In recent years, the rise of video ads and ads that harness the new technologies have been forcing the brand businesses, who traditionally placed advertisements in mass-media such as TV commercials, to deploy more and more digital ads. The total Japanese domestic Internet advertising expenses exceeded 1.1 trillion yen in 2015 (*2), and in particular, the rapidly growing smartphone advertisement field is forecast to exceed 750 billion yen by 2020 (*3).
Yusuke Narita graduated from the University of Tokyo and after completing the graduate course at the University of Tokyo, gained his PhD at Massachusetts Institute of Technology (MIT). Currently he is a researcher at the Department of Economics and Cowles Foundation at Yale University, and considered one of the most promising young researchers in causal inference/econometrics (*4) and their applications to market design (*5), education, labor, etc.
In working with Yusuke Narita as our new advisor, AI Lab is looking to work on the questions such as “calculating the causal relationship of influences from user/brand experiences through the advertisements” and “improving pricing mechanisms of advertising transactions”, and further the application of economics in the field of ad technology. AI Lab will combine our machine learning technologies, econometrics and market design to carry out the research and development for the new generation ad distribution technologies.
Since its inception in January 2016, AI Lab has been advocating academia-industry cooperation with the research institutes that possess advanced AI research techniques and an active outlook on their practical applications, which so far resulted in our collaboration with the University of Tokyo, Meiji University, the University of Shizuoka and the University of Electro-Communications. Our new cooperation with Yusuke Narita of Yale University has brought up the number of our academia-industry cooperation to 5. We are looking forward to collaborating with all of the 5 universities in further research/development in the AI field, so that we can better assist one-to-one connections between the corporations and the users by working towards the realization of an even better ad distribution technology to deliver the timeliest information.
*1 Artificial intelligence: studies and technologies to realize human-level intelligence in computers.
*2 Source: Dentsu Inc., Advertising Expenses in Japan in 2015 (February 23rd 2016)
*3 Source: CyberZ Inc., Domestic Smartphone Advertisement Market Research (April 20th 2016)
*4 Causal inference/econometrics: a discipline to assess and forecast the effects of policies and services by combining the theoretical models of phenomena and human behaviors, and the statistical methods.
*5 Market design: a discipline that aims to design the mass markets and social systems from scratch by utilizing theoretical models, data and algorithms.