May 23, 2023

MatsukiyoCocokara & Co. is Expanding its Advertising Platform Business called "Retail Media."

The company receives advertising fees from clients to promote its products on its e-commerce (EC) sites and apps. It is unique in that it uses accumulated data on consumer purchases. If penetration occurs, the business model of retailing could change dramatically from the sale of goods.

MatsukiyoCocokara has been working on these retail media since the fiscal year 2016, gradually increasing their accuracy. For example, Kao's sunscreen "Biore UV" advertisement in 2022 recorded 620,000 sales, three times more than planned.

The difference between existing advertising and retail media lies in the vast amount of customer data that is a "treasure" for retailers and their ability to analyze it.

In the case of MatsukiyoCocokara, the source is approximately 130 million customer contacts tied to loyalty cards and apps. The analysis is precise, with about 2,800 analysis items per person, including gender, generation, in-store and e-commerce purchases, and use of each campaign, to create a "real image of the consumer."

There is also an ingenious timing for notifying advertisements. Suppose a product is likely in high demand in the summer. In that case, it can be set up in advance as "Temperatures above 25 degrees, humidity above 40%." Each store is tied to one of approximately 200 weather observation points nationwide. When weather conditions are met, advertisements are notified to potential customers living near the store in real time.

Electronics stores are also moving. Yamada Holdings will work with CyberAgent on a demonstration experiment to deliver optimal digital advertising based on customer purchase data. For example, the company offers discount information on TV trade-ins to customers who have reached the goal of replacing their TVs 10 years after purchase.