The Advertising Scam in Japan

This is a letter I wrote to a business associate....

Don't Waste Money Going Through Old Ad Agencies

Before your company goes and spends a bunch of money on old media through the old channels, please read this.

We specialize in repairing client websites in upgrading to web 2.0 (most are still web 1.0 - so they are 6 years behind). This involves getting bloggers aboard, SEO and daily updates to build community. You can see by the bio that my partners are experts in this field.

Once we do fix the web problems, then we integrate an intelligent Mortar and Click plan that drives old media users to the new media. It is extremely cheap and cost effective under our method.

You can use this info or think of using it in one of two ways: Firstly, we don't mind if you middle-man in the deals, so, say, a TV ad campaign that we charge ¥2.2 million for, you can charge your client's, say, ¥3.2 million for and pocket the ¥1 million (up to you on margins, but I recommend keeping them low, that way word spreads fast). Or, two; using us to represent your projects.

Now, we only focus on travel and airlines (we will expand into fashion later this year).... So that may or may not be your business focus. That's OK. We only work with people we like and trust, so if you are interested, then that's great.

An important point about all of this is that we have to keep it under our hat the prices that we can buy this media for or our connections might get into hot water at the TV stations or magazines. We do not involve the station of magazine/newspaper sales departments in our negotiations; we go directly to hensei (programming department). Since we are media insiders, we know exactly who to talk to, how it works, and when to get the dirt cheap campaigns. Like I mentioned, say, twenty-five 15 second commercials a week on TBS or TV Tokyo, 6 am - 11 pm, normally about ¥16,500,000.... We can do that (and already have many times) for ¥2.2 million.

Anyhow, that's basically it. If you are interested in hearing more, just let me know.

About keeping our deals hush hush; let me explain. The reasons for doing so might surprise you...

For many years Dentsu & crowd have dominated the ad agency market, as you know. They have totally corrupted the process so that there is no transparency between client and agency at all. The bizarre part is that new ad agencies follow this model.

For example, you go to Dentsu to buy a TV commercial. They tell you it costs ¥50,000,000. Then they also tell you it is a 40% margin. You pay ¥70,000,000. The commercial airs. When it is over, you never see the bill from the TV station. You never really do know what the ads cost. 

One thing about this ad business deal that you probably do not know is that the TV, radio, print, etc. they all hate Dentsu also. Why? Because we know what they are doing when they sell the commercials. From the station perspective, they  WANT to discount. But Dentsu has had such a hold for so long that they have frightened the Japanese companies into submission.... This is the big reason we work only with foreign companies. Foreign companies, generally speaking, don't care about Dentsu. There are people inside the broadcasting and print industry who want to take down this Dentsu system and we work with them...So we must stick with foreign companies for now. 10 years from now? Expand into Japanese companies. (Currently, even if a Japanese company wanted to work with us, some old fashioned thinker in marketing would quash it. Why? The Dentsu system has been around for 100 years. Us? 1 year. The old guys are worried that, if they piss of Dentsu, then Dentsu will not help them anymore - not that Dentsu is doing anything for them now!) 

We hope to provide the solution. Koji Kamibayashi and I are industry insiders. Koji and Tim are internet experts. We see an opportunity. We will only deal with foreign companies who are trying to do business in Japan (I mean foreign companies who are trying to sell to the Japanese).

Also, I arranged many barter deals for clients through another new system we developed whereby we have created a sort of "inkai" among our clients and satellite partners.... This was about ¥20,000,000 ~ ¥30,000,000 worth of promotion that I arranged for retainer fee only (¥1,900,000). There was no money passed between our client's and stations for this stuff.

Japan is astronomically high. Dentsu wants to keep it that way....

Dentsu has had such a tight hold on this business for so long that they have frightened the Japanese companies into submission.... Even if Denstu is selling no commercials at all for a TV station, old habits die hard, and the people-in-charge at the stations are afraid that, if they go outside the customary way things have always been done, then Dentsu might get mad at them. 

The key to the future and breaking down the old-guard are the foreign companies in Japan. Foreign companies, generally speaking, don't care about Dentsu. There are people inside the broadcasting and print industry who want to take down this "Dentsu system." 

These are the companies that I like to work with. 

10 years from now? Expand into Japanese companies. (Currently, even if a Japanese company wanted to work with us, some old fashioned thinker in marketing would quash it. Why? The Dentsu system has been around for 100 years. Us? 1 year. The old guys are worried that, if they piss of Dentsu, then Dentsu will not help them anymore - not that Dentsu is doing anything for them now!) 

We hope to provide the solution. Koji Kamibayashi and I are industry insiders. Koji and Tim are internet experts. We see an opportunity. We will only deal with foreign companies who are trying to do business in Japan (I mean foreign companies who are trying to sell to the Japanese - not companies that deal in the Metropolis magazine crowd - no offense intended).

I arranged dozens of barter deals for clients through another new system we developed whereby we have created a sort of "inkai" (business association) among our clients and satellite partners.... This was about ¥20,000,000 ~ ¥30,000,000 worth of promotion that I arranged for retainer fee only (¥1,900,000). There was no money passed between our client's and stations for this stuff (there's lots more, but this is a sample).

Anyhow, like I said, if you need more details, I can come see you. Maybe we'd be good, mutually beneficial partners.


See you,


Mike


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---Keywords:
Ad agencies, Dentsu, inkai, broadcasting, bloggers, SEO, travel, airlines, TBS, TV Tokyo

The Collapse of Old Media and Antique Ratings Systems.

By Mike in Tokyo Rogers

It's a recurring theme in many of my blogs; the old order is quickly collapsing right in front of our faces; TV and radio are dying.

Viewership and listenership of TV and radio are sliding down a steep slope and there's no recovering. Of course, think about it; anyone who has the time, in this day and age, to sit for 3 or 4 hours a day, everyday, in front of the TV must either be;

a) Jobless
b) Poor
c) Inactive
d) Lazy

Hate to be so rough sounding but I can't think of any sponsors who want to advertise or market to people who are inactive, lazy or have no money.

Most terrestrial TV & radio stations are both heading the way of the Short-Wave or Ham radios. The Internet is allowing for totally new ways for entertainment to be delivered to a targeted audience. Why would sponsors waste huge budgets on TV advertising that advertises to EVERYBODY when they can target their select group?

They won't. That's why old media is dying a slow death. Read more about that here and here in two articles I wrote about the Long Tail.

What a waste of a life. People who fear death, 

yet don't know what to do with themselves on a slow Sunday.

George Williams and a few few friends and I will be launching a new online concert series starting September in Japan. That's about all the details I can give right now because everything is still Top Secret.

This online concert series has come about because Japanese artists and musicians have gotten fed up with the old order and major record labels telling them what they can and cannot do. It also comes about because artists have seen with their own eyes what the Internet and Social Media can do for them.

From SNS services such as Mixi to Facebook and Linkedin, there are many artists in this country just now plugging in and finding out that they don't need a major label to tell them what to do and how to think. Twitter and Pick are also doing very well in this country even though it doesn't really seem that many artists have plugged into how it can help them to become independent.

Five nights a week George Williams has Japan's top artists on his U-Stream, and now, he's starting to place recorded versions of those shows on YouTube. Throw on top of that his blog that's about to begin (including blogging and video blogs) then you have a guy, in the music industry, who is showing these musicians first-hand just how simple this can all be.

The online concert series is all a part of this simplicity and freedom. One of the famous artists, Koji Kurumatani, who is an important partner in this online concert project told me that musicians are sick and tired of the old order.

He also mentioned that he (and I gathered a bunch of his other friend musicians) had come to the conclusion that it was absurd to sign with a major label as today's top selling albums on the Oricon Chart (Japan's version of the Billboard Charts) sells about 30,000 copies.

Koji said,  "If an artist signs with a major and only gets a 2-5% royalty with a major label, then they only sell a few thousand copies, then why bother? It would be much more profitable and fun to do it completely Indie."

Of course, Koji is 100% correct.

To prove that this collapse of the old order is not happening just in Japan, here's an article from the Washington Post that talks about TV getting the worst ratings in history last week.

NEW YORK (AP) — Americans avoided television in historic levels over the past week.

CBS, NBC, ABC and Fox together had the smallest number of prime-time viewers last week in two decades of record-keeping, the Nielsen Co. said. Given the dominance of the big broadcasters before then, you'd probably have to go back to the early days of television to find such a collective shrug.

The first week of July tends to be among the slowest weeks of the year in television, anyway, with families more engaged in barbecues and fireworks. The problem was magnified this year because July Fourthcame on Sunday, largely knocking out one of a typical week's biggest viewing nights.

Together, the four networks averaged 18.9 million viewers last week, Nielsen said. During the season, "American Idol" alone usually gets a bigger audience than that.

I'm sure that this sort of article will be coming out less and less in the near future. Why?

Because every week will be worse than the last one for TV, radio, magazines and old media. And this sort of story is becoming old hat really quickly.

The only place that will shine from here on out is the Internet.  The revolution is being televised - not by what TV is showing, but by what they don't show.  

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Keywords:
Facebook, Internet, Twitter,  George Williams, Mike Rogers, U-Stream, market, Billboard, Fox, Japan, TV, blogs, SNS, CBS, Nielsen, terrestrial TV, Mixi, ABC, Blogging, video blogs, targeted audience, NBC, Linkedin, YouTube, magazines, Pick, American Idol, musicians, radio stations, Japanese, advertise, music industry, Oricon, old media, Koji Kurumatani, audience, Mike in Tokyo Rogers

My Newest Article on Lew Rockwell: Gout Sufferers of the World Unite!

By Mike Rogers


My newest article will be out on Lew Rockwell today. It takes a humorous (and sometimes serious) look at gout as well as some good advice if you, or someone you know, has it.  The Article is called, "Gout Sufferers of the World Unite! Read it here.


Besides some interesting tidbits on the history of gout, the article also talks about my personal experiences battling the dreaded disease; and, how while under a gout attack, my adventures flying First Class trying to pick up a stewardess...


From the article:

"Later on, I was trying to quietly enjoy the flight (though my foot was killing me) when I saw one of the flight attendants smiling and looking right at me. I straightened my tie and smiled back but then I figured that since I am near sighted, she was looking at someone else. I tried to get some shuteye and peaked at her to see if she was looking at me anymore. She was! After awhile, I noticed that she kept looking straight at me and smiling over and over again. My heart sang. I thought, "The old boy's still got that magic!" I gave her a mischievous grin and she smiled back.

Oh, stay my beating heart! I'm old enough to be her father… er, older brother, I surmised. Then while I was picturing holding hands with her and running madly in love up some faraway sandy beach laughing together, she started walking up to me.

I braced myself. I wondered if my breath was OK. Maybe she wanted my phone number. Maybe she'll be lonely tonight in Tokyo? Great, but what will I tell my wife?

She came directly to my seat, offered me a blanket and said, "Mr. Rogers?" I jumped a few feet in the air. How did she know my name? And her English was perfect! She continued, "Mr. Rogers, can I have your phone number?" I smiled knowingly at her as I pulled out a piece of paper from my pocket, wrote down my number and, with a half-wink, I handed it to her.

"What's this?" She said.

"Silly," I whispered while slowly flashing my bedtime eyes to her, "You asked for my phone number."

"Pardon me, Mr. Rogers," she replied, "There must be some misunderstanding. I didn’t ask for your phone number, I asked, ‘Is your foot feeling better?’ I’m sorry my English is so poor."

My face turned beet red. I told her that I was fine and acted like I was sleepy so she would leave me alone. She walked away, out of my life forever, and behind the curtains where the other stewardesses were… A minute later I could hear them giggling."

Anyhow, please, if you have the time, and need a laugh or two, please check it out.

http://www.lewrockwell.com/rogers/rogers237.html

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Keywords: Lew Rockwell, First Class, Stewardess, Mr. Rogers, Mike Rogers, James Brown, gout, headache,