AViC Co., Ltd. (9554) Stock Price

AViC specializes in digital marketing, offering managed internet advertising services and search engine optimization (SEO), along with creative production. The company purchases ad inventory from media platforms, designs, manages, and optimizes advertising campaigns tailored to client objectives, and continuously refines operations based on performance results.

Its primary customers are corporate advertising departments and advertising agencies, acquiring projects through both direct contracts and agency partnerships. Revenue comes from media costs associated with ad inventory sales, operational and consulting fees, as well as content and creative production charges. When clients arrange media placement independently, the company earns consulting fees only.

The business operates as a single digital marketing segment, consisting of two main pillars: managed advertising services including search-linked ads, display ads, and in-feed ads, and SEO consulting with content creation. The company leverages proprietary analytics tools and PDCA methodology to design operations suited to each media platform's characteristics, execute real-time monitoring and creative optimization, and achieve sustained customer acquisition results.

The company aims to consistently deliver industry-leading revenue growth rates and high operating profit margins centered on high-quality digital marketing services. The market environment remains strong, with internet advertising spending continuing to expand—surpassing 2 trillion yen in 2018 and reaching 3.65 trillion yen by 2024. The company seeks to capture this growing demand to achieve both revenue expansion and profit improvement. As key performance indicators, the company prioritizes productivity per employee, headcount, and absolute operating profit. It also aims to strengthen its balance sheet and increase borrowing capacity to enable future growth investments.

The company is prioritizing the acquisition of enterprise clients and differentiation through creative quality. To increase market share among companies with large marketing budgets, it established a joint venture with ADK Marketing Solutions called "ADK AViC Performance Design" in May 2024, strengthening its sales function and enhancing its proposal capabilities to major corporations. To raise advertising rates, the company is focusing on improving creative quality and has developed and deployed "Cre Tech Force," a solution that uses AI to conduct high-precision analysis, planning, and production of advertisements. The company is advancing differentiation strategies through improved results.

Beyond maintaining existing customer relationships, the company plans to expand its customer base by simultaneously pursuing new customer acquisition and expansion through agencies. In addition to organic growth, the company is incorporating inorganic methods such as M&A and market entry into China into its growth strategy, aiming for non-linear expansion. To support this, the company aims to secure retained earnings and borrowing capacity, positioning itself to capture acquisition and overseas expansion opportunities as they arise.

The company positions technological innovation at the core of growth, advancing both operational efficiency and service quality improvement simultaneously. It prioritizes deploying proprietary tools in business areas with high productivity gains and sequentially adds big data analytics and AI analysis capabilities to existing tools. On the human resources front, the company strengthens recruitment and training and uses its "enablement" project to rapidly develop inexperienced staff into productive contributors. Through both tools and talent, the company aims to improve productivity per employee and maintain continuous service quality.