2. Affiliate Consolidation Globally Japan Europe US US, Europe, Japan US, Europe 1999 1999 1998 1996 1998 Yahoo! Japan (AOL) ValueClick Rakuten DoubleClick / Google Where When Ownership
10. World leading in Mobile Internet use… In 2005, the number of mobile internet users exceeded PC users. PC Internet Users Mobile Internet Users User only of cellular phone, PHS, and portable terminal (Data: IAC Ministry) 4,980 5,722 6,164 6,416 6,601 2,504 2,794 4,484 5,825 6,923 657 1,061 1,453 1,511 1,921 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 2001 2002 2003 2004 2005 (10thousand)
11. Japanese Mobile eCommerce Market Mobile Market Breakdown Mobile eCommerce Breakdown Mobile eCommerce- purchases, subscriptions, services Contents- downloads to phone, ring tones, screen savers Usage of next generation electronic cash enabled phones (Felica) on the rise
26. VC Advantage: Agency Services ValueCommerce acquired an SEO specialist company, Sozon in 2005. From its SEO roots and position as a Japan’s leading provider of Search Engine Optimization software, Sozon has since evolved to become a leading Search and Online marketing agency for the Japanese & Asian markets. ValueCommerce consolidated its agency & International service offering under the Sozon brand at the end of 2006. Comprehensive Search & Online Marketing Solutions Analytics Site Data Review Log File Analysis / Reporting Conversion Analytics Production / Usability Site Review Navigation & Usability Design Web Design / Production Online Advertising Digital Media Campaign Planning Media Planning / Buying Creative Design & Execution Search Engine Optimization (SEO) Site Analysis & Consulting Web Tuning & Site Optimization Website Ranking & Reporting Pay Per Click Advertising (PPC) Keyword Selection / Buying Bid / Budget Management Copy Writing / Translation Affiliate Marketing (International) Campaign Planning & Optimization Affiliate Program Management Detailed Reporting / Analysis
27. ValueCommerce Advantage – Yahoo! Alliance Sep 2005 Alliance with Yahoo! JAPAN has continuously evolved May 2005 Aug 2005 Invitation to Yahoo! JAPAN research monitors and light monitors Jul 2005 Aug 2005 Aug 2006 Sep 2005 Jul 2006 Dec 2005 Feb 2006 Nov 2006 Jan 2006 Sep 2005 Aug 2006 Yahoo! JAPAN as an e-commerce website (advertiser) Yahoo! JAPAN as a media distribution channel Invitation to launch stores Yahoo! JAPAN Affiliate Program Domestic hotel booking Sales Promotion Overseas tour and hotel booking Storematch (paid listings on Yahoo! Auction) Shoppingstorematch (paid listings on Yahoo! Shopping) Matchsmart (paid listings matched on site content) Nov 2006 All products covered in the database Yahoo! JAPAN provides its Japanese text analysis technology. SHOPPING AUCTIONS TRAVEL Business Travel MESSENGER Premium Services SHOPPING SHOPPING AUCTIONS TRAVEL Web Hosting
28. ValueCommerce + Yahoo! Affiliate Affiliate Program for Yahoo! Geocities & Yahoo! Blog users Affiliate Program for Yahoo! Auctions users Yahoo! Japan Geocities, Blog & Auction monetization
29. Compound Network growth with Yahoo! Japan ValueCommerce 134,000 Yahoo! JAPAN 130,000 Total 317,000 [Number of Affiliate Partners] ValueCommerce 187,000 VC’s affiliate network expanded with the Yahoo! JAPAN tie-up Largest in the affiliate marketing industry ValueCommerce used to recognize a single site that collectively represented all the websites in the Yahoo! JAPAN Affiliate Program. From Sep 2006, this was changed to count all unique websites included via Yahoo! JAPAN. ValueCommerce 404,000 Sep 2006 Mar 2007 Sep 2006 B/D Sep 2005
30. ValueCommerce Mobile: RealAffiliate Affiliate program that directs mobile user from internet to store 1) User receives points for making reservations to visit the store via the affiliated point site 2) Upon completion of purchase at the store, the user is awarded additional points via the ICReader using the Felica enabled handset PC point site Mobile point site QR Code or Email Access User receives points for making reservation Reservation and purchase are confirmed by affiliate Points are awarded to user via the point site Banner Access User visits store After purchase, user zaps IC Reader w/ handset WebTo function confirms sale and points User receives additional points based on purchase Collaborative Project with NTTDoCoMo VC Affiliate VC Affiliate
31. ValueCommerce - New Products - Yahoo! JAPAN Auctions Affiliate Program Website owners and bloggers can earn commissions by carrying ads on items auctioned at Yahoo! JAPAN Auctions. - RSS banner 2.0 RSS Banner 2.0 offers considerably enhanced functions. It supports image, audio and video content and enables affiliate partners to freely create RSS banners based on RSS feeds from e-commerce websites. - ValueCommerce Web Service This service registers product information from e-commerce websites on a product database and offers an Application Program Interface (API) for searching to affiliate partners, to deliver higher sales to both e-commerce websites and affiliate partners. - Pay per Call ad tracking technology - Yahoo! JAPAN Shopping storematch When any Yahoo! JAPAN Shopping customer performs a product search by entering a keyword that coincides with the word pre-registered by a merchant, the text ad designated by the merchant (advertiser) is automatically displayed. A Pay per Call service using affiliate marketing makes it possible to identify details about past phone calls with customers, specifically what websites from ValueCommerce’s affiliate network have led to phone communications from customers. A Constantly evolving Space
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33. Future Strategies: Roadmap for Growth Revenues Period Growth of existing businesses New products and services Partnerships and alliance M&A 2005 2004 2003 2002 SEM Matchsmart E-mail/Mobile Affiliate Services Affiliate Consulting Service Product Links (MyLink) SEO RSS From past growth to the future 2006 2007