Digital Garage Reaches Commercial Agreement With DoubleRecall to Introduce Brand Advertisement Technology Using Keyword Input to Japan

Digital Garage, Inc. (JASDAQ: 4819, Head Office: Shibuya-ku, Tokyo, President & Group CEO: Kaoru Hayashi, henceforth DG) has reached a commercial agreement and commenced cooperation with DoubleRecall, (Head Office: New York City, NY, CEO: Robert Farazin), a U.S.-based company which provides DoubleRecall (, an online advertising solution that enhances brand association to viewers by requesting keyword input within the advertisement itself. Based on mutual consent between DG and DoubleRecall, DG Incubation (henceforth DGI), DG’s wholly-owned subsidiary for investments and new business development, has invested in DoubleRecall and will represent its service in Japan.

DoubleRecall was initially launched in Slovenia, Europe, the developer’s home country in January 2011, and has been incorporated in 80% of the news websites in Slovenia. Supported by the U.S.-based, influential startup nurturing program, Y Combinator, DoubleRecall currently has headquarters in New York City, where numerous U.S. media firms have offices, and is working towards its incorporation into multiple major media websites. In Europe, brand marketing initiatives using DoubleRecall have been launched by numerous world-class brands including Mentos, Red Bull, Nissan, Renault, Volvo and Pfizer.

Another reason why this advertisement technology has gained attention is the ease in expanding distribution of company and product-branding advertisements over the Internet. Conventionally, it was difficult for brand advertisement fees to flow into the Internet advertisement market. For example, the total market size of the product-branding advertisement was $91B in U.S. in 2009. However, the amount spent on online advertisement was only $6B(*1). Digital Garage aims to increase the portion as DoubleRecall penetrates the advertisement industry.

Media companies introducing the DoubleRecall service are asked to embed DoubleRecall advertisement space along the access routes to specific content on their media, such as articles and pictures. This content is initially hidden during visitor access, and is substituted by specific brand advertisements which are displayed in the embedded advertisement space. These advertisement spaces are located in highly visible areas of the website, resulting in a high volume of attention. The hidden content is displayed once a visitor enters the keywords highlighted in the advertisement message into an input line within the advertisement space, thereby engaging the visitor to interact with the brand(*2). Media companies gain a new method to increase sales through this system, in addition to banner advertisements and membership subscriptions(*3). Advertisers improve brand awareness among visitors through the keyword input system(*4). Visitors to the website can access premium content simply by brand engagement, without registering or a subscription.

As a strategic partner to DoubleRecall, DG supports the service’s expansion in the Japanese market by providing business development support, marketing activities, assistance with the development of movie, application and smartphone browser versions of the service as well as supporting its localization efforts. DG has already begun contacting Japanese media companies and advertisers regarding market testing, scheduled for March 2012.

Contact for advertiser and media company inquiries on test marketing:
Tel: +81-3-6367-1020 Leo Shiraishi

Company Name DoubleRecall, Inc.
Date Founded January 2011
Headquarters New York City, NY, USA
Co-Founder Robert Farazin
Key Shareholders Y Combinator, Start Fund, SV Angel, ITOCHU Technology Ventures, Mentor Equity, TEEC Angel, DG Incubation

(*1) analysis based on data from Barclays Capital, Think Equity Partners, LLC and DMA
(*2) According to cumulative data from campaigns implemented by DoubleRecall with multiple advertisers and media companies in Europe and the U.S. during Q4 2011, 82% of visitors (based on the number of visitors expressing interest in accessing premium content, derived through a proprietary formula) responded to the request for keyword input.
(*3) The average CTR (click through rate) for the above campaign was 3.6%.
(*4) A study released by The Wharton School, University of Pennsylvania reported that brand association is more than 11 times stronger for advertisements which ask users to enter keywords as compared to common banner advertisements.

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