Ad Technology Market in Japan and CyberAgents’ Ad Technology Business

Ad Technology Market in Japan and CyberAgents’

Ad Technology Business

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2

3

4

Overview of Ad Technology

Structure of Ad Technology Marketing

CyberAgents’ Ad Technology Business

CyberAgents’ Ad Technology Products ・Display Ads（Ad Network、Dynamic Recommend Ad）・DMP（Data Management Platform）・Reward Ad

0 Table of Contents

0 Introduction

Manager, CyberAgent, Inc.

Director, RightSegment, Inc.

Hideya Kato 【Background】

Mr. Kato began working at CyberAgent, Inc. in 2008 .

Using his experiences of sales, SEM operation, and ad-technology operation from his

previous work at an advertisement agency, he was engaged in the development of

CyberAgent’s original effect validation tool, “CAMP”, advertisement tracking and DSP.

From July 2012, he was in charge of promoting development of ad-technology for smart devices as a

Chief Engineer/ Product Manager of smartphone advertisement “AMoAd”. After that, he became in

charge of developing CyberAgent’s original dynamic re-targeting advertisement, “Dynalyst”, with a

focus on smartphones. In February 2014, he was appointed as Director of RightSegment, Inc (former

Owldata).

【Event Speech History】

2011 ad:tech Tokyo (Host: ad:tech Japan Secretariat)

2013 AWS Summit (Host: Amazon Data Service Japan, Inc.)

2013 SMATECH (Host: CyberZ, Inc.)

2014 ad:tech Academy (Host: CyberAgent, Inc.)

What is “Ad Technology”

1 Overview of Ad Technology

Advertising ＋ Technology

Optimize advertising and marketing with the

power of technology.

Providing marketing using unprecedented distribution

methods, analysis and data.

Ad Technology

Overview of Ad Technology 1

Advertiser

Purpose of Ad Technology

Media

Sales

Profit

Recognition

Customer

attraction ・・・

Maximize

profit

Want to achieve

purposes efficiently and

effectively.

Want to maximize value

per advertisement

display


0

50

100

For PC

For smartphone

(Unit: billion yen)

Market Scale of Ad Technology As the number of RTB venders increases, existing display advertising is shifting to

RTB display advertising.

As the users shift towards smartphones and the contents expand, the smartphone

market is rapidly growing.

Projection of RTB Display Advertising Market Scale in Japan ※

※Source: Released on January 31, 2014 (MicroAd, Inc.)


Structure of Ad Technology Marketing

2 Structure of Ad Technology Marketing

DSP

Demand Side Platform

User

Pu

blis

her(=

Med

ia)

Ad Network

Ad Agency

SSP

Sell(Supply) Side Platform DMP

Data Management Platform

Ad-tracking platform

Reward Ad

Pure Ads

Basic Structure of Ad Technology For

Advertiser Services connected between

Advertiser and Media For Media


Ad

vertis

er

（Ref）Ad Technology Marketing for PC

※Source:JP_Chaosmap 2013 Spring


（Ref）Ad Technology Marketing for Smartphone

※Source：Mobile landscape JP 2012_ExchangeWire Japan



3 CyberAgents’ Ad Technology Business

Ad Technology sales for CyberAgent


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4.0

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0.0

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4.0

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q

2,012 2013 2014

(Unit: billion yen) Quarterly Adtech related sales

Advertising ef fect measurement tool

Reward Advertisement

Ad network

RTB

DSP

Demand Side Platform

User

Pu

blis

her(=

Med

ia)

Ad Network

Ad Agency

SSP

Sell(Supply) Side Platform DMP

Data Management Platform

Ad-tracking platform

Reward Ad

Pure Ads

Basic Structure of Ad Technology

Ad

vertis

er



User

Pure Ads

Reward Ad

SSP

DSP

Ad Network

Ad-tracking Platform

Ad Agency

Media

DMP


Ad

vertis

er

What is the Ad Technology Head Office?

It is a cross-sectional organization consisted of engineers who would

develop various services in the ad technology field for the CyberAgent

Group. It was newly established in October 2013.

Network field Reward/ affiliate field DSP/DMP field

Smartphone media

field Agency technology field


Completeness Expertise

DSP

DMP

Ad Network

・・・

Development by a small

group of staff.

One of the largest

number of ad technology

engineers in Japan.

Fluidity of HR

Network of products on eco

system, creation of business

opportunities

Strengths of Ad Technology Head Office

Establishment of organization with

over 200 people who are specialized

in ad technology as well as

superiority in HR


CyberAgents’ Ad Technology Products

CyberAgents’ Ad Technology Products 4

Display Ads - Ad Network - Dynamic Recommend Ad

4 CyberAgents’ Ad Technology Products

Ad Network for Smartphones

AMoAd, Inc. Established on April 28, 2011

- Ad network specialized in smartphones

- It established one of the largest web media networks in Japan.

- In addition to game field, it is very strong in advertisement in the field of

e-commerce, finance and cosmetics.

Companies in the same market

CyberAgents’ Ad Technology Products (Display Ads) 4

Dynamic Recommendation Ads

Dynalyst Service provision began in February 2014.

- Dynamic recommendation ads specialized in smartphones

- Real time re-targeting, corresponding to multiple OSs

- Product recommendation & creative automatic generation, rich delivery

inventory


CyberAgents’ Ad Technology Products (Display Ads) 4

DMP （Data Management Platform）


Private DMP for Multi-Devices

RightSegment, Inc. Established on December 27, 2012

Its trade name was changed from Owldata, Inc. on February 17, 2014.

- Private DMP that responds to multi-devices

- It has strengths not only in user data analysis but also in networking with

advertisement distribution platform.

- It analyzes and categorizes members of corporations, CRM, and ads

manuscript data and utilizes the results for marketing.


CyberAgents’ Ad Technology Products (DMP) 4

Private DMP Specialized in Smartphone Games

GameAudience Service provision began in February 2014.

Private DMP specialized in smartphone native games

- Items are designed specifically for social game users.

- It analyzes and categorizes cross-cutting items over multiple games (e.g.

user retention rate, charging rate, number of actions, guild affiliation, etc.) and

use the results for marketing.


CyberAgents’ Ad Technology Products (DMP) 4

Reward Ad


Reward Ad for Smartphones

CA Reward, Inc. Established on October 1, 2010

- One of the largest reward ad network in Japan

- It offers a lot of ad publication projects, exclusive media operation, and

consultation performance.

- R&D such as high quality SDK development


CyberAgents’ Ad Technology Products (Reward Ad) 4