Japan’s SoftBank plans to spend about JPY4 billion ($36.3 million) to acquire a 20 per cent interest in internet advertising agency CyberAgent’s smartphone ad unit MicroAd.
The deal, which is expected to close by the end of next month, involves SoftBank acquiring shares in MicroAd as well as existing shares held by CyberAgent.
MicroAd manages one of Japan’s largest databases of web-browsing histories and uses the data to enable clients to send targeted ads to people based on their preferences, Nikkei news agency reported. SoftBank already offers a service that sends targeted ads and discount offers from brick-and-mortar businesses to smartphone users.
With growth slowing in the telecoms industry in Japan, SoftBank is looking to ramp up its ad service by offering targeted promotions for both online and physical businesses.
According to Nikkei, SoftBank aims to triple its revenue from advertising and other promotional services to about JPY10 billion in fiscal 2018.