Digital Ad Communications

DEGITAL ADVERTISING COMMUNICATION

Decoding sei-katsu-sha with data resolution.
Digital ad operations by Hakuhodo DY ONE, which stays close to sei-katsu-sha.

Data is a crucial element in understanding sei-katsu-sha. Hakuhodo DY Group’s sei-katsu-sha insight is a philosophy that seeks to understand sei-katsu-sha from all angles and gain deep insights in order to create new value. In digital marketing, having high data resolution is the key to realizing this sei-katsu-sha insight. Hakuhodo DY ONE aims for digital advertising operations that closely follow sei-katsu-sha by leveraging data to capture each individual’s interests, behaviors, and even latent needs in high resolution. We then optimize digital ad communications to deliver business results for our clients.

NEXT-GENERATION DIGITAL ADVERTISING

As business applications of AI accelerate, the advertising industry is seeing full-scale AI adoption by major platform companies. Hakuhodo DY ONE leverages AI for tasks traditionally handled by planners, such as industry analyses, understanding client businesses, persona designs, and copy development. The use of AI enhances the accuracy and improves the efficiency of these tasks while delivering high-quality services.

Hakuhodo DY ONE’s ultimate aim is to maximize client business outcomes. Recognizing that further ad delivery advancements and efficiencies are crucial to fulfilling this aim, we have been pursuing a unique AI orchestration approach to ad deliveries. This approach integrates cutting-edge AI technology with expertise in strategy planning developed over many years. With this approach, we are arranging the foundations for next-generation digital ad operations, centered on ONE-AIGENT, a service where multiple specialized AI agents collaborate to provide end-to-end marketing process support.

ONE-AIGENT image

With ONE-AIGENT, we are building the infrastructure to coordinate across AI agents the data needed to plan and execute client strategies. This data includes the client’s first-party data, Hakuhodo DY Group’s data, platform provider data, and third-party data. This infrastructure will enable flexible analytics optimized for each client and is expected to dramatically enhance data resolution.

Advanced ad operations driven by AI automation

In the AI agent era, tasks like ad operational design and execution will be compressed through AI automation. This will allow human operators to focus on management tasks such as issuing instructions, making adjustments, and decision-making. Consequently, personnel will spend more of their time on tasks related to marketing insights, such as communication planning, analytics, hypothesis design, and strategy proposals. This will head the drive toward more sophisticated marketing plans.

Advanced ad operations driven by AI automation image

THREE PILLARS

Hakuhodo DY ONE was established to be the digital core of the Hakuhodo DY Group. Building on ad operational expertise developed since the dawn of the Internet, and by pooling the Hakuhodo DY Group’s knowledge and resources, our media buying power has been dramatically enhanced. This lets us realize highly flexible ad placements and provide ad options exclusive to the Group. Working from this solid foundation, we have constructed a marketing support system that rests on three pillars: the power of talent, the power of technology, and the power of creatives.

Talent who make full use of data and AI to thrive in the AI era

One of Hakuhodo DY ONE’s strengths is our people. Our team of experts, having multifaceted skill sets and a wealth of practical experience, has the capacity to respond swiftly to market changes and engages with marketing with the tactical thinking required in the AI era.

Multifaceted skill sets and a wealth of practical experience

We have on staff experts possessing both specialized knowledge and hands-on experience in the ad operations, creatives, and technology fields. For example, a creative expert with several years of experience in ad operations can combine operational knowledge with creative insights to design and improve effective, data-driven creatives.

Swift responses to market changes

We monitor market shifts and emerging trends from all angles, including advertising technologies, adjacent technologies, and consumer behavior, to direct our R&D and service development. We immediately share identified changes and trends with our internal experts so the developments can be reflected when implementing client marketing. By integrating all in-house activities, from R&D to marketing support, we are able to assist clients using the very latest information and technology.

Tactical thinking needed for the AI era

In an era where AI is increasingly handling ad operations, tactics like hypothesis design and planning are areas where humans collaborating with AI can create the greatest value. Hakuhodo DY ONE is able to create emotionally resonant communications, which AI struggles with, with advanced tactical thinking, such as hypothesis design, strategy development, and complex situational judgment, that is informed by our sei-katsu-sha insight. We derive optimal tactics that make full use of data and AI and steer client businesses toward success, by means of our talent, possessing multifaceted skill sets, combining insights across fields.

Ad strategies backed by the most advanced technologies to navigate change

Another of Hakuhodo DY ONE’s strengths is technology. As a leading ad operations company, we drive technology development both internally and externally so we can deliver the most advanced digital marketing support to respond to rapid change.

WISE Ads: A DSP that provides enormous data volumes for safe and transparent ad deliveries

Hakuhodo DY ONE independently developed and operates WISE Ads, a DSP that can deliver ads to all sei-katsu-sha media touchpoints, both online and offline. WISE Ads efficiently links diverse ad placement locations and data with integration tools, connecting to over two trillion data points, including the Hakuhodo DY Group’s sei-katsu-sha data platform and our AudienceOne® DMP. Furthermore, it is the only platform in Japan to include world-class brand safety features as standard, enabling ad deliveries where the quality, safety, and transparency of ad placement locations is thoroughly ensured.

WISE Ads: A DSP that provides enormous data volumes for safe and transparent ad deliveries
Learn more about WISE Ads

Applying and developing technologies that rapidly adapt to external changes

Major platforms are rapidly adding AI capabilities to existing tools for advertising and analytics. This is significantly transforming ad delivery mechanisms, shifting from traditional targeting methods that segment audiences to creative-first targeting approaches. Given this situation, Hakuhodo DY ONE has built a robust framework capable of rapidly responding to such external changes through the Group’s application of the right technologies and development of new technologies. At the same time, having strong relationships with platform providers, in-house system development capabilities, and flexible on-site personnel is also crucial. So by having field-specific experts work and collaborate together, we can update ad operations quickly and at high quality standards, which helps clients achieve better results.

Creatives that resonate with sei-katsu-sha

Creatives are another key strength at Hakuhodo DY ONE. Since creatives greatly influence the outcomes of digital advertising, we merge deep insights into sei-katsu-sha psychology with the power of data and AI to deliver creatives that resonate with sei-katsu-sha and thereby maximize our clients’ business performance.

Policy on creatives for programmatic advertising

In an era where most ad operations are automated and generative AI can produce creatives, Hakuhodo DY ONE believes that creatives that produce results consist of three key elements:

1. Discovering winning creatives that deliver outstanding results
2. Generating and distributing large quantities of creatives to ensure performance
3. Designing and executing continuous improvement through PDCA cycles

Including all these elements is crucial. In programmatic advertising, creatives focused solely on quantity or quality alone struggle to achieve acceptable results. We believe the shortest path to maximizing results lies in how effectively these elements are combined.

A dual AI + human approach that maximizes results

In an era where advances in AI are driving the automation of creatives generation and delivery, we believe that optimized collaborations between AI and humans is the creative strategy that produces real results. Hakuhodo DY ONE maximizes the potential of digital ad creatives by combining AI’s strength in efficient mass creatives generation and optimization based on data with humans’ strength in creativity based on ideas and insights.

We operate these two approaches as one function, tailoring the level of AI and human involvement to each client’s business phase and objectives.

Policy on creatives for programmatic advertising
  • Mass-generated creatives:
    We efficiently mass-generate a multitude of creatives driven by data and AI to ensure results, making full use of AI-generated creatives and AI optimizations.
  • Craft creatives:
    We produce high-quality creatives driven by ideas that resonate with sei-katsu-sha with the use of the rich imagination and deep insights unique to humans.

AI excels at learning and deriving answers from vast amounts of historical data. Humans, however, excel at generating new concepts from scratch and creating ideas that no one has thought of before. Furthermore, human judgment remains indispensable at the present time for managing risks (such as hallucinations) to prevent damage to brand images.

This is why Hakuhodo DY ONE pursues maximized results achievable only with our dual approach: flexibly adjusting approaches by using the respective strengths of AI and humans.

Policy on creatives for programmatic advertising 2

Optimizing the level of AI–human collaboration according to your business phase and objectives

We propose strategies for creatives with optimally adjusted levels of AI–human collaboration, tailored to the client’s business phase and ad operational needs and objectives.

Strategy examples: AI-human collaboration levels

  • When looking to discover early-win patterns:
    We take an approach that increases human involvement in phases, such as launching an account, where clients want to find winning creatives as early as possible, which requires human planning expertise.
  • When looking to maintain and expand results efficiently:
    We take an approach that promotes AI automation in phases, such as when ad results have stabilized, where clients want to reduce reliance on people in creative strategy designs or to secure results with large volumes of creatives while keeping costs down.
  • When seeking urgent ad improvements and deployments:
    We take an approach that maximizes mass AI generation of creatives in phases, such as when results are not stable and improvements to creatives are needed, where clients want to increase the volume of creatives deployed to find winning patterns.
Optimizing the level of AI–human collaboration according to your business phase and objectives

In this way, we drive results by thoroughly understanding the client’s circumstances, optimizing the level of collaboration between AI and humans, and strategically determining what type of creatives to deliver.

Our workflow for creatives delivers both results and efficiencies

Using our unique workflow for creatives powered by ONE-AIGENT, we standardize AI utilization across all processes to achieve both results and efficiency.

  • Design strategies and promotion axes:
    AI and humans collaborate to explore communication designs and key promotion points.
  • Overall structure and rough draft production:
    This stage combines a wide range of pitches generated by AI with video direction and brand image assurance by humans.
  • Result predictions:
    In this stage, we assess the performance of creatives before deployment via AI-powered result predictions and video analytics.
  • Mass production and expansion:
    Based on winning patterns identified by AI during the initial deliveries, AI generates drafts of variations for efficient expansion of ad deployment.
Our workflow for creatives delivers both results and efficiencies

By leveraging ONE-AIGENT, we draw on the unlimited potential of AI, as well as on human creativity and strategic thinking, to contribute to our clients’ business growth.

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