Ultimate Guide to Digital Marketing Agents

The trend for digital marketing in Japan is expanding rapidly now with around 119 million active internet users. According to the latest data from AJ Marketing, almost half (49.4%) of Japanese internet users conduct online research about a brand before purchasing items, sometimes even making inquiries through the website. As Japanese consumers become more proactive, foreign startups are increasingly seeking experts in Japanese SEO to optimize their marketing strategies for the local market. In this article, we will explore the benefits of working with a digital marketing agency in Japan and provide insights on selecting the right partner to enhance your brand’s online presence.

Why are digital marketing agents important in Japan?

Digital marketing in Japan is vastly different from the West, and strategies that work in Western or even other Asian markets often fall flat here. Many companies have struggled to break into Japan due to a lack of understanding of its unique marketing landscape. For foreign businesses or startups aiming to expand, navigating Japan’s cultural business norms and consumer preferences can be challenging. As Milosz Bugajski, partner and advertising lead at Humble Bunny, pointed out in episode 72 of the Scaling Japan Podcast, foreign companies frequently misstep by applying global strategies without adapting them to Japan—particularly in digital advertising, where consumer behavior diverges significantly from Western markets.

3 Challenges Foreign Businesses or Startups Face When Targeting the Japanese Market

1. Navigating Language and Cultural Barriers
   One of the key factors in reaching the Japanese audience is using the local language. Although the number of English speakers in Japan is growing, very few are fluent in formal business English. Thus, using proper Japanese for your website, content and other marketing materials is crucial to be able to thrive. While AI can provide translation, the results may sound awkward and unconvincing. Having a local professional will not only be able to localize your contents to Japanese but also adjust it to the Japanese business culture, customs, and etiquette.  As noted by Humble Bunny, Japanese marketing tends to differ from Western approaches, often incorporating “kawaii” (cuteness) and surreal elements to engage consumers in a softer, more appealing way.
2. Complex Business Regulations
   Expanding into Japan offers great opportunities, but it is generally more costly to establish a business here compared to other Asian markets. The process of setting up a company is complicated, with legal regulations and paperwork required for establishing an office and hiring full-time employees. Without a localized marketing strategy, it can also be difficult to fully explore the market’s potential or build strong partnerships with other businesses. Given the significant upfront investment, working with a new team and navigating the unique landscape of Japan might feel risky. However, having a Japan-based marketing expert involved can help mitigate this risk and ensure smoother growth and success.
3. Limited Understanding of Popular Digital Platforms
   Japanese consumers engage with digital platforms in distinct ways. For example, while the global marketing team may translate content into Japanese, they might overlook the fact that many Japanese internet users prefer Yahoo! Japan over Google. Additionally, understanding which social media platforms Japanese audiences use, how to leverage key sales periods like Golden Week, and other culturally relevant insights can make a significant difference in maximizing your business’s potential. A localized, data-driven approach is critical to succeed in this unique market.

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What services do digital marketing agents offer?

In this section we will explore the services digital marketing agents offer and how they can actively build trust with Japanese clients and consumers. While some agencies provide a complete consultation for Japan market entry, digital marketing agents specialize in more specific services. So, it is important to know the types of services they offer and finding which one aligns with your brand before working with digital marketing agent teams. 

1. SEO Specialists: Develop contents for your website that strategically incorporates keywords to improve rankings on search engine.
2. Content marketer: Produces content strategies and material for social media platforms to engage your audience 
3. Email marketer: Design automated emails campaigns, including newsletter and promotional contents to nurture leads and engage customers.

These are just a few of the most popular methods of digital marketing in Japan. To learn more about digital marketing services options see our Guide to Digital Marketing in Japan

How do you know if the digital marketing agent you hired is the right one for you?

Many companies aim to expand their services in Japan but only a few companies survive in this competitive market. A common reason for this failure is attributed to Japan’s commercial and cultural disparity and enterprises’ attitude in underestimating the challenges in operating enterprises in Japan. Digital marketing agents can help you avoid making the mistakes. However, receiving help from any digital marketing agents might not get you the same result. Here are the five things foreign businesses need to consider when hiring digital marketing agents to collaborate with in Japan. 

1. Bilingual capability 
   Although it is essential to get Japanese speakers on board in your marketing journey, bilingual digital marketing agents ensure a clearer communication between your company to the digital marketing agents and the digital marketing agents to the customers. AJ marketing, in their article, elaborates that when HSBC started their global campaign, their slogan “Assume nothing” was mistranslated into “Do nothing” in several countries, causing them around USD 10 million loss. While local agents can help you reach your audience, a bilingual agent can ensure your brand’s vision is communicated effectively.
2. Freelancers or In-house consultants 
   Freelancers and professional working digital marketing agents each have their own strengths and weaknesses. When deciding between the two, budget is often the deciding factor. Generally, more enterprises opt to hire freelancers because their services are more affordable. Freelancers are typically more affordable and work well when you have a clear target audience and specific platforms to focus on. However, if you’re looking for comprehensive marketing strategies and consultation tailored to your brand’s vision, an in-house consultant may be a better fit.

3. Know your goal and target audience
   One thing that digital marketing agents cannot provide you with is deciding your company’s goal and target audiences. Knowing your goal and target audience is also essential in deciding which digital marketing agent you should work with and optimizing the results of the marketing strategy according to your budget. Having your target audience set can lead to even the simplest decision in digital marketing. For example, in deciding whether to build your website in Google or Yahoo! Japan, you need to first know the demography of your target audience. According to the users data, it is said to be more advantageous to utilize Yahoo! Japan if you are targeting middle-age and senior users and use Google to reach a younger audience. 

4. Conduct market research 
   Before selecting a digital marketing agent, foreign companies are advised to do a comprehensive market research on the competition and consumer preferences. As emphasized by Andrew Edsall in Scaling Japan podcast, analyzing market trends, consumer preferences and the competitive analysis, are essential steps in making a breakthrough in Japan’s market. 

5. Identify digital marketing agents’ networks and online presence
   Finally, get to know your marketing partners. The best way to assess if their strategies are effective is to test it on themselves. Before collaborating with digital marketing agents, it is better to check their social media, website and other platforms. By doing so, you might get a hint of how your own website and social media will look when you hire them. When it comes to hiring digital marketing agents, there is no right or wrong; there is only compatible or not compatible. Making sure your marketing goals align and your budget suffices, is the final and most important step in deciding which digital marketing agents you should work with. 

After assessing the previous points, you should be able to find the digital marketing agents that can help bring success to your business. Now, we discuss where you can find competent digital marketing agents in Japan. 

Where can you find the right digital marketing agents in Japan?

Key Takeaways

Digital marketing is a growing opportunity in Japan. In order to leverage its maximum potential, working with local digital marketing agents is highly encouraged. They can also help you navigate through the unique challenges of the Japanese market, including language and cultural disparity, complicated regulations and the difficulty of understanding the digital platforms. Having explored the different services digital marketing agents offer, foreign businesses or startups should choose to work with specialists whose visions align with their respective brands. In order to do that, they should conduct market research, performance assessment, and budget analysis. With this guide, we hope to see more foreign businesses successfully thrive in Japan’s competitive market.