"You can do that too!?" Discussing LINE Yahoo Corporation: What Data Analysis Will Integration Enable?

From left: LINE Yahoo's Shotaro Yamamoto, Marin Aihara; Dentsu Inc.'s Shinnosuke Akazawa; Dentsu Digital Inc.'s Yuto Oshita

October 2023. LINE Corporation and Yahoo Japan Corporation merged to form LINE Yahoo Corporation.

LINE, beloved by people across Japan and strong in 1-to-1 communication, and Yahoo, which owns about 100 services from search to purchase and possesses diverse data infrastructure.

How can LINE Yahoo, possessing two of Japan's leading platforms, contribute to corporate marketing activities?

This time, we invited Shota Yamamoto and Maru Aihara from LINE Yahoo to discuss with Dentsu Digital Inc.'s Yuto Oshita, who has provided the "HAKONIWA" service through a joint analysis project between Yahoo and Dentsu Inc., and Dentsu Inc.'s Shinnosuke Akazawa, who has provided the "LINE DATA SOLUTION" service jointly with LINE Corporation.

HAKONIWA
A joint data analysis project launched in 2019 by Dentsu Inc., Dentsu Digital Inc., and the former Yahoo Japan Corporation. It enables analysis centered on the Yahoo! JAPAN ID by securely linking data from Dentsu Inc., Yahoo Japan, and clients.

LINE DATA SOLUTION
A data analysis environment centered on LINE User ID. It cross-references and analyzes LINE advertising menu exposure data, LINE's demographic and interest data, and external data held or linked by Dentsu Inc. to achieve optimal communication for each user.

LINE and Yahoo! JAPAN—two massive platforms unite!

──With the merger of LINE and Yahoo, we'd like to hear how their respective data analysis environments—"LINE DATA SOLUTION" and "HAKONIWA"—will evolve. First, please introduce yourselves.

Yamamoto: I'm Yamamoto from LINE Yahoo, primarily handling proposal sales for digital advertising. Before the merger, I sold Yahoo advertising; after the merger, I also sell LINE advertising. I've been responsible for Dentsu Inc. and Dentsu Digital Inc. since the Yahoo era, and as the HAKONIWA project promotion lead, I also engage in daily discussions with Dentsu Inc. and Dentsu Digital Inc.

Aihara: I'm Aihara, also from LINE Yahoo. I belong to the Business Development Team, involved in providing data-driven analysis and development environments, supporting them, and planning projects. My mission is to deliver the value of data to clients using LINE and Yahoo data, together with our partners Dentsu Inc. and Dentsu Digital Inc.

Oshita: I'm Oshita from Dentsu Digital Inc., serving as the HAKONIWA Project Manager. I develop solutions using various analytical methods, drive operational progress, and negotiate with other departments and partner companies.

Akazawa: I'm Akazawa from Dentsu Inc.'s Data & Technology Center. As a field leader and analyst, I primarily analyze LINE data to contribute to clients' marketing activities. For example, I analyze the synergistic effects by cross-referencing LINE advertising and TV commercial data to track conversions.

──What kind of project is HAKONIWA?

Oshita: It's a joint data analysis project launched in 2019 by Dentsu Inc., Dentsu Digital Inc., and the former Yahoo Japan. It provides an analysis environment where data held by Yahoo Japan, domestic Dentsu Group companies and their partner firms, and clients can be securely linked and analyzed.

HAKONIWA enables multifaceted data analysis and ad delivery based on the "Yahoo! JAPAN ID," an ID tied to each individual user. To date, it has been used by over 100 companies and applied to more than 250 projects. Naturally, we strictly adhere to rules to ensure compliance with data usage standards, conducting analysis in a way that does not identify users' personal information.

Reference Page:

Data Clean Room
 

Reference Series:
Must-Know Tips for Leveraging Data Clean Rooms

 

──What kind of data can be used for marketing?

Aihara: The Yahoo data available through HAKONIWA is diverse, but it primarily centers on user behavioral data linked to Yahoo! JAPAN IDs. Beyond "demographics," "interests," and "advertising logs," you can also utilize behavioral data from various Yahoo services, such as "search data" and "purchase data."

Oshita: Furthermore, in addition to the data held by LINE Yahoo, we can also combine it with various data held and shared by companies within the Dentsu Group in Japan.

For example, TV viewing data from "STADIA" (*), survey data, location data and purchase data held by partner companies can all be combined and analyzed within a single environment alongside Yahoo's data. Furthermore, clients can utilize their own first-party data as needed.

※STADIA = Japan's largest marketing platform provided by Dentsu Inc., based on TV viewing logs obtained with user consent. By matching TV viewing log data with digital behavioral data, it enables integrated on-off analysis.

 

──Compared to other platforms, what are HAKONIWA's strengths?

Oshita: There are three main strengths. The first is "search query" data (the words or phrases entered during searches). We can analyze Yahoo users' search behavior. Since search queries represent "information the user actively seeks," they provide a clearer picture of user needs and interests than passive content viewing, helping us understand challenges.

The second is our high degree of flexibility, allowing us to customize analysis and delivery according to the client's specific challenges. We can flexibly address even complex client issues and solve them with a high degree of freedom.

Third, it doesn't stop at analysis; results can be linked to Yahoo! JAPAN IDs for ad delivery within Yahoo services. Having a solid "exit" point for ad delivery is a major strength as a platform. Furthermore, since it can be used for analysis and delivery without relying on cookies, it's also effective as a countermeasure for the increasingly discussed cookie-free era.
1.

: Utilizes behavioral data like search queries for analysis 2. Flexible customization of analysis based on client challenges

3.Based on analysis results, targeted ads can bedeliveredon Yahoo! without relying on cookies. Aihara: I believe HAKONIWA offers solid value by providing insights based on data analysis. This value is maximized through collaboration with Dentsu Inc. and Dentsu Digital Inc., who face clients' marketing challenges daily, enhancing the quality of the solutions we provide.

Yamamoto: Another point is that through joint projects with Dentsu Inc., we can perform analyses impossible with online data alone. For example, for clients running campaigns on both TV and Yahoo! Ads, we can visualize and analyze overlap in reach, or conversely, how much incremental reach is being achieved.

Alternatively, using search data (search queries), we can also measure search lift(*) from TV commercials combined with digital ads. The ability to utilize TV viewing data is particularly significant. We've received feedback that visualizing cross-media advertising effectiveness enables its application in subsequent marketing planning.

※Search Lift = A metric measuring the increase in organic search volume for target keywords driven by ad delivery.

 

From left: LINE Yahoo's Aihara and Yamamoto

 
──Next, could you tell us about LINE DATA SOLUTION?

Akazawa: I'll explain, as I've been responsible for analysis since the old LINE era. Similar to HAKONIWA, it's an environment that enables combined analysis. This is done by linking with the user's unique LINE ID, and by cross-referencing LINE user data with data held by Dentsu Inc. and Dentsu Digital Inc., all while protecting privacy based on the user's consent.

LINE's demographic data (such as gender and age) and interest data enable us to understand user characteristics.

LINE DATA SOLUTION also enables detailed verification of advertising campaign effectiveness within a secure environment. This can be further combined with TV commercial viewing data from STADIA, purchase data from partner companies, location data, and survey data from questionnaires conducted biannually targeting hundreds of thousands of people.

For example, it visualizes how much 1-to-1 communication via official accounts contributes to purchases. It also shows synergistic effects when TV commercials and LINE ads run together.

──What types of clients use LINE DATA SOLUTION?

Akazawa: Clients from all industries use it, but since continuous 1-to-1 communication is a key feature, it's often used in cases where brands or products are working to build a fanbase. The key point of LINE DATA SOLUTION is that it allows you to analyze data obtained through 1-to-1 communication starting from LINE IDs, or to design communication based on that analysis data.

Yahoo, with its vast behavioral data, and LINE, skilled in 1-to-1 communication
 

From left: Mr. Oshita of Dentsu Digital Inc., Mr. Akazawa of Dentsu Inc.

──What is the biggest change in data utilization since LINE and Yahoo merged?

Aihara: It's the "linking of LINE IDs and Yahoo! JAPAN IDs." We aim to integrate the data held by each platform to enable more detailed analysis and delivery.

As the shift away from third-party cookies in internet advertising gains momentum, this ID linkage enables multifaceted analysis and delivery while respecting user privacy. The integration of the two IDs has been progressing steadily since the merger. Currently, approximately 25 million IDs are already linked, and this number is expected to continue growing.

──That's a huge number! Does this mean the number of users who have consented to the "linking of the two IDs"?

Yamamoto: That's correct. Currently, we collaborate with various Dentsu Group companies in Japan within the respective analysis environments of LINE and Yahoo. Going forward, we will integrate these analysis environments. We aim to provide analysis leveraging Yahoo's vast behavioral data and LINE's strength in one-to-one communication, enabling us to offer even more sophisticated proposals to our clients.

Aihara: We are actively working on ID linking right now. Our goal is to achieve more appropriate communication with consumers by leveraging each other's data and advertising solutions. We also frequently hear requests from clients like, "We want to distribute content using Yahoo's data while utilizing LINE Official Accounts."

──And on top of that, you can also combine it with the data held by Dentsu Inc. and Dentsu Digital Inc. How is the data held by Dentsu Inc. being utilized?

Akazawa: Dentsu Inc. provides "TOBIRAS," a system that centrally manages multiple data clean rooms. We use TOBIRAS for data integration with LINE Yahoo too. It enables seamless integration of STADIA TV viewing data and location data with LINE Yahoo's data, allowing for faster, more multifaceted analysis.

Incidentally, at Dentsu Inc., we view the fragmentation between "data," "analytics," "planning," "customer experience," and "effectiveness verification" as one of the challenges in modern marketing. To seamlessly connect these elements, we are building a next-generation marketing model called "Marketing For Growth." Its purpose is to holistically support our clients' marketing transformation and contribute to business growth. "TOBIRAS" is one of the key components enabling this connectivity.

Yamamoto: From our perspective, Dentsu Inc.'s TV viewing data stands out as particularly distinctive. While TV and digital can compete for audience share in some ways, we often hear strong client demand for combined TV and digital analysis. So we're very pleased to continue this collaboration.

Oshita: Likewise, we look forward to working with you!

From ad delivery to purchase and fan conversion. What is the "Connect One Initiative"?

──What kind of analysis are Dentsu Inc. analysts, including Mr. Akazawa, conducting using LINE Yahoo's data?

Akazawa: Even with abundant data, clients can't use it directly. Our main approach is performing "cross-tabulation" by combining different datasets to extract user characteristics.

While data utilization varies by marketing approach, LINE DATA SOLUTION's work falls into two main categories. One is verifying the effectiveness of delivered ads. This involves analyzing how the actions of people exposed to the ad align with the client's set KPIs.

The other is extracting "characteristics of people who buy" from the data. For example, we explore conditions like "people with these interests and these demographic attributes are more likely to buy." These two approaches are central.

──As Dentsu Inc. and Dentsu Digital Inc., what changes do you anticipate from the LINE Yahoo integration?

Ōshita: It seems we can also contribute to clients' "abstract challenges." Yahoo! can capture diverse behavioral data, while LINE can capture different data through individual communications.

For instance, we should be able to respond flexibly to vague concerns or questions-like challenges such as: "We want to maintain touchpoints with users over the medium to long term," "We want to establish intermediate KPIs," or "What is the prevailing public sentiment (within the client's business area)?"

──So it's not just for traditional advertising campaigns.

Ōshita: Yes. At HAKONIWA, we've always approached things strictly from the client's "challenge-based" perspective, responding flexibly. Beyond that, it can also be used to "identify challenges" in the first place. By analyzing from various angles whether the current advertising strategy is truly appropriate, we can uncover the underlying issues.

Yamamoto: We also frequently get requests from clients advertising across multiple platforms to analyze which platform delivers greater reach or contributes more to purchases. As Mr. Oshita mentioned, we can address issues that can't be solved within the traditional "platform × client" framework. So even if you have vague concerns, please feel free to consult with us.

──As LINE Yahoo, what are your future plans?

Aihara: Our vision is embodied in the "Connect One Initiative." This represents the next evolution of 1-to-1 communication.

Through data analysis, we aim to deliver ads tailored to target users. This not only raises awareness of clients' products and services but also drives purchases. Furthermore, we want to seamlessly connect this with subsequent ongoing communication to foster fan loyalty—all through LINE and Yahoo's integrated solutions.

──While 1-to-1 communication is a major feature of LINE, incorporating Yahoo data and Dentsu Inc.'s proprietary data further optimizes that communication, correct?

Aihara: Users who follow a company's official account on LINE tend to show a high level of interest in that company. We aim to deliver appropriate messages based on data analysis to meet the individual needs of each such user. By doing so, we hope to make the world a little better—to realize a world that is convenient and rewarding for both companies and users.

Yamamoto: Analyzing Yahoo's vast search data (search queries) reveals what groups of users who are "friends" on LINE have actively searched for—essentially their interests and preferences. Based on this, we can distribute messages via LINE Official Accounts that users who are friends are likely to find interesting, or encourage friend additions to more suitable users. We believe this connects clients with highly loyal users.

──So this rich data comes alive to deliver messages that delight users without causing discomfort. From Dentsu Inc.'s perspective, where do you see LINE Yahoo's potential?

Akazawa: LINE Yahoo offers not just advertising, but a very diverse range of services. In fact, I used Yahoo's transit navigation app to get here today. Therefore, I believe each analytical environment accumulates vast amounts of data, proportional to the number of services they operate.

First, we'd be delighted to collaborate on organizing that vast data—with user consent—into a format suitable for analysis and distribution.

Oshita: I believe the over 100 LINE and Yahoo services combined currently exist as isolated "points." The ideal would be connecting these points according to client needs.

We envision a future where we can deliver the most useful, optimal messages to users connected to companies via LINE Official Accounts. This would be achieved by leveraging all available data from LINE Yahoo, Dentsu Inc., and partner companies. We look forward to continuing our collaboration!