Data utilization expands the realm of advertising creative.

The scope of DX (Digital Transformation) is extensive. For example, even in "creative"—a means of communication with consumers—the use of digital data is unavoidable.

Recently, Dentsu Inc. and Dentsu Digital Inc. began collaborating with Treasure Data, provider of "Treasure Data CDP"—one of Japan's leading CDPs (Customer Data Platforms)—to advance clients' DX and accelerate their business. The reason lies precisely in the close relationship between creative and data.

We asked Shin Namikawa, a digital creative specialist at Dentsu Inc.; Akihiko Miura, who drives business transformation support at Dentsu Inc.; and Kento Horiuchi, Senior Marketing Director at Treasure Data, "What role can data play for creative?"

<Table of Contents>
▼ Defining Creative Core Principles is Key, Not "Trying Everything"
▼ The Quality of Creativity Depends on "Quantity and Quality of Data"
▼ The Power of Paring Down: Essential for Both Data Analysis and Creativity
▼ Expanding Creative Horizons Through Data Utilization

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Establishing a Creative Core is More Important Than "Trying Everything"

──We now live in an era where businesses and consumers are constantly connected through digital devices. The idea of leveraging the big data generated in this environment for business purposes has also become widespread. What is happening in the "creative" field of advertising production within this context?

Horiuchi: As data utilization advances, it's become easier to tailor detailed approaches to each individual customer's needs. However, this has also led to situations where creators on the front lines become exhausted, driven by corporate expectations like "We want to test as many creative ideas as possible to match customer needs." The demand is clearly excessive. For example, not long ago, I saw cases where an absurdly large number of ad banners were being ordered through crowdsourcing, which made me question the approach.

Namikawa: While it's great that data allows us to analyze customer needs in detail and increases our options for strategies, it also brings the hardship of an infinitely expanding workload. When discussing with clients, the conversation often drifts toward "let's try everything," leading to cases where the creative direction becomes unclear.

Miura: Just because we have more options, does that mean we should implement every tactic equally? That's a question we need to address.

Namikawa: Precisely because of this, direction under a larger strategy becomes crucial even before creative work. To achieve this, we must first "articulate the strategy in words anyone can understand" before focusing on ad creative. By verbalizing the strategy, both the client and the ad agency can share a common core understanding: " , then this kind of creative is needed."

The quality of creative is determined by the "quantity and quality of data"

Horiuchi: Without that core foundation, no amount of data can make creative work effective. Without the "Why" – the reason for doing this business – or the philosophy, brand, and culture, even if you collect data in a CDP and try to use it, you're left wondering, "So what exactly are we supposed to do with this?"

That's why one reason we collaborate with Dentsu Inc. and Dentsu Digital Inc. in the "client data utilization support" field is because we expect outputs that truly digest the client's philosophy and culture. Mr. Namikawa's point about "verbalizing strategy in words anyone can understand" is also a necessary step to produce such outputs.

Namikawa: Yes. As Mr. Horiuchi mentioned, the quality of the creative output is deeply tied to the "quality of the input" – how well we understand the client's business. When we delve into the client's management and business challenges and think through them together, the output improves.

The greatest significance of collaborating with Treasure Data this time lies in our ability to elevate the quality of this input phase. In other words, we expect that proposing solutions based on high-quality data analyzed together with Treasure Data will yield better output than the traditional approach relying solely on a creator's experience and intuition.

Horiuchi: Treasure Data can ensure both the "quantity" of data and the "data variation" needed to understand each individual customer. Analyzing this and converting it into "quality" is where our company and Dentsu Digital Inc. come in. We'll then pass this high-quality input to Dentsu Inc. creators like Mr. Namikawa, enabling them to produce excellent output— , right?

The "ability to pare down" required for both data analysis and creativity

──Conversely, are there cases where "better creative work emerges without excessive input"?

Namikawa: I firmly believe more input is always better. Some producers avoid showing data to creators, thinking, "Showing them this might confuse them." I disagree.

For example, if you're sitting quietly at the edge of a meeting where clients are discussing raw topics like "How were this month's sales?", ideas can sometimes just come to you unconsciously, and you might come up with a good concept.

Miura: I suspect what producers worry about is that overloading a creator's mind with too much information might narrow their creative scope, leading to clichéd expressions.

Namikawa: That said, client challenges have multiple layers, so having all the information is actually better. If you're only given "the immediate challenge right now" and focus solely on that, you end up with superficial, symptomatic outputs that miss the essence.

Horiuchi: For example, with a company that has a long history, focusing only on the last three years isn't essential. I also think better creative work comes when people like you, Namikawa, understand the core of the brand – things like the founder's vision during the startup phase or what transformations the company has undergone.

Miura: It's also crucial whether you can select the right information from that vast amount to address the specific challenge at hand. At its core, creativity is about "trimming away the excess." Similarly, data analysis requires the skill to identify what's truly essential and eliminate unnecessary data.

Namikawa: Speaking of "trimming away unnecessary data," this might be a slight tangent, but consider this: suppose there's data showing "this creative has a high conversion rate." Yet, sometimes it's better for the brand not to pursue it. There are things that aren't explicitly articulated but exist as a vague culture within the company, and those are often where the real competitive strength lies. Judging that requires more than just data.

When working on creative for clients with a long history, I always find it incredibly challenging to grasp the depth of their philosophy. Yet, I also believe that's precisely where creators can truly shine.

Expanding Creative Horizons Through Data Utilization

──In our previous discussion, we mentioned that "in DX-era marketing, two engines are essential: data infrastructure and customer experience." Could you elaborate on "data infrastructure × customer experience" from a creative perspective?

Namikawa: Even within "Data Infrastructure × Customer Experience," there are various aspects depending on the funnel stage, so I'll explain them separately.

First, the "New Customer Acquisition" domain. Previously, efforts in "new customer acquisition" and "maximizing the LTV(※1) of existing customers" were completely separate. Now, however, the trend is to "acquire customers with high ultimate LTV right from the initial acquisition stage." This involves leveraging a company's first-party data to analyze the tendencies of high-LTV existing customers and then creating creative content targeted towards them.

※1 LTV = Lifetime Value. A metric that considers the total profit expected to be generated from a customer over the long term and future.
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Next is the "Online Customer Service to CRM" domain. Due to the COVID-19 pandemic, even clients who previously only had offline purchase touchpoints are now starting to create online customer service environments. Following this trend, we are seeing an increase in discussions about implementing "OMO" (※2), which merges online customer service with existing offline touchpoints, including creative elements.

※2 OMO = Online Merges with Offline. A concept signifying the fusion and integration of offline and online. It centers on the experiential value for consumers, avoiding distinctions like "online vs. offline" for touchpoints or sales channels. This approach is gaining traction beyond business domains.

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We are currently discussing with clients how to expand the connection between online and offline, while also digitizing this as customer profiles and accumulating it within the Treasure Data CDP. OMO, including creative aspects, is a rapidly growing area right now.

Horiuchi: With the pandemic making new customer acquisition difficult, properly executing CRM for existing customers is crucial. For that, how to achieve DX that leads to customer success is a challenge many companies face.

Namikawa: Unlike mass advertising, CRM operates in a 1-to-1 customer world, doesn't it? We're currently experimenting with how to approach creative in this domain.

One example is Dentsu Digital Inc.'s connected car project. In this initiative, Dentsu Digital Inc.'s creative team uses Treasure Data CDP to create tailored messages based on customer attributes and behavioral patterns. For instance, they might send specific messages to people who took a long drive on a particular day.

While CRM encompasses various goals like improving NPS(※3), cross-selling, and upselling, we aim to further advance the design of "one-to-one customer experiences" through the power of data and creativity.

※3 NPS = Net Promoter Score. An indicator measuring customer loyalty and continued usage intent toward a company or brand, often translated as "customer recommendation rate."
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Horiuchi: We also believe that enhancing the customer experience within CRM is essential, and to achieve that, "one-to-one" creative must become more sophisticated.

Miura: Enhancing customer experience through data and creativity is a major theme. It's not just about point-based communication aimed at getting people to request materials or make purchases. It's about creating "happiness" through the entire series of customer touchpoints with products and services. Isn't this the kind of CX management that only Dentsu Inc., with its history of consumer-first marketing support, can achieve?

Namikawa: Beyond enhancing daily communication with existing customers, we also need to develop services that enable cross-selling and upselling.

Incidentally, "service development and business design" is an area where the Dentsu Group in Japan is putting significant effort. We're seeing more cases where we collaborate with clients to conceptualize solutions based on their management challenges, or support business design for service implementation.

Just recently, a client approached me saying, "We're considering creating a new DX organization within our company." In response, I'm proposing "organizational support" – working together to organize the agenda and determine how best to drive DX forward. I believe we can elevate this to a service within about six months to a year.

As this example shows, the scope of work traditionally handled by "ad agency creatives" will continue to expand significantly. It's essentially an "expansion of the creative domain." Starting with the digitalization of marketing, we'll gradually transform the CRM experience itself, and then move on to business design – that might be the sequence.

Horiuchi: The idea that leveraging data enables creatives to take on the domain of "business design" is a key message we want to convey to companies in this discussion – a redefinition of the creative domain.

Namikawa: The skill of "properly visualizing the output," which advertising creators possess precisely because they've long been involved in "expression," will become increasingly valuable in this data era and the age of 1-to-1 marketing. By combining this skill with "data," we aim to broadly expand the creative domain, from advanced CRM to business design.

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If you are interested in the solutions provided through the collaboration between Treasure Data and Dentsu Inc./Dentsu Digital Inc., please feel free to contact us.
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https://www.treasuredata.co.jp/d-dd-td-download/

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