Company Overview

1. Company Overview

The profitable internet advertising company <9235> provides cloud services and marketing support services to D2C※1 operators. In the cloud services, the main focus is on the cloud service "Sellable D2C Tsukuru," which allows easy creation of landing pages for products, etc., while in the marketing support services, they provide services such as internet advertising delivery to clients of "Sellable D2C Tsukuru." In addition, they have also started businesses such as cross-border support, M&A support, operational advertising, cosmetic D2C, and communications. The company's strengths lie in its commitment to 'selling' and its highly reproducible 'strong selling know-how' based on the results of A/B tests※3. They have formulated a growth strategy since going public, promoting business expansion through M&A and new businesses in the field of direct marketing they excel in.

※1 D2C (Direct to Consumer): A form of direct selling by manufacturers to consumers via mail order.

※2 Landing Page (LP): The first page on which visitors access through search results, advertisements, SNS, newsletters, etc. Broadly, it refers to a homepage, but in a common interpretation (narrow sense), it refers to a vertically long layout page specialized in 'selling' with a focus on individual products or services.

※3 A/B Test: One of the measures internet mail order businesses use to increase the cost-effectiveness of internet advertising. Multiple creatives, such as landing pages for attracting visitors, are created and internet advertising is carried out, followed by comparing and improving the effectiveness of each creative. It is said that by repeating A/B tests, the cost-effectiveness of internet advertising can be improved.

They have started a growth strategy utilizing M&A and other methods since going public.

2. History

The company was founded in Fukuoka City, Fukuoka Prefecture in 2010 by current President and CEO, Leo Kato. In 2011, it started offering a landing page specialized cloud service 'Sellable Net Advertising Tool (now 'Sellable D2C Tool') co-developed with Fusic Inc. Following that, it expanded to Tokyo in 2013. In 2017, it released the marketing support service 'Ultimate Sellable Media Platform'. In 2019, it expanded its business by absorbing and splitting the 'Sellable Net Advertising Tool' business from Fusic, leading to its listing on the Tokyo Stock Exchange (TSE) Growth Market in 2023. Upon listing, it launched a growth strategy aiming for sustainable growth of existing businesses and expansion of service areas through activities such as mergers and acquisitions (M&A), targeting a mid-term target revenue of 10 billion yen.

Policy to expand service areas to '20 domains'

3. Service Areas

The company's service areas are in the internet mail-order market and internet advertising market, focusing on D2C. Specializing in direct marketing, such as more effective landing page creations, among various other marketing activities. Direct marketing aims at conversions and includes methods like direct mail, leaflets, and not just landing page creations. Advertising can be divided into direct response ads, focusing on application and product purchases, and image and branding ads aimed at expanding awareness. Direct response ads are believed to be more cost-effective as they highlight the benefits of information, products, and services that directly lead to applications or purchases, allowing for higher cost efficiency. Additionally, unlike the more complex measurement of conventional image ads, direct response ads can quantitatively understand consumer behavior by response rates, leads, cross-selling numbers, etc.

※1 Direct Marketing: Marketing (advertising) aimed at user responses such as product purchases, service applications, and information requests. In web advertising, it mainly refers to landing pages.

※2 Conversion: The final outcomes in web marketing. It varies based on client objectives like consumer purchases (revenue) or the number of information requests.

※3 Leads: The number of potential customers uplifted from initial purchases to regular purchases.

The company aims to 'fill the world with direct marketing!' To achieve this vision, it has set '20 domains of relevant direct marketing (='URERU TARGET 20') to expand service areas and aims for business growth and stable management structure. Out of these '20 domains', to enhance corporate structure, before the listing it focused on 4 areas: 'LP specialized cloud services', 'LP production', 'performance-based ads*', 'pure ads'. Post-listing, it rapidly expanded service areas through M&A and business development efforts, transforming the unexplored areas within 1 year of listing into 'Shop Area Support', 'Staff Introduction' and 'Staff Development' domains. Continuing its growth strategy, it plans to expand domains while enriching the revenue of each area.

※ Performance-based advertising: An advertisement where fees are incurred each time a conversion by general consumers is measured on a media platform.

(Author: FISCO guest analyst Nobumitsu Miyata)