Japanese adtech industry report

What goes on Japan`s adtech market in 2014.

Nov 2014

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 ]

• The report is made from news , PR and IR documents. • 1 USD is calculated to be 100 JPY.

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

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 = (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

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

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

From annual report of Japanese ad tech company

Fan communications [nend]

F@n owns the biggest mobile ad network which severs more than 60 Billion impressions per a month.

F@N[nend]

http://pdf.irpocket.com/C2461/h8MH/HlUN/co7S.pdf

nend revenue keeps growing fast and reached 30MM USD 2nd quarter in 2014.

CyberAgent

CyberAgent

In 3rd quarter of 2014 fiscal year, CA made 22MM USD from RTB ad serving and 13MM USD from mobile ad network [amoad].

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

MicroAd Blade DSP (subsidiary company)

MicroAd revenue hit 68MM USD in 2013 fiscal year. MicroAd has not disclosed PL since 1Q of 2014.

CyberAgent

CA released new DSPs in 2014.

UNITED [Bypass DSP & adstir SSP]

UNITED [Bypass DSP & adstir SSP]

Bypass/adstir gererated 7.6MM USD from RTB business.

UNITED [Bypass DSP & adstir SSP]

AdStir serves 35 Billion imps monthly

FreakOut DSP

FreakOut DSP

FreakOut has made a great steps since their foundation in 2011 and went to public market straight way this year.

http://senkouyosoku.seesaa.net/article/397399916.html

FreakOut DSP

Growth pace has been faster than their previous announcement.

2014 fiscal year:

Revenue 32MM USD( + 1.2MM)

Operation margin 1.9MM USD (+ 0.55MM)

https://www.release.tdnet.info/inbs/140120141024064492.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.pdf

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.

VOYAGE GROUP [Fluct SSP & Zucks adnetwork]

Growth of SSP revenue

VOYAGE GROUP [Fluct SSP & Zucks adnetwork]

Inventory: size of SSP

Reached 60 Billion impressions a month in 3rd Quarter of 2014.

Recent news from ad tech market in Japan.

Geniee announced partnership with SoftBank.

SoftBank invested in Geniee and owns 32.9% of it.

http://geniee.co.jp/blog/?p=750

Omni-channel Retailing

Omni-channel Retailing has became buzz words among big retailing companies.

Private DMP

Brands starts considering CRM/marketing strategy with DMP. Consumer products maker LION announced their private DMP backed by adtech company LOCKON.

http://www.lockon.co.jp/release/4162/

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.