Dentsu Inc. invests in Avid Media, a UK-based leader in content marketing and native advertising delivery.

Dentsu Inc. Invests in Avid Media, a UK Leader in Content Marketing and Native Advertising Distribution

Dentsu Aegis Network, the overseas headquarters of Dentsu Inc. (Headquarters: Minato-ku, Tokyo; President and CEO: Nao Ishii; Capital: ¥74,609.81 million), has invested in Avid Media Limited (Headquarters: London; CEO: Nick Brown; hereinafter "Avid Media"), a leading UK company in content marketing and native advertising delivery.

This investment reflects growing demand from client companies seeking to leverage content to engage audiences with their brands. Combined, content marketing and native advertising are projected to account for 64% of all paid media via mobile worldwide by 2020 (Enders Analysis), with this ratio expected to be even higher in mature markets like the UK. Furthermore, native advertising is less susceptible to ad-blocking technology, increasing the reliability of delivering messages to target audiences.

Content marketing is a communication strategy that attracts potential customers to a brand and motivates them to buy by providing relevant information closely related to their questions and interests. Native advertising, meanwhile, refers to advertising content integrated with articles or videos in design, content, and format, excelling at not disrupting the user's information consumption experience.

Avid Media is a company founded by two brothers with extensive experience in the digital marketing field. It has established itself as a leader in content marketing and native advertising delivery in the UK by providing the following two core services to client companies, and is also expanding its business into the US and Asia-Pacific regions.

The first is providing a native advertising delivery platform called "Spartan." This platform combines programmatic delivery with dynamic content delivery (marketing that automatically changes content within a layout based on conditions), enabling automatically format-adjusted content to be displayed across all native ads.

Second is the provision of a content measurement tool called "Canopy." This tool enables client companies to understand performance metrics for native ad delivery and the importance of content within their current asset portfolio.

While our group has previously offered similar services overseas under the Amplifi brand, this investment will enable us to access and leverage Avid Media's technology and solution assets.

Furthermore, we expect that the solutions provided by Avid Media will complement our Group's unique media, creative, and content businesses, helping us secure leading market positions in each country.

The impact of this transaction on the Group's consolidated financial results for the fiscal year ending December 2016 is expected to be minimal.

[Overview of Avid Media Limited]
Company Name: Avid Media Limited
Headquarters: London, United Kingdom
Established: November 2008 (incorporated), commenced operations in 2010
Revenue: £1.4 million (approx. ¥190 million) (December 2015 fiscal year)
Representative: Nick Brown (CEO)
Number of Employees: 30
Business Activities: Providing content marketing and native advertising distribution services