Dentsu—Ad Age Agency Report 2024

Dentsu Group is a global agency company based in Tokyo. Worldwide revenue of $9.308 billion shown for 2023 is stated revenue based on International Financial Reporting Standards and converted to U.S. dollars at average annual exchange rates by Ad Age Datacenter. Dentsu had net revenue (revenue minus cost of sales) of $8.168 billion in 2023 converted to U.S. dollars at average annual exchange rates. See Dentsu’s financial reports. More from Ad Age Agency Report 2024 Big picture: State of the agency business World’s biggest agency companies Agency listings Agency revenue growth Agency company revenue by client sector Dentsu Group on Jan. 1, 2023, began to operate as a single global network. Effective on that date, the company integrated its two former networks, Dentsu International and Dentsu Japan Network, into one organization. Effective with that reorganization, Dentsu Group operates through four regions: Dentsu Japan, Dentsu EMEA (Europe, Middle East, Africa), Dentsu Americas and Dentsu APAC (Asia Pacific). Tokyo-based Dentsu Japan Network previously oversaw Dentsu Group operations in Japan. London-based Dentsu International previously oversaw Dentsu Group operations outside of Japan. Dentsu International, formerly Dentsu Aegis Network, included former holdings of Aegis Media (the primary unit of Aegis Group, acquired in March 2013) and Dentsu Network. Dentsu Group in September 2020 changed the name of Dentsu Aegis Network to Dentsu International. The company formed Dentsu Network in April 2012 to oversee Dentsu operations outside Japan, excluding companies solely engaged in sports marketing and content development. Restructuring: Dentsu Group in August 2021 announced a “comprehensive review and accelerated transformation program” intended to simplify its business, reduce operating expenses, improve its balance sheet and maximize shareholder value. As part of that reorganization, the Dentsu International network planned to consolidate to six “global leadership brands.” As of 2024, Dentsu Group went to market with six key brands: Carat, iProspect, Dentsu Creative, Dentsu X, Merkle and Tag. Carat and iProspect came into Dentsu with the 2013 acquisition of Aegis Group. Dentsu in 2016 bought a majority stake in Merkle, a U.S. data-centric performance marketing agency. Dentsu bought the remaining Merkle stake in 2020, giving it 100% ownership. Dentsu in 2023 acquired Tag Worldwide, a global digital marketing production company, from Advent International. At the time of the acquisition, Tag had 2,800 employees across 29 countries. Advent, a buyout firm, in 2017 bought Williams Lea Tag, a U.K.-based provider of global marketing and communications supply chain services, from Germany-based Deutsche Post DHL Group, which had owned the venture since 2006. Advent then split Williams Lea Tag into two businesses: Williams Lea, a provider of business support services, and Tag, a marketing production business. New holding company structure: The company reorganized under Dentsu Group Inc., a pure holding company, effective Jan. 1, 2020. Up until then, Dentsu Inc. operated as both a holding company (overseeing subsidiaries such as Dentsu International, its network outside Japan) and as an operating company (running Japan-based subsidiaries). Aegis Group acquisition: The company in March 2013 bought Aegis Group, a London-based agency firm, for 409 billion yen or 3.164 billion pounds. That translated to $4.853 billion (calculated by Ad Age on 3.164 billion pounds at the exchange rate on the closing date), the largest-ever acquisition of an agency company. Upon closing the Aegis Group acquisition, the company changed the name of “Aegis Group plc” to “Dentsu Aegis Network Ltd.” Dentsu Group in September 2020 changed the name of Dentsu Aegis Network to Dentsu International. Publicis Groupe relationship: French agency firm 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). The company at year end had this number of employees worldwide: 2023: 71,1272022: 69,0662021: 64,8322020: 64,5332019: 66,4002018: 62,6082017: 60,0642016: 55,8432015: 47,324 Dentsu Group in November 2021 named Hiroshi Igarashi president and CEO effective Jan. 1, 2022. Before taking over as CEO of Dentsu Group, Igarashi was executive officer of Dentsu Japan Network and president-CEO of Dentsu Inc. Igarashi was born July 23, 1960, and joined Dentsu in 1984. Igarashi succeeded Toshihiro Yamamoto as president and CEO. Management history: 1901: Hoshiro Mitsunaga established Japan Advertising Ltd. and Telegraphic Service Co., the predecessor of Dentsu Inc. and Dentsu Group. 1940: Shinzo Mitsunaga became the company’s second president. 1945: Sekizo Ueda became the third president. 1947: Hideo Yoshida became the fourth president. 1963: Tsuneji Hibino became the fifth president. 1973: Yoshichika Nakahata became the sixth president. 1977: Hideharu Tamaru became the seventh president. 1985: Gohei Kogure became the eighth president. 1993: Gohei Kogure became the first chairman. Yutaka Narita became the ninth president. 2001: Yutaka Narita became the second chairman. Tateo Mataki became the 10th president. 2004: Tateo Mataki became president-CEO. 2007: Tateo Mataki became the third chairman. Tatsuyoshi Takashima became the 11th president. 2011: Tatsuyoshi Takashima became the fourth chairman. Tadashi Ishii became the 12th president-CEO. 2017: Toshihiro Yamamoto became the 13th president-CEO. 2022: Hiroshi Igarashi became the 14th president-CEO. Dentsu staged its initial public offering Nov. 30, 2001, with a listing on the First Section of the Tokyo Stock Exchange. Dentsu’s ticker: 4324 1901: Hoshiro Mitsunaga established Japan Advertising Ltd. and Telegraphic Service Co. 1906: Telegraphic Service Co. became Japan Telegraphic Communication Co. Ltd. 1907: Japan Advertising Ltd. merged with Japan Telegraphic Communication Co. Ltd. The same year, it launched its communication and advertising operations. 1936: Japan Telegraphic Communication Co. Ltd. spun off its news services department to Domei News Agency and relaunched itself as a specialized advertising agency. 1943: The company acquired 16 ventures to augment its advertising agency business. 1948: The company created the Dentsu Advertising Awards. 1949: The company started the Dentsu Advertising Essay Contest for students. 1951: Dentsu launched a radio division coinciding with the start of commercial radio broadcasting in Japan. 1953: Dentsu formed a radio and television division coinciding with the start of commercial TV broadcasting in Japan. 1955: The company changed its name to Dentsu Advertising Ltd. 1974: Ad Age ranked Dentsu as the world’s largest ad agency based on calendar-1973 billings. 1978: The company changed its name to Dentsu Incorporated in April 1978; it shortened the name to Dentsu Inc. in September 1987. 1981: Dentsu and Young & Rubicam formed Dentsu Young & Rubicam, a joint venture in Tokyo. 1984: Dentsu and Young & Rubicam established DYR, an international service network. 1988: Ad Age named Dentsu the 1987 International Agency of the Year. 1989: Fiscal 1989 billings exceeded 1 trillion yen. 1995: Dentsu established five Japanese regional subsidiaries. 1996: Japan-China Advertising Education Exchange Project began. Dentsu Tec Inc. launched. 2000: Dentsu made an equity investment in U.S. agency firm Bcom3 Group. 2001: Dentsu staged its initial public offering Nov. 30, 2001, with a listing on the First Section of the Tokyo Stock Exchange. Dentsu celebrated its 100th anniversary. 2002: Publicis Groupe purchased Bcom3 Group; Dentsu acquired 15% stake in Publicis as part of strategic alliance. 2003: Dentsu East Japan Inc., Ad Dentsu Tokyo Inc. and Dentsu Tohoku Inc. merged, with Dentsu East Japan as the surviving company. Geneon Entertainment Inc. and Geneon Entertainment (USA) Inc. were converted to subsidiaries. 2004: Dentsu launched UNESCO World Terakoya Movement kururimpa project. 2006: Dentsu Tec was converted to a wholly owned subsidiary and its shares were delisted. 2007: Dentsu Group reached consolidated billings (net sales) of 2 trillion yen. 2009: Dentsu introduced a management system consisting of director, member of the board and executive officer. Cyber Communications Inc. became a wholly owned subsidiary. Dentsu set a new Dentsu Group corporate philosophy: “Good Innovation.” 2010: Dentsu established Dentsu Network West to manage holdings in the Americas, Europe and Australia. Dentsu also established Dentsu Digital Holdings. 2012: Dentsu formed Dentsu Network, an umbrella organization of the company’s agencies outside Japan. Dentsu Network absorbed Dentsu Network West. Publicis Groupe bought back 18 million Publicis shares owned by Dentsu, ending a strategic alliance in place since 2002; Publicis in 2013 purchased Dentsu’s remaining approximately 3.9 million Publicis shares. 2013: Dentsu acquired Aegis Group and established a new London-based global operating unit, Dentsu Aegis Network Ltd., including former holdings of Aegis and Dentsu Network. 2020: The company reorganized as Dentsu Group Inc., a pure holding company. Dentsu Group consisted of a newly formed Dentsu Japan Network, which included advertising and advertising-related businesses in Japan (including Dentsu Inc. operations); and Dentsu Aegis Network, the company’s U.K.-based global agency network. Dentsu Group in September 2020 changed the name of Dentsu Aegis Network to Dentsu International. 2023: Dentsu Group began to operate as a single global network. Effective Jan. 1, 2023, the company integrated its two former networks, Dentsu Japan Network and Dentsu International, into one organization. “Dentsu is the network designed for what’s next, helping clients predict and plan for disruptive future opportunities and create new paths to growth in the sustainable economy. “Taking a people-centered approach to business transformation, we use insights to connect brand, content, commerce and experience, underpinned by modern creativity. “As part of Dentsu Group, we are headquartered in Tokyo, Japan and our 65,000-strong employee base of dedicated professionals work across four regions: Japan; Americas; Europe, Middle East and Africa (EMEA); and Asia Pacific (APAC). “Dentsu combines Japanese innovation with a diverse, global perspective to drive client growth and to shape society.” Ad Age Agency Report 2024 Revenue and analysis for agency companies Click here

Dentsu—Ad Age Agency Report 2024

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