Change In Advertisement: Target Advertisement
Troublesome YouTube ads

Photo by John Jackson on Unsplash
I listen to my favorite music on YouTube before going to bed at night, but advertisements come in between the songs and pleasant feelings are interrupted.
As I began to worry about recent advertisements like this, interesting articles were on today’s Nikkei newspaper.
I will write the points gathered from now on.
◼ Development of targeting advertisement
The Japanese domestic market size of “targeting advertisement” targeting “specific individuals” on the Internet has been forecasted to exceed 1 trillion yen ($ 9 billion) for the first time in 2018.
It analyzes the site and purchase history seen in the past and can make the best advertisement within 0.1 seconds according to preference and interest.
It is a method unique to Japan, which is a technique that develops technology to identify “you” and raises the accuracy of aiming at 10,000 times.
This technique began to appear.
I did not think that they had made progress so far,
I felt the feeling that I was being chased by advertisements.
According to Dentsu, one of the leading advertising agencies in Japan, the domestic Internet advertising market will be 1.4 trillion yen ($ 3.9 billion) in 2018, which is expected to increase by 20% from the previous year.
Among them, the ratio of “target advertisement” reached 80% of the total for the first time, and it expanded to 1.1 trillion yen ($ 9.9 billion).
This advertisement approaches the scale of 80% of terrestrial television which is the largest advertising medium in the whole net advertisement.
In the United States, Internet advertising expenditure exceeded television in 2016.
That driving force is the advanced advertising technology called “ad technology”
This technology analyzes the pattern of commuting route and leisure activity from position information recorded by smartphone or application.
Next, in combination with search history, etc., guesses a person image such as sex, age, hobby, and it creates advertisements that are likely to resonate in the mind.
This is combined with psychology and statistics, and it is due to the development of technology that aims at shooting more pinpoint.
■ Example: BMW advertisement
Advertisement of BMW was delivered by advertisement venture Georogic (Shibuya, Tokyo).
This company is a specialized company called “DSP”, it buys a frame on behalf of a client company and delivers advertisements.
Georogic started advertisement aimed at two years ago. They could only classify what kind of people living in which area, only a few kilometers square units, but data accumulation has advanced so that they can narrow down to several tens of meters square.
And they said that they started advertising more suitable for living conditions, and the probability that users actually click on ads also doubled.
The targeted advertisement became popular because of Lehman shock in 2008. Engineers of unemployed financial engineering changed a lot of work, developed advanced ad-tech applying the mechanism of stock trading, spreading at a stretch.
In the preceding United States, the market size of the advertisement aimed in 2018 is estimated to be about 5 trillion yen ($ 45 billion), which is ten times as much as five years ago.
On the other hand, Japan predicted three times as much.
“AdTech enterprises” will continue to grow, but two barriers await from now.
◼ A big wall to imagine
- Continue to enter other industries:
The first is the entry of major companies in different industries. Consulting giant Accenture calls customers on “Let’s change agency dependent ad operation.”
They have a large amount of data scientists inside the company and intensify their offensive in Japan using proprietary technology to predict retail sales and traffic demand.
Again, the consulting company has the power to see the future, so they can see the flow and direction of the business.
In any field, the barrier has become lower. It is hard as the industry has been defending barriers to entry by government agencies.
At the end of June in the United States, AT & T acquired up-nexus, a leading DSP. The rough battle pattern gets stronger.
Japan’s domestic market such as Dentsu and Cyber Agent has dominated the majority of market share in the Japanese advertising market.
There is a possibility that “small and medium enterprises” not belonging to a major lineage will be culled out.
2. Large environmental change:
First of all, services that enhanced the protection of personal data are indispensable for survival.
It is because the gaze of ad-tech enterprises got strict worldwide following the problem of information leakage of Facebooks in the United States.
The expansion of the new growth industry continues, but there is also a strong wind of stronger regulations on privacy.
In Europe, “general data protection regulation (GDPR)” is enforced. The data such as browsing history which became the foundation of the target advertisement can not be used freely.
French data analysis giant Criteo is sluggish due to fears of lower orders.
If similar rules are introduced in Japan, the influence can not be avoided.
The “data economy” in which the speed of technological innovation is fast suddenly happens to take over the leading role.
How we individuals use data for enterprises.
In the end, what matters mostly is the subjectivity of individuals who can not be swayed by advertisements.
