MicroAd（9553 TSE Growth）
＋English Summary on This Page
Develops Various Services in Digital Marketing Domain
MicroAd aims to transform marketing by leveraging the power of data and technology, and provides three services in the digital marketing domain: data solutions, overseas consulting, and digital signage.
Data solutions accounted for 58.6% of net sales for fiscal year ended September 2021, overseas consulting for 35.7%, and digital signage for 5.7%.
Data solutions services consists of the mainstay UNIVERSE and domestic consulting services.
UNIVERSE is a service that analyzes diverse purchasing and consumption behavior and applies the resulting data to solving the marketing issues of client companies. The analysis of large volumes of data leads to an understanding of consumers’ various purchasing and consumption behavior. UNIVERSE is offered as an industry- and sector-specific product, and as of March, the company markets products for 17 industries.
The company intends to review its overseas consulting services, but plans to focus on fortifying them in Taiwan, which its market is close to Japan and handles advertising agency services.
Digital signage offers a content management system (CMS) for store owners. The company receives a portion of the advertising revenue paid by advertisers to store owners as platform usage fees, and also receives CMS usage fees from store owners.
Coexistence of Labor-Intensive and Increasing-Returns Business Models
The company's three services can be categorized into two business models: labor-intensive consulting and increasing-returns data products.
Gross profit margins are approximately 20% for consulting services in Japan and overseas, while maintaining a higher level of approximately 40% for data products such as UNIVERSE and digital signage services (average for October 2021 to March 2022).
The company is experiencing challenges in achieving profitability and growth capability in consulting in the face of competition from large advertising agencies with an abundance of human resources. On the other hand, the company has secured high profitability for its data product services by leveraging its data and analytical capabilities to develop a broad range of industry- and sector-specific products. MicroAd’s focus is on UNIVERSE, which belongs to the data product category.