Japan adtech industry report 1st Q 2015

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 = (ammroximately ) MM USD *

1 USD = 108 JPY (OCT 2014)

(100MM JPY)

mobile

Online(PC)

Market size


Resource: http://promotionalads.yahoo.co.jp/netad/first.html

100MM JPY = (ammroximately ) MM USD *

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


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,Softbank),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.


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


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/service/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/adgeneration/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.


F@N[nend]

Average ad spent monthly :Each advertiser spent 2.8MM JPY.


F@N[nend]

F@N`s group company 8CROPS has grew their revenue 2 times than 2013.


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.

Advertisers

Agency

Adnetwork

media

user

CyberAgent

Ad tech service lineup.

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


Bypass/adstir has rose for 6 quarters.



AdStir serves 35 Billion imps monthly


Bypass keep improving capability to hit CAP goal with new targeting feature “ Dynamic retargeting”.


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.


FreakOut DSP business portfolio

FreckOut covers DSP, DMP and native ad network.


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.pdf


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.


See blue bar, VOYAGE ad tech business grew much faster than last year. Hit 2.3 BB JPY in 1st quarter 2015.


Growth of SSP revenue. Mobile is a next engine.


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.

http://gunosy.com/

Gunosy

Gunosy, a Tokyo-based startup which runs a news curation service.

https://play.google.com/store/apps/details?id=com.gunosy.android&hl=ja https://play.google.com/store/apps/details?id=com.gunosy.android&hl=ja

http://gunosy.com/

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.

Japan adtech industry report 1st Q 2015

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