Risk of Declining Advertising Cost-Effectiveness
First written in FY2016. 14 of 22 entries say "Materialised", first in FY2022-Q1. Latest entry: FY2026.
Papyless moved to the "Worse" side of this theme in 2021, 5 years before the typical company in this theme (2026).
The whole theme swung hardest in 2026: 5 of 7 companies on the "Worse" side.
0 other companies' latest entry also says "Materialised".
- FY2026MaterialisedAnnual report
「Revenue declined from the previous consolidated fiscal year. This was due to a decline in the effectiveness of advertising initiatives. Rising prices resulting from higher raw material prices, exchange-rate fluctuations and other factors have increased downward pressure on users' consumption, while tighter regulations on targeted advertising resulting from amendments to the Act on the Protection of Personal Information and other factors have affected advertising effectiveness. Advertising expenses also decreased from the previous consolidated fiscal year. Although the company continues to advertise to the general public to raise awareness of the "Renta!" brand and expand its user base, this was because advertising initiatives were scaled back in consideration of the impact of tighter regulations on targeted advertising and other factors.」
Inflation and tighter regulations on targeted advertising are cited as factors behind the decline in advertising effectiveness and revenue, while the scaling back of advertising initiatives and the decrease in advertising expenses are also shown in the full-year results. - FY2026-H1MaterialisedAnnual report
「Advertising expenses decreased from the same interim period of the previous year. Although the company continues to promote the "Renta!" brand to the general public in order to raise brand awareness and expand its user base, this was due to the stricter cost-effectiveness criteria applied to its initiatives.」
The practice of applying more stringent cost-effectiveness criteria to advertising has continued, and this is reflected in the decrease in advertising expenses for the current interim consolidated accounting period. - FY2025MaterialisedAnnual report
「Revenue declined from the previous consolidated fiscal year. This was due to a decline in the effectiveness of advertising initiatives. Rising prices resulting from higher raw material prices, the continued depreciation of the yen and other factors have increased downward pressure on users' consumption, while tighter regulations on targeted advertising resulting from amendments to the Act on the Protection of Personal Information and other factors have affected advertising effectiveness.」
The decline in the effectiveness of advertising initiatives is cited as a factor behind the full-year revenue decline, and the company explains that inflation and tighter regulations on targeted advertising affected advertising effectiveness. - FY2025-H1MaterialisedAnnual report
「Advertising expenses decreased from the same interim period of the previous year. Although we continued to run mass advertising, including TV commercials, targeting the general public to raise awareness of the Renta! brand and expand the user base, this was because we implemented the activities with more stringent attention to cost effectiveness.」
The practice of applying stringent cost-effectiveness criteria to advertising led to the actual scaling back of advertising initiatives and expenses, and advertising expenses decreased from the same interim period of the previous year. - FY2024MaterialisedAnnual report
「Revenue declined from the previous consolidated fiscal year. This was due to a decline in the effectiveness of advertising initiatives. Rising prices resulting from higher raw material prices, the continued depreciation of the yen and other factors have increased downward pressure on users' consumption, while tighter regulations on targeted advertising resulting from amendments to the Act on the Protection of Personal Information and other factors have affected advertising effectiveness.」
The decline in the effectiveness of advertising initiatives is cited as a factor behind the full-year revenue decline, and the company explains that inflation and tighter regulations on targeted advertising affected advertising effectiveness. - FY2024-Q3MaterialisedAnnual report
「Advertising expenses decreased from the same quarter of the previous year. Although we continued to run mass advertising, including TV commercials, targeting the general public to raise awareness of the Renta! brand and expand the user base, this was because we implemented the activities with more stringent attention to cost effectiveness.」
While continuing its advertising initiatives, the company is applying more stringent cost-effectiveness criteria, and the decrease in advertising expenses is also reflected in the results for the cumulative third quarter period. - FY2024-Q1MaterialisedAnnual report
「This is because advertising initiatives have been scaled back in consideration of the impact of tighter regulations on targeted advertising and other factors.」
The scaling back of advertising initiatives due to tighter regulations on targeted advertising and other factors, as well as the decrease in advertising expenses, is also described as part of actual business operations for the current quarter. - FY2023MaterialisedAnnual report
「Advertising expenses decreased from the previous consolidated fiscal year. This was because, although the Group continued to run mass advertising, including TV commercials, targeting the general public to increase awareness of the “Renta!” brand and expand its user base, it curtailed advertising initiatives after taking into account the impact of tighter regulations on targeted advertising and other factors.」
The company states that advertising expenses decreased because advertising effectiveness declined due to tighter regulations on targeted advertising and other factors, leading it to curtail advertising initiatives. - FY2023-Q3MaterialisedAnnual report
「Revenue decreased from the same quarter of the previous year. This was due to continued downward pressure on user spending as recovery from the prolonged suppression of economic activity to prevent the spread of COVID-19 infections remained delayed, as well as the impact of tighter targeted-advertising regulations following revisions to the Act on the Protection of Personal Information.」
Tighter regulations on targeted advertising continue to be cited, together with downward pressure on user consumption, as factors behind the decline in revenue during the cumulative third-quarter period. - FY2023-Q2MaterialisedAnnual report
「Revenue declined from the same quarter of the previous year. This was due to continued downward pressure on users' consumption because recovery from prolonged restrictions on economic activity to prevent the spread of coronavirus infection has been delayed, as well as the impact of tighter regulations on targeted advertising following amendments to the Act on the Protection of Personal Information.」
Tighter regulations on targeted advertising continue to be cited, together with downward pressure on user consumption, as factors behind the decline in revenue during the cumulative second-quarter period. - FY2023-Q1MaterialisedAnnual report
「Revenue declined from the same quarter of the previous year. This was due to i) lower user spending resulting from the delayed recovery from prolonged restrictions on economic activity to prevent the spread of COVID-19, ii) a sharp increase in access to pirate websites, and iii) tighter regulation of targeted advertising following amendments to the Act on the Protection of Personal Information.」
Tighter regulations on targeted advertising are specifically cited, along with the sharp increase in traffic to pirated sites and declining consumption, as factors behind lower revenue. - FY2022Tighter regulations on targeted advertisingAnnual report
「During the consolidated fiscal year under review, the operating environment became even more challenging due to the impact of i) declining user consumption resulting from prolonged restrictions on economic activity to prevent the spread of coronavirus infection, ii) a sharp increase in traffic to pirated sites, and iii) tighter regulations on targeted advertising following amendments to the Act on the Protection of Personal Information.」
Tighter regulations on targeted advertising following amendments to the Act on the Protection of Personal Information are newly identified in specific terms as a factor making the operating environment more challenging. - FY2022-Q1MaterialisedAnnual report
「This was because stay-at-home demand contributed to revenue in the same quarter of the previous year, while the effectiveness of internet advertising declined during the first quarter of the current fiscal year due to the impact of the General Data Protection Regulation and other factors.」
Regarding the risk of declining cost-effectiveness in advertising and promotion, the company describes an actual instance in which the effectiveness of internet advertising declined due to the impact of the General Data Protection Regulation and other factors, contributing to lower revenue. - FY2020RestatedAnnual report
「Rather than leaving the analysis of advertising effectiveness to advertising agencies, the Group collects data internally and continuously analyzes effectiveness.」
The company reconfirms its policy of collecting its own data, continuously analyzing effectiveness, and conducting trials and verification in response to the risk of declining advertising cost-effectiveness. - FY2019MitigatedAnnual report
「Through continuous verification of advertising effectiveness, advertising expenses decreased from the previous consolidated fiscal year and their ratio to revenue improved.」
Continuous verification of advertising effectiveness improved advertising efficiency, lowering both advertising expenses and their ratio to revenue. - FY2019-Q2MitigatedAnnual report
「The Group actively incurs advertising expenses to increase awareness and expand its user base. However, as a result of verifying advertising effectiveness and improving efficiency, advertising expenses decreased from the same quarter of the previous year, as did their ratio to revenue.」
The company explains that verifying advertising effectiveness improved efficiency, resulting in lower advertising expenses and a lower ratio to revenue than in the same quarter of the previous year. - FY2019-Q1MitigatedAnnual report
「The Group actively incurs advertising expenses to increase awareness and expand its user base. However, after verifying advertising effectiveness and improving efficiency, advertising expenses decreased from the same quarter of the previous year, as did their ratio to revenue.」
The company states that verifying advertising effectiveness improved efficiency, resulting in lower advertising expenses and a lower ratio to revenue than in the same quarter of the previous year. - FY2018RestatedAnnual report
「The Group seeks to measure advertising effectiveness and conduct optimal advertising and promotion. However, if it is unable to achieve cost-effectiveness in advertising and promotion due to regulations imposed by advertising companies or other factors, this may affect its operating results through lower revenue or reduced profitability.」
The company reconfirms its policy of measuring and optimizing advertising effectiveness and the risk that declining cost-effectiveness may affect operating results. - FY2017RestatedAnnual report
「The Group seeks to measure advertising effectiveness and conduct optimal advertising and promotion. However, if it is unable to achieve cost-effectiveness in advertising and promotion due to regulations imposed by advertising companies or other factors, this may affect its operating results through lower revenue or reduced profitability.」
While measuring and optimizing advertising effectiveness, the company reiterates the risk that failure to achieve cost-effectiveness may affect operating results. - FY2016First statedAnnual report
「If the Group is unable to achieve cost-effectiveness in advertising and promotion due to regulations imposed by advertising companies or other factors, this may affect its operating results through lower revenue or reduced profitability.」
While stating its policy of measuring and optimizing advertising effectiveness, the company identifies the impact on operating results if cost-effectiveness cannot be achieved.