XICA and Atalla form business partnership
Aiming to build an infrastructure that allows advertisers to carry out the entire process from data collection to analysis and investment decision-making
XICA Corporation (Headquarters: Chiyoda-ku, Tokyo; Representative Director and CEO: Yoshiaki Hirao; hereinafter "XICA") and Atalla LLC (Headquarters: Yokohama City, Kanagawa Prefecture; CEO: Tsuyoshi Sugihara; hereinafter "Atalla") are pleased to announce on Wednesday, September 2020, 9 that they have entered into a business partnership.
With this partnership as an opportunity, XICA and Atalla will combine their solutions to help advertisers improve their online advertising*1Offline advertising*2On both fronts, we will work together to build an infrastructure that can quickly collect and format data, extract insights through analysis, and make investment decisions based on those insights.
*1: Online advertising refers to advertising placed on the Internet, and includes listing ads, video ads, email ads, and SNS ads.
*2: Offline advertising refers to advertising that does not involve the Internet, and includes television commercials, radio, newspapers, magazines, flyers, etc.
Overview of the Partnership
XICA's advertising effectiveness analysis tool "XICA Magellan" (hereinafter referred to as Magellan) is a tool that uses MMM (Marketing Mix Modeling), which is difficult to implement unless you are an analysis expert such as a data scientist.*3It is the No. 1 MMM tool in Japan, enabling on-site marketers who do not have analytical expertise to put this into practice.*4It has been introduced to over 100 companies, mainly major domestic corporations that advertise on television.
Meanwhile, Atalla's programmatic advertising report creation support and data collection engine "glu" imports data from multiple programmatic advertising media and tools, automatically generates reports in any format that can be expressed in Excel, and is used as a data supply engine for BI and dashboards. It is also used as a tool to reduce labor and improve efficiency in advertising agencies' and advertisers' advertising operations, monitoring, reporting, and discovery of improvement actions, as well as to reduce human errors.
By combining the solutions of both companies, the following challenges will be resolved:
1) Visualization of online advertising effectiveness taking into account the impact of offline advertising and external factors
In the past, companies with advertising strategies centered on online advertising often had to measure the effectiveness of their online advertising without taking into account the impact of offline advertising, due to the low volume of offline advertising placed.
The solutions from both companies will make it possible to visualize the effectiveness of online advertising in a more precise manner, taking into account the impact of offline advertising and external factors such as seasonality.
② It is possible to measure the effectiveness of offline advertising even if the volume of offline advertising is small
Furthermore, in the past, when companies tried to measure the effectiveness of offline advertising with an advertising strategy centered on online advertising, data limitations due to the low volume of advertising meant that it was often difficult to draw a relationship with final results such as sales.
The solutions from both companies will significantly reduce the workload associated with collecting and formatting programmatic advertising data, making it possible to easily break down programmatic advertising data, such as SNS advertising, by target or segment and use it as an intermediate indicator of final results for analysis, making it possible to measure the effectiveness of offline advertising even with a low advertising volume.
3) Utilizing programmatic advertising data not only as a customer acquisition measure but also for customer understanding and insight
As reported, "Internet advertising expenditures have grown by double digits for the sixth consecutive year," and, regarding Internet advertising expenditures, "programmatic advertising accounted for approximately 6% of total expenditures, growing 2% year-on-year," the programmatic advertising market continues to grow and has become an indispensable part of advertisers' promotional and customer acquisition strategies.
Meanwhile, programmatic advertising is not only being positioned as a customer acquisition measure, but is also beginning to be used as a data source to obtain customer attributes, interests, areas, contact history, etc. However, the infrastructure and services required for utilization have not yet been developed. Differences in data structure, hierarchy, and column names between each platform must be cleansed and converted into a usable form before being provided to advertisers. XICA Atalla will work together to serve as a receptacle for these and provide them in a form that can be used by advertisers.
④ Automating the collection and processing of online advertising data to extract insights and speed up decision-making
Programmatic advertising accounts for a large portion of online advertising, and its proportion is increasing year by year. However, the heavy workload required to collect and format the data is an obstacle to using data in companies' advertising strategies.
The solutions from both companies will enable automatic import, integration, and management of data from a variety of programmatic advertising media and tools. By significantly reducing the workload associated with collecting and formatting data and enriching the data that is imported, it will become possible to speed up the cycle of data utilization, such as extracting insights through analysis and making investment decisions based on those insights.
*3: MMM (Marketing Mix Modeling) is a method of using statistical analysis to quantitatively measure the effects of various marketing initiatives on business results such as sales, and to optimize and simulate marketing investments.
*4: Survey period: October 2019-10, 16 / Survey overview: Image survey of 18 marketing mix modeling tools and on-off integrated analysis tools / Survey method: Online survey / Survey participants: 10-22 years old, male and female, nationwide, marketing occupation, working for listed companies, working for companies that advertise TV commercials / Survey commissioned by: Shoppers Eye Co., Ltd.
*5: Source: Japan's Advertising Expenditures in 2019 | Dentsu Inc. | March 2020, 3 (https://www.dentsu.co.jp/news/release/2020/0311-010027.html）
*6: Source: 2019 Japan Advertising Expenditures: Detailed Analysis of Internet Advertising Media Expenditures | D2C Inc., Cyber Communications Inc., Dentsu Inc., Dentsu Digital Inc. | March 2020, 3 (https://www.dentsu.co.jp/news/release/2020/0317-010029.html）
The Next Development
With this partnership, XICA and Atalla will initially begin jointly offering their respective solutions. They will then begin integrating their products and developing joint solutions around 2021, aiming to build an infrastructure that will enable advertisers to quickly collect and format data, extract insights through analysis, and make investment decisions based on those insights, for both online and offline advertising.
About XICA Corporation
Company name: XICA Co., Ltd.
Representative: CEO Yoshiaki Hirao
Address: 2F and 5F TAS Building, 2-2-3 Nishikanda, Chiyoda-ku, Tokyo
Established: XNUM X Year X NUM X Month X NUM X Day
Main business: Product development business
URL: http://xica.net/
About XICA Magellanhttp://xica.net/magellan/
It comprehensively analyzes the effectiveness of a wide variety of advertisements, such as internet advertisements (listing advertisements, video advertisements, etc.), TV commercials, and transportation advertisements, and calculates the optimal allocation plan for advertising budgets, thereby supporting companies' overall optimal marketing activities. As the No. 1 MMM tool in Japan, it has been introduced to over 100 companies, mainly major domestic companies that advertise on TV commercials, and has earned a high reputation, with Magellan being used for advertising analysis by 100% of the top 10 companies in Japan in terms of advertising expenditure.
- *7: Source: Top 300 companies with the highest advertising expenses | Toyo Keizai Online | September 2017, 09 (http://toyokeizai.net/articles/-/187757）
About Atalla LLC
Company name: Atara LLC
Representative: CEO Go Sugihara
Address: 3712-12-D Motoishikawacho, Aoba-ku, Yokohama, Kanagawa Prefecture
Established: XNUM X Year X NUM X Month X NUM X Day
Main business:
・Support for programmatic advertising operations, in-house support, and training
・Building business dashboards for inside and outside the company, and consulting on various data collection
・Analysis tool setting support, implementation consulting
・Provision of "glu", an automatic collection, output and dashboard system for performance-based advertising data
・Development of technology solutions using Web APIs
URL: https://www.atara.co.jp/
Press Release Inquiries
XICA Corporation Public Relations Officer: Kunimatsu
TEL: 03-6380-9897／E-MAIL: pr@xica.net
XICA PR (Innovation Bridge): Yuko Takimoto
Mobile: 090-2300-5942／E-MAIL: hiroko.takimoto@inbridge.jp
Atala LLC
For media inquiries, please contact: Public Relations Officer, Naoi, E-mail: pr@atara.co.jp
For inquiries regarding services, please contact: Consulting Team Email: consulting@atara.co.jp