KDDI & Supership to Launch Next-generation Digital Advertising Platform That Prioritizes Customer Privacy

TOKYO,Nov. 18,2021 -- KDDI CORPORATION (referred to as "KDDI" below),Supership Holdings Inc. (referred to as "Supership Holdings" below) and Supership Inc. (referred to as "Supership" below),all based in Tokyo,are jointly developing a next-generation digital advertising platform (referred to as "the platform" below) for scheduled launch in January 2022. The platform will prioritize data privacy while serving highly relevant advertising based on customer lifestyles.

At the core,patented technology provided by Novatiq Ltd. (referred to as "Novatiq" below),headquartered in Wales,the UK,enables advertisers to activate audiences using only permission-based data.

KDDI,Supership Holdings and Supership will integrate the platform with Supership's advertising platform to provide optimized digital marketing for advertisers.

Overview of new digital advertising platform:

https://kyodonewsprwire.jp/prwfile/release/M106894/202111123299/_prw_PI1fl_kSUCjIK7.jpg

To date,using third-party data (*1) to reach audiences based on customer interests and needs across websites and apps has been a mainstream practice in digital marketing. However,from a data privacy protection viewpoint,this is globally becoming more problematic,as much of this third-party data originates from tracking customer behavior with cookies or advertising IDs (referred to as "ADID" below) without consent. This situation demands new marketing methods that don't rely on the utilization of such third-party data.

The platform protects the customer's data privacy by generating a transient one-time token (referred to as "ad delivery ID" below) (*2) for each website or mobile app interaction combined with KDDI's permission-based attribution (e.g. gender,age group,etc.). It enables advertisers to serve highly relevant ads using only permission-based data,ensures that customer privacy is protected,and supports effective marketing.

KDDI,Supership Holdings and Supership will utilize this new technology in their aim to spread the use of digital ad delivery that prioritizes privacy.

For more information,please refer to the following:

About the platform

1. Features

(1) Privacy-first platform:

- The platform serves highly effective digital advertising through the utilization of original ad delivery IDs that aren't dependent on cookies or ADIDs.

- Ad delivery IDs are randomly generated when websites and apps are accessed to ensure ad delivery IDs aren't saved on customer devices such as smartphones and computers. In addition,customer action histories aren't tracked or collected across websites and apps.

(2) Realization of digital ad delivery relevant to customer's lifestyle:

- The platform connects permission-based first-party data (*3) from the KDDI Group to the ad delivery ID using IP addresses in an intermediate step. This cohort information (gender,etc.) is used to determine which ad is delivered.

- While taking data privacy into consideration,advertisers can reach audiences with highly relevant digital advertisements based on customer lifestyle.

(3) Service provided via Supership's ad platform which sees 35bn monthly impressions:

- The platform built on Novatiq's patented technology will be provided via Supership's DSP (ScaleOut) and SSP (Ad Generation).

- SSP (Ad Generation) is a multifaceted platform centering around mobile apps. It boasts a wealth of inventory,and delivers ads to customers through premium media.

-Supership Holdings entered into a capital and business alliance (*4) with Novatiq in June 2021. This agreement gives the Supership Group the exclusive rights to use Novatiq's patented technology in Asia.

*Only permission-based data is utilized. Data handling complies with all relevant laws and regulations to ensure appropriate information security. In addition,any personally identifiable data such as the names of individuals,addresses including street numbers,telephone numbers,and email addresses are not utilized.

For details regarding data usage or the ad delivery system,please refer to the privacy portal: https://www.kddi.com/corporate/kddi/public/privacy-portal/

2. Launch date:

January 2022

3. Fees:

For inquiries regarding fees,please contact Supership Inc.

4. Contact information:

Supership Inc.

Web inquires: https://supership.jp/business/cookieless-ads_en

(Reference)

About Novatiq

Novatiq is a leading identity and audience activation platform empowering publishers,brands and telcos to reach their audiences at scale and provide better customer experiences -- all while prioritizing privacy. Using patented,privacy-first technology,Novatiq enables the creation of IDs based on pseudonymised first-party data,including fully consented customer intelligence from telco operators. This new approach to consented IDs puts privacy first,improves user-experience,drives better campaign performance,and enables a new generation of personalized digital services. The company has multiple patents,and is ISO 27001-certified and rigorously compliant with global privacy standards.

https://novatiq.com/

Notes:

(*1) Data provided by third parties that don't have a direct relationship with the customer.

(*2) Ad delivery identifiers are randomly generated when ad spots with modules are displayed on the platform. The module generates or transmits ad identifiers by utilizing a program equipped with part of an ad spot provided by Supership. Apps and web services other than those provided by KDDI are also embedded.

(*3) Data that businesses collect/store after receiving customer permission.

(*4) Supership Holdings' news release (June 1,2021): Supership Group and Novatiq Ltd. form Capital and Business Alliance to Develop Next-Generation Digital Advertising Platform for Cookie-less World

https://supership-hd.jp/news/20210601/