2008.5.29

Geeks on a Plane.

Overview of the JapaneseMobile Market.

CiriusTechnologies, IncFounder&CEOGen Miyazawa

2008.5.29

A mobile ad technology company.

Founded in 2004 in Tokyo.

Running several mobile advertisements platforms including “AdLocal”.

Launched new U.S. subsidiary at Sunnyvale “plug and play tech center” in Oct. 2008.

About Cirius Technologies, Inc.

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2008.5.29

Japanese Mobile Market Trends

2008.5.29

85% of mobile phone subscribers use online services.

96% on 3G & 35% on 3.5G.

50% of subscribes on flat-rate data plans.

55% are GPS enabled phones.

Japanese mobile market quick glance

Keitai Hakusho 2008

2008.5.29

Broad coverage of 3G network.

Flat-rate data plans.

Operators had more influence upon mobile ecosystem than in GSM markets.

Many people commute by train and use mobile in the train.

Why did the market grow so rapidly?

2008.5.29

DoCoMo is going to be a recommendation platform.

iPhone is putting up a good fight, but the market size is still small in Japan.Monthly subscription plan is important.

Mobile traffic is growing larger than PC traffic.

Latest trends of operators

2008.5.29

Latest trends : Mobage-town

• Mobile PV: 15B (per month) *1

• Over 13M members

•Acquire many users by offering many free

mini games

•Users need virtual money (moba-gold) to

play games

•High CTR

•Provide a site called “MobaMingle” in the

US

•Super Galapagos Strategy

*1 Mar 2009 data

2008.5.29

Latest trends of mobile site : mixi

• Mobile / PC PV: 10B / 4.2B (per month) *1

• Over 16.8M members• Their advertisement revenues appeared to slow down

during the recession

• First major mobile SNS supporting OpenSocial

• They are going to open their advertisement platform and

payment platform to developers

*1 Feb 2009 data

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Latest trends of mobile site : GREE

• Mobile / PC PV: 10B / 0.1B (per month) *1

• Over 10M members• virtual pets “Clinoppe(クリノッペ) “and

Fishing game “Tsurisuta(釣りスタ)” drive their traffic

• Charging users for digital content is working well.

*1 Feb 2009 data

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unit: millions USD

0

200

400

600

800

1000

1200

1400

2005 2006 2007 2008 2009 2010 2011

288 390 556 744 928 1108 1284

Mobile Ad SpendingUnit:millions USD

Mobile ad growth forecast in Japan

Mobile ad spending

Source: seed planning: Mar 2008

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Latest trends of mobile market: E-Books

• Mobile e-books market size:30M USD

(2.5 times as large as the last year's)

•Publishers started to provide

their content positively

•Distribution channel was well-

regulated for the distribution e-

content.

•Content lineup grown widely

Impress R&D：9 July 2009

Oct 2007 Oct 2007

11632

3653

Free contentPaid content

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Latest trends of mobile market: E-Commerce

• Mobile EC market :1,150M USD

July 2008

Commerce

Services Transactions

2008

1,150

Billion yen

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Latest trends of mobile market: E-Commerce

• Tokyo Girl’s Collection

• Young mobile users spread fashion trends

• The audience can buy the garments worn by

the models via mobile phones.

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Fast-food chains focus on Mobile

Reducing TV commercials and reallocating budget to mobile ads.

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Thank you

contact: gen@cirius.co.jp

Facebook: Gen Miyazawa