BUSINESS MODEL

Our Group operates an ad platform business and a marketing automation business.

BUSINESS MODEL

①:Ad platform business
②:Marketing Automation business

① Ad platform business

The ad platform business maximizes ad revenue and efficacy for online media and advertisers by providing platforms that use ad technology to instantaneously select and display user-specific ads on websites and smartphone apps. Specifically, services we provide in GenieeSSP for online media and GenieeDSP for advertisers and ad agencies.

When an ad is distributed via GenieeSSP or GenieeDSP, ad listing fees (i.e. sales for our Group) are paid to our Group based on the number of times an ad is displayed. When an ad is distributed through an ad agency or a competitor DSP, ad network, or OEM client, ad listing fees are paid by the advertiser via that third party.
Conversely, our Group pays ad listing fees (i.e. our Group costs) to online media based on the number of times an ad is distributed.

② Marketing Automation business

The marketing automation business offers platforms for increasing the efficiency of work typically performed by a company’s marketing or sales staff. This includes the automation of the complex processes or large-scale tasks related to target client list creation, individual approaches to potential customers to up product/service purchase/contract conclusion, and the repeat purchase by customers. Specifically, products including the marketing automation platform MAJIN and the data collection, analysis, and utilization platform GenieeDMP. GenieeDMP gathers and analyzes data, including a user’s internet behavior history, to enable more precise ad distribution and marketing strategies.

In general, GenieeDMP and MAJIN sales are based on system or service usage fees (i.e. sales for our Group) paid on a monthly basis.

Business-specific net sales composition

Our Group’s net sales are driven mainly by GenieeSSP, which was launched in 2011. As of FY2016, net sales from the ad platform business comprised approximately 90% of all net sales.
Moving forward, we will expand sales for GenieeDSP (launched in 2014), GenieeDMP (launched in 2015), and MAJIN (launched in 2016), and expect that the balance of this composition will gradually change over time.

FY2017 Sales composition by business

Composition of sales by business as of the end of March 2018

About seasonality

Our Group provides services for businesses. Many Japanese companies tend to use a relatively larger percentage of advertising budgets towards the end of the fiscal year. As such, it is typical for our net sales to increase during the fourth quarter.

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