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	<title>James Hollow&#039;s Blog about Hybrid Thinking &#187; Japanese advertising</title>
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	<description>Imagining a Hybrid World from Tokyo - A blog by James Hollow</description>
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		<title>The Japanese Advertising Industry in a Nutshell #2</title>
		<link>http://jameshollow.com/blog/the-japanese-advertising-industry-in-a-nutshell-2/</link>
		<comments>http://jameshollow.com/blog/the-japanese-advertising-industry-in-a-nutshell-2/#respond</comments>
		<pubDate>Thu, 12 May 2016 22:24:38 +0000</pubDate>
		<dc:creator><![CDATA[James Hollow]]></dc:creator>
				<category><![CDATA[Featured posts]]></category>
		<category><![CDATA[Japan economy]]></category>
		<category><![CDATA[Japanese advertising]]></category>
		<category><![CDATA[brands in Japan]]></category>
		<category><![CDATA[Digital Marketing]]></category>
		<category><![CDATA[Japan digital]]></category>

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		<description><![CDATA[<p>The Japanese advertising industry is not well understood from the outside. In fact, I am not sure it is that well understood from the inside. In a post I published in 2014 called “The Japanese Advertising Industry in a Nutshell” I tried to sum up what makes it unique, the characteristics of the advertising itself, and explain why [&#8230;]</p>
<p>The post <a rel="nofollow" href="http://jameshollow.com/blog/the-japanese-advertising-industry-in-a-nutshell-2/">The Japanese Advertising Industry in a Nutshell #2</a> appeared first on <a rel="nofollow" href="http://jameshollow.com">James Hollow&#039;s Blog about Hybrid Thinking</a>.</p>
]]></description>
				<content:encoded><![CDATA[<div>
<p>The Japanese advertising industry is not well understood from the outside. In fact, I am not sure it is that well understood from the inside. In a post I published in 2014 called <a href="http://jameshollow.com/blog/japanese-advertising-industry-nutshell/" target="_blank">“The Japanese Advertising Industry in a Nutshell”</a> I tried to sum up what makes it unique, the characteristics of the advertising itself, and explain why it has remained dominated by domestic agencies.</p>
<p>In the context of my readership the post &#8220;went viral&#8221;, still gets a lot of traffic, led to a bunch of speaking offers, and sparked off a lot discussion among my peers who work in advertising here in Tokyo. From all of this I learned a tremendous amount and it helped to solidify the ideas, and hence this post is an overdue follow up that aims to:</p>
</div>
<ul>
<li>Summarise the original article’s assertions</li>
<li>Describe the context within which the advertising industry has come about, and so help to explain why it is</li>
<li>Address the question of whether Japanese consumerism is fundamentally different or not</li>
<li>Revisit the claim that the western agency planning model does not work in Japan, explain where I stand now on this point</li>
<li>Bring the story up to date &#8211; what if anything has happened in the last few years to suggest that change is afoot</li>
</ul>
<div>
<h2><b>Japanese advertising in a nutshell &#8211; the original</b></h2>
</div>
<div>
<div>The central assertions of the original essay, all of which I still stand by, are:</div>
</div>
<div>
<ol>
<li>The Japanese advertising scene has been “captured” by a sort of cartel made up of the TV stations (who make the programming that creates the celebrities), the talent agencies (who “manage” the celebrities&#8217; commercial contracts) and the advertising agencies (the dominant one being Dentsu, who effectively auction off access to programming and celebrities).</li>
<li>The most powerful entity in this symbiotic ecosystem is Dentsu (the middleman prevails!), and most outsiders assume it is based on exclusive access to media, but actually it is just as much to do with controlling access to the celebrities</li>
<li>The rise of CyberAgent is a proof point of this reality: the web media company (actually today it is essentially a Dentsu style agency for the web) which rose to prominence off the back of AMEBA, the celebrity studded blogging platform, are the upstarts that beat the agency establishment at their own game, but on the web, by creating a business model based around access to celebrities and selling its associated media and influence</li>
<li>Because of Japan’s relatively more homogeneous society and consumer mindset of wanting to be integrated into the whole of society, Japanese advertising aims more to fit brands into the communal cultural zeitgeist, to feel &#8220;of the now”, than it does to make them stand out in a conceptual way</li>
<li>Hence Japanese executions tend to have lots of small cultural references, thematic and aesthetic, that make them “highly crafted&#8221; in a way that obviously foreign creative directors and award show judging panels will always struggle to appreciate</li>
<li>Casting TV talents who are currently a la mode (and these trends are rapid) is an expedient way to achieve &#8220;of the now&#8221;, make the brands relevant to consumers here and now, especially those who like watching TV, without having to think too hard about communication strategy, while keeping the client happy and excited at the same time.</li>
</ol>
<div id="attachment_538" style="width: 800px" class="wp-caption aligncenter"><a href="http://jameshollow.com/wp-content/uploads/2016/05/Japanese_celebrities_jameshollowcom.001.jpeg"><img class="wp-image-538" src="http://jameshollow.com/wp-content/uploads/2016/05/Japanese_celebrities_jameshollowcom.001-1024x768.jpeg" alt="Japanese celebrities are typically manufactured on TV, and access to their endorsement is controlled by the big agencies" width="790" height="593" /></a><p class="wp-caption-text">Japanese celebrities are typically manufactured on TV, and access to their endorsement is controlled by the big agencies</p></div>
</div>
<p>This brand sponsored-entertainment complex is a monster, and it’s not budging. Since I first arrived in Japan the decline and fall of its lead protagonist, the chief bully in this old-boys playground, DENTSU, has been confidently predicted but it has not happened yet.  Such a complex cannot exist in isolation from the broader consumer economy, but rather it sits on top of it, dependent on it for all the string-pulling it gets away with. And there are characteristics of the system that allow the model to be sustained and help explain its robustness.</p>
<h1>Japanese advertising&#8217;s broader context</h1>
<div>Broadly speaking I think there are 5 key factors that the advertising industry (with a focus on the dominant TV media) has co-evolved with, and which need to be understood as part of and underpinning the status quo in Japan:</div>
<ol>
<li>Japanese manufacturing is more agile, so product variants come to market at a much higher frequency than in other countries, so many brands can stay salient through announcing new products regularly without having to think much about long term brand positioning or making advertising that supports a long term emotional role</li>
<li>Fed on this diet of product innovation (continuous functional evolution) the trade / retailers have a less than sophisticated appreciation of the potential role of advertising to sharpen emotional relevance, and generally like to see i) high awareness campaigns ii) with big celebrities iii) announcing product news, and will reward this formula with more shelf space or equivalent priority status.</li>
<li>Advertising space in Japan tends to be cut up into smaller chunks, because the media-revenue-driven agencies can make more money that way and it fits the expectations of the retailers. Taking TV as a case in point, the vast majority of TV spots in Japan are 15secs, rather than mix of 15, 30 and 60secs you see in most other developed markets. Creative execution quality being equal, a 15sec spot-based media spend provides <a href="http://insight-c.seesaa.net/article/422908155.html" target="_blank">perhaps a 10% increment in awareness over a 30sec based media flight</a>, so for short term salience-grabbing campaigns, the 15sec model is pushed by media planners and tends to prevail.</li>
<li>15secs gives the creative teams less options to create a conceptually-driven ad, particularly when the client is keen to see the celebrity that they have just been sold by the agency at vast expense in every single frame of the 15secs (not to mention the other media channels) if at all possible. Since TV is still in general the central spend, this tends to drag everything else down.</li>
<li>Japanese TV is almost pure escapism, and tends to be dominated by “noisy” programming (variety shows, celebrity panel discussion shows, stand up comedy, edutainment style shows also with talent panels, with some fantastical dramas thrown in), combined with the fact that most households have digital TVs with recording functions that allows ad-skipping on playback, hence advertising needs to be entertaining and eye catching first and foremost, and there is truth in the idea that some viewers are interested in seeing what the celebs are up to in their endorsements</li>
</ol>
<div>
<p>Of course every market has its unique set of factors that can be drawn on similar dimensions as those outlined above. Is Japan just a bit of an outlier in where it sits on all those dimensions, or is it fundamentally different?</p>
<h2>Japan&#8217;s unique consumerism</h2>
<div>When I wrote the original nutshell article I was harbouring an inner dialectic on whether Japan&#8217;s brand advertising culture was just an outlier on what are essentially dimensions it shares with other developed consumer economies, or whether it is actually fundamentally different. The 5 differences in the section above are described relative to a generalised western market, the US basically, and hence imply the former.On the other side of the dialectic, one of the first books that piqued my interest about Japan was 1999&#8217;s &#8220;The Lexus and the Olive Tree&#8221; in which the idea that Japan proves that consumerism is not a singular economic and social phenomenon made a particularly strong impression. Friedman actually asserted that Japan was effectively a communist country that happened to have a strong consumerist economy.</p>
<p>Coming to work in Japan in 2002 as a tender 23y/o my naive assumption that consumerism is always driven by individuals&#8217; desire to express their individuality was challenged by Japan&#8217;s massive luxury goods market, where at one point <a href="http://www.amazon.com/Louis-Vuitton-Japan-Building-Luxury/dp/2843236185" target="_blank">practically all adult women owned a Louise Vuitton handbag</a>. Obviously consumerism can also be driven by a desire to fit in as well as stand out, and I now realise these is a lot of this in western luxury consumption as well.</p>
<p>In the last couple of years I have read and thought a lot around this question of whether the &#8220;fundamentally different&#8221; assertion is valid, and my conclusions can be summarised as follows:</p>
</div>
<ul>
<li>Japan&#8217;s consumers are not fundamentally different. Like all people on the planet they come from an extremely tightly defined genetic stock (species homo sapiens only just scraped through a climatic extinction event before we expanded from Africa, so we ALL descend from perhaps as few as a thousand individuals), so the fundamental archetypal emotional responses and drivers are shared by every human alive today</li>
<li>But Japan’s society and culture does make it an extreme outlier among developed countries at the least, which equates to Japanese consumers being programmed very differently to the extent that you really cannot rely on fundamental assumptions about consumer behaviour that you develop in other markets when looking at Japan. And hence when importing advertising strategies and brand propositions developed outside Japan, the same input will hardly ever elicit the same response as consumers in other markets, because Japanese consumers&#8217; cultural programming is different.</li>
<li>The medium is part of the message. All communications have a context, and while superficially the context of a communication may seem familiar, e.g. a TV ad spot, the possibility of the local context implying the need for a localised approach should never be underestimated.</li>
</ul>
<h2>Does the western advertising planning model work in this context?</h2>
<p>The assertion that the western agencies have failed to colonise the Japanese advertising space, despite proportionately larger invasions by western brands, is beyond doubt. The biggest western brands here are working with Japanese agencies or joint-venture agencies that tend to be closer in culture to domestic agencies.</p>
<p>The more philosophical question about the western planning method itself requires a deeper analysis and discussion, which I will leave for another post, but by way of a preview:</p>
<ul>
<li>There are actually a few competing &#8220;western planning models&#8221;, and they are really quite different in their thinking</li>
<li>The model that has more or less won out is the simpler one to apply, but it&#8217;s theoretical underpinnings are deeply flawed, and you could say the best work happens despite its application</li>
<li>It&#8217;s shortcomings can be papered over when working in a single market (but not always), but when applied across markets with distinct cultures the shortcomings lead to gaping misconceptions and compromised advertising</li>
<li>This goes a long way to explaining why this model does not give western agencies an advantage in a Japan agency marketplace that does not really distinguish between &#8220;strategy&#8221; and &#8220;creative planning&#8221;</li>
<li>The alternative western planning model is based on valid assumptions, being true to human psychology, and should be the one we all apply, and could be applied to global brands across cultures, but brands and their agencies seem unable to apply it, perhaps because it requires a little more subtlety of thought and agility of process than the dominant model</li>
</ul>
<h2>The House of Cards</h2>
<p>Could it all come tumbling down at some point in the future? Of course everything is always evolving all the time, and the biggest driver of change today is undoubtedly the internet and digital platforms. LINE for instance has become incredibly successful and profitable in recent years, mainly through selling digital goods, and now expanding its service ecosystem to include eCommerce, even a part time jobs listing service. It also has advertising products, but unlike Facebook and Twitter they do not dominate its revenue streams. Most brands that buy into LINE&#8217;s advertising products still do so via their agency where they park their TV and other media budgets, so for that reason I do not see LINE upsetting the Dentsu applecart on its own.</p>
<p>There are examples of brands that have decided to grow through buying digital media directly, disintermediating the big domestic agencies, but they are still only a tiny sliver the of the market. If they grow in scale and number then they can also drive change towards a tipping point. I think that tipping point will come  when digital media spend becomes bigger than TV, which will happen at some point, but it is still a long way off.</p>
<p>Perhaps in response to this scenario, Dentsu has recently spun off its digital media work into a separate subsidiary <a href="http://dentsu-ho.com/articles/3950">&#8220;Dentsu Digital&#8221;</a>, just as the rest of the world is shifting towards more integration and omni-channel,  but then whom am I to judge the wisdom of this stunningly and perennially successful business?</p>
<p>&nbsp;</p>
</div>
<p>The post <a rel="nofollow" href="http://jameshollow.com/blog/the-japanese-advertising-industry-in-a-nutshell-2/">The Japanese Advertising Industry in a Nutshell #2</a> appeared first on <a rel="nofollow" href="http://jameshollow.com">James Hollow&#039;s Blog about Hybrid Thinking</a>.</p>
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		<title>Why US brands are investing in Japan today</title>
		<link>http://jameshollow.com/blog/why-us-brands-are-investing-in-japan-today/</link>
		<comments>http://jameshollow.com/blog/why-us-brands-are-investing-in-japan-today/#respond</comments>
		<pubDate>Sat, 26 Mar 2016 10:09:57 +0000</pubDate>
		<dc:creator><![CDATA[James Hollow]]></dc:creator>
				<category><![CDATA[Digital culture]]></category>
		<category><![CDATA[Japan economy]]></category>
		<category><![CDATA[Japan's future]]></category>
		<category><![CDATA[Japanese advertising]]></category>
		<category><![CDATA[brands in Japan]]></category>
		<category><![CDATA[Japan digital]]></category>
		<category><![CDATA[Japan investment]]></category>
		<category><![CDATA[Silicon Valley]]></category>

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		<description><![CDATA[<p>This post is based on a speech I gave on March 18th at an event to celebrate the opening of my network MullenLowe Profero&#8217;s new San Francisco office, attended by friends and clients.  There is a lot written about Japan and it’s basket-case economy in the US press, and most of it is wrong. The [&#8230;]</p>
<p>The post <a rel="nofollow" href="http://jameshollow.com/blog/why-us-brands-are-investing-in-japan-today/">Why US brands are investing in Japan today</a> appeared first on <a rel="nofollow" href="http://jameshollow.com">James Hollow&#039;s Blog about Hybrid Thinking</a>.</p>
]]></description>
				<content:encoded><![CDATA[<p><em>This post is based on a speech I gave on March 18th at an event to celebrate the opening of my network MullenLowe Profero&#8217;s new San Francisco office, attended by friends and clients. </em></p>
<div id="attachment_468" style="width: 1034px" class="wp-caption aligncenter"><a href="http://jameshollow.com/wp-content/uploads/2016/03/SiliconValley_brands_in-Japan_B-W.png.001.png"><img class="wp-image-468 size-full" src="http://jameshollow.com/wp-content/uploads/2016/03/SiliconValley_brands_in-Japan_B-W.png.001.png" alt="Today some noteworthy Silicon Valley brands are investing in the Japanese market" width="1024" height="768" /></a><p class="wp-caption-text">Today some noteworthy Silicon Valley brands are investing in the Japanese market</p></div>
<p>There is a lot written about Japan and it’s basket-case economy in the US press, and most of it is wrong. The reality on the ground is quite different, and I would like to tell you about a few of the smart American brands that understand this and are profiting.</p>
<p>In doing so I am going to try answer a pretty simple question:<br />
Why do some great American brands choose to double down and invest in Japan today, while others pull out?</p>
<p>Is it hard to do business in Japan? Well, it’s not yet a vassal state of California, but it is a relatively easy country for brands to get up and running in, with the right governance laws, IP protection, an increasingly open minded and multi-lingual, though still diligent labour force.</p>
<h2>Opportunities &amp; Efficiencies in Japan</h2>
<p>It’s digital advertising landscape too is perhaps the most similar to the US among major economies, dominated by Google, Facebook and Twitter with some noteworthy local players in the mix.</p>
<p>There are some great opportunities for efficient investment as well. For instance in Tokyo alone you have in one contiguous metropolis a population the same as California&#8217;s, but squeezed into an area the size of Los Angeles county. Tokyo alone has more consumers than Canada, and 50% more than Australia&#8230;</p>
<p>But Japan has not worked out for everyone. A great US brand that recently threw in the towel is FORD, who closed shop in Japan in 2015 after selling only a few thousand vehicles in the preceding 12 months.</p>
<p>Now you could say, well, that’s cars, and Japan is the last place you want to be selling cars. But in the same year Mercedes Benz celebrated its best year in Japan of all time, making over $100m in profit. You would think it’s hard to find double digit growth anywhere these days, but Mercedes notched up 15%.</p>
<p>Of course a few years ago a new American car brand was born not far from here, and TESLA is already a darling among Japan’s many millionaires. TESLA opened a bunch of new service centres in Japan in 2015, and is investing in Japanese language related usability &amp; navigation.</p>
<p>Perhaps with Tesla in mind it is a good time to mention how much Japanese consumers love brands. This is not the shallow materialistic “me too” purchasing culture that frothed uo in 80s &amp; 90s, and you see in other bubbles. It’s the long term, well researched, quality-seeking kind of love that leads to loyalty. It’s a love of brand stories.</p>
<h2>Japan&#8217;s consumers are brand savants</h2>
<p>When Steve Jobs passed away in 2011 I was one of the many thousands who went to Apple’s flagship store in Ginza where a mountain of flowers and messages spontaneously built up. It was interesting to see what those messages said. Although many did say “we love you Steve” it was not simply idolatry, since many belied a much deeper sentiment. In fact more than anything they said “Thank you”. Because Japanese consumers appreciated the fact that Steve Jobs respected Japan, it’s culture, it’s noodles. He understood their love for beautiful design, quality and authenticity, and made great products for them.</p>
<p>Another Silicon Valley brand, one that was spun out of innovation at Stanford back in 1985, has recently decided to double down on Japan. SunPower is breaking free from its Japanese partner distributor to go head to head with Panasonic at the high end of Japan’s residential and commercial solar installations. The solar marketplace is mature, and quite saturated with cheap Chinese makers, so this is not about a land grab. This is about giving consumers an alternative brand choice, with emotional differentiation as much as functional.</p>
<p>And if you think you can see a pattern in the types of brands I have mentioned, let me tell you about one more American brand thriving in Japan that is not known as a tech innovator. In fact it has barely changed in its 80 year history. SPAM. You would not think it had much to bring to Japan, but you would be wrong. It is marketed as a relatively premium product, costs more than fresh chicken by the ounce, and is loved by Japanese housewives. You certainly have to rethink how you tell the story, though, and that’s where we come in, but if you have something unique and authentic to offer, you are in business.</p>
<p>So did I answer the question?</p>
<p>If I had to tell you in single word why smart American brands are investing in Japan today it would be this one: MARGIN. Japanese consumers are prepared to pay for brands they see as offering unique value. That value is not just functional. Actually it’s mostly emotional. And it is created by telling brand stories in a very local way, and if you are lucky, by an agency that gives you an <a href="http://tokyo.mullenloweprofero.com/" target="_blank">&#8220;Unfair Share of Attention&#8221;</a>.</p>
<p>The post <a rel="nofollow" href="http://jameshollow.com/blog/why-us-brands-are-investing-in-japan-today/">Why US brands are investing in Japan today</a> appeared first on <a rel="nofollow" href="http://jameshollow.com">James Hollow&#039;s Blog about Hybrid Thinking</a>.</p>
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		<title>The Art of Localising Brands to Japan</title>
		<link>http://jameshollow.com/blog/the-art-of-localising-brands-japan/</link>
		<comments>http://jameshollow.com/blog/the-art-of-localising-brands-japan/#respond</comments>
		<pubDate>Mon, 15 Feb 2016 01:00:16 +0000</pubDate>
		<dc:creator><![CDATA[James Hollow]]></dc:creator>
				<category><![CDATA[Hybrid Culture]]></category>
		<category><![CDATA[Hybrid theory]]></category>
		<category><![CDATA[Japanese advertising]]></category>

		<guid isPermaLink="false">http://jameshollow.com/?p=438</guid>
		<description><![CDATA[<p>Localisation is the process of turning brand communications, like TV ads, websites etc, from their original language and culture into something that works in another market, language and culture. In this post I am going to categorize 3  or 4 archetypal approaches to doing this and use well-known brands to illustrate. Hopefully anyone working in [&#8230;]</p>
<p>The post <a rel="nofollow" href="http://jameshollow.com/blog/the-art-of-localising-brands-japan/">The Art of Localising Brands to Japan</a> appeared first on <a rel="nofollow" href="http://jameshollow.com">James Hollow&#039;s Blog about Hybrid Thinking</a>.</p>
]]></description>
				<content:encoded><![CDATA[<div>Localisation is the process of turning brand communications, like TV ads, websites etc, from their original language and culture into something that works in another market, language and culture. In this post I am going to categorize 3  or 4 archetypal approaches to doing this and use well-known brands to illustrate. Hopefully anyone working in this space or interested in brands &#8211; or just global culture in general &#8211; can take something from it.</div>
<div id="attachment_442" style="width: 556px" class="wp-caption aligncenter"><a href="http://jameshollow.com/wp-content/uploads/2016/02/Traditional_Japanese_beer_brand_posters.jpg"><img class="size-full wp-image-442" src="http://jameshollow.com/wp-content/uploads/2016/02/Traditional_Japanese_beer_brand_posters.jpg" alt="Japan has long been importing and adapting advertising formats - in this case beer poster girls!" width="546" height="588" /></a><p class="wp-caption-text">Japan has long been importing and adapting advertising formats &#8211; in this case beer poster girls!</p></div>
<p>I have seen this process from both sides, initially while working in the UK office of a big international agency, where we were the hub, creating and “distributing” campaigns to other markets. But ever since arriving in Japan I have mainly been &#8220;on the receiving end&#8221; as it were, and it is exacerbated by the fact that Japan really is a different market. Whether that difference is fundamental, or one of degrees, is a question I have explored in previous posts, such as <a href="http://jameshollow.com/blog/japanese-advertising-industry-nutshell/">this one describing the Japanese advertising industry</a>, but for the purposes of this article I will focus mainly on the cultural and linguistic gap.</p>
<p>In fact, for many of the international agencies in Tokyo, most of the work they do is in-bound localisation, and if they are not empowered to properly adapt or transcreate the brand to Japan &#8211; which is often true &#8211; it can be quite an unrewarding role. It&#8217;s one of the reasons I actually got frustrated and struck out on my own from one of those big networks to start up my own agency here in Tokyo back in 2004.</p>
<p>Although 90% of the work we do at Profero Tokyo is original to Japan, from time to time we lead a localisation process, and when conducted in a strategic way, they never fail to reveal deep insights into the core brand DNA and highlight the fundamental similarities and differences between cultures, and hence can be fascinating and rewarding projects to be part of.</p>
<h1><b>The Brand Localisation Framework</b></h1>
<div>
<p>For simplicity I am going to look at localising brand taglines specifically, and use them as a proxy for brand positioning, because ultimately this is the point. I am going to use “tagline” to mean either the semi-permanent brand tagline motifs, as in “Honda &#8211; the power of dreams”, as well as product-brand taglines, and also campaign taglines, such as Apple’s &#8220;Mac vs PC&#8221;, which are obviously more transient, but essentially the process is the same.</p>
<p>In some of the examples, e.g. MasterCard, a campaign tagline ends up becoming the brand tagline, for a good few years at least, which is far from uncommon, so overall I feel confident generalising in this way.</p>
<p>It is also true that the same principles can be applied to other executional choices when localising e.g. the visual realm, choice of music, voice actor, you name it. All elements ultimately need to be considered within the same framework.</p>
<p>In general I think there are 3 approaches to bringing a global tagline into Japanese.</p>
<h2><b>Approach 1: Leave it in English</b></h2>
<ul>
<li>Although in many European markets and some Asian, proficiency in English is high enough to just go with a tagline originally crafted in English, that is not true of Japan, so unless it is really, really simple the target audience will not understand it.</li>
<li>This can be justified if you can assume that some people will get it, and for the rest spell it out in some form or another: sometimes just writing it in katakana to make it feel more familiar, or else explain it in Japanese without attempting to replace the original English.</li>
<li>This is often the most expedient approach for brands looking for global consistency more than local emotional connection.</li>
<li>I believe it is usually a big missed opportunity and only really makes sense if the brand trades off its global status almost exclusively in differentiating itself.</li>
<li>It is most likely to make sense for a brand that has lots of products that can have a product brand story told about them, and particularly if they are really innovative products.</li>
<li>An example would be Nike’s “Just do it” motif. It really helps that the original is so simple that most of their target audience would get it, and the fact that their products are designed around universal human features, namely their bodies. However, it would be wrong to believe that Nike loses nothing by not having a proposition that is as powerful in Japanese as “Just do it” is in English.</li>
<li>Another example would be the original iPod and iPod Nano TV campaign by Apple using the dancing silhouettes that became so iconic. If you have a break through product with visceral cut-through creative and your brand benefits from its foreign / global cache, then you can more or less leave it alone. These cases are fairly rare though.</li>
</ul>
<h2><b>Approach 2: “Adapting&#8221; it into the Japanese Culture</b></h2>
<ul>
<li>The adaptation approach aims to bring the same meaning to life in Japanese as a copy line that stands on its own without any mention of the English mother line</li>
<li>You usually create a variety of alternatives that range between being direct translations on one end of the spectrum, through to ones that take more license with the original meaning on the other, but might push a resonant button among the Japanese target (see option 3 below)</li>
<li>The closer you are to the direct translation end, the more it feels to the audience like a direct translation, and this serves to emphasise the foreignness of the brand again.</li>
<li>What usually happens in this scenario is you are able to hit on a copy line that more or less says what the original English line says, but it does not resonate as much as the original does in English, but the way a lot of brands think this is an acceptable price to pay for global consistency and feels like a safe choice</li>
<li>The more license you take the more chance it has to resonate and feel like a made-for-Japan communication, but at the cost of consistency with the brand globally, causing unease for global brand managers</li>
<li>Localising the tagline but then applying it to creative assets (such as TVCs, transit ad creative, web assets, etc) that have not been adapted or transcreated themselves leads to communications that do not quite add up to the local audience.</li>
<li>If a brand has the local resources to develop local creative assets then I would usually be recommending the 3rd approach below, but these lines are blurry, and there are examples where this adaptation approach has been very successful.</li>
<li>Foreign brands should not be trying to become or act like domestic Japanese brands, but rather to find a way to leverage their foreignness to give them an advantage over local competition (e.g. aspirational, innovative&#8230;.), since the local players will usually always win on grounds of familiarity. Hence retaining an element of the global campaign is often a vital ingredient, not simply an acceptable compromise, and this would apply to Approach 3 below as well.</li>
</ul>
<h3><b>A priceless example</b></h3>
<div>
<p>The Priceless tagline / proposition for MasterCard started off as a campaign but has more or less been woven into the fabric of the MasterCard brand as a permanent part of its identity. In general all credit card brands assert that when you pull out your credit card the brand name on it says something about who you are, and prestige often bordering ostentation is the traditional territory of the category. In contrast MasterCard&#8217;s agency developed this brilliant proposition:</p>
<p>&#8220;There are some things that money can&#8217;t buy. For everything else, there&#8217;s MasterCard&#8221;</p>
<p>The insight behind the campaign is that there are special moments in life, often serendipitous, usually shared with loved ones, that no amount of wealth could purchase. For a credit card brand (= access to money) to be dramatising this insight shows that the brand understands that there are more important things than itself. This implies that it is magnanimous, humble, and big-hearted, traits that many people would prefer to have associated with themselves. And besides the prestige can be communicated through the creative execution itself. It also taps into the post-80s/90s materialism sentiment that in fact luxury is at heart experiential, so it was and still is very much &#8220;of its time&#8221;. Copy lines never really work in isolation, and the high-end feel of the execution adds &#8220;luxury&#8221; attributes to MasterCard&#8217;s brand image.</p>
<div id="attachment_440" style="width: 833px" class="wp-caption aligncenter"><a href="http://jameshollow.com/wp-content/uploads/2016/02/Mastercard_Priceless_TVC_Campaign_Japan.jpg"><img class="wp-image-440 size-full" src="http://jameshollow.com/wp-content/uploads/2016/02/Mastercard_Priceless_TVC_Campaign_Japan.jpg" alt="&quot;There are some things that money can't buy. For everything else, there's Mastercard&quot; - Priceless Campaign localised to Japanese" width="823" height="288" /></a><p class="wp-caption-text">&#8220;There are some things that money can&#8217;t buy. For everything else, there&#8217;s Mastercard&#8221; &#8211; Priceless Campaign localised to Japanese</p></div>
<p>The creative device evolved to become a very simple set up stating the price of an experience or thing, but then trumping it with an emotional outcome, which is “Priceless”. The simplicity of it is the hardest thing to adapt into Japanese, and actually this is always the case. The best copy lines or creative devices are sort of hacks of the language that manage to say something profound and impactful in a very simple way.</p>
<p>The only way to adapt this into Japanese AND retain the original meaning is to spell it out, but to find a copy line that does it in a relatively short and elegant way, and I believe they succeeded with “お金で買えない価値がある”, literally &#8220;there is value that cannot be bought with money”. MasterCard actually retain the English word “Priceless” as a branding device, more than because they assume their Japanese target would understand what it means. Many will not, but it becomes another branding device that adds value to the brand through repeated use.</p>
<h2><b>Approach 3: Transcreation of the Concept into the Japanese Culture &amp;Psyche</b></h2>
<ul>
<li>This approach aims to take the DNA of the idea, and find a way of bringing that core idea to life within the Japanese psyche or culture in full knowledge that this will take it away from the original meaning.</li>
<li>In terms of the creative development process it amounts to going back to the creative brief, rewriting that, effectively adapting that, and then starting afresh with the creative development working with Japanese planners and creatives.</li>
<li>At that point what makes it the same campaign? Just how far can you strip a campaign back before it becomes something different? In fact, how far can you strip a brand back before it becomes something different?</li>
<li>In its purest form the best creative briefs define the emotional response that you aim to elicit and empowers the creative process to press that button, which is always going to require language and culture-specific communications.</li>
<li>Since the emotional responses of humans are universal, a creative brief stated in these terms and accurately translated into local languages can be the bedrock for a brand that plays in the same emotional territory wherever it is advertised in the world.</li>
<li>To my mind this is the ideal approach since if a brand does not strike an emotional chord with people in a market, it will always be hobbled and less robust as a global brand because of it.</li>
<li>However, the stimuli that will elicit the same desired emotional response will differ culture by culture, potentially target segment by segment too. This fact alone goes a long way to explaining why adapting brand strategies to multiple markets is such a tricky process.</li>
<li>Usually you do not have or in fact are not able to strip a campaign concept to such bare essentials, for various reasons. For instance, the global client just does not have the bandwidth to get into the conceptual nuances in foreign markets. It is, after all, just one of many they have to manage. It is certainly true to say that the more they trust their local brand and agency teams, the more likely they are to allow the brand to be transcreated.</li>
</ul>
<h3><b>Semantic Ambiguity</b></h3>
<p>One of the things you learn from working in the adaptation and transcreation areas a lot is that really good copy in any language leverages ambiguities implied by the choice of words to claim as broad an emotional relevance as possible while still “feeling&#8221; sharp and precise.</p>
<p>A good example that is close to my own heart is for the brand Indeed, the world’s biggest job search site, and adapting its global brand platform “How the World Works” into Japanese for its Japan market launch campaign, developed by our colleagues at MullenLowe in Boston.</p>
<p>The genius of this tag line in English is that it is a familiar expression that implies wisdom and knowledge of a complex human system, but by matching it to the context of recruitment sets up a double entendre with its literal meaning of how people find work, which is of course the raison d’être of the Indeed brand. The sharpest of communication strategists among you will have noted that this is an inherently flexible device since it says “we know how the world of employment works&#8221;, and, by inference, how to get you the right job, or to the companies recruiting the right candidates, but it does not say what that “How” is. The “how” comes in via the creative.</p>
<p>With the Japan launch of Indeed in 2015 the &#8220;How the World Works” campaign, which doubles as a brand tagline, was transcreated to carry a similarly powerful emotional evocation: 「その仕事が、世界を動かす」which back-translated says, “work that moves the world”. Brand positioning connoisseurs will have already noted that the savviness double-entendre is not retained in this transcreation, and instead emphasises what is more emotive connotation to Japanese people, the idea that your work has a higher purpose in the societal sense &#8211; a core brand value for the Indeed, although one that is not made explicit in its English tagline. If there is an intended ambiguity, it is in the way that 「世界」in Japanese can been both “your world” and “the World”, which was exactly the range of mental scales that we want the brand to transcend.</p>
<p>As someone who works across Japanese and English everyday, I am tempted to believe that the Japanese language, because of the unique way it has evolved as a sequence of assimilations of foreign languages, is extraordinarily flexible in the options it gives copywriters to play with, an unprovable theory that I intend to explore in a future post.</p>
<h2><b>Approach 4: Stratified brand platforms</b></h2>
<div>
<p>Is there a 4th approach? Actually, I think there is. It is where the international brand’s communications are stratified into global creative, usually in the approach 1 or 2 adaptation approach, usually projected through traditional media like TV. But then in other “high touch” channels like social, digital engagement and event-based promotions, the approach is closer to approach 3), being highly contextualised. This is often also very pragmatic given the centralised structure of many global brands, since seeing the same TV ads go out in all markets is very reassuring to those brand stakeholders who are not necessarily engaged in the nuances of international market cultures, but allows the freedom to the more ‘under the radar&#8217;.</p>
<p>A good example of this hybrid approach is RedBull, at least for the first few years after they launched in Japan, when they ran the global “Gives you wings” animated TV creative but simultaneously built out their extreme-sports &amp; music-based engagement programs. It is my impression (I am not a RedBull expert) that now as a mature brand in Japan they have dropped the &#8220;gives you wings” TV work and have built out their extreme sports and music platforms into the dominant local brand-building platform, and very effective it is too.</p>
<div id="attachment_454" style="width: 310px" class="wp-caption aligncenter"><a href="http://jameshollow.com/wp-content/uploads/2016/02/RedBull_sumo.jpg"><img class="wp-image-454 size-medium" src="http://jameshollow.com/wp-content/uploads/2016/02/RedBull_sumo-300x200.jpg" alt="Red Bull" width="300" height="200" /></a><p class="wp-caption-text">Photographer Credit: Jason Halayko/Red Bull Content Pool</p></div>
<h2><b>Idealism vs Pragmatism: what is the true path?</b></h2>
<div>Ultimately I do not believe there is a single “right way” since brands exist in the real world where budgets and mental bandwidth can be constrained, and so I can accept that any of the 4 approaches above could actually be the correct choice for the organisational context in which the decision is made, and all of them can work. But from the point of view of someone like me who loves to help brands resonate, flourish and become the transcultural conduits of fresh ideas and compelling propositions, approach 3 is the most exciting to be part of.</div>
<div></div>
</div>
</div>
</div>
<p>The post <a rel="nofollow" href="http://jameshollow.com/blog/the-art-of-localising-brands-japan/">The Art of Localising Brands to Japan</a> appeared first on <a rel="nofollow" href="http://jameshollow.com">James Hollow&#039;s Blog about Hybrid Thinking</a>.</p>
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		<title>The Japanese advertising industry in a nutshell</title>
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		<pubDate>Fri, 27 Jun 2014 00:18:34 +0000</pubDate>
		<dc:creator><![CDATA[James Hollow]]></dc:creator>
				<category><![CDATA[Cultural diversity]]></category>
		<category><![CDATA[Japan's future]]></category>
		<category><![CDATA[Japanese advertising]]></category>
		<category><![CDATA[Japanese innovation]]></category>
		<category><![CDATA[Japan digital]]></category>
		<category><![CDATA[Personal experience]]></category>
		<category><![CDATA[Profero Tokyo]]></category>

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		<description><![CDATA[<p>In this article I try to unravel one of the marketing industry’s most enduring mysteries: why Japanese ad agencies have succeeded in holding on to such a dominant position in the Japanese market, despite all the efforts of the major global agency networks. I believe the answer lies in a fundamental difference between Japanese and [&#8230;]</p>
<p>The post <a rel="nofollow" href="http://jameshollow.com/blog/japanese-advertising-industry-nutshell/">The Japanese advertising industry in a nutshell</a> appeared first on <a rel="nofollow" href="http://jameshollow.com">James Hollow&#039;s Blog about Hybrid Thinking</a>.</p>
]]></description>
				<content:encoded><![CDATA[<p>In this article I try to unravel one of the marketing industry’s most enduring mysteries: why Japanese ad agencies have succeeded in holding on to such a dominant position in the Japanese market, despite all the efforts of the major global agency networks. I believe the answer lies in a fundamental difference between Japanese and western audiences and the models the agencies use to approach them.</p>
<p><em>(A new follow up to this post <a href="http://jameshollow.com/blog/the-japanese-advertising-industry-in-a-nutshell-2/" target="_blank">can be read here</a>)</p>
<h2><b>The western agencies&#8217; strategy paradigm</b></h2>
<p>I entered the advertising industry off the back of 4 years studying physics at Oxford University, so I was more than a little predisposed to reductionist theories. I was therefor relieved to find a rational framework for solving communication problems, loosely referred to as  the ‘account planning model’, being used in the planning departments of London’s agencies, and the agency networks globally. I was taken under the wing of a top strategist in Ogilvy London’s planning department, at that point one of the best strategy groups in town (it still could be for all I know). I also attended lectures at the Account Planning Group, and studied up on the award entry books which documented all of the shortlisted case studies. In short, I threw myself at this branch of the social sciences as if it were the next stage in my academic journey.</p>
<div id="attachment_310" style="width: 293px" class="wp-caption aligncenter"><a href="http://jameshollow.com/wp-content/uploads/2014/06/leftbrainrightbrain_b+w.jpg"><img class="size-full wp-image-310" src="http://jameshollow.com/wp-content/uploads/2014/06/leftbrainrightbrain_b+w.jpg" alt="Left brain right brain advertising planning" width="283" height="299" /></a><p class="wp-caption-text">The account planning model combines the best of left brains and right brains</p></div>
<p>The account planning model first emerged from JWT London in the 1960’s and from there became the default paradigm for planning brand communications in the marketing empires that emanated from the UK, US and Europe. It is not designed to remove creativity from advertising, rather to impose structure and authority on an otherwise potentially chaotic and subjective process, and hence give these advertising agencies a process around which to scale up in a way that combines both business rationality and creativity.</p>
<p>By defining the creative task through a rational process, and then letting the best creative ideas compete with each other to be executed, the client can feel confident that the idea finally chosen is going to be the right one for her brand, right here, right now. It also gives the creative teams the freedom of a tight brief, as opposed a long rope with which to hang themselves.</p>
<h2>Rationality &amp; creativity combined</h2>
<p>The model goes something like this (with the role that takes the lead in each step shown in brackets):</p>
<ul>
<li>Unearth relevant target insight (account planner, possibly working with researchers)</li>
<li>Clarify the unique thing about the brand or product that needs to be communicated (account planner)</li>
<li>Come up with a concept that ties these two together (account planner)</li>
<li>Based on the concept, create multiple communication ideas, pick the best one (creative team)</li>
<li>Execute the chosen idea in a contemporary style (creative team &amp; production)</li>
</ul>
<p>It works because the worst that can happen is that the ad says the right thing but fails to get noticed much. When it goes really well, communications get made that jump off the medium and strike the viewers&#8217; consciousness with a thwack and everyone involves gets to go to Cannes to pick up the awards.</p>
<p>Based around this model, western advertising agencies have colonised every developed economy and are well placed in developing ones too. Every one except that is for Japan, where they have captured a small sliver of a huge market and if anything are getting weaker at this point.</p>
<h2>So what happened in Japan?</h2>
<p>I have heard numerous explanations for this state of affairs, the most common being that local competition is so historically strong and immovable with local media monopolies, particularly DENTSU, that there is not shifting them; the challenge of hiring top talent as a foreign company in Japan (even though foreign companies in other industries manage it); nepotistic relationships between domestic brands and agencies…. There is some truth to all of these, but the argument that the Japan ad market is locked down by the incumbents can be easily refuted by observing that a big new player has sprung up in the last decade, reached #2 in terms of revenue scale, and continues to challenge the old media titans. It is very telling to look at how they did it, as I will do further down..</p>
<div id="attachment_311" style="width: 490px" class="wp-caption aligncenter"><a href="http://jameshollow.com/wp-content/uploads/2014/06/dentsu_logo.jpg"><img class="size-full wp-image-311" src="http://jameshollow.com/wp-content/uploads/2014/06/dentsu_logo.jpg" alt="Dentsu dominate in Japan" width="480" height="270" /></a><p class="wp-caption-text">Dentsu dominates the Japanese advertising industry with a home grown formula for success</p></div>
<p>The real answer as to why the huge international networks have failed to capture much of the market in Japan, which I have never heard or seen written anywhere before, is this: the western advertising planning model does not work in Japan.</p>
<p>Let me explain.</p>
<p>As eluded to above, Japan’s media and advertising industry is indeed dominated by old-school media in the shape of Dentsu and its old rivals. Their persistent strength is usually put down to the fact that they have long standing exclusive relationships with much of Japan’s biggest media properties, as well as old-boy-network-type relationships with Japan’s biggest ad budget spenders.</p>
<p>But Dentsu&#8217;s monopoly is based on access to celebrity, not media. This works because in Japan it is aesthetic novelty, rather than hit-you-on-the-head ideas, that will always win out when building brands, and celebrity is the easiest way to auction novelty to the highest bidder.</p>
<p>That’s 90% of the answer right there. But if you want the full context read on….</p>
<h2><b>An audience wired a little differently</b></h2>
<p>Brought up in an education paradigm that promotes detailed knowledge and skill acquisition as opposed to conceptual originality or critical thinking, communications that aim to get a rise from Japanese consumers on conceptual terms simply do not connect.</p>
<p>In contrast, advertising that presents and explores an incrementally novel aesthetic will gain notoriety in Japan.</p>
<p>In other words, it is not that Japanese culture is shallow. It is just that it is deep in a different way: aesthetically. Aesthetics for advertising in the broadest sense comprises language (copy), celebrity (talent), design (visual execution), and music (including TV ad jingles!).</p>
<h2><b>Aesthetic depth</b></h2>
<p>Take the copy space as an example. Compared to alphabetic languages, Japanese, with its multiple layers of expression: Chinese characters, hiragana, katakana, and alphabet (in which Japanese words are often rendered to connote novelty) is a much more fertile and fast-evolving cultural realm in which to explore new ideas when compared to romanic language based cultures. Indeed, I have seen many campaigns that are driven by playing within this copy space alone, revealing simply a new way of writing a familiar idea.</p>
<p>But in Japan’s personality-centric culture, celebrities will always win out. And this works just fine for Dentsu since, compared to the other areas of potential aesthetic novelty, access to trending celebrity is a lot easier to control than all the others, and it is this that Dentsu has nailed as a business model.</p>
<p>In the west, as agencies vied with each other over producing creative novelty, forcing the division of media sales from strategic and creative services, the onus on the creative agencies was to create even more conceptual originality.</p>
<p>No such onus has ever impinged on Dentsu. In fact, the opposite is true.</p>
<p>When an agency handles competing brands as Dentsu does all the time, creating run-away successful campaigns based on creative novelty only serves to anger the competing brands, and increases their expectation and potential dissatisfaction in the future.</p>
<p>Instead, it is much easier to maintain control of both the market and client expectation by selling access to celebrities at a ranked pricing hierarchy. This is what Dentsu does, and knowing that they live and die by access to celebrity they will go to any extreme to capture and control their assets.</p>
<h2><strong>Dentsu&#8217;s biggest threat</strong></h2>
<p>Today the company that threatens Dentsu most, having risen meteorically to #2 in Japan’s media landscape, is Cyber Agent, the web media goliath. They catapulted up off the back of Ameba, their social blogging platform that, far from being technologically innovative, rose to ascendance in the micro-blogging bubble of 2007~2010 by capturing celebrities. They hired a talent agency golden boy to woo the magazine fashion models, TV celebrities and in general old-world media celebrities onto their digital platform to write (or have ghost written) their celebrity blogs. This attracted both their fans and endorsements plus advertising revenues that come with it. So although an upstart, Cyber Agent really played Dentsu at their own game, only in a different media space.</p>
<p>As cynical as all this is, I do not want to leave the impression that there is no art in Japanese advertising.</p>
<p>Let’s take TVCMs for instance.To generalise, any ad that captures the aesthetic zeitgeist of the moment, usually dominated by the celebrity dimension in terms of the execution, but in the really brilliantly executed examples, all the other aesthetic layers also combine to create a consilient work of art, albeit one that would bemuse western-schooled critics.</p>
<p>An example that springs to mind is this BOSS Coffee ad (Suntory) from 2002. The diminutive J-Pop idol HAMASAKI Ayumi, the most expensive endorser of the early 2000’s, is dressed as a cow girl on a spaghetti western set, singing the Boss coffee song. Her petiteness is juxtaposed with the enormous frame of the Hawaiin sumo wrestler AKEBONO himself dressed as a cowboy, but singing in a cute and endearing manner. A samurai character, cast to resemble Mifune from Kurosawa’s classic samurai films of the 1950s that famously inspired the Spaghetti western genre of the same era in the US, is also reprised in this multilayered aesthetic cultural collage. Two nuns appear towards the end &#8211; they are the <a href="http://en.wikipedia.org/wiki/Kano_sisters">KANO sisters</a>, who are far from innocent, so the nun outfits are likely an ironic touch to juxtapose the virginal AYUMI.</p>
<div id="attachment_312" style="width: 536px" class="wp-caption aligncenter"><a href="http://youtu.be/GMVtKs9shZo"><img class="size-full wp-image-312 " title="A typically novel TV ad with a top celebrity c2004" src="http://jameshollow.com/wp-content/uploads/2014/06/Ayumi_cowboy_ad_bosscoffee.png" alt="Ayumi meets Mifune" width="526" height="390" /></a><p class="wp-caption-text">A typically novel TV ad with a top celebrity</p></div>
<p>Does anyone remember this ad today? Probably not, because it is not designed to be memorable, but rather to be of the moment and hence position BOSS as such, until the moment passes, and a new aesthetic is demanded.</p>
<p>Why would any westerner be inspired to work in such a market? Well, because it’s fascinating and infinitely challenging. Although we do not have access to the top domestic celebrities, there is a lot of scope for designing communications that do not conform to the talent cookie-cutter formula, not least when you get onto Japan’s diverse digital landscape. And talents come in many shapes and sizes in Japan, character-based communications are common too, and social media offer a different way of building credibility for brands. All in  all chipping away at the old model and at the same time exploring the depth of Japanese culture has provided a very interesting 11 years for me since I arrived in Japan for a supposed 1 year stint!</p>
<p>++++++++++++++++++++++++<br />
<em>A recent follow up to this post <a href="http://jameshollow.com/blog/the-japanese-advertising-industry-in-a-nutshell-2/" target="_blank">can be read here</a></p>
<p>An edited version of this article was posted in <a href="http://www.campaignasia.com/Article/388584,the-japanese-market-decoded-at-last.aspx?">Campaign Asia</a> in July 2014</p>
<p>The post <a rel="nofollow" href="http://jameshollow.com/blog/japanese-advertising-industry-nutshell/">The Japanese advertising industry in a nutshell</a> appeared first on <a rel="nofollow" href="http://jameshollow.com">James Hollow&#039;s Blog about Hybrid Thinking</a>.</p>
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