Client Details & Project Overview
Client
A major Forex/CFD broker based in Cyprus.
Target Market
Forex, stock, and commodity traders in Asia specifically Japan.
Objective
To move to emerging markets of Asia specifically Japan to take advantage of the higher client value traders and potential for greater returns.
Campaign Duration
November 7, 2022, to Present.
Ad spend
$250,000 on search, display, and performance-maximized campaigns
Results We Achieved
Initial Metric Results
- CPL: $29
- Average user cost with a deposit: $298
- Average ROAS: 110%
- Conversion Rate into leads: 4.5%
Final Metric Results
- CPL: $19
- Average user cost with a deposit: $143
- Average ROAS: 190%
- Conversion Rate into leads: 8.6%
Project Details
Our client X is an established Forex/CFD broker based in Cyprus who reached out to us with an interest in expanding into the emerging markets of Asia to take advantage of these markets’ higher volatility and greater returns. With its booming economy, prodigious financial literacy, and growing interest in forex trading among retail investors, Japan stood out among Asian countries.
Their attempts to enter on their own, however, met with several challenges like limited awareness, cultural nuances, regulatory compliance, and fierce competition from local and international players:
Limited Awareness
Compared to the dominant domestic players, our client had a relatively limited presence in Asian forex markets.
Regulatory Compliance
Asian and Japanese markets have a stringent regulatory framework for Forex trading, which demands adherence to certain rules.
Cultural Differences
Reaching Asian audiences properly necessitates an understanding of their communication styles and cultural preferences.
Understanding The Asian, and Specifically Japanese Market
Our client’s entry into the Asian and mainly Japanese forex markets required preliminary market research and insight.
Japan dominates the global Forex landscape. With millions of participants, it is home to a large and active trading community. Keeping that in mind, here are the key factors we considered before making any decisions:
Market Size
The foreign exchange market (Forex) has a daily trading volume of over $6.6 trillion, of which Japan accounts for 13.2% daily. According to a BOJ report, retail investors traded a record amount of $67 trillion across Japan in 2022, a 28% increase from last year. However, when it comes to global forex turnover, Japan’s share is 4.5%.
Demographics
Middle-aged men leading the $67 trillion FX trading surge, states BNN Blomberg.ca.
Regulations
Japan Financial Services Agency (JFSA) regulates forex trading or brokers in Japan to protect investors and maintain market stability. These regulations add an extra layer of complexity to trading, and traders must navigate them carefully to avoid penalties or legal issues.
JFSA’s main objective is to prevent Japanese people from accessing foreign brokers without regulation.
Communication Style
Asian mainly Japanese audiences are more likely to respond to clear, concise, and respectful communication. Trust must be earned, and visual media communicates messages more clearly.
Rebate Channels
A large segment of Asian audiences, primarily Japanese, rely on various rebate channels to seek out the best forex deals.
FXPlus, KaigaiFx, and TozaiFx, along with other rebate channels, serve as a core component of our strategic plan.
With these incredible platforms as our prime partner affiliates, an aggressive multi-channel marketing strategy was created for rapid expansion into the Asian/Japanese market.
Developing a Multi-channel Marketing Strategy
To successfully penetrate the Asian Forex market, we devised a multi-channel marketing strategy that capitalized on the strengths of 3 key platforms:
Facebook Ads
With Facebook being such a powerful platform, we decided to target Japanese users based on demographics, interests, and online behavior using Facebook ads.
Google Ads
For keyword-based advertising, we chose Google Ads as it offers unmatched reach. Our goal was to reach Japanese users actively seeking information about Forex brokers by targeting relevant search terms.
Affiliate Marketing
Partnering with renowned Japanese financial influencers and affiliates was crucial in connecting with existing audiences and utilizing their credibility.
This multifaceted approach encompassed all aspects of the campaign, from understanding the client’s unique requirements to conducting localized research to planning and promoting through paid media.
In other words, we devised a strategy exclusively for our client’s specific needs and goals in the Asian Japanese market.
Strategy Implementation
Facebook Ads Campaign
For insights into the Japanese market, our team meticulously analyzed the Japanese market. We identified potential forex brokers in Asia, specifically Japan, based on detailed demographic research, behavioral analysis, and income brackets.
Facebook’s advanced targeting options enabled us to design powerful ad creatives that spoke directly to the interests and preferences of the target audience. These ads featured striking visuals accompanied by concise yet persuasive copy emphasizing the benefits of our client’s trading.
That alone wasn’t enough. Rather than placing Facebook ads merely on Facebook, we strategically placed them in users’ news feeds, Instagram stories, and messenger apps to gain the most traction.
The campaign spanned 6 months and our client witnessed a significant increase in website traffic from Asia specifically Japan. Traffic grew by 56% within the first 3 months, reflecting a positive response from our target audience.
The campaign also generated a substantial number of qualified leads, with a conversion rate of 42%, which exceeded our initial expectations.
Facebook Ads had a click-through rate of 2.5%, indicating a high level of interest from users. Moreover, a large percentage of the overall leads (35% of them) originated from users who interacted with our Facebook ads.
Our continuous tracking and refinement of ad performance allowed us to fine-tune our targeting parameters, adjust our bidding strategies, and spend budgets efficiently. Click-through rates (CTR), conversion rates, and ROAS (return on ad spend) were evaluated as indicators of the effectiveness of our Facebook ads campaign.
Google Ads Campaign
In tandem with our Facebook ads strategy, we deployed a robust Google ads campaign to capture those actively searching for key phrases related to forex trading. Using SEMRUSH, we identified high-intent keyword searches relevant to the Japanese market, such as “外国 為替 取引 (Foreign Exchange Trading)” “ 外国為替ブローカー (Forex Broker)” “ 外国為替ブローカー 会社 (Forex Broker Company)” “外国為替取引 (Forex Trading)”.
We then developed targeted ad groups based on these keywords for paid ads (Google Ads). To ensure cultural relevancy and accuracy, we translated ad copy into Japanese.
Our ad copy highlighted X’s unique selling points, such as low spreads, advanced trading tools, and multilingual customer support. We made sure our campaigns were highly visible and relevant to Japanese consumers using Google’s sophisticated ad targeting options.
By geotargeting specific regions within Japan and scheduling our ads strategically during peak trading hours, our ads reached the right audience at the right time.
Our Google Ads campaign yielded 1.5 million impressions relevant to Forex trading in Japan in search results.
Over 15,000 people clicked on our Google Ads, reflecting high search intent and interest in our offerings.
Not only this, 25% of all qualified leads were generated from Google Ads on the Japanese forex market. The results demonstrate the effectiveness of targeting users actively searching for information about Forex trading in Japan.
Further, as part of our budget restraints, we kept a competitive cost-per-acquisition (CPA) of around $140 through Google Ads.
Ultimately, we were able to maximize our client’s return on investment (ROI) while maximizing cost-effectiveness through consistent optimization of bids and finances.
Affiliate Partnerships (IB’s)
We employed multiple strategies to ensure profitable affiliate partnerships. To begin with, we made a list and reached out to forex trading affiliates based in Asia/Japan with a strong track record and audience aligned with our target demographics.
As an affiliate partner, we worked with:
Our expert team then negotiated favorable partnership terms and commissions to encourage affiliates to promote our client in return. Commissions were based on conversions and leads generated from these partnerships.
Based on our strategy, we equipped all of our affiliates with promotional materials, affiliate resources, tracking mechanisms, and ongoing support to promote our clients’ services effectively.
Partnering with these leading affiliates drove huge numbers of CLIENTS/TRADERS to the Brokerage. An estimated 39% of qualified leads were generated through affiliate links.
Our transparent tracking of affiliate-driven traffic and conversions ensured fair compensation and transparency across the board.
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