Digital Ad Operations Integration and Optimization Project

[Engagement Scope]
1. Integration of strategy and KPI design

• Development of integrated CJM and KPI: We unified the evaluation metrics that had differed across divisions and developed an integrated customer-journey map covering from ad exposure through to device purchase. We defined the state in which all divisions can run PDCA on common metrics.
• Budget-allocation optimization: We analyzed the frequency on each medium and quantified the cost that had become over-investment. We developed an investment strategy that reallocates the budget freed up here to new-customer acquisition.

2. Reach expansion and media exploration

• Selection of new media: To improve reach precision, we listed media comprehensively and applied prioritization.
• Building a co-creation funnel: We securely linked (leveraging DCR) the data held by external platformers (convenience stores, EC, payment apps, and others) with the client's 1st-party data, and developed the concept and approach plan for the "co-creation funnel" that delivers distinctive smoker-targeting.

3. Build-out of the data utilization foundation

• Rebuild of the tracking environment: To capture user behavior with precision, we defined the requirements for redesign of UTM parameter conventions and for GA4 e-commerce tracking configuration (cart additions, purchase completion, and the like).
• Semi-automation of KPI management: As a transitional measure until the data foundation is completed, we leveraged Microsoft Power Automate and designed an operating workflow that automates the collection of reports from each medium and the aggregation into the KPI-management sheet.

4. Rebuild of operating processes and organization structure

• Definition of the improvement cycle: We defined the governance forums and decision-making processes at each layer — annual (strategy development), quarterly (budget review), and monthly/weekly (operating-level improvement).
• Knowledge management: To prevent dependence on individual experience and to accumulate organizational knowledge, we designed a mechanism (leveraging SharePoint and the like) that systematically shares and accumulates successful and unsuccessful cases as well as operating know-how.

5. Procurement optimization (as a strategic initiative)

• Ensuring cost transparency: We provided visibility into the breakdown of agency costs (FTE, margin rate) and organized the negotiation evidence for separating operating fees from media-buying fees.
• Strengthening direct relationships with media companies: Rather than leaving this to the agency, we established a scheme in which the client engages directly with media companies in strategic dialogue, and developed a roadmap aimed at gaining early access to new features and securing high-quality inventory.

[Challenges]
At the outset of the project, the client was facing the following structural challenges.

• Inefficiency from organizational siloing: Because each division was running advertising with its own individual strategy, target overlap and lost opportunities were occurring, and overall optimization was not being achieved.
• Dispersion of data and knowledge: Advertising performance data and operating know-how resided with agencies and individual owners, and had not become an organizational asset.
• Opacity of the cost structure: The structure of agency margins and fees was unclear, making appropriate cost validation and strategic budget allocation difficult.
• Reach plateau: Operations on existing media had reached saturation, and there was a shortfall in the means to reach new audiences required to achieve device-purchase targets.

[Results]

• Identification of approximately JPY 500 million in cost-optimization funding: By curbing excessive frequency and revisiting the current budget, we provided visibility into approximately JPY 500 million in cost-reduction potential. We established the pathway to securing this as the funding source to reinvest in expanding new reach.
• Establishment of the operating foundation for integrated execution: We built out a full set of operating tools, including the integrated KPI-management sheet, the planning format, and the agency-evaluation sheet.
• Roadmap to establishing this as a strategic initiative: We clarified the concrete steps for transitioning from agency-led to client-led operations (cost transparency → change of contracting entity → consideration of in-house operations).
• Selection of new media and co-creation partners completed: We selected the priority media for trial operations and the co-creation partner candidates for data linkage, and completed preparations for the concrete approach.