DNP Adds Product Recommendation Proposal Function to Existing Household Account Application

Dai Nippon Printing Co., Ltd. (DNP) has added an advertising display function proposing recommended products, based on items purchased by the consumer, to DNP household account application. Full scale marketing targeting companies will commence in August 2014.

[Existing Product Summary]

It was launched in July 2013 as a free household account application targeting smart phones. The application offers household account management functions, including such simple operations as photographing receipts, and comprehensive graph displays. In addition, menu proposals are also offered aiming to help the user make use of all purchased foods without waste. As a result, the application has become popular with women in their 20s and 30s given such features as the addition of heartwarming characters that promote pleasant communications with consumers.

[Overview of Additional Function]

The newly added function uses the heartwarming characters to recommend products that the consumer is likely to be interested in, based on a read off of products from purchase receipts, and purchasing trends. For example, for users considered to be pregnant or nursing women, based on their product purchases, products such as decaffeinated tea that pose no problems for expectant or nursing mothers, might be proposed. Such a proposal is not a mere product ad. Since it is sourced from recommendations linked to purchase history, it can be positively viewed as a pleasing suggestion that suits the user. And one major feature is the ability to measure the purchase effect from online ads to offline retail purchases via the user’s smart phone.

As a result of test marketing implemented March to April 2014, it was determined that viewing ads led to product purchases on 3.9% of occasions on average, and in a maximum of 7.2% of cases. In addition, 85% of those that saw the ads, posted positive comments, indicating that they wanted to use the function again in the future, along with other positive opinions, such as "I want to be kept informed of new recommendations," or "the new function will be helpful for shopping."

Based on this result, as an ad service using this function, DNP will propose the following 2 menus to such companies as beverage makers and food makers.

1.  Receipt-linked ads

DNP will make campaign notifications targeting consumers that purchased products from the ad carriers, and will also display recommended product ads that promote trial purchases and additional buying of products for those that purchased related products or affinity goods, or those that purchased goods from competitors. DNP will also perform effect measurement, such as analyzing the attributes and purchasing history of those consumers, purchasing results at real stores following viewing of the ads, along with additional buying and repeat buying.   

2.  Jacking Ads

The advertiser's product ad listing is displayed on the top page. Numerous consumers view this top screen, and by including popular character figures and products in the background it is possible to make natural and effective product appeals.

[Pre-tax Costs]

  • Receipt linked ads (4 weeks) + jacked ads (4 weeks) = 4.25 million yen
  • Receipt linked ads (4 weeks) + jacked ads (2 weeks) = 3.25 million yen
  • Includes costs of implementation design, production of printing media and creative, and reporting outlets

[Looking Ahead]

DNP will propose this service to such companies as beverage and food makers, aiming for sales of 500 million yen by fiscal year 2016.

 

*  Product prices, specification and service contents mentioned in this news release are current as of the date of publication. They may be changed at any time without notice.