|Revenue ($ in millions)||2011||2010||% chg|
|Ticker: TYO:4324 (Tokyo) |
Asterisk (*) indicates figures are Ad Age estimates.
Dentsu Inc. is the largest agency company based in Japan.
Dentsu Inc. is largely composed of lead agency Dentsu, based in Tokyo with offices and subsidiaries throughout Japan, as well as a network of North American, Asian and European agencies.
Dentsu Inc. in April 2012 revised its organizational structure, forming Dentsu Network to oversee all Dentsu companies outside Japan, excluding companies solely engaged in sports marketing and content development.
Dentsu Network launched with 82 operations in 29 countries. Dentsu Inc. folded Dentsu Network West (Dentsu Inc.'s network in the Americas, Europe and Australia) into Dentsu Network. Dentsu Network's president-CEO is Tim Andree, who formerly was CEO of Dentsu Network West.
Dentsu Inc. had formed Dentsu Network West in October 2010 to manage agency ventures in the Americas (North America and Latin America) and Europe (excluding Russia).
The Dentsu ad agency is the world's largest advertising agency.
Dentsu has been building up its U.S. base:
Dentsu in January 2012 acquired New York creative shop ML Rogers, which retired its name and combined its employees into the Dentsu America agency.
Dentsu in February 2011 acquired Firstborn, a digital agency based in New York.
Dentsu on Jan. 26, 2010, acquired Innovation Interactive, a New York-based digital marketing-services company with three operating units (360i, a digital marketing agency; SearchIgnite, a paid search management technology venture; and Netmining, an audience optimization platform). Innovation Interactive became a wholly owned subsidiary of Dentsu Holdings USA. In the sale announcement, Innovation Interactive said it had 300 employees and 2008 worldwide revenue of $60.98 million.
Dentsu Holdings USA in November 2008 bought New York-based McGarryBowen for an undisclosed amount. Ad Age in January 2012 named McGarryBowen its Agency of the Year. That marked the agency's second time winning the honor; Ad Age previously named McGarryBowen Agency of the Year in January 2010.
Dentsu Holdings USA Oct. 31, 2007, bought Attik, a San Francisco creative boutique with 58 employees, and Attik Ltd., Attik's U.K. branch with 10 employees. Attik became a division of Dentsu USA Holdings' Dentsu America.
Dentsu owns a minority stake in the Asian ad network Dentsu Y&R, a joint venture originally formed in 1981. WPP, parent of Young & Rubicam Group, owns the rest of DYR.
Publicis Groupe on Feb. 17, 2012, bought back 18 million Publicis shares owned by Dentsu for 644.4 million euros ($840.3 million) or 35.80 euros ($46.68) a share. The buyback, which had been expected, ended a strategic alliance in place since 2002 (when Publicis bought Dentsu-backed Bcom3 Group, the then-parent of Leo Burnett and Starcom MediaVest).
In a statement, Dentsu said the sale of its big Publicis stake marked the end of three agreements: a shareholders' pact with Publicis; a strategic alliance with Publicis; and a shareholders' agreement with Elisabeth Badinter, a member of the founding family and main shareholder of Publicis.
"As a result of this termination, Dentsu and Ms. Badinter will no longer act in concert," the statement said. Publicis in February 2012 said Badinter held 10.99% of the shares and 19.92% of the voting rights of Publicis, making her the company's largest shareholder.
In announcing the buyback, Publicis said: "The friendly relationship and collaboration between the two groups will continue. Firstly, Dentsu holds 2.12% of the shares of Publicis Groupe S.A. (following the share cancellation). Secondly, the two joint ventures between Dentsu and Publicis Groupe will continue in the same form and with the same shareholdings as previously (Beacon Communications and Dentsu Razorfish owned respectively 66% and 19.35% by Publicis Groupe). Moreover, partnerships related to specific clients that the two groups have in common will continue, in the clients' interests."
Dentsu was founded in 1901 as Japan Advertising Ltd. and Telegraphic Service Co. In 1906, Telegraphic Service Co. changed its name to Japan Telegraphic Communication Co. Ltd. A year later, Japan Advertising Ltd. merged with Japan Telegraphic Communication Co. Ltd. and launched its communication and advertising operations. In 1936, Japan Telegraphic Communication Co. Ltd. spun off its news-services department to Domei News Agency and relaunched itself as a specialized advertising agency. The company changed its name to Dentsu Advertising Ltd. in 1955.
In its own words: In 2011, the Dentsu Group further accelerated our global expansion strategy and enhanced our digital capabilities under the leadership of our new president, Tadashi Ishii, who assumed the position in April 2011.
In addition to acquiring the New York-based digital agency Firstborn, Dusseldorf-based digital creative agency Social Thinkers, London-based digital marketing agency Steak Group and online advertising exchange AdJug, we bolstered our network in the Asia-Pacific region through the establishment of Dentsu Australia in Sydney and media agency Dentsu Media Vietnam.
As part of our strategy to grow the Dentsu brand in India, our three joint venture companies in India became wholly owned subsidiaries.
On the home front, we inked an agreement with Facebook to provide support to advertisers in Japan, launched a display advertising offering in the Japanese market in collaboration with Skype, and entered into a business alliance with Microsoft Japan in the social media marketing domain.
Dentsu Inc. was named Advertising Agency of the Year at AdFest 2011, Media Agency of the Year at the Spikes Asia Advertising Festival 2011 and top digital agency in The Directory Big Won Creative Rankings 2011. Our U.S. subsidiary Dentsu McGarry Bowen was named Ad Age's 2011 Agency of the Year.
Tadashi Ishii, pres & CEO
Dentsu Inc./1-8-1, Higashi-Shimbashi, Minato-ku, Tokyo, 105-7001/Phone: 81-3-6216-5111/Fax: 81-3-6217-5516