Cost-effectiveness and profitability risks of advertising and promotional expenses
First written in FY2019. 15 of 18 entries say "Mitigated", first in FY2020-Q2. Latest entry: 2026-09-28.
The whole theme swung hardest in 2020: 4 of 25 companies on the "Worse" side.
11 other companies' latest entry also says "Mitigated".
- FY2025-H1MitigatedAnnual report
「This was because the Company seized an opportunity to improve customer acquisition efficiency, centered on new pharmaceutical and quasi-drug products, and sharply increased investment by 19.6% from the end of the previous quarter. The pace of customer acquisition reached its highest level in 2 years, since the second quarter of the fiscal year ending July 2023, and will contribute significantly to earnings for the current and following fiscal years.」
The Company states that it increased advertising investment in new products in response to improved customer acquisition efficiency, restoring the pace of customer acquisition to its highest level in 2 years. - FY2024MitigatedAnnual report
「The Company invests in advertising and promotional expenses while verifying their cost-effectiveness. During the consolidated fiscal year under review, it believes that investment efficiency improved from the previous fiscal year, partly because the proportion of online advertising increased.」
The Company states that investment efficiency improved partly because the proportion of online advertising increased, despite a 20.8% decrease in advertising and promotional expenses from the previous fiscal year. - FY2024-Q3MitigatedAnnual report
「While strengthening initiatives to optimize advertising expenses with a focus on CPO, a customer acquisition efficiency metric, and LTV, a profitability metric, the company worked to increase advertising investment in new products. As a result, the total number of subscription customers across the group was 834,744 as of the end of April 2024, down 15.8% from 991,535 in the same period of the previous year.」
The Company continues to optimize advertising and promotional expenses with an emphasis on CPO and LTV, and advertising and promotional expenses in the BtoC business decreased 21.8% year on year. - FY2024-Q2MitigatedAnnual report
「While strengthening efforts to optimize advertising and promotional expenses with a focus on CPO as a customer acquisition efficiency metric and LTV as a profitability metric, the Company worked to increase advertising and promotional investment in new products.」
The Company continues to optimize advertising and promotional expenses with an emphasis on CPO and LTV while directing investment toward new products. Advertising and promotional expenses decreased 25.9% year on year. - FY2024-Q1MitigatedAnnual report
「While strengthening efforts to optimize advertising and promotional expenses with a focus on CPO as a customer acquisition efficiency metric and LTV as a profitability metric, the Company actively invested in advertising and promotional activities for new products.」
The Company strengthened the optimization of advertising and promotional expenses with an emphasis on CPO and LTV, while restraining advertising and promotional expenses overall and making selective investments in new products. - FY2023MitigatedAnnual report
「The Company invests in advertising and promotional expenses while verifying their cost-effectiveness. During the consolidated fiscal year under review, it believes that investment efficiency improved from the previous fiscal year, partly because the proportion of online advertising increased.」
The Company states that investment efficiency improved through a higher proportion of online advertising and KPI management, despite increased advertising and promotional expenses. - FY2023-Q2WorsenedAnnual report
「To acquire additional subscription customers, the Company recorded advertising and promotional expenses of ¥22,771 million, up 46.3% year on year from ¥15,561 million in the same period of the previous year, and the segment posted a loss of ¥857 million, compared with profit of ¥2,070 million in the same period of the previous year.」
Although advertising and promotional expenses increased 46.3% year on year, the BtoC business swung from profit in the same period of the previous year to a loss of ¥857 million, increasing the actual burden on the profitability of advertising investment. - FY2023-Q1RestatedAnnual report
「During the three months ended 30 September 2022, the company actively invested in advertising for new products while focusing on CPO, a customer acquisition efficiency metric, and LTV, a profitability metric. The total number of subscription customers across the group was 1,146,889 as of the end of October 2022, compared with 802,021 in the same period of the previous year.」
The Company continues to invest in advertising for new products and expand its subscription customer base while managing the cost-effectiveness and profitability of advertising expenses through CPO and LTV. - FY2022MitigatedAnnual report
「The Company believes that advertising investment efficiency improved from the previous fiscal year, partly because the proportion of online advertising increased during the consolidated fiscal year under review.」
The Company continues to explain that investment efficiency improved partly because the proportion of online advertising increased, despite higher advertising and promotional expenses. However, profit from the BtoC business declined substantially. - FY2022-Q1MitigatedAnnual report
「During the three months ended 31 October 2021, the company actively invested in advertising for new products while focusing on CPO, a customer acquisition efficiency metric, and LTV, a profitability metric. The total number of subscription customers across the company was 802,021 as of the end of October 2021.」
While continuing to invest in advertising, the Company places importance on CPO and LTV as management metrics and is using them to expand its subscription customer base. - FY2021MitigatedAnnual report
「The Company believes that advertising investment efficiency improved from the previous fiscal year, partly because the proportion of online advertising increased during the consolidated fiscal year under review.」
The Company states that, although advertising and promotional expenses increased substantially, investment efficiency improved partly because the proportion of online advertising increased. - FY2021-Q2MitigatedAnnual report
「Because customer acquisition efficiency was higher than initially expected, the Company made its highest-ever advertising and promotional investment to capitalize on the opportunity. As a result, together with the effects of cross-selling initiatives and a lower churn rate,」
The Company increased advertising investment to a record-high level while reporting high customer acquisition efficiency, cross-selling, and a lower churn rate, and continues to address the cost-effectiveness of advertising expenses. - FY2021-Q1MitigatedAnnual report
「During the cumulative first quarter under review, the Company conducted advertising and promotional activities on the largest scale in its history, while customer acquisition efficiency also reached a record high. As of the end of October 2020, the number of subscription customers had exceeded 576,941.」
The Company states that it expanded advertising and promotional investment to its highest-ever level while customer acquisition efficiency reached a record high, advancing measures to address cost-effectiveness and profitability risks. - FY2020-Q3MitigatedAnnual report
「While increasing investment, the company improved its advertising, increased the proportion of internet advertising and expanded its call center, substantially improving investment efficiency.」
The Company states that the cost-effectiveness of advertising investment improved significantly through improvements to advertising, a higher proportion of online advertising, and expansion of its call center. - FY2020-Q2MitigatedAnnual report
「The CPO*1 for NeuMo® hair-growth products in the consolidated cumulative second quarter under review improved by 23.9% compared with the CPO for Tamago SaminⓇ in the cumulative second quarter of the previous fiscal year. Accordingly, the Company increased advertising and promotional expenses for NeuMo® hair-growth products, primarily through online advertising. It also tested television, radio, and print advertising and achieved its CPO benchmark based on increased advertising volume, thereby diversifying the risk of concentrating advertising investment in specific media going forward.」
The Company describes measures to address the cost-effectiveness of advertising expenses and the risk of concentration in specific media through improved CPO for NeuMo and advertising tests and benchmark achievement across multiple media. - FY2019First statedAnnual report
「If expenses become unexpectedly high or the Company is unable to generate sales commensurate with its advertising expenses, the Group’s financial results may be affected.」
For its active sales promotion in the direct-to-consumer business, the Company identifies as risks increases in advertising and promotional expenses and failure to generate sales commensurate with those expenses.