In the first quarter of 2023, Japan witnessed a surge in in-app spending, rising to an impressive $4.65 billion, according to data jointly published by Adjust, a measurement and analytics suite, and mobile data analytics provider data.ai. This growth, a 13% increase compared to the previous quarter, is expected to exceed $17.7 billion in spending throughout the year.
Mobile gaming is making a gradual but noticeable comeback in Japan in 2023, with 12% and 6% increases in app installs and sessions, respectively, from Q4 2022 to Q1 2023. Japanese mobile gamers significantly bolstered their spending on gaming apps, reflecting a 13% increase over Q4 2022. Puzzle games have proven particularly popular in Japan, accounting for 19% of all gaming sessions.
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As Japan advances towards a cashless society, digital payment apps are leading the charge, capturing a remarkable 77% of install share. Sessions in these apps increased by 7% in Q1 2023 compared to Q4 2022. The country has also seen a surge in the popularity of crypto apps, with substantial growth in both installs and sessions, and an impressive Day 1 retention rate of 28% in Q1 2023. The overall fintech app sessions swelled by 17% in Q1 2023 compared to Q4 2022.
Despite a minor dip in installations, e-commerce apps exhibited exceptional resilience, with deal discovery apps experiencing 24% year-on-year growth in 2022 and another 11% increase in Q1 2023 compared to Q4 2022. The robust Day 1 retention rate of 28% for marketplace apps in Q1 2023 underscored their strong appeal and user engagement.
Toby Torii, Territory Director for Japan at data.ai, affirmed that strong partnerships, innovative technologies, and staying ahead of industry trends are essential to seize the remarkable growth opportunities in this evolving market.
On another front, connected TV (CTV) is becoming an integral part of mobile users’ journeys. Approximately 70% of Japanese TV viewers own a CTV device, and by the end of 2023, CTV and OTT devices are projected to reach 30 million Japanese households. This growth trajectory offers advertisers ample opportunities to reach new and engaged audiences and to drive users from CTV apps to mobile devices or vice versa.
Gijsbert Pols, Director of Connected TV and New Channels at Adjust, stated that early movers in Japanese CTV advertising stand to gain considerably, given CTV’s improved ad quality, more captivated audience, precise targeting, and enhanced measurement and optimization for engagement rates, impressions, and click-through rates.
This news is based on Marketech APAC.
