Eyes: Main business is the advertising industry-specific platform “Media Radar” | Money Post WEB

*10:52JST Eyes: Main business is “Media Radar,” a platform specialized for the advertising industry
Eyes＜5242＞provides services such as “Media Radar,” a platform specialized for the advertising industry, and “Trummy,” a word-of-mouth marketing platform. Media Radar accounted for approximately 52% of first quarter sales, and Trammy for approximately 38%.

Media Radar is used by companies with advertising and marketing services to acquire leads throughout the year. Its main revenue stream is the multiplication of the “number of paid downloads” from downloading materials by the “cost per lead,” resulting in a business model with a gross profit margin of 100% with no cost of sales. It has the No. 1 share in acquiring potential customers in the advertising industry, and recently revised the minimum cost per individual lead from 2,000 yen to 3,000 yen. Meanwhile, Trammy has approximately 140,000 members (as of January 2024), mainly consisting of ordinary women in their 20s to 40s who use social media. Its main revenue stream is the multiplication of the “number of cases” by the “cost per case,” resulting in a business model with a gross profit margin of 81%.

Sales in the first quarter of 2024 were down 2.6% year on year to 267 million yen, and operating profit was down 82.6% year on year to 12 million yen. Operating profit was due to upfront investment in advertising expenses aimed at strengthening Media Radar's member acquisition within the black. Trammy's sales were down 21.3% year on year due to a temporary reduction in advertising due to regulations on stealth marketing, but this was a one-off factor, and Media Radar's sales increased 15.0% year on year to a record high. Full-year sales are expected to increase 4.2% year on year to 1,062 million yen, and operating profit to decrease 48.7% year on year to 20 million yen.

There is no competition for either of the two main services, Media Radar and Trammy, giving the company a major advantage in the businesses it is developing. Online advertising is a growing market, and the company's performance is likely to remain strong as the market expands. In addition, while it costs tens of thousands of yen per person to acquire potential customers in the advertising industry on platforms such as Google, Media Radar's Media Radar can acquire potential customers for just a few thousand yen per download. Currently, operating profits are expected to decrease due to upfront investments, but the company still has room to increase the unit price of downloads, making it easy to envision medium- to long-term growth from next fiscal year onwards.

＜NH＞