotions to maximize their savings and benefits, creating a highly engaged and conversion-ready audience for advertisers.

Rocket A Key Benefits:

_{🎯 Increases Install-to-Active-Only Japanese Territory User Conversion
📈 Improves KPI with long CPE campaign (Day 30 Retention by up to 45%, Data from Rocket A’s campaign performance) without any media or traffice intermediates.
🔒 Drives Sustainable Growth in High-LTV Users}

User Privacy and Compliance in Japan

With increasing concerns about data privacy, Advertisers must stay compliant with regulations such as Japan’s Act on the Protection of Personal Information (APPI) and Apple’s App Tracking Transparency (ATT) framework.

Privacy-first advertising is now the industry standard, requiring a shift toward contextual targeting and first-party data strategies.

Influencer & Social Media UA Strategies

Influencer marketing continues to be a dominant force in Japan, especially on Instagram, TikTok, and YouTube. Many game publishers and app developers are leveraging micro-influencers to drive organic growth.

Key Considerations for Influencer UA:

• Authenticity Matters: Japanese users trust peer recommendations more than traditional ads.
• Short-Form Video Dominates: TikTok-style promotions drive higher engagement rates.
• Community Engagement: Building brand loyalty through interactive content.

The Growth of Playable & Engagement Ads

As Japanese users demand more engaging ad experiences, playable ads and interactive formats are becoming increasingly popular. These ads allow users to experience an app or game before installation, leading to higher conversion rates.

Performance Metrics & Optimization Trends

Modern UA managers in Japan focus on deeper performance ROAS, ROI, LTV analysis beyond traditional CPI,CTR metrics. The most critical KPIs include:

• Retention Rates (D1, D7, D30)
• Return on Ad Spend (ROAS)
• Customer Lifetime Value (LTV)
• Engagement-Based Metrics (time spent, in-app actions)

Future Outlook & Predictions

The Japanese mobile advertising market will continue to evolve, with the following trends expected to shape the future: 🚀

Increased Investment in CPE & Engagement-Driven UA 📲
Greater Adoption of Data & Automation in Ad Optimization 📡 Focus on Privacy-First Marketing & First-Party Data

For UA managers operating in Japan, staying ahead of these trends is crucial for maximizing user acquisition efficiency and long-term growth.

By leveraging CPE models, AI-driven strategies, influencer marketing, and reward-based CPE advertising, advertisers can acquire high-quality Japanese users while optimizing their ROI.

For businesses looking to scale in Japan, partnering with trusted advertising platforms like Rocket A ensures transparent, efficient, and high-performance UA campaigns tailored to the unique characteristics of the Japanese market.

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Soft Launch Commemorative Special Offer

To promote the soft launch, Rocket A is introducing a limited-time offer for both existing partners and new clients. T

🚀 Special Offer Details

・$1,000 discount applied when achieving over $5,000 in performance, reducing initial risk and allowing for an efficient validation of Japanese user acquisition.

Introduction

The success of Royal Match through Customer Playable Ads (CPE) in Japan has sparked intrigue and raised questions about the efficacy of this marketing strategy. While Royal Match’s triumph showcases the potential of CPE, many wonder if it’s an exclusive boon for this particular game or if it’s a viable strategy solely for casual gaming. Moreover, the big question remains: Why does this approach seem to flourish particularly in Japan? Let’s delve deeper into the phenomenon to unravel the intricacies behind its success.

Point Earning Activities (ポイ活) in Japan

Understanding Point Usage Trends

In Japan, point earning services are more than just a passing trend. According to recent data, while a significant portion actively engages with these services (28.6%), a whopping 50.9% utilize them for their preferred stores and services. This highlights a widespread acceptance and utilization of point earning activities, with only a minor fraction (10.9%) abstaining entirely.

Popular Methods of Earning Points

The majority of Japanese individuals (81.9%) accrue points through common platforms like T-point or Rakuten point. Notably, the versatility in earning opportunities, including store-specific services and QR code payments, contributes to increased usage rates. Additionally, general-purpose credit cards (63.7%), frequently visited supermarkets (60.5%), drugstores (57.3%), and internet shopping (55.9%) are popular avenues for point accumulation.

Point Earning: The Demographics

Analyzing by gender and age, it’s notable that middle-aged and older individuals, particularly women, exhibit higher preference for “common points,” while younger demographics, especially men under 30, show lower affinity. Moreover, there’s a discernible inclination towards older age groups for credit card usage and shopping for daily essentials, with women outnumbering men in categories like supermarkets and drugstores. Conversely, men dominate sectors such as home electronics retail and transportation-related services. Among the youth, preferences skew towards restaurants, CD/bookstores, and shopping complexes, surpassing the general populace.

Given the affinity towards point earning among certain demographics, it’s evident that casual and puzzle games align well with these preferences. This suggests that Long CPE campaigns may find their ideal niche within these genres, catering to the motivations of Japanese users, particularly housewives.

Understanding the Connection: “Housewives” and Point-Earning

Female users aged 30 and above, often assumed to be housewives in Japan, exhibit a strong inclination towards casual and puzzle games. This demographic segment holds a keen interest in point earning activities, presenting a compelling motivation for them to engage with games that offer such incentives.

For Japanese housewives, the opportunity to earn points while indulging in casual or puzzle games can serve as a significant motivator. Notably, a prevalent keyword associated with casual/puzzle games in Japan is 片手 “katate” (one hand), underscoring the importance of gameplay accessibility, particularly for multitasking individuals such as homemakers.

Beyond Casual/Puzzle Games: Long CPE’s Versatility

Yet, Long CPE isn’t just for the casual/puzzle games. While casual and puzzle games may be the frontrunners for Long CPE campaigns, other genres also stand to benefit.

Our point-earning media, Point Income*, we had experience with RPG and Strategic Simulation games demonstrates promising results, with significantly higher Return on Ad Spend (ROAS) and better retention rates compared to traditional advertising methods.
*website may not be accessed from an IP address outside of Japan

Long CPE campaigns exhibit substantial advantages over traditional advertising avenues, particularly in terms of ROAS and cost efficiency. For, RPG, we witnessed a 1.8 times increase in ROAS and 11% better retention, and better cost efficiency (23 times cost-saving) compared to Google App Campaigns (GAC).

Similarly, for Strategic Simulation games, we achieved 2.8 times more ROAS and 4.7 times better cost efficiency.

Conclusion

In conclusion, Long CPE presents a promising avenue for mobile game growth in Japan, offering a potential workaround amidst the evolving privacy controls of iOS and Android platforms. As users consent to share their information for point earnings, this strategy not only fosters engagement but also navigates the challenges posed by stricter privacy regulations.

Point Income: pointi.jp

(Note that the website may not be accessed from an IP address outside of Japan)