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Japanese adtech
industry report
What goes on Japan`s adtech market …
March 2015
Satoshi Noda
@satosea3
Agenda
This is a summary for marketers who want to know Japanese
Internet/mobile advertising industry.
- Market size and growth
- Chaos map
- Major players [ Local and global players ]
Market size
RTB market will keep growing in next 5 years as MicroAd, one of the
biggest DSP, annouced in Jan 2014.
Resource: http://www.microad.co.jp/news/release/detail.php?newid=News-0257
100MM JPY
1 USD = 108 JPY (OCT 2014)
(100MM JPY)
mobile
Online(PC)
Market size
RTB market will keep growing in next 5 years as MicroAd, one of the
biggest DSP, annouced in Jan 2014.
Resource: http://promotionalads.yahoo.co.jp/netad/first.html
100MM JPY
1 USD = 108 JPY (OCT 2014)
(100MM JPY)
Mass media (TV,
New paper etc):
2785 Billion JPY
Online(PC)/mobile
938 Billlion JPY
[Promotion
others]Direct
Mail/Event etc
2145 Billlion JPY
Market size
RTB market will keep growing in next 5 years as MicroAd, one of the
biggest DSP, annouced in Jan 2014.
Resource: https://twitter.com/hirohirokon
Brand Advertiser
Dentsu(4324), Hakuhodo(2433), ADK(9747)
Media rep: DAC(4281)
Performance based Advertiser
Gaming, Ecommerce etc
CyberAgent(4751), Adways(2489),
OPT(2389), Septeni(4293),i-rep(2132)
Yahoo Japan (4689), Google_GDN, facebook,
Twitter
media
Fan communications(2461),Value
commerce(2491), i-mobile(private),
AmoAd(CA 4751, private), Zucks(Voyage
Group 3688,private)
Adnetwork DSP
FreakOut(6094),
MicroAd( CA 4751)
UNITED(2497,DAC)
SSP
UNITED(2497,DAC
), VOYAGE
GROUP(3688)
DMP, BigData
ALBERT(3906,DAC)
Scigineer(6031,Softb
ank),LOCKON(3690)
Agency(Degital) :Brand Agency :
Ignis (3903), Cookpad(2193), istyle(3660),
DigitalGarage(4819),
mobile/ app media
Gaming: DeNA, Ganho, mixi, GREE, Klab, Colopl, mobcast
EC : Rakuten(4755), Start today(3092)
Order flow
Ad tech industry map
written by Satoshi Noda
Agency Dentsu(4324) Hakuhodo DY(2433) CyberAgent(2433)
Owns DSP/SSP/mediba/
BigfData inside their
Portfolio companies.
Buying
Agency
Cci(private) DAC(4281)
UNITED(2497)
Owns ByPass DSP
Adnetwork
DSP
UNITED(2497)
Owns Adstir SSP
SSP
ARBELT(3906)BigData
DMP
i-rep(2132) agency
good at managing
DSP/SEM.
AmoAd(adnetwork)
MicroAd(DSP)
CyberZ owns
Appatribution F.O.X
Media /
Game
Ameba (SNS),
Gaming companies
D2C( joint venture
with NTT docomo)
3 Top agencies and their portfolio companies/service.
Voyage
Group(3688)
CA is a minor
shareholder
of Voyage.
Owns SSP
and
adnetwork.
VG closed
MBO from
CA in 2012.
written by Satoshi Noda
Agency
Buying
Agency
Adnetwork
DSP
SSP
BigData
DMP
FreakOut(6094)
Intimate marger
FanCommunications
(2461)
Owns nend, the largest
adnetwork and A8,CPA
adnetwork
Septeni(4293)
Has strength for
facebook ad
And native ad.
Media /
Game
AccelMark(3624)
Adways(2489)
Appatribution
PartyTrack
AppDriver (CPI
adnetwork)
Independent adtech companies/Agencies
written by Satoshi Noda
DSP
Local major players. Since 2010, number of DSPs were launched.
Very competitive market and for advertisers & agencies, truly hard to
pick one of them. It will be clear who is a winner and survivor in 2015!
http://www.deqwas.com/ http://www.deqwas.com/http://www.scaleout.jp/
https://www.microad.co.jp
/service/blade/ https://www.fout.co.jp/
http://bypass.jp/ja/ https://marketone.jp/
http://www.dynalyst.jp/legal/
index.html http://www.smalgo.jp/ https://www.nex8.net/
SSP
Local major players.
https://kau.li/us http://en.geniee.co.jp/ http://www.microad.co.jp/en/s
ervice/adfunnel/
https://yieldone.com/service/
https://en.ad-stir.com/
http://fluct.jp/ http://www.xrost.ne.jp/
https://adfurikun.jp/adfurikun/ http://www.mediba.jp/adge
neration/pc/
DMP
Resource: gyazo.com
Native ad / media based ad-tech
IPO in APR 2015
IPO in APR 2015
Powered by
From annual report of
Japanese ad tech company
Fan communications [nend]
F@n owns “nend” the biggest mobile ad network which severs more
than 60 Billion impressions per a month.
F@N[nend]
nend revenue keeps growing fast and reached 4.1 BB yen for a 4th
quatter in 2014.(3month)
http://pdf.irpocket.com/C2461/nKx5/mReG/eaQW.pdf
F@N[nend]
nend got more than 50,000 apps/web additionally for the 4th quarter.
http://pdf.irpocket.com/C2461/nKx5/mReG/eaQW.pdf
F@N[nend]
Average ad spent monthly :Each advertiser spent 2.8MM JPY.
http://pdf.irpocket.com/C2461/nKx5/mReG/eaQW.pdf
F@N[nend]
F@N`s group company 8CROPS has grew their revenue 2 times than
2013.
http://pdf.irpocket.com/C2461/nKx5/mReG/eaQW.pdf
Sales
Operational income
Net income
CyberAgent
CyberAgent
http://www.cyberagent.co.jp/files/topics/9951_ext_29_en_0.pdf
CyberAgent
CA ad agency biz holds of 31.3% of mobile ads in Japan.
Their market share grew up 40% for a year.
http://www.cyberagent.co.jp/files/topics/9951_ext_29_en_0.pdf
CyberAgent
CA portfolio covers end to end in internet advertising business.
They have strong sales force as an agency and grip clients use their ad
solutions.
A
d
v
e
r
t
i
s
e
r
s
Age
ncy
Adnetwork
media
u
s
e
r
CyberAgent
Ad tech service lineup.
UNITED [Bypass DSP & adstir SSP]
UNITED [Bypass DSP & adstir SSP]
Bypass/adstir gererated 2.4 BB JPY for 9 month end of 3rd 2014.
http://united.jp/wp-content/uploads/2015/02/150203_consolidated_financial_results_2015_3q_jp11.pdf
UNITED [Bypass DSP & adstir SSP]
Bypass/adstir has rose for 6 quarters.
http://united.jp/wp-content/uploads/2015/02/150203_consolidated_financial_results_2015_3q_jp11.pdf
UNITED [Bypass DSP & adstir SSP]
AdStir serves 35 Billion imps monthly
UNITED [Bypass DSP & adstir SSP]
Bypass keep improving capability to hit CAP goal with new targeting
feature “ Dynamic retargeting”.
http://united.jp/wp-content/uploads/2015/02/150203_consolidated_financial_results_2015_3q_jp11.pdf
FreakOut DSP
FreakOut DSP
FreakOut has made a great steps since their foundation in 2011 and
went to public market straight way in 2014.
http://contents.xj-storage.jp/xcontents/AS08108/6a9f1407/2dae/4708/bf6f/868694ca5c9d/20150126120555485s.pdf
FreakOut DSP
They set up a new company focus on native and mobile app ads.
http://contents.xj-storage.jp/xcontents/AS08108/6a9f1407/2dae/4708/bf6f/868694ca5c9d/20150126120555485s.pdf
FreakOut DSP
They set up a new company focus on native and mobile app ads.
http://contents.xj-storage.jp/xcontents/AS08108/6a9f1407/2dae/4708/bf6f/868694ca5c9d/20150126120555485s.pdf
FreakOut DSP business portfolio
FreckOut covers DSP, DMP and native ad network.
http://contents.xj-storage.jp/xcontents/AS08108/6a9f1407/2dae/4708/bf6f/868694ca5c9d/20150126120555485s.pdf
VOYAGE GROUP [Fluct SSP & Zucks adnetwork]
VOYAGE GROUP [Fluct SSP & Zucks adnetwork]
VOYAGE GROUP [Fluct SSP & Zucks adnetwork]
Business portfolio of VOYAGE GROUP is consisted by adtech and media.
http://v4.eir-
parts.net/DocumentTemp/20141028_084415921_vcddq345defap255lqu0ep45_0.p
df
VOYAGE GROUP [Fluct SSP & Zucks adnetwork]
In 3rd fiscal quarter in 2014, adtech dev revenue reached 20MM USD
which became double( + 200%) than last year. Operation margin
reached 2.6MM USD.
VOYAGE GROUP [Fluct SSP & Zucks adnetwork]
See blue bar, VOYAGE ad tech business grew much faster than last
year. Hit 2.3 BB JPY in 1st quarter 2015.
VOYAGE GROUP [Fluct SSP & Zucks adnetwork]
Growth of SSP revenue. Mobile is a next engine.
VOYAGE GROUP [Fluct SSP & Zucks adnetwork]
Inventory: size of Fluct SSP
Reached 72 Billion impressions a month in 3rd Quarter of 2014.
Gunosy
Gunosy, a Tokyo-based startup which runs a news curation service.
Gunosy
Gunosy, a Tokyo-based startup which runs a news curation service.
https://play.google.com/store/apps/details?id=com.gunosy.android&hl=jahttps://play.google.com/store/apps/details?id=com.gunosy.android&hl=ja
Gunosy
https://post.tokyoipo.com/visitor/search_by_brand/ipofile.php?brand=11201&info=4198
Gunosy could be huge ad platform like facebook and twitter.
2nd year of ad business reach to 3BB JPY this year which is 10 times
than 1st year.
Gunosy
https://post.tokyoipo.com/visitor/search_by_brand/ipofile.php?brand=11201&info=4198
Gunosy service portfolio.
GUNOCY
adnetwork algorism
publisher
user
user
Contents
supplier
agency
advertiser
Recent news
from ad tech market in Japan.
Scigineer joins to Softbank Group.
http://www.reuters.com/article/2015/03/18/scigineer-equity-softbank-
idUSL3N0WK2TP20150318
Scigineer joins to Softbank Group.
Mobile adnetwork AdLantis is sold to Valuecommerce.
http://gamebiz.jp/?p=141749
Attribution tracking war
1) Attribution tracking would be significantly important in 2015 because of
rising of deep-linking and in-app targeting ads.
2) There are more choices for pubs and advertisers to choose right
solutions than before global players entered to JP market.

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Japan adtech industry report 1st Q 2015

  • 1. Japanese adtech industry report What goes on Japan`s adtech market … March 2015 Satoshi Noda @satosea3
  • 2. Agenda This is a summary for marketers who want to know Japanese Internet/mobile advertising industry. - Market size and growth - Chaos map - Major players [ Local and global players ]
  • 3. Market size RTB market will keep growing in next 5 years as MicroAd, one of the biggest DSP, annouced in Jan 2014. Resource: http://www.microad.co.jp/news/release/detail.php?newid=News-0257 100MM JPY 1 USD = 108 JPY (OCT 2014) (100MM JPY) mobile Online(PC)
  • 4. Market size RTB market will keep growing in next 5 years as MicroAd, one of the biggest DSP, annouced in Jan 2014. Resource: http://promotionalads.yahoo.co.jp/netad/first.html 100MM JPY 1 USD = 108 JPY (OCT 2014) (100MM JPY) Mass media (TV, New paper etc): 2785 Billion JPY Online(PC)/mobile 938 Billlion JPY [Promotion others]Direct Mail/Event etc 2145 Billlion JPY
  • 5. Market size RTB market will keep growing in next 5 years as MicroAd, one of the biggest DSP, annouced in Jan 2014. Resource: https://twitter.com/hirohirokon
  • 6. Brand Advertiser Dentsu(4324), Hakuhodo(2433), ADK(9747) Media rep: DAC(4281) Performance based Advertiser Gaming, Ecommerce etc CyberAgent(4751), Adways(2489), OPT(2389), Septeni(4293),i-rep(2132) Yahoo Japan (4689), Google_GDN, facebook, Twitter media Fan communications(2461),Value commerce(2491), i-mobile(private), AmoAd(CA 4751, private), Zucks(Voyage Group 3688,private) Adnetwork DSP FreakOut(6094), MicroAd( CA 4751) UNITED(2497,DAC) SSP UNITED(2497,DAC ), VOYAGE GROUP(3688) DMP, BigData ALBERT(3906,DAC) Scigineer(6031,Softb ank),LOCKON(3690) Agency(Degital) :Brand Agency : Ignis (3903), Cookpad(2193), istyle(3660), DigitalGarage(4819), mobile/ app media Gaming: DeNA, Ganho, mixi, GREE, Klab, Colopl, mobcast EC : Rakuten(4755), Start today(3092) Order flow Ad tech industry map written by Satoshi Noda
  • 7. Agency Dentsu(4324) Hakuhodo DY(2433) CyberAgent(2433) Owns DSP/SSP/mediba/ BigfData inside their Portfolio companies. Buying Agency Cci(private) DAC(4281) UNITED(2497) Owns ByPass DSP Adnetwork DSP UNITED(2497) Owns Adstir SSP SSP ARBELT(3906)BigData DMP i-rep(2132) agency good at managing DSP/SEM. AmoAd(adnetwork) MicroAd(DSP) CyberZ owns Appatribution F.O.X Media / Game Ameba (SNS), Gaming companies D2C( joint venture with NTT docomo) 3 Top agencies and their portfolio companies/service. Voyage Group(3688) CA is a minor shareholder of Voyage. Owns SSP and adnetwork. VG closed MBO from CA in 2012. written by Satoshi Noda
  • 8. Agency Buying Agency Adnetwork DSP SSP BigData DMP FreakOut(6094) Intimate marger FanCommunications (2461) Owns nend, the largest adnetwork and A8,CPA adnetwork Septeni(4293) Has strength for facebook ad And native ad. Media / Game AccelMark(3624) Adways(2489) Appatribution PartyTrack AppDriver (CPI adnetwork) Independent adtech companies/Agencies written by Satoshi Noda
  • 9. DSP Local major players. Since 2010, number of DSPs were launched. Very competitive market and for advertisers & agencies, truly hard to pick one of them. It will be clear who is a winner and survivor in 2015! http://www.deqwas.com/ http://www.deqwas.com/http://www.scaleout.jp/ https://www.microad.co.jp /service/blade/ https://www.fout.co.jp/ http://bypass.jp/ja/ https://marketone.jp/ http://www.dynalyst.jp/legal/ index.html http://www.smalgo.jp/ https://www.nex8.net/
  • 10. SSP Local major players. https://kau.li/us http://en.geniee.co.jp/ http://www.microad.co.jp/en/s ervice/adfunnel/ https://yieldone.com/service/ https://en.ad-stir.com/ http://fluct.jp/ http://www.xrost.ne.jp/ https://adfurikun.jp/adfurikun/ http://www.mediba.jp/adge neration/pc/
  • 12. Native ad / media based ad-tech IPO in APR 2015 IPO in APR 2015 Powered by
  • 13. From annual report of Japanese ad tech company
  • 14. Fan communications [nend] F@n owns “nend” the biggest mobile ad network which severs more than 60 Billion impressions per a month.
  • 15. F@N[nend] nend revenue keeps growing fast and reached 4.1 BB yen for a 4th quatter in 2014.(3month) http://pdf.irpocket.com/C2461/nKx5/mReG/eaQW.pdf
  • 16. F@N[nend] nend got more than 50,000 apps/web additionally for the 4th quarter. http://pdf.irpocket.com/C2461/nKx5/mReG/eaQW.pdf
  • 17. F@N[nend] Average ad spent monthly :Each advertiser spent 2.8MM JPY. http://pdf.irpocket.com/C2461/nKx5/mReG/eaQW.pdf
  • 18. F@N[nend] F@N`s group company 8CROPS has grew their revenue 2 times than 2013. http://pdf.irpocket.com/C2461/nKx5/mReG/eaQW.pdf Sales Operational income Net income
  • 21. CyberAgent CA ad agency biz holds of 31.3% of mobile ads in Japan. Their market share grew up 40% for a year. http://www.cyberagent.co.jp/files/topics/9951_ext_29_en_0.pdf
  • 22. CyberAgent CA portfolio covers end to end in internet advertising business. They have strong sales force as an agency and grip clients use their ad solutions. A d v e r t i s e r s Age ncy Adnetwork media u s e r
  • 24. UNITED [Bypass DSP & adstir SSP]
  • 25. UNITED [Bypass DSP & adstir SSP] Bypass/adstir gererated 2.4 BB JPY for 9 month end of 3rd 2014. http://united.jp/wp-content/uploads/2015/02/150203_consolidated_financial_results_2015_3q_jp11.pdf
  • 26. UNITED [Bypass DSP & adstir SSP] Bypass/adstir has rose for 6 quarters. http://united.jp/wp-content/uploads/2015/02/150203_consolidated_financial_results_2015_3q_jp11.pdf
  • 27. UNITED [Bypass DSP & adstir SSP] AdStir serves 35 Billion imps monthly
  • 28. UNITED [Bypass DSP & adstir SSP] Bypass keep improving capability to hit CAP goal with new targeting feature “ Dynamic retargeting”. http://united.jp/wp-content/uploads/2015/02/150203_consolidated_financial_results_2015_3q_jp11.pdf
  • 30. FreakOut DSP FreakOut has made a great steps since their foundation in 2011 and went to public market straight way in 2014. http://contents.xj-storage.jp/xcontents/AS08108/6a9f1407/2dae/4708/bf6f/868694ca5c9d/20150126120555485s.pdf
  • 31. FreakOut DSP They set up a new company focus on native and mobile app ads. http://contents.xj-storage.jp/xcontents/AS08108/6a9f1407/2dae/4708/bf6f/868694ca5c9d/20150126120555485s.pdf
  • 32. FreakOut DSP They set up a new company focus on native and mobile app ads. http://contents.xj-storage.jp/xcontents/AS08108/6a9f1407/2dae/4708/bf6f/868694ca5c9d/20150126120555485s.pdf
  • 33. FreakOut DSP business portfolio FreckOut covers DSP, DMP and native ad network. http://contents.xj-storage.jp/xcontents/AS08108/6a9f1407/2dae/4708/bf6f/868694ca5c9d/20150126120555485s.pdf
  • 34. VOYAGE GROUP [Fluct SSP & Zucks adnetwork]
  • 35. VOYAGE GROUP [Fluct SSP & Zucks adnetwork]
  • 36. VOYAGE GROUP [Fluct SSP & Zucks adnetwork] Business portfolio of VOYAGE GROUP is consisted by adtech and media. http://v4.eir- parts.net/DocumentTemp/20141028_084415921_vcddq345defap255lqu0ep45_0.p df
  • 37. VOYAGE GROUP [Fluct SSP & Zucks adnetwork] In 3rd fiscal quarter in 2014, adtech dev revenue reached 20MM USD which became double( + 200%) than last year. Operation margin reached 2.6MM USD.
  • 38. VOYAGE GROUP [Fluct SSP & Zucks adnetwork] See blue bar, VOYAGE ad tech business grew much faster than last year. Hit 2.3 BB JPY in 1st quarter 2015.
  • 39. VOYAGE GROUP [Fluct SSP & Zucks adnetwork] Growth of SSP revenue. Mobile is a next engine.
  • 40. VOYAGE GROUP [Fluct SSP & Zucks adnetwork] Inventory: size of Fluct SSP Reached 72 Billion impressions a month in 3rd Quarter of 2014.
  • 41. Gunosy Gunosy, a Tokyo-based startup which runs a news curation service.
  • 42. Gunosy Gunosy, a Tokyo-based startup which runs a news curation service. https://play.google.com/store/apps/details?id=com.gunosy.android&hl=jahttps://play.google.com/store/apps/details?id=com.gunosy.android&hl=ja
  • 43. Gunosy https://post.tokyoipo.com/visitor/search_by_brand/ipofile.php?brand=11201&info=4198 Gunosy could be huge ad platform like facebook and twitter. 2nd year of ad business reach to 3BB JPY this year which is 10 times than 1st year.
  • 45. Recent news from ad tech market in Japan.
  • 46. Scigineer joins to Softbank Group. http://www.reuters.com/article/2015/03/18/scigineer-equity-softbank- idUSL3N0WK2TP20150318
  • 47. Scigineer joins to Softbank Group. Mobile adnetwork AdLantis is sold to Valuecommerce. http://gamebiz.jp/?p=141749
  • 48. Attribution tracking war 1) Attribution tracking would be significantly important in 2015 because of rising of deep-linking and in-app targeting ads. 2) There are more choices for pubs and advertisers to choose right solutions than before global players entered to JP market.