Maximizing Return on Investment (ROI) and Future of Japanese Influencers

When selling overseas services or products in Japan, using Japanese influencers is a must.
But what about the ROI when you invest?

Japanese influencers create content in many genres.
They are not well-known worldwide, but they are very popular among Japanese people.

Therefore, the ROI of Japanese influencers can be high.
However, the timing and choice of influencers are very important.

This article will explain the characteristics of Japanese influencers and their marketing effects.
Additionally, it will introduce ways to maximize ROI.

ROI Calculation Formula

First, let’s review the formula for calculating ROI.

The simplest concept is “Profit / Investment * 100”.
Here are examples of ROI for two companies.

Company Name: A inc.
Investment: 10,000 USD
Profit: 10,000 USD
10 / 10 * 100 = ROI 100%

Company Name: B inc.
Investment: 1,000 USD
Profit: 20,000 USD
20 / 10 * 100 = ROI 200%

A inc. has a higher profit.
However, B inc. has a higher ROI.

A higher ROI indicates a more profitable investment.
B inc. has achieved a better investment.

The Effect of Influencer Marketing

With the spread of social media, influencers have gained significant power.
Consequently, influencer marketing has attracted a lot of attention in recent years.

The effects of influencer marketing include increasing brand awareness, boosting engagement, and improving conversion rates.
Influencers provide real experiences and reviews, which build strong trust among consumers.

However, if influencer marketing fails, it can have negative effects.
If it leads to a negative image of the company, recovery is not easy.

To prevent such failures, it is essential to measure the “Return On Investment” (ROI) and evaluate the effectiveness of influencer marketing activities.

Characteristics of Japanese Influencers

By understanding the characteristics of Japanese influencers, you can maximize ROI.

Unlike Europe, Japan has a unique culture and communication style within a single country.
Therefore, the impact on people of the same race is very significant.

Japanese influencers are active in various fields such as fashion, beauty, lifestyle, and gourmet.
They build strong trust with their followers and boast high engagement rates during promotions.

Five Ways to Maximize ROI

To maximize the ROI of influencer marketing, you need to understand various factors.
Here are some examples:

Use of Micro-Influencers

As of 2024, Japan’s population is about 100 million.
Considering this population, the definition of an influencer should be determined.

In Japan, an influencer is said to have 10,000 followers.
An influencer with 100,000 followers is considered famous, and one with over 1 million followers is a hyper influencer.

However, this applies only to widely used SNS in Japan.
On small to medium-sized SNS, different influencer metrics exist.

A micro-influencer refers to someone with 10,000 to 100,000 followers.
The quality of these followers can be highly beneficial for marketing.

Micro-influencers’ followers belong to a very tight-knit community.
Therefore, they have strong trust and interest in the influencer and deep affection.

In other words, Japanese fans are likely to turn their “likes” into actions, which can enhance the ROI of influencer marketing.

Use of Influencers Who are Brand Fans

As previously mentioned, “Japanese fans are likely to turn their likes into actions, enhancing ROI.”
This also applies to the influencers themselves.

For example, if a fashion brand from A inc. requests a campaign from an influencer who likes their brand.
Naturally, the influencer will accept the job.

The influencer is likely to promote the brand enthusiastically from genuine joy.
This can improve the ROI of influencer marketing.

Therefore, it is important for influencers to genuinely like your brand or product to maximize ROI.

Collaborate on Product Development

Many companies aim to increase the ROI of their influencer marketing campaigns.
But why not start influencer marketing earlier?

Influencers understand the tastes and preferences of their fans, who are fellow Japanese.
Therefore, involving them in product development can maximize ROI.

Additionally, if the product is created by the influencer, new benefits arise.
Japanese people often buy multiple items of the same product, which is utilized in various marketing strategies.

Even if an influencer says, “I recommend this product,” some fans may be skeptical.
However, if they participate in product development, it can lead to more trustworthy influencer marketing.

Host Influencer Events

Fans are always watching the actions of influencers.
Therefore, holding events together can lead to increased ROI.

For example, challenge events or giveaway events.
Using hashtags, encourage participation in events and aim for viral spread.

If hashtags spread, they will be noticed by people beyond the fans.
As a result, many people will learn about it through this influencer marketing, increasing ROI.

To further enhance ROI, it might be good to listen to influencers’ opinions and incorporate them into the event.

Utilize Influencer Matching Platforms

The easiest way to increase ROI.
That is, utilizing matching platforms.

A matching platform is a place where influencers and companies can match.
It allows influencers waiting for requests and companies wanting to make requests to match.

There are many Japanese influencers.
Finding suitable talent for marketing is challenging.
Spending time and effort on this can lower ROI.

However, by using a matching platform, you can align conditions for both sides.
You can safely match with influencers.

Additionally, if the Japanese influencer does not understand English, promotion might be difficult.
But with a matching platform, such issues do not arise.

Therefore, you can increase the ROI of influencer marketing.

Future Prospects and ROI Improvement

In conclusion, the future of influencer marketing is bright if ROI is maximized.

Japan is an aging society with fewer young people and a declining population.
However, as mentioned earlier, it has a unique culture and communication style.
Therefore, the impact of influencers will continue to be significant, resulting in high ROI.

Currently, Japan is experiencing a weak yen, but a stronger yen is expected in the future.
Investing in influencer marketing during the weak yen period can maximize ROI.

Utilizing Matching Platforms

The future of Japanese influencer marketing is bright.
However, if the timing is wrong, ROI can decrease.

To maintain a high ROI, why not use an influencer matching platform?
We have many Japanese influencers and can achieve many successful matches.