Dentsu Inc. has released a new solution called "ChiraSeeCycle" that visualizes the store visit effects of newspaper insert flyers, enabling its use for optimizing media selection, distribution volume, and budget allocation. Aimed at updating the effectiveness verification of flyers as an advertising medium, this solution further supports cross-media budget allocation optimization and maximization of marketing ROI (Return on Investment) by combining it with other media such as digital advertising.
We interviewed Hiroshi Yamazaki and Takumi Uchikura, who were involved in its development. They discussed the key points of the new solution and the specific value it can deliver to clients.
A solution that accurately tracks contact rates and store visit rates using location data
Q. First, could you tell us about your regular work responsibilities and how you became involved in the "ChiraSeeCycle" project?
Yamazaki: I joined the company in 2010. After working in the TV department and media planning, I became responsible for flyer-related OOH (Out Of Home) advertising. That roughly year-and-a-half experience led to the development of "ChiraSeeCycle." Currently, I work in the Integrated Solutions Bureau, handling cross-media planning and formulating advertising strategies.
Dentsu Inc. Hiroshi Yamazaki
Uchikura: I joined in 2020 and have been with the Data & Technology Center for four years now. Starting with location data analysis, I work on proposals and analysis utilizing data clean rooms (cloud environments provided by platform operators to advertisers and agencies. They enable flexible integration and analysis of platform operators' data, companies' first-party data, and multiple external data sources under privacy-protected conditions to meet various needs). "ChiraSeeCycle" is a solution leveraging location data, so it's highly relevant to my daily work, and I've been involved since its early development stages.
Q. What kind of solution is "ChiraSeeCycle"?
Yamazaki: The development team identifies two key points that we believe offer significant value to clients—and could even be considered innovative. First, it enables more effective verification of insert flyer impact tailored to clients' diverse and nuanced needs than ever before. Second, it allows for impact verification not just for flyers alone, but also when combined with other media like digital channels.
Q. Regarding the need for customization aligned with clients' KPIs in effectiveness verification, is this a challenge increasingly demanded not just for flyers, but for all media like TV, newspapers, and magazines?
Yamazaki: Yes, that's correct. Specifically for flyers, the conventional approach to simulating effectiveness typically involved trial and error—stopping, increasing, or decreasing flyers for a particular store—testing various patterns to estimate impact. In other words, predicting flyer effectiveness was, until now, somewhat of an "artisan craft." It required deep knowledge of area characteristics—like knowing "distributing flyers beyond this river won't be very effective"—along with extensive experience and expertise. That remains crucial insight and will continue to greatly inform planning. However, by adding location data, we believe we can now estimate the probability of flyer exposure more holistically, using the metrics clients actually care about.
Q. How exactly does this location-based mechanism work?
Yamazaki: We derive the "probability of flyer contact" from two factors: "probability of reaching the home" and "probability of being read." Location data is utilized for the "probability of reaching the home" component.
We calculate the flyer contact probability using location data from consumers who have given consent for data usage , combined with statistical processing . This is then multiplied by the estimated reading rate derived from the flyer distribution volume and attributes per area. This allows us to estimate "the percentage of people who will likely read this flyer." Furthermore, by integrating this probability with various data at the group level, we can also measure the store visit effect.
Q. So, by utilizing data within the scope of consent, without identifying specific individuals, we can estimate the probability of flyer exposure and whether an actual store visit occurred. This allows us to see the effectiveness of flyers from various angles, right?
Yamazaki: That's correct. As media planners, we see driving store visits as the primary goal for many flyer distributions. Therefore, being able to obtain information on whether residents in the flyer distribution area "read the flyer or not" and "visited the store or not" holds significant value for our clients. Previously, while we knew how many flyers were distributed in each area, methods to identify which areas store visitors came from were limited. Through this initiative, we can now visualize effectiveness by area using the "store visits based on behavioral data" KPI, which many clients set.
Incidentally, the name "ChiraSeeCycle" was decided through team discussion. It combines "See," meaning to visualize the flyer's store visit effect in a way that better communicates its value to clients, and "Cycle," signifying the verification of effectiveness, the execution of the PDCA cycle, and the pursuit of more effective media planning.
Creating Synergistic Effects with Flyers × Digital Advertising
Q. Regarding the second point: verifying effectiveness not just for flyers alone, but when combined with other media like digital or TV—what does this entail?
Yamazaki: By utilizing crowd-level data, "ChiraSeeCycle" allows us to measure which was more effective when running both banner ads and flyers, or how store visits changed when they were combined. Therefore, we believe enhancing flyer effectiveness through digital integration will also be possible in the future.
Q. As digital media usage expands, developing a solution specifically for flyers at this timing feels like an intriguing initiative. What are your thoughts on that?
Uchikura: As a data analyst often responsible for measuring client effectiveness, I routinely measure the impact of digital advertising in my daily work. From that perspective, I felt that compared to digital, the advertising impact of flyers is harder to see. This makes them prone to being underestimated beyond their actual effectiveness, creating an environment where discussions about more effective planning methods are less likely to occur.
However, upon conducting actual analyses and surveys, we've discovered numerous cases where the effect on store visits driven by flyers is remarkably evident. Depending on the planning approach, synergistic effects with digital can also be anticipated. Even for consumers who are digital-first, I find it rewarding as a data analyst to consider how to deliver flyers, think about overlapping effects with digital, and continuously run the PDCA cycle for this.
Regarding media synergy, there are numerous examples within the Dentsu Group, such as "TV × Digital," where messages delivered across multiple media have been proven to drive more efficient attitude change. Similarly, I believe the optimal combination of flyers and other media—in terms of proportion and frequency—to maximize store visit effects represents largely unexplored new insights. This is likely to become a crucial piece of media planning know-how.
Takumi Uchikura, Dentsu Inc.
Yamazaki: From a planner's perspective, observing client situations, I get the impression that even as digital media usage expands, budgets and volumes allocated to flyers aren't actually being significantly reduced. Simultaneously, there's the challenge that weekly flyer insertion has become routine, leaving little time to look back and verify effectiveness. Therefore, I believe the need for more effective flyer utilization remains substantial.
Q. The potential for flyers seems to be expanding tremendously. It's great that we can now strategically plan flyer distribution based on consumer attributes and areas.
Uchikura: Yes, that's correct. There's another potential offered by "ChiraSeeCycle." Initially, the development goal was to enable measuring the effectiveness of flyers inserted using location data. However, by combining this with data from the data clean room, we've seen the potential to delve deeper into consumers' interests and preferences. We believe it won't just be about verifying whether results were good or bad. By analyzing consumers' everyday interest trends, we can gain insights into what kind of creative, delivered to what kind of area, and with what kind of budget, will maximize flyer effectiveness. Updates like deepening insights into consumers where flyers are effective are something we want to continue building upon, while also capturing our clients' needs.
Delivering flyers to the right target audience at the right time
Q. What types of client companies do you envision utilizing "ChiraSeeCycle" in the future?
Yamazaki: Based on feedback from clients so far, I see two main patterns. First, clients who want to clearly demonstrate the store visit effect of flyers or are struggling to further increase their effectiveness. Second, clients who are uncertain about what overall media planning strategy to adopt as the environment surrounding flyers changes significantly.
Specifically, I believe this applies to many clients who use store visits as a KPI. It should be particularly suitable for clients targeting the elderly demographic, or those with an all-target audience approach regardless of age, such as supermarkets, mass retailers, and the food service industry.
Even clients who currently use TV commercials but not flyers can benefit, as we can verify the combined effects of multiple media channels. Discovering new ways to use insert flyers is a theme we, as media planners, are eager to explore. We'd be delighted if you showed interest, even if you currently have no connection with flyers.
Q. Finally, could you share your outlook for the future of "ChiraSeeCycle"?
Uchikura: While I belong to a team primarily focused on data analysis, I want us to remain a partner that truly supports our clients' growth. Therefore, we won't just look at the numbers in front of us; we will steadfastly prioritize addressing our clients' challenges and needs. Through conversations with many client representatives, I've learned that factors influencing store visits aren't limited to gender or past visit history. They include the distance between the store and home, the brand's share in that area, and various other elements. Taking these factors into account, we will continue trial and error while strengthening collaboration with Dentsu tempo Inc., a group company with significant achievements in traditional flyer business. We aim to contribute even more to flyer-based sales promotions and maximize our clients' marketing ROI. We want to build more practically refined solutions together with our clients.
Yamazaki: To put it bluntly, flyers delivered to people who don't read them won't yield results. Delivering them to the right consumers at the right time not only optimizes advertising efficiency and enhances the consumer's media experience but also, ultimately, contributes to protecting the global environment. In that sense, I believe there is real value in operating "ChiraSeeCycle." By effectively combining it with digital and other channels, we can help enrich consumers' purchasing behavior.
"ChiraSeeCycle" uses location data to enable flyer effectiveness verification, which was previously difficult. It can also measure impact when combined with other media like digital advertising. Furthermore, it's a solution that efficiently distributes flyers to meet client needs while also benefiting consumers and society at large.
The information published at this time is as follows.
Joined the company in 2020. Engaged in project management and development centered on location data. Currently also responsible for promoting data business initiatives aimed at introducing and expanding data cleanroom solutions.
After gaining experience in e-commerce site operations, digital advertising management, direct marketing support, and mass media buying, transitioned to integrated marketing operations. Specializes in developing data solutions that visualize business outcomes such as sales and applications, and in planning strategies to maximize business results.
