We look at some peculiarities of digital marketing in Japan and the attitudes of large media agencies when it comes to consolidation.

Having come from a Western perspective of the uses and methods of how internet marketing works within an organisation, I find the approach in Japan varies significantly, both in how this practice is viewed and acknowledged on an organisational level and in how it goes about executing to market. In this article, we'll take a look at some of the differences on how this discipline has grown and in what ways its structure differs when compared to Western societies. 

When I started working professionally in this space -- around 1998 in the U.S. -- marketing online, whether you called it digital, interactive or just web marketing, was just starting to build its identity both on the agency and client side. And it was primarily initiated around three camps -- independent boutique agencies, major ad agencies and client-side departments.

Independent boutique agencies tended to be created by ex-agency guys in the traditional space, seeing the opportunity in digital and creating a small group with key clients who are willing to more aggresively enter the space. Alternatively, around this time, the major ad agencies leveraging their credibility and size started to build internal capabilities starting with interative sites, digital brand building projects and then search as it gained momentum. And on the client side, management realised the benefits of having an internal capability, and so began an aggressive push to build interative departments to better control brand message online and to integrate effectively between what was going on offline versus online.

While this was the scene in the West, a very different theme and approach was growing in Japan, albeit a few years later. In comparing the growth and role of internet marketing between Japan and the West, in an organisational context, I've highlighted the following themes that I feel best describe these differences. 
 
Late bloomer
Japan's internet marketing scene really didn't start to blossom on a significant level until around 2003 and 2004, and in most respects, is still just starting to emerge as a market force. Prior to this period, organisations in Japan didn't give online marketing the justice it deserved, and viewed traditional media with its mass brand appeal as having the real precedence over other emerging media. Of course, the role of mobile and its use within the internet marketing arena was largely pioneered in Japan and has seen explosive focus and growth.

Reliance on partnerships
On an organisational level, Japan has a tendency to build businesses based on a view of strategic partnerships. What you'll find working in some cases is a small group of strategy, planning and account manager level people who simply act as the outer shell and client interfaces who then just partner up with other specialised companies that execute and provide the production and backend campaign level work. What this structure provides is a very top-heavy strategy and planning element with an executional engine as its support that can be changed and tested over time in terms of performance and cost.

Corporate awareness
On the client side, corporations have been slow to create fully sustainable internet marketing departments, but within the past year, this has indeed started to change. However, in many organisations, you'll still find a marketing manager position that is in charge of all aspects of the discipline, both off and online. The main reason towards this slowness of an internal web group, is based around the organisation's true acceptance and view that online can hold its own in terms of a brand and sales driver. As Japan is such a brand intensive society, management still feels that marketing activities should revolve around the big mass message deliverers like TV, outdoor and print. Additionally, the sheer function of marketing has less of a role in Japanese companies where operations and finance seem to dominate the day-to-day strategies, than marketing. This is a clear deviation from Western markets.

Buy mentality
If all else fails, acquire or merge. That has been the mentality of the major media and advertising players in Japan. Dentsu, Hakuhodo and the others have taken this approach by aggresively pursuing joint venture deals with the major global digital agencies. This approach works well for the local media agencies as it provides them with instant digital capabilities and works well for the global digital shops, as it gives them a solid entry into this huge market and can lay the foundation for a solid organisation for years to come. What you saw in the late 1990's and early 2000's was a slew of independent global web strategy and development companies like Sapient, Scient and IonGlobal come into the scene to then either pull right out or get rolled into the big local agencies at the time.

Japan is a massive market with huge potential in terms of digital. However, there are internal and cultural challenges present, and will require a closer examination to be able to deliver a truly world-class level of digital excellence. But, as more technology gets introduced, more digital agencies enter the scene, and more organisations realign themselves around this new discipline, digital excellence and global standards will most likely be realised sooner than we think.

Andy Radovic is senior online marketing and SEO consultant of Sozon. Read full bio.