Digital Garage Establishes
CGM Marketing Jointly with Dentsu, cci and ADK
Launching new marketing business in Web 2.0 era utilizing
CGM
Making investment in and fostering the business of CGM-related
companies and technologies
On August 4, Digital Garage, Inc. (JASDAQ: 4819, Head office:
Shibuya-ku, Tokyo, President & Group CEO: Kaoru Hayashi,
henceforth DG) will establish CGM Marketing, Inc., a company
that will develop new marketing techniques and strategies by
analyzing and utilizing media such as blogs, in which general
consumers provide information through the Internet (Consumer
Generated Media, henceforth CGM). The new company will be co-founded
by DG together with Dentsu
Inc. (TSE First Section: 4324, Head office: Minato-ku, Tokyo,
Chairman: Tateo Mataki, henceforth Dentsu), Cyber
Communications Inc. (TSE Mothers: 4788, President and CEO:
Hideyuki Nagasawa, henceforth cci), and ASATSU-DK
INC. (TSE First Section: 9747, Head office: Chuo-ku, Tokyo,
President & CEO: Koichiro Naganuma, henceforth ADK).
It has been a while since the concept of Web 2.0, a new form
of Internet system and service linkage, was popularized. CGM,
as represented by blogs, is now a key component of Web 2.0
and comprises a significant portion of Internet content. Currently
the number of people who have registered for blogging services,
a representative CGM medium, totals 8.68 million and SNS (Social
Networking Services) subscribers total 7.16 million (as of
the end of March 2006, according to the Ministry of Internal
Affairs and Communications). These numbers continue to rapidly
increase. Accordingly, the frequency of site visits and the
average CGM logon time per person are estimated to greatly
surpass corporate sites (according to the Japan Advertisers
Association). In this phase of transition, CGM content (information
and word-of-mouth knowledge provided by individuals) is playing
an increasingly important role in the lives of consumers.
In response to transitions in the Web 2.0 era, the new company,
CGM Marketing, will invest in and foster CGM-related companies
and technologies, while developing new products and services
that will take the lead in marketing in the era of Web 2.0.
CGM Marketing will organically merge the CGM technologies
and expertise accumulated by DG, the advertising and marketing
resources amassed by Dentsu and ADK, both of which are leading
business corporations in the field and the resources held
by cci, a media representative with state-of-the-art Internet
media know-how.
In concrete terms, the new company will construct a CGM ad
distribution network utilizing the search technology of Technorati
Japan, Inc. (Head office: Shibuya-ku, Tokyo), a subsidiary
of DG providing the largest scale of blog search services
in Japan. The company will also enhance partnerships with
other entities such as "kakaku.com",
the price comparison site managed by a DG Group company, "4travel.jp"
, a word-of-mouth travel information site, "tabelog.com",
a gourmet word-of-mouth information site, Six
Apart KK (Head office: Minato-ku, Tokyo, CEO: Nobuhiro
Seki) and other major CGM-related companies outside the Group,
in order to make proposals for new forms of Internet marketing.
Furthermore, the new company will aggressively promote its
new products and services that have proven successful in Japan
in overseas markets such as the U.S. and China by fully utilizing
the groups' global networks maintained by DG, Dentsu and ADK.
| Outline of the New Company |
| |
Company Name |
CGM Marketing, Inc. |
| Location |
2-43-15, Tomigaya, Shibuya-ku, Tokyo |
| Representative |
President & CEO: Kaoru Hayashi |
| Establishment |
August 4, 2006 |
| Capital |
200 million yen |
| Ratio of Capital Contribution: |
Digital Garage, Inc. |
51% |
| |
Dentsu Inc. |
17% |
| |
cyber communications inc. |
17% |
| |
ASATSU-DK INC. |
15% |
|