Logly

Basic Information

Stock Code
6579
Industry
Service Industry
Category Detail
Advertising
Prefecture
Tokyo
Establishment Year
May 2006
Listing Year
June 2018
Official Website
https://corp.logly.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Digital Holdings, United, Septeni Holdings, Beemap, CyberAgent, GMO Internet, i-mobile, Jimoty, Kopa, Digitariift, Ibis, MicroAd, Glad Cube

Overview

Logly is a pioneering company in online advertising delivery and data marketing, founded in 2006, providing a native advertising platform based on machine learning.

Current Situation

Logly recorded consolidated sales of approximately 3.96 billion yen in the fiscal year ended March 2021, but posted a net loss due to declining sales from acquired businesses. Its main native advertising platform 'LOGLY lift' has been adopted by more than 400 companies and holds a competitive edge with proprietary technology that does not rely on cookies. Leveraging machine learning and natural language processing technologies to maximize advertising effectiveness, it also offers BtoB content marketing support, video popup service 'OPTIO', and user analysis DMP 'Juicer'. In recent years, it has focused on overseas expansion, including starting OEM provision in Taiwan to drive business growth. Despite challenges such as the COO's resignation in 2022, it anticipates sustainable growth in the medium to long term backed by the expansion of the digital advertising market and increasing demand for data utilization. It continues to strengthen its business through technological innovation and acquisitions to enrich its services. Moving forward, it aims to deepen machine learning technology in the increasingly competitive advertising delivery industry, expand its customer base, and achieve revenue recovery.

Trivia

Interesting Facts

  • Developed Japan's first native advertising delivery platform.
  • Achieves targeting with machine learning without cookies.
  • Listed on Tokyo Stock Exchange Mothers in 2018.
  • Also operates an eSports tournament platform.
  • Founder established the company while attending Waseda Graduate School.
  • Can analyze ad effectiveness with vast pattern data.
  • Over 400 publishers have adopted native advertising.
  • Has subsidiaries moto and Cross Tracks.
  • Focuses on BtoB content marketing.
  • Offers video popup OPTIO service.
  • Data marketing Juicer has a free plan.
  • Management change due to failed acquisition.
  • Began OEM provision in Taiwan and promotes international expansion.
  • Acquired ZENBACK business from Six Apart.
  • Also aggregates net news sites.

Hidden Connections

  • Founding location is Ashikaga City, Tochigi Prefecture, with deep ties to Waseda Graduate School.
  • Long-term collaboration with Six Apart continues.
  • Possesses technology platform connecting advertisers and publishers.
  • Exploring new ad revenue models through eSports tournament operations.
  • Acquired moto is a job-related media, attempt at cross-industry entry.
  • Strengthening BtoB support field through joint venture with Cross Tracks.
  • Proprietarily developed natural language processing for ad context analysis.
  • COO resignation incident drew attention as a governance issue.

Future Outlook

Growth Drivers

  • Growth and shift in the digital advertising market
  • Increasing demand for alternative technologies due to cookie regulation strengthening
  • Advancement of AI and machine learning technologies
  • Expansion of demand for BtoB marketing support
  • eSports market expansion and related ad growth
  • Technology enhancement compliant with data privacy regulations
  • Expansion of OEM business in overseas markets
  • Activation of online consumer activities
  • Promotion of digitalization in the post-corona era
  • Increase in digital ad adoption by mid-sized and small enterprises
  • Growing importance of content marketing
  • Expansion of cloud service utilization

Strategic Goals

  • Secure top share in domestic native ad market
  • Achieve 2 billion yen in annual data marketing service sales
  • Strengthen BtoB content marketing business
  • Establish eSports ad platform
  • Position as industry leader with sustainable ad technology
  • Diversify services through collaboration with Cross Tracks
  • Expand overseas OEM business revenue ratio to over 20%
  • Complete privacy-protecting ad technology
  • Strengthen corporate governance structure
  • Continue social contribution activities and environmental impact reduction

Business Segments

Advertising Delivery Platform Business

Overview
Platform business aimed at maximizing ad effectiveness across diverse industries.
Competitiveness
Technology for attribute analysis using machine learning without cookies.
Customers
  • Publishing and media companies
  • Retailers
  • Consumer goods manufacturers
  • Financial institutions
  • Healthcare companies
  • IT companies
  • Advertising agencies
  • E-commerce companies
  • Small and medium-sized enterprises
  • Large enterprises
Products
  • Native advertising delivery platform
  • Display ad management tool
  • Effect measurement and analysis service
  • Advertising effectiveness maximization system

Data Marketing Business

Overview
Provides services to improve marketing effectiveness using data.
Competitiveness
DMP service that can start with a free plan.
Customers
  • E-commerce operators
  • Advertisers
  • Marketing companies
  • IT companies
  • Content providers
Products
  • DMP platform 'Juicer'
  • User attribute analysis tool
  • Marketing support reports

BtoB Content Marketing Support

Overview
Support business aimed at sales support and brand value enhancement for BtoB companies.
Competitiveness
Specialized expertise through collaboration with joint venture Cross Tracks.
Customers
  • BtoB companies
  • Content production companies
  • Advertising agencies
  • Marketing personnel
  • Sales departments
Products
  • Content marketing support tool
  • SEM/SEO consulting
  • Digital promotion planning

Video Promotion Support Service

Overview
Video display service aimed at prompting action from site visitors.
Competitiveness
Operability specialized in viewing promotion and effect measurement technology.
Customers
  • Corporate marketing personnel
  • Website operators
  • Retailers
  • Educational institutions
  • Service industries
Products
  • Video popup display service 'OPTIO'
  • Click promotion tool
  • Promotion effect analysis service

eSports Tournament Platform

Overview
Contributes to eSports revitalization by hosting prize-bearing tournaments.
Competitiveness
Novelty of the model attaching prizes to all tournaments.
Customers
  • eSports operators
  • Game companies
  • Advertising sponsors
  • Player communities
  • Fans
Products
  • Prize-bearing tournament operation system
  • Sponsor collaboration tool
  • Participant management platform

Competitive Advantage

Strengths

  • Machine learning-based ad optimization technology
  • Proprietary platform without cookies
  • Diversified data marketing services
  • Broad industry customer base
  • Technological innovation and aggressive acquisition strategy

Competitive Advantages

  • Realizes contextual ads with advanced natural language processing
  • Reliability from over 400 adoption cases
  • Service portfolio supporting both BtoB and BtoC
  • Strategy to capture SMEs with free DMP provision
  • Diversification promotion through new entry into eSports market

Threats

  • Intensifying competition in the advertising market
  • Risk of poor performance from acquired companies
  • Stricter personal information protection regulations
  • Burden of keeping up with the speed of technological innovation
  • Competitive pressure from major platformers

Innovations

2021: Acquisition of moto Co., Ltd.

Overview
Made the job change media operator a wholly-owned subsidiary to expand business.
Impact
Expanded business areas but became a factor in temporary loss recording.

2020: Entry into Juicer User Analysis DMP Business

Overview
Acquired external DMP service to strengthen data marketing business.
Impact
Contributed to customer base expansion and service diversification.

2022: COO Resignation and Organizational Restructuring

Overview
Reviewed management structure due to losses from poor performance of acquired companies.
Impact
Advanced clarification of management responsibility and organizational reorganization.

Sustainability

  • Promotion of paperless offices
  • Reduction of environmental impact from in-house IT infrastructure
  • Efforts to improve transparency in corporate advertising
  • Compliance with in-house regulations on personal information protection
  • Reduction of business travel through online meetings