Summary of the First Half of FY2015 and Management Strategy

Outlook in the advertising market - Progress of digitization

  • Now, I would like to discuss the outlook for global advertising expenditure.
  • Based on advertising expenditure estimates by Carat, our global media agency, we expect steady growth to continue into 2016, despite geopolitical risks in some regions.
  • The digital domain, in particular, is likely to continue its double-digit growth, with its ratio in the overall advertising expenditures is expected to reach 26.5% in 2016.
  • With the rise of the digital economy, the competitive environment for clients, as well as the business environment surrounding us, is changing rapidly. It is said that changes in the next five years will be more rapid and dramatic than those in the past 15 years.
  • With the accelerating digital shift of clients' marketing activities, their marketing and advertising requirements in the digital domain are becoming more diversified and sophisticated. So, the role of agencies is increasingly important, as we continue to support our clients in:
    • The programmatic trading of media buying;
    • Digital solutions for creativity and content; and
    • Data analysis for business decision-making and consumer engagement strategies.
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