Integrated Report 2022
Hakuhodo DY Holdings
Integrated Report 2022

Live Commerce Service Aimed at Regional Development and New Business-to-Consumer
Revenue for Broadcasters —
Craftalk

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    Hakuhodo DY Media Partners
    Craftalk team members

    (From left)Yahara, Kamachi, Ito

    The e-commerce market continues to expand rapidly as digitalization drives consumer purchasing behavior online. The pursuit of convenience has led to the development of communication and logistics systems that reduce physical constraints. At the same time, product variety has become more diverse, making it difficult to differentiate products based on their characteristics and functional value. In the e-commerce market, the ability to create content that communicates the value of products in a more attractive way, and the method of communicating this value in a way that fosters understanding, are key factors for influencing how sei-katsu-sha feel about them.
    In the TV advertising market, the rise of Over The Top (OTT) and other internet services has intensified competition for people’s free time, and broadcasters are having to find new ways to generate revenue in the digital age.
    Craftalk, a new service from Hakuhodo DY Media Partners, uses the local networking capabilities of broadcasters to select local products and applies their expertise in broadcast content production to create content that conveys the products’ full appeal. The service leverages the power of TV broadcast slots and digital media, including smartphone apps. It also provides a mechanism for shopping while communicating directly with local producers and sellers through a platform that delivers live e-commerce content and distributes archived content.

    Overview of Craftalk

    • Broadcast area

      21 broadcast areas

    • Broadcaster

      22 broadcasters (one broadcaster per area, except in Toyama, which has two: BBT and KNB)
      RNB (Ehime), NKT (Tottori, Shimane), RAB (Aomori), YBS (Yamanashi), KTK (Ishikawa), CTV (Aichi, Gifu, Mie), KBC (Fukuoka), HBC (Hokkaido), TSS (Hiroshima), YTS (Yamagata), FTV (Fukushima), TSB (Nagano), BBT (Toyama), KNB (Toyama), FBC (Fukui), KSB (Okayama, Kagawa), RKC (Kochi), NCC (Nagasaki), STS (Saga), TOS (Oita), KKB (Kagoshima), QAB (Okinawa)

    • Distribution period

      Distributed weekly since mid-May 2022

    • Distribution platform

      HandsUP (Distribution of live commerce tools and distributed content consulting services provided by 17LIVE Inc.)

We ask producers and sellers to explain their commitment to their products, highlighting emotional values that go beyond the functional, and we promote products from each region using interactive communication with viewers. By encouraging customers to purchase products introduced in the video while they are watching it, we aim to create an emotion-based service that appeals to the sentiments of sei-katsu-sha by fostering a sense of familiarity and security.
By introducing products that only local broadcasters know about, especially to people outside their prefectures, we seek to provide new encounters digitally at a time when opportunities for in-person shopping experiences, such as direct contact with producers and sellers, are dwindling.

Craftalk website

Craftalk gives broadcasters that have built strong relationships with local residents through community-based video production and event-related activities a new way to help revitalize their local economies. In addition, we believe interactive digital distribution and platform utilization will increase business-to-consumer (B2C) earnings opportunities for broadcasters. Craftalk provides a solid framework for supporting broadcasters in their future business directions.
Hakuhodo DY Media Partners serves as a hub for providing a wide range of services through a cross-affiliate network of broadcasters, with the aim of building a federation* that enables broadcasters to help each other generate sales from other areas.
In addition, by analyzing viewer data, we seek out optimal solutions for producers, sellers, and broadcasters by determining the most effective delivery times, program content, products, advertisements, and performers.

* As of May 2022, the federation encompassed 21 of Japan’s 32 broadcast areas. We plan to steadily expand this area by welcoming the participation of multiple broadcasters, regardless of affiliation.

Video distribution (archive)

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    Kamachi The impetus for launching this initiative was that, since 2020, both broadcasters and Hakuhodo DY Media Partners have been severely affected by the COVID-19 pandemic, which has significantly affected the TV advertising business. Through a series of internal meetings, we came up with the idea of using live commerce to convey the commitment of local producers, while leveraging broadcasters’ regional networks and high-quality content production capabilities. Our goal is to turn Craftalk into a successful Japanese example of live commerce. Going forward, we hope to build a system that allows overseas customers to purchase products. In addition, we aim to expand into other businesses with the aim of turning Craftalk into a platform.

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    Ito Craftalk’s main focus is to communicate sentimental value, which is difficult to convey with traditional major e-commerce services. By collaborating with broadcasters, we aim to provide an e-commerce service that harnesses this sentiment-based component at an unprecedented level. Through Craftalk, we hope to provide a “win-win-win” service that will help to revitalize local communities and generate new earnings for broadcasters and the Hakuhodo Group. To achieve this, the service will highlight good products made by regional craftspeople that are not yet known throughout Japan.

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    Yahara Some broadcasters have their own e-commerce sites and focus on the mail-order business, but most of their customers are within their own broadcast areas. I think this aspect is what makes Craftalk unique; broadcasters of different affiliations work together to target sei-katsu-sha nationwide. In addition, broadcasters cooperate in making announcements, including of their own broadcast slots and in-house productions, station apps, and social media. I believe that this initiative is truly novel. Broadcasters face numerous hurdles in starting up B2C businesses. With the Hakuhodo Group serving as a hub for proposing improvement measures, we intend to develop various businesses with broadcasters that extend beyond traditional lines of affiliation.