Flare (Thailand) Co Ltd, which is a Japanese-owned vehicle advertising start-up, will enter the Cambodian market in May 2020 and expand on its regional operations.
According to the Phnom Penh Post, Flare will come into Cambodia in a partnership with Japanese firm ReNet Japan Group Inc.
The firm aims to “register 5,000 drivers and manage $2.7 million worth of advertisements over the next three years” said ReNet Japan.
What is Flare AD?
Flare AD places advertisements on vehicles and then “pays their owners according to the distance and duration of journeys calculated via its mobile application”. The app tracks vehicle locations using the global positioning system (GPS).
In Thailand, cars are effectively wrapped or covered in advertising and drivers earn money based on how often and where they drive, tracked by the Flare AD app. Flare then uses statistics (such as impressions) or an estimated number of people who will view the adverts.
From the brand perspective, they can “track their moving ads in real-time and estimate the number of impressions via a Flare dashboard that monitors the location and calculates views based on traffic jams and location.”
This form of media advertising is in direct competition to out-of-home [OOH] media such as billboards, where ad space is quite expensive and inaccessible to small ad buyers. The digital mobile advertising can be rolled out quickly, tracked and provide real-time analysis.
The partnership in Cambodia will see Flare (Thailand) provide the software and operational support, while ReNet Japan will manage Cambodian sales, Kazuki Kamiya, CEO of Flare (Thailand), said.
ReNet Japan in Cambodia
ReNet Japan is based in Nagoya, Japan and operates several businesses in Cambodia such as auto leasing services and used car sales.
ReNet Japan (Cambodia) Co., Ltd. is the subsidiary of ReNet Japan Group Inc, and is also engaged in developing various solutions using IT and digital technology in the SEA country.
In January 2020, the company had confirmed it would be entering the car leasing market in the Kingdom. At the time, they had taken over a local leasing firm, ELIN Leasing Plc, and renamed it.
The Japanese group had an 88.9% surge in sales in 2019, mostly driven by the rapid business growth in Cambodia. It added that it had seen a “12-fold increase in operating profit, up more than six-fold from a year earlier” in Cambodia.