■Medium- to long-term growth strategy
● Achieve business expansion and corporate value improvement with three basic strategies
As a medium- to long-term growth strategy, MicroAd ＜9553＞ depicts a growth strategy centered on data utilization under the slogan “From an ad technology company to a comprehensive data company.” Specifically, it is poised to aim to expand business performance and improve corporate value through the three basic strategies of “expansion of data products,” “support for PostCookie,” and “data utilization in new areas.”
(1) Expansion of data products
It is planned to increase the number of “UNIVERSE” operating accounts by strengthening the sales system and introducing new products in a timely manner while specializing in the “brand domain (marketing area targeting companies that provide products at physical stores, such as automobiles, beverages, food, etc.)” in the internet advertisement market. The reason for specializing in the brand area is that there are no competitors. Another factor is that the market size can be expected to expand due to the digital shift from the existing 4 mass advertising media (TV, newspapers, magazines, radio). We will secure profits in a growing market.
Regarding the strengthening of the sales system, the sales organization was changed to an organizational structure that specializes in customer attributes in 2021/10. Additionally, in order to respond to customers who have changed to focus on remote work due to the COVID-19 pandemic, we have built a sales system through online seminars. A total of 40 seminars were held in the 2022/9 fiscal year, and the number of inquiries expanded to 6,600 (order amount was 140 million yen). Furthermore, in the 2023/9 fiscal year, a specialized department to carry out online sales activities was newly established, and the sales system has evolved into a form more suited to the times. Also, new products “Machiage,” “UNIVERSE for the New NISA,” “Marble,” and “Machiage with AIT,” etc. utilizing data held by “UNIVERSE” are also being smoothly introduced to the market. Furthermore, services with an eye on PostCookie are also steadily expanding. In 2024/4, Uncover TRUTH, which provides various solutions that support analysis and utilization of 1st party data owned by companies, became a consolidated subsidiary. By expanding into the marketing area targeting apparent customers with this acquisition, we aim to build a system that can comprehensively provide marketing in the PostCookie era and become a leading company in the PostCookie market.
Furthermore, in order to continuously introduce products with high added value to the market and achieve medium- to long-term growth, we will further increase investment in human resources, which is the foundation for this. Specifically, it is a policy to further focus on recruiting new graduates and build a high-quality human resource pool with unique recruitment and development know-how.
(2) Support for PostCookie
The data product “UNIVERSE” uses technology called 3rd party cookies in web browsers. Regarding this technology, it has been announced that support will gradually be suspended from 2025/1 onwards for Chrome browsers provided by Google. Google plans to provide an alternative technology called the “Privacy Sandbox” so that advertising businesses can continue their conventional business. In abolishing 3rd party cookies by Google, the British Competition and Market Authority (hereinafter, CMA) is asking Google to prove that the “Privacy Sandbox” has sufficient functionality as an alternative technology and does not perform acts that give preferential treatment to its own advertising services. Since these test periods were insufficient for the CMA evaluation, it has been postponed for about half a year from the original schedule. While all companies that do business in the digital marketing area are under pressure to respond, the company acquires pioneer profits by being the first in the industry to respond to regulations. Specifically, three measures are being implemented: “support for the Privacy Sandbox,” “introduction of technology to replace cookies,” and “new targeting technology.” The company has already completed support for 2 of the 3 functions provided by the Privacy Sandbox. As for alternative technology, new technology that performs the same movement as conventional 3rd party cookies while clearing privacy issues has been gradually released from 2022/5, and a service that analyzes the contents of content viewed by users without using 3rd party cookies and performs targeted distribution was released in 2022/2. Furthermore, for ID solutions that do not depend on 3rd party cookies, ID solutions that replace cookies were introduced to all of the company's platforms in collaboration with Liveramp Japan Co., Ltd. in 2023/1, and products developed by The Trade Desk, Inc. were introduced in 2023/5. Recently, a function that enables cooperation and transaction of “RampID” provided by LiveRamp Japan in 2024/4 has been implemented, and the introduction of alternative technology for the PostCookie era is progressing smoothly.
Also, the fact that a non-cookie business can be launched vertically is also a characteristic of the company. The company handles all platforms for data holding companies (UNIVERSE DATA PLATFORM), platforms for advertiser companies (UNIVERSE Ads), and platforms for advertising media companies (microAD COMPASS) in-house, and technology that replaces 3rd party cookies can be quickly reflected for all players.
(3) Utilizing data in new areas
The company's business is mainly advertising-related, but it will expand its data business to areas other than advertising by utilizing the huge amount of data and analysis technology it owns. It is a situation where results are steadily being built up in data utilization for new areas. In 2022/8, institutional investors and financial institutions began providing alternative data that can be used for investment decisions, and an investment business using own funds utilizing alternative data began from 2023/1. Furthermore, recently, a unique investment strategy has been constructed while incorporating digital marketing data analysis methods, and investment performance has been announced every quarter since the first quarter of the 2024/9 fiscal year. The annual interest rate conversion as of the end of the second quarter of the 2024/9 fiscal year is 11.94% as a theoretical value. Other than that, as described above, new inbound related services and new services related to cross-border EC have been developed and introduced to the market.
(Written by FISCO Visiting Analyst Yoichiro Shimizu)