Collaboration with Vatic of Singapore to Provide Targeted Advertising Driven by Keywords without Relying on Cookies

Tokyo, October 25, Dai Nippon Printing Co., Ltd. (DNP) is pleased to announce a collaboration with Singapore-based Vatic AI LLC. (Vatic), a provider of proprietary digital ad distribution solutions, we jointly launched a targeted advertisement (ad) distribution and analysis service that does not rely on third-party cookies¹.

In recent years, laws have been enacted, from the perspective of privacy protection, to restrict cookies, and their use is scheduled to be totally abolished in the second half of 2024. As a result, there is a demand for advertising services that do not rely on cookies. One example that is attracting attention at present is Contextual Targeting Advertising (CTA²), which analyzes the content of a website and selects the most suitable website for ad distribution. To date, however, CTA has not been able to offer targeting that takes into account the attributes of website visitors. 

To address these issues, DNP is leveraging the services of Vatic to target ads, both on delivery destination websites that are more ad-concentric, as well as targeting based on website visitors, who are more likely to be interested in specific ads. By displaying such targeted advertising it will be possible to achieve highly effective ad distribution. 

Service Feature

Selecting websites visited by potential target users

The strength of Vatic lies in a proprietary algorithm that analyzes the purpose of a website based on the content controlled by the media company that holds the advertising space, and the attributes of past visitors. By setting keywords that are easily searched by search engines in ads and websites, and by comparing each keyword, it is possible to identify websites with a high affinity for each type of advertisement. In this way it will be possible to increase the effectiveness of ad displays.

Selecting visitors to each website who are likely to take action in response to advertisements 

The service displays ads only to those who visit identified websites, and who are likely to be interested in the ads. When a consumer uses a member site and provides personal information by way of agreement with its use for advertising purposes, this function encrypts that information to create an ID, which it then leverages for use with cohort IDs for users with similar attributes. By distributing ads limited to a cohort of website visitors who are expected to show a high level of interest in the advertised product or service, it is possible to achieve more pinpoint and secure targeting. 

Advertising fees are charged when a user stays on the advertised website for 10 seconds or more

Most digital advertising is charged based on the number of clicks, but with this new service, advertising fees are only charged if a website visitor stays on the advertiser's website for more than 10 seconds after clicking on the ad. This helps advertisers prioritize spending on ads to visitors who frequently browse websites and are likely to take actions such as purchases.

“We are excited to partner with DNP Japan, a leading provider of printing and digital services in Japan with over 147 years of innovation” said Michael Hahn, CEO of Vatic AI. “DNP Japan has a strong customer base and a deep understanding of the Japanese market. Together, as the first and only provider of Vatic's global AI advertising solutions in Japan, we are confident that our partnership will enable us to reach a wider audience of businesses in Japan and help them achieve and exceed their advertising goals while putting user privacy as our number one priority at all times. Due to DNP’s unique and innovative ability to deploy proprietary cutting-edge tech in the region we expect this partnership to result in significant market share growth and sales growth for both Vatic AI and DNP Japan.”

Going Forward

In order to meet the need to increase the effectiveness of web advertising that does not use cookies, DNP is researching overseas markets where a variety of services are already being developed. We also lead our competitors in partnering with global ID vendors to introduce cookie-free ID solutions in Japan that can be used to promote a broad range of actions, from product awareness to purchasing. By combining this new service with our existing solutions, we aim to achieve aggregate sales of 10 billion yen by 2025.

In addition, we plan to further develop and provide digital advertising solutions that balance personal information protection with corporate advertising activities. We will also expand our Post-Cookie service, and develop a new customer data analysis platform.

1: Third-party cookie: A file created on the user's PC issued by a server of a third-party advertising company that is not the user or the site visited.

2: Contextual Targeting Advertising: An ad delivery method that analyzes text, images and video on a website, selects the most suitable ad to match the content and context, then displays it in ad space.

*For more information about Vatic, please visit: https://vaticai.com/ 

*Company names and product names mentioned in this news release are the trademarks or registered trademarks of those companies.

*Product specifications and service details mentioned in this news release are current as of the release date. They may be changed without notice.