Japan’s FreakOut Group Opens Base In India; To Develop Native Advertising Platform For Smartphone
The company, in an official statement, informed its Indian base will have Ryo Matsuo as managing Director, and will start native ad platform business in the country
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Japanese adtech company FreakOut Holdings, on Tuesday (8 August), has opened a new subsidiary – FreakOut Technology Pvt Ltd, in India. The subsidiary, headquartered in Gurgaon, Haryana, is the company’s first base in South Asia.
The company, in an official statement, informed its Indian base will have Ryo Matsuo as managing Director, and will start native ad platform business in the country.
India with a population of 1.34 billion is the world's second largest population and it is expected to surpass China by 2022, which is currently No.1 in the world. In addition, India’s gross domestic product in 2016 stood at the 7th place globally, maintaining an economic growth rate of about 7 per cent over the previous year.
Indian smartphone users who are the second largest in the world, China being No.1, exceeded 300 million users for the first time in 2016. Shipments of smartphones rose 18 per cent over the previous year, far exceeding the world average of 3 per cent, according to Counterpoint Research.
On the other hand, smartphone penetration rate is still low compared with other countries including China and the US. Smartphone manufacturers from around the world are focusing on the Indian market because of immense potential of further market expansion expected in the future.
In addition, with the spread of Internet communication and smartphones, the digital advertising revenue is steadily increasing. In 2016, the advertisement volume of digital advertisements as a whole increased by 28 per cent compared to the previous year, especially mobile advertising which saw a 100 per cent increase.
By 2020 compared to 2016 the digital advertising as a whole is expected to grow by 2.5 times with mobile advertising growing by about 5 times, according to a report by eMarketer.
For this reason, FreakOut India will provide native advertising platform solution to the Indian advertising market, which continues to grow remarkably, centering on smartphones, and will strive to maximize advertisement effectiveness and media revenue.
Yuzuru Honda, Global CEO of FreakOut Holdings says, “Within the Asian region, we have bases in 8 countries, and today we launch new Indian office, firstly in Gurgaon. Unlike other Asian countries, in India, our business strategy is investment and (mergers & acquisitions) M&A of the Indian domestic technology venture in parallel with our own product sales.”
“We have invested in Indian ad-tech companies and marketing-tech startups, since before opening the office in India. Now we have an office in India, we are ready to settle down for sourcing strategy, make a move to M&A, and establish a presence in India.”