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A new era of audio ads has arrived! [2]What is the "Pirate" technology supporting these increasingly rich and complex audio ads?
The audio market continues to expand, encompassing internet radio and music streaming services. Against this backdrop, three Dentsu Group companies—Dentsu Inc., Dentsu Digital Inc., and CARTA HOLDINGS, INC.—have launched " Premium Audio Advertising" to strengthen their presence in the audio ad delivery space.
CARTA HOLDINGS, INC was formed through the management integration of CCI, a Dentsu Group company focused on media solutions, and VOYAGE GROUP, which possesses strengths in technology and business development within the internet domain (※).
※ CCI and VOYAGE GROUP continue to operate as subsidiaries of CARTA HOLDINGS, INC
We spoke with Rei Fujimoto, who leads new service development at VOYAGE GROUP, about the objectives of the management integration and the future outlook for audio advertising.
<Table of Contents>
▼ Branding Advertising Accelerates with the Digitalization of Audio Ads
▼Responding with Speed to Radio's Unique Complex Distribution Challenges
▼Gaining Prominence as Cross-Channel Advertising Campaigns Increase
Accelerating Brand Advertising Through Audio Ad Digitalization
―Tell us about VOYAGE GROUP's business history.
Fujimoto: VOYAGE GROUP originally started with media businesses like "EC Navi" and "PeX". Within that, our internet advertising business gradually grew, expanding through the development and operation of platforms like "SSP" and "DSP" that optimize the delivery of performance-based digital advertising.
VOYAGE GROUP has primarily focused on performance advertising, represented by banner ads (display ads) and search ads. However, driven by changes in the external environment, such as communication infrastructure, digital advertising is increasingly moving beyond its traditional static image-centric world toward video and audio, advancing toward ever-richer forms of expression.
Furthermore, the expansion of streaming services and the growing IoT landscape, exemplified by voice-operated smart speakers, will undoubtedly increase the value of audio ads as they become integrated into daily life.
Given this trend, we believe audio ads are highly compatible with "branding advertising," which demands more diverse forms of expression. Consequently, we have been focusing our efforts on developing new products and building service frameworks.
―Why did this business integration come about?
Fujimoto: The primary reason is the Dentsu Group's strength in the branding advertising domain. We decided to join forces because we believe combining the Dentsu Group's assets with VOYAGE GROUP's platform will enable us to provide clients with greater value in digital advertising.
―As the first service post-integration, you launched the audio ad delivery service "Premium Audio Ads" in May 2019.
Fujimoto: This service delivers audio ads exclusively to premium audio media. As of October 2019, it enables ad delivery to the internet radio service "radiko" and the music streaming service "Spotify."
―How is VOYAGE GROUP involved in Premium Audio Ads?
Fujimoto: For this service, we utilize our own products, such as "PORTO," the brand advertising ad platform developed and operated by VOYAGE GROUP, and the SSP "fluct,Inc."
PORTO supports diverse delivery formats, their integrated management, and connections with various measurement vendors and data providers. Premium Audio ads are one such format. Going forward, we plan to support diverse premium media and formats, including offline media like DOOH (Digital Out Of Home, referring to outdoor advertising), implement unified reach management and frequency management across online and offline channels.
Furthermore, fluct,Inc.'s strength lies in its access to diverse media. I believe it is one of the top products in Japan capable of connecting to such a wide range of media. I expect PORTO and fluct,Inc.'s strengths to be further leveraged in future developments.
Responding with speed to the complex delivery challenges unique to radio
―Please tell us about the features of Premium Audio advertising.
Fujimoto: The biggest selling point is undoubtedly the guaranteed safety and effectiveness of the delivery destinations. But here, I'll focus on the technical features.
First, we can capture detailed "data" on ad effectiveness. We can quantify metrics like ad impressions, view-through rates, and brand lift effects. We also anticipate data integration with other platforms within the Dentsu Group.
Another major strength is our capability to handle highly complex delivery systems, both technically and operationally.
Radio, being an offline medium, often has varying ad inventory and systems across broadcasters, making delivery systems to platforms like radiko inherently complex. However, through our management integration with Dentsu Group's CCI, we now share insights into these media's diverse circumstances and complex systems, enabling us to respond with agility.
―It's precisely because we've become one with the Dentsu Group that we can respond flexibly and swiftly.
Fujimoto: Indeed, I feel we've become one flat team, encompassing everyone involved within the Dentsu Group, from VOYAGE GROUP's business side to its engineering side. Establishing this structure enables faster development and more granular responses. Speed is particularly crucial in the digital advertising market, which is characterized by rapid growth and change.
Moreover, this openness and close communication are strengths VOYAGE GROUP originally possessed. The relationship between the development engineers and the sales business side is very flat, and a culture of communication that crosses both horizontal and diagonal lines within the company is deeply ingrained.
―So you're preserving that culture while integrating with the Dentsu Group.
Fujimoto: Yes. This culture is also reflected in our office environment. The company itself embraces a "pirate" and "voyage" concept, and our new office was designed around the theme "GREAT VOYAGE."
For example, there's an in-house bar called "AJITO." After hours, employees gather there to drink, play the instruments provided, and naturally connect. This open culture and flat communication are core to VOYAGE GROUP's identity, and AJITO symbolizes it.
―Specifically, how has this culture influenced VOYAGE GROUP's business?
Fujimoto: For example, when launching new services or products, it's often business-side led. However, engineers frequently propose ideas like, "Wouldn't it be better to have something like this?"
Engineers also routinely advise the business side on product and specification improvements they might not otherwise notice. We actively communicate without barriers about development priorities and which features to maintain, achieving a good balance.
Gaining prominence as cross-channel advertising campaigns increase
―How do you think audio ads will evolve going forward?
Fujimoto: I believe this is an area that will rapidly become more interesting. Even as ad delivery expands to various formats and media like video, audio ads remain a largely untapped and challenging new frontier.
Accelerated digitalization is broadening the scope of formats and creative possibilities. Offline advertising, which often ended as a single, fleeting placement, will now integrate with other media, ads, and social networks to deliver deeper, more cohesive stories to users.
Furthermore, as advertising expands across continuous and broader domains in this way, users will gain "more interesting experiences" through ads. This means marketing power will increase more than ever before. Our challenge is to build a platform that maximizes the potential of such digital marketing.
―In this increasingly exciting market, what does VOYAGE GROUP aim to achieve?
Fujimoto: Not just audio ads, but TV commercials, OOH, and other previously offline advertising will increasingly move online. This means we'll have an environment where we can deliver all kinds of ads, based on user data, across both online and offline domains.
What VOYAGE GROUP aims to realize here is a unified management system for ads across all media. To achieve this, we need an advertising platform that connects to all these media and the technology to support complex ad delivery.
While envisioning this future, we continue developing "PORTO" and the SSP "fluct,Inc." As the first step in this journey, we have released Premium Audio advertising.
―What do you expect from the Dentsu Group?
Fujimoto: Dentsu Inc., above all, possesses strong relationships with advertisers built over its long history in advertising, along with extensive know-how. Its strong connections with offline media and detailed data assets—such as contact data and viewing trends—are also significant strengths. We believe these assets can be effectively leveraged online, or used to bridge both worlds, enabling new possibilities.
On the other hand, when it comes to programmatically delivering audio ads going forward, clients sometimes lack clear answers about which data serves as key metrics or which numbers to prioritize. In this regard, we want Dentsu Inc. and VOYAGE GROUP to quickly analyze actual delivery results and present clear metrics. Simultaneously, we'll expand the range of media platforms where ads can be placed.
The audio ad market is still developing. Being at the forefront feels like we're literally creating the market, like pioneering new territory (laughs). But precisely because it's an untapped field, it holds immense potential. I hope we can build this new, significant market together with everyone.
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Author
Rei Fujimoto
VOYAGE GROUP, Inc.
Joined VOYAGE GROUP in 2015. In the digital advertising field, worked as a monetization consultant on the media side before moving to advertising operations and product management on the advertiser side. Currently responsible for business development in new areas with the Dentsu Group.
