MARKET TREND

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.

Transitions in domestic online ad market

Transitions in domestic online ad market

Source: Yano Research Institute "Online Advertisement Market in Japan:
Key Research Findings 2018"

※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.

Our core SSP business increased net sales as we increase our ad distribution volume by enhancing GenieeSSP functions and increasing client numbers amid expanding market scale. As of fiscal 2017, we boasted a nearly 32% market share.(Source: MIC Research Institute "Internet Advertising Platform Market 2018")

DMP / MA tool market

Looking at the increasingly popular CRM(Customer Relationship Management)and MA (Marketing Automation), use is also expanding with the increase in companies utilizing data to implement more effective marketing strategies.

DMP / MA tool market

Source:IDC Japan “Japan CRM application market sales forecast” and
ITR “Business chat market 2018" We made.

In India & Southeast Asian countries, the rapid dissemination of smartphone use and social media as well as the growing use of online shopping is driving growth for the online ad market.

Online ad market in Southeast Asia

Online ad market in Southeast Asia

Source: eMarketer, March 2018 Digital Ad Spending Asia-Pacific, by Country

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.

Transitions in number of connected devices

Transitions in number of connected devices

Source: Gartner, January 2017

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