Wednesday, August 4, 2010

Marketing Japan: Yahoo Japan Starts Long Decline...

By Mike in Tokyo Rogers

What did I tell you? When those fools at Yahoo Japan decided to throw in the towel to Google and start using Google's search engine, I said it was the beginning of Yahoo Japan becoming an "also-ran." Now we have Yahoo Japan making excuses, sputtering out "spin"by making statements claiming that they are going to remain "competitive."

Yahoo Japan is following Myspace... You'll see.

From the Japan Times article "Yahoo Japans Vows to Stay Competitive":

Yahoo Japan Corp. will remain competitive with Google Inc. even after adopting Google's Internet search engine and online ad technology, because the two firms will use their own editing and advertising policies, Yahoo Japan President Masahiro Inoue said. "We will operate the search engine under an editing policy that is independent (of Google's) and also have different screening criteria when it comes to advertising," Inoue told reporters, dismissing criticism by Microsoft Corp. that the Yahoo Japan-Google tieup is anticompetitive.

Forget about what Microsoft is saying. Read in between the lines. Microsoft doesn't give a hoot about Yahoo Japan anymore, they are a lost cause, Microsoft only cares about Google's rapidly growing dominant position in Japan. A dominant position that, I might add, has quickly become irresistible.

By the way Microsoft owns Yahoo Inc. (USA) and Yahoo Inc. owns 37% of Yahoo Japan. So Microsoft must be be really steamed about this Japan deal!)

I suggest this for Yahoo Japan's new logo: A long decline.

You can also disregard what Yahoo Japan president Masahiro Inoue says too... This nonsense about remaining competitive due to a difference in Yahoo Japan having an "editing policy" different than Google is just that; nonsense.

A different "editing policy"? Right. When ad revenues are hard to come by, and you have voluntarily become second rate, you are going to start denying people who walk into your doors with money to spend?


If Yahoo Japan is going to use Google's search engine, then Google will always at least a one step advantage on Yahoo Japan. If you are an advertiser, why go for the second choice unless you don't have money for the first choice?

This means that Google will get the first tier sponsors and Yahoo Japan will get second tier or less.

When any media stops getting the best advertisers, look at what happens to them, especially in Japan. For evidence of this, one need look no further than the television examples of TV Tokyo or TBS TV. The number one TV station in Japan, Fuji TV has ads for Toyota, Nissan, Canon cameras and copiers, high end household goods like Panasonic refrigerators and HD TVs... TV Tokyo has ads for discount car insurance, pachinko parlors and local businesses like Parrot Cage Emporium.

It's rare to see high end goods advertised on TV Tokyo. 

When Yahoo Japan switches to the competitor's search engine, it's game over for them... Regardless of how they try to spin it.

See original Japan Times article here.


Keywords: Google, Yahoo Japan, Microsoft, Japan, Tokyo, Panasonic, Mike in Tokyo Rogers, Marketing Japan, Mike Rogers, Nissan, Tokyo, Canon, TV Tokyo, Fuji TV, TBS, television, Yahoo Japan President Masahiro Inoue


Jason said...

What I want to know is what MS Japan did wrong that cheesed the government off enough to allow this to happen.

mike in tokyo rogers said...

Hi Jason,

I think that MS Japan had little to say about it... Anyhow, MS tried to stop it but couldn't.

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