Domestic smartphone advertising market in 2012 jumped to 85.6 billion yen - CyberZ trend survey results

CyberZ, an smartphone advertising company and  subsidiary of CyberAgent (Internet advertising), announced the results of the investigation in the smartphone advertising market on March 15. They estimated the size of the domestic smartphone advertising market in 2012 as 85.6 billion JPY (343.8% YoY), and predicted it to exceed 100 billion JPY in 2013..

 The size of the advertising market is expanding rapidly, as smartphones spread with the numbers more than 40 million units in 2012; it grew substantially in 2012 to 85.6 billion JPY from 24.9 billion JPY in 2011. It is estimated to exceed 100 billion JPY (116.6 billion JPY) in 2013, and 152.8 billion JPY in 2014, 184.2 billion JPY in 2015, and exceed 200 billion JPY up to 205.6 billion JPY in 2016, and 221.3 billion JPY in 2017.

 By product in 2012, search ad accounted for 62.4% to 53.4 billion JPY, followed by display advertising (24.5%, 21 billion JPY) and pay-per-action ads (13.1%, 11.2 billion JPY). Search ad significantly grew 395.6% YoY, reflecting the expansion of promotion demand of e-commerce, finance, real estate, human resources / education, and leisure services / transportation. Display advertising also grew 269.2% YoY, mainly by content and games, such as e-books, real estate information and services, and travel..

Capital and business alliance ADWAYS, Inc. and VC Inc, a leading affiliate advertising company in India

ADWAYS Inc. (HQ: Tokyo, President: Haruhisa Okamura) announced a capital and business alliance with VC Internet Media Private Limited (HQ: India New Delhi, President: Mahinder Kumar Bhargava). They are under a basic agreement regarding the acquisition of the company VC, up to 66% stake, and investment in stages toward subsidiary

1. Background and purpose of the alliance

ADWAYS set up a base in India New Delhi in July 2012, and has been conducting market research and proceeded partnership discussions.
It is also expanding overseas to East Asia, including China and Korea, and Southeast Asia, in the field of internet/smartphone advertising business
On the other hand, VC, established in the Republic of India in 2007, is an affiliate advertising company specialized in services in India since 2010, which lead to accumulation of a strong customer base and operational know-how in the country.
ADWAYS plans to put VC to its subsidiary while respecting the corporate culture of the company, by gradual investment and a dispatch officer, in order to take advantage of the VC's experience, know-how, and a network of contacts in India.
 
2. Profile of VC Internet Media Private Limited

Company name: VC Internet Media Private Limited
Address of HQ: F-342, Lado Sarai Old MBRoad, New Delhi-110030, India
Establishment: January 4, 2007
Representative: Mahinder Kumar Bhargava
Accounting period: March
Business: Internet advertising, business media
 
3. Future outlook
The impact on the performance of the future will be disclosed as appropriate, as soon as the specific impact becomes clear.
 
Corporation for ADWAYS Inc. http://www.adways.net/
 
Founded in 2001. Operates variety of businesses, such as 1) the affiliate program "Smart-C" on mobile with the nation's largest advertiser base, 2) the affiliate programs "JANet" for desktop media, 3) ads for smartphones "AppDriver", 4) planning, development and operation of the application / contents. Subsidiary company 愛徳威 Advertisement Co., Ltd (Shanghai) is developing business of Internet advertising in. Listed on TSE Mothers in 2006.

Softbank's TOB on GungHo Online Entertainment, the developer of mega hit app "Puzzle and Dragons"

 Softbank Mobile announced that they will acquire shares of GungHo Online Entertainment, an online game company (hereinafter, GungHo), through a tender offer.

 GungHo's largest shareholder, Softbank BB (under Softbank Group), already owns 33.36% of its share. In addition, 2nd and 3rd largest shareholders are the companies whose president is Mr. Taizo Son, who is also the Chairman of the Board of GungHo and the younger brother of Mr. Masayoshi Son, president of Softbank. Due to fluctuations in the stock of this tender offer, GungHo will become a consolidated subsidiary of Softbank Group.

 GungHo has been originated "On Sale", an online auction company. It changed the company name to the present one, and started the domestic management of the "Ragnarok Online". Thire main businesses are the operations of online gaming, and the development of game softwares of their own.

 Especially a puzzle game RPG app called "Puzzle & Dragons" for smartphones, released in February 2012, is in the blockbuster hit. Its stock price is about five times the year-to-date with the rapid rise.

 According to Softbank Mobile's press release, the purpose of the tender offer is "by taking advantage of the global management resources of Softbank Group, (Softbank Mobile) can contribute to enhancement of revenue and sales channels of online / smartphone game. At the same time, we believe that it will strengthen the revenue base and the corporate value of both GungHo and Softbank Group."

(additional info on March 26)
The maximum purchase price is 24.976 billion yen (340,276 yen per share, 6.37% stake / 73,400 shares). Offer period is from April 1 until April 26. The tender offer agent is Mizuho Securities. 

Poppin Games Japan funded 100 million yen in the allocation of new shares to a third party - welcoming Mr. Hiroto as an adviser

Poppin Games Japan has made it clear that today (March 21) they carried out a private placement, raising a total of 100 million yen.

 Destination has not been published, but they say it's three persons responsible for the top management of the Japanese economy. The capital increases to 1.333 million yen (including the capital reserve). The funds raised are expected to be applied to the strengthening of recruiting.

 Since its establishment in July 2012, the company has delivered the four iOS apps, including "Peter Rabbit Garden" and "Alice's strange tea party". Currently, more than one are under development, and they also plan to step into Android app version nearby.

 At the same time, he also revealed that in order to run the strengthening of corporate governance and finance, and to enhance corporate value, they invited Mr. Hiroto, rich experience in the field of domestic and international investment banks, as an adviser.

[Comments from the CEO]

 "We are going to get funding from people who are responsible for the top of the Japanese economy, with agreement to our aspirations that we become one of the world's largest social game company within a few years. It is, I think, the result that the characteristic of our company is valued, which are 'multi-national teams' and 'sales achievement around the world.' Poppin Games Japan has been actively recruiting fellows who will challenge to the world together. If you are an engineer, producer or a designer who is interested, please feel free to contact us."

Poppin Games Japan

Mobile carriers' "unlimited" content services one after another

Major cellular companies are launching "unlimited" content services one after another. In March, au (no.2 carrier) started the iOS support of the service "Book Pass" and "Video Pass" in addition to "Song Pass", where users can download contents without limitation with fixed price. Also Softbank (no.3 carrier) launched "UULA" where you can watch video unlimitedly in February. NTT DoCoMo (no.1 carrier) is also under consideration. We interviewed Mr. Takeshi Horin, an IT journalist familiar with the mobile industry, about the background and the future of the market.

 - What is the background that each company focuses on its own content services?

 "Each company has been focused on the development of devices for the past few years, which were transition period from featured phone to smart phone. Now that sophisticated devices are on the table, it's rather a stage of 'how to let people use a smartphone.' However, since all those companies mostly sell either Android or iOS devices, it is hard to differentiate in terms of functionality, so they try to differentiate by original contents."

 -Any other background info?

 "In terms of revenue, they cannot expect increase transaction fee because of a fixed packet communications charges. By strengthening their own content service, they intend to acquire a new source of revenue by strengthening their own content services."

 - Who did it first?

 "It was au who first started 'unlimited' service for applications. They focus on apps, video, music, and books from the beginning. In March, 2012, launched 'Smart Pass' for Android where users can download apps unlimitedly with fixed price. The service significantly reduced the hurdles that users use the content by clearly showing its merit."

 - And there are more "unlimited" service other than just app.

 "au creates an environment that users can easily consume contents; multiple contents services, such as 'Song Pass' with unlimited music and 'Video Pass' with unlimited video, and the discount for users of 'Smart Pass'."

 "These 'Pass' services' adoption to iOS also brings a big impact to the mobile industry. These services did not exist in iOS ecosystem. au successfully responded to the users' voice."

 "You should not say 'You cannot use 'Pass' because the service is not available to iPhone.' They bring great benefit for users by achieving 'fun for everyone'."

 - How is the overall trend?

　"Softbank launched UULA in collaboration with Avex Inc. of the music industry, which allows users to watch movie unlimitedly with fixed price, in addition unlimited web app service that they started with Yahoo already. Variety of musical contents has become a feature, but degree of seriousness is still unknown since the service was launched very recently. NTT DoCoMo also line-ups unlimited video, music, and animation services. DoCoMo is also said that they are preparing their version of 'Smart Pass', but is it already one year later than au. 'Smart Pass' of au is one step ahead of other companies, with 5 million memberships in March."

 - What is the point for the future?

 "More 'unlimited' services, that users can consume contents easily, will be launched. What is important for major mobile carriers is, in addition to the performance of devices, the quality of communication line and the good contents, 'how much the users actually use their service'. The point is 'how to design the easiness of service' for ordinary people to enjoy smartphone without stress."

Apple is no.1 in share of mobile phone in 2012

 According to a survey on share of domestic mobile phone shipments in 2012 conducted by IDC Japan, Apple has become the first position.

 Total shipments in 2012, combined smartphones and traditional mobile phones (feature phones), is 40.4 million units (up 6.4% year-on-year). It had not exceeded the size of 40 million units since 2008.

 Apple (23.3%) is the top, raised the ranking from the 3rd-position of the previous year, followed by Fujitsu (18.0%), Sharp (14.0%), Sony (8.4%), Kyocera (8.0%). 

 Number of shipments of smartphone in 2012 was 28.48 million (+42.1% year-on-year),  70.5% of the total mobile phone.

GungHo exceed DeNA with stock prices - "Puzzle&Dragons" in top form

In the stock market on March 5, Gung Ho Online Entertainment's stock price (JASDAQ standard) has risen to 3.76 million yen, adding 515,000 yen from  the previous day (+15.87%).

 

 Based on the closing price of the market capitalization is $ 432.3 billion, it exceeded the 373.7 billion yen of DeNA (DeNA). Significantly higher than 261.9 billion yen of Gree, and 124.6 billion yen of Square Enix Holdings.

 Gung Ho shows the fastest growing performance with a huge hit of the game "Puzzle & Dragons" for smartphones, and will not stop the momentum of rising stock prices. It is calculated that it made 4.5 times higher in two months from 842,000 yen closing price on January 4.