From Our Own Comms Correspondent

Mark Connolly gets a crash course in Japanese business etiquette and communications

Visiting Japan for the first time this year was like experiencing a cultural explosion. It is like no place on earth – either for tourism or business. I was there for the latter, but trying to fit in a bit of the former. Everyone I met was extremely welcoming and polite, so I was pleased to have had some advance lessons on complex Japanese meeting etiquette from the head of our Tokyo office, Yoichi Tanaka, to ensure that I limited my chances for faux pas!

But the differences between doing business in the UK and Japan come down to more than just meeting etiquette. The digital advertising marketplace too is vastly different from that in the UK or anywhere else in Europe, and understanding these differences – both business and cultural – is key for any company hoping to bring its product to the Japanese market.

There is no doubt that the Japanese are at the forefront of so much in terms of technology, but when it comes to marketing technology, Japanese marketers see themselves as trailing several years behind the U.S., the UK and Europe. In some cases, this might be true, such as with ad targeting and buying technologies, while in others like mobile, they are way ahead. This difference isn’t necessarily a bad thing. In fact, Japanese marketers are dedicated to learning from the mistakes made in other marketplaces to create a model based on best practice. Hence why I found myself in Tokyo last month running a seminar for over 100 marketers to impart what we’ve learned and to help Japanese marketers avoid repeating the mistakes of their American and European counterparts.

Japanese marketers are keen to learn from other markets and adapt the most suitable techniques. As we work in the digital advertising market the specifics were based on this but our observations are interesting from a cultural aspect to marketers across the board. Given the scope of the digital advertising market in Japan, what surprised me most is the way the marketplace has a much smaller feel. For many large, global companies there is one person planning to execute the whole organisations strategy where we would see teams of between perhaps 20-40 in the U.S., UK and Europe.

As trends in marketing emerge and grow, Japan is by far for the fastest at jumping on new ideas and innovation. For example, Japanese marketers know that RTB is going to be big. Last year the International Data Corporation (IDC) predicted 300% growth in Japanese RTB digital display sales – higher than for any other country. It’s refreshing to see a nation that isn’t afraid of change.

Marketers in Japan are meticulous when it comes to automation and control. They have little tolerance for the flawed ecosystem often present in other markets, It’s clear that Japanese marketers will demand transparency and require a clear view of whom they are paying for what and why. I have no doubt that only those partners who add value to the supply chain and understand the unique Japanese market will be well received.

I was asked most frequently about data privacy. In Japan there are currently no privacy laws but marketers understand that the growth of digital advertising will, in part, rely on them being sensitive and fair with the use of consumer data.

The final thing I noticed was that Japanese marketers work with a sense of freedom that is rare in the UK. Because we have been at the forefront of development, UK marketers have often tied themselves in knots trying to integrate many small technology solutions into their overall activity. However, in Japan marketers perceive using ad tech as like buying a car – it has to be well engineered and get you to where you want to be. You don’t need to buy the engine and body separately. And for a country which, let’s face it, knows a lot about cars, that shows a great sense of maturity in a young market.

Mark Connolly is the managing director for the EU and Asia-Pacific at AudienceScience