Transitions in market scale

The online ad market in which our Group operations saw increased use of in-feed ads (*1) and video ads, SEM (search engine marketing), ad networks (*2), DSP (Demand-Side Platforms), and SSP (Supply-Side Platforms). In Japan, this is being driven by the growing use of smartphone ads and use continues to grow.

Domestic online ad market

Transitions in domestic online ad market

Source: Yano Research Institute "Online Advertisement Market in Japan:
Key Research Findings 2019"

※1:An advertisement displayed between content and content in a website or application.
※2:A mechanism to collect advertisement space of many Internet media, create an advertisement distribution network, and manage unified sales and distribution of advertisements.

Supply-side businesses in particular, which have been our mainstay operations since our founding, have benefitted from market growth. Net sales have increased on increased ad distribution thanks to offering improved GenieeSSP functions and an increase in business clients. As a result, Geniee has a market share of approximately 29.1% as of FY2018.
(Source: MIC Research Institute "Internet Advertising Platform Market 2019")

Digital transformation market

DMP / MA tool market

( Source: Fuji Chimera Research Institute, Inc. "Outlook for Digital Transformation Market 2018")

The digital transformation market, the target market for the Marketing Solutions Business, is expected to see rapid growth backed by the trend of management and businesses using digital technology and growing needs related to lifestyle changes and workstyle reform.

Online ad market in Southeast Asia
Online ad market in Southeast Asia

※ Geniee calculations based on eMarketer data

In India and Southeast Asia, the rapid dissemination of smartphones and the growing use of social media and online shopping are driving growth for the online ad market at a rate that exceeds the market in Japan. We can increase market share by launching products featuring Japanese quality.

Outlook for online ad market

The online ad market is expected to undergo major changes and present major opportunities during the 4th industrial revolution. Ad technology is evolving at a rapid pace and the use of big data and AI (artificial intelligence) to increase ad distribution precision and promote automation, advancements in IoT (Internet of Things, a framework through which various connected devices will exchange data and information), and increased use and application of VR to increase ad variation are expected to cause dramatic changes.

Our Group will take advantage of these market changes by focusing on new technology development and service provision.

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