Dentsu

Tokyo-based advertising and marketing agency Dentsu connects brand, content, commerce and experience, underpinned by modern creativity.

Categories

Media and Communications  
Summary

Dentsu Inc, founded in 1901 and headquartered in Higashi-Shinbashi, Minato, Tokyo, is a Japanese international advertising and public relations joint stock company headquartered in Tokyo. It is currently acclaimed as the largest advertising agency in Japan and the fifth largest advertising agency network in the world in terms of worldwide revenues.

Dentsu does business with almost every major institution in Japan, accounting for about 28 percent of the national advertising budget. The company offers advertising services including newspapers, magazines, radio, television, the Internet- sales promotions- movies- and other services. 

It also provides marketing, creatives, public relations, contents and other services; sells software and develops systems as well as offers outsourcing- operations- maintenance services. In addition, the company rents office buildings and buys and sells real estate properties in addition to offering building maintenance and fiduciary services.


History

Dentsu was originally established as Japan Advertising Ltd. and Telegraphic Service Co. by Hoshiro Mitsunaga. In 1906, Telegraphic Service Co. became Japan Telegraphic Communication Co., Ltd. . The next year, Japan Advertising Ltd. merged with Japan Telegraphic Communication Co., Ltd. to create advertising and communications operations. Japan Telegraphic Communication Co., Ltd. sold off its news division to Doumei News Agency in 1936 to change the company's focus to specialized advertising. 

The Company acquires 16 companies in a move to augment its advertising agency business and operational bases were established in Tokyo, Osaka, Nagoya and Kyushu. Per The New York Times: "The Tokyo-based company which is untroubled by client conflict problems had gross income of $437.7 million on revenues of $3.21 billion in 1983." The growth trajectory was spiralling upward. In 1951 Dentsu established the Radio Division at its Head Office and local offices and subsequently commercial radio broadcasting began in Japan. In 1955 Japan Telegraphic Communication Co., Ltd. changed its name to Dentsu Inc. and shortly created five domestic regional subsidiaries.

In 1974 Advertising Age ranked Dentsu as the leading advertising agency worldwide in terms of billings. In 1981 the world's two largest advertising agencies- Japan-based Dentsu and US-based Young and Rubicam' announced a joint venture. Per The New York Times: “The new company… will be equally owned by both agencies with Y.& R. adding cash to equalise its investment… The two agencies- according to their announcement- are setting up a committee to study joint-venture possibilities in other parts of the world.” Three years later Dentsu and U.S.-based Young and Rubicam jointly established an international service network- DYR.

Fiscal 1989 billings exceeded an estimated 1 trillion yen and Dentsu was listed on the Tokyo Stock Exchange in 2001. During this period Dentsu's sales were more than double its nearest competitor- Hakuhodo- in the Japanese market owing to the company's origins as a media representative during the early part of the twentieth century.. producing the first newspaper advertisements as well as the first television commercials in Japan.

In July 2003 Dentsu acquired Pioneer LDC from Pioneer Corporation and renamed it to Geneon Entertainment while its North American division- Pioneer Entertainment- was renamed to Geneon USA. On 12 November 2008 Dentsu announced that it was selling 80.1 per cent of its ownership in Geneon to NBC Universal's Universal Pictures International Entertainment which planned to merge the company with its Universal Pictures Japan division to form a new company. The merger closed on February 1, 2009. 

Around that time Dentsu established an internal committee for the deliberation of environment-related strategies and received an "Eco-First Company" certification. On 12 July 2012 Dentsu acquired Aegis Group in a cash deal estimated at $4.9 billion. Dentsu Aegis Network managed all Aegis Media work and non-Japanese Dentsu operations worldwide. In September 2020 Dentsu Group Inc. announced that its international business Dentsu Aegis Network would operate under the brand- Dentsu. This simplification has seen three lines of business established across media- customer relationship management- and creative. The business is registered as Dentsu International Limited with UK Companies House in October 2020.

In April 2015 Dentsu announced the launch of a corporate venture capital fund- Dentsu Ventures- a corporate venture capital fund that supports entrepreneurs to bring their innovation to the world. With the unique value creation capabilities of Dentsu and its strong network worldwide.. Dentsu Ventures aspired to build a culture of co-creation between startups and corporations. In May 2021 Dentsu Ventures Global Fund II- the second fund worth an estimated 10 billion yen- was launched. Combining with the Fund I they had an estimated 20 billion yen for startup investments.

In 2018 Dentsu acquired LATAM based digital first agency based in Argentina and Miami- USAGlobalMind. It was on a roll. In August 2023 Dentsu acquired Berlin-headquartered digital-first brand- communications- and creative agency RCKT. Per Little Black Book: "Dentsu Creative's clear mission to transform brands and businesses through the power of "Modern Creativity" aligns perfectly with RCKT's ambition of producing meaningful creative work. With particular expertise in sustainability, employer branding and employee experience and product innovation it’s a natural fit with Dentsu Creative’s ideas of Create Culture, Change Society and Invent the Future. The RCKT brand will be retained during a period of integration, becoming known as RCKT- a Dentsu Creative Company…"


Mission

Dentsu's mission is to navigate the dynamic landscape of advertising- marketing and communications with commitment and innovation. With a legacy dating back to its inception as Japan Advertising Ltd. and Telegraphic Service Co. in 1901, the Tokyo-headquartered agency has evolved to become a global force in specialized advertising and communications. From pioneering initiatives like establishing the Radio Division to its strategic acquisitions and rebranding efforts such as Aegis Group and RCKT.. Dentsu consistently seeks to "Create Culture, Change Society and Invent the Future." The mission is underscored by a dedication to co-creation.. fostering entrepreneurship through ventures like Dentsu Ventures and embracing the power of "Modern Creativity" to shape brands and businesses worldwide.


Vision

Dentsu's journey through the years has been marked by a remarkable evolution in advertising and communications. Founded as Japan Advertising Ltd. and Telegraphic Service Co., the company underwent a series of transformations, culminating in its focus on specialized advertising. This strategic shift paved the way for Dentsu to become a pioneering force in the industry. With operational bases established across Japan and a growing global presence, Dentsu steadily rose to prominence. By 1983, the company boasted impressive gross income and revenues, showcasing its upward growth trajectory.

Dentsu's commitment to innovation and adaptability is evident in its ventures and partnerships over the years. Collaborations with global giants like Young and Rubicam and the establishment of an international service network- DYR- is proof of its dedication to expanding its global footprint. This international reach continued to flourish as Dentsu acquired and rebranded companies such as Pioneer LDC and Aegis Group.. solidifying its position as a global advertising powerhouse. Furthermore, Dentsu's strategic ventures into corporate venture capital with the launch of Dentsu Ventures demonstrate its commitment to nurturing innovation and co-creation in the ever-evolving advertising landscape.

Dentsu's story is one of continuous growth, adaptability and pursuit of excellence. From its roots as a media representative in the early twentieth century to its current status as Dentsu International Limited.. the company has consistently pushed boundaries and embraced change. Its acquisition of innovative agencies like USAGlobalMind and RCKT further exemplifies its dedication to shaping the future of advertising. Dentsu's vision- characterised by a blend of tradition and modernity- remains an inspiring testament to its enduring impact on the world of advertising- marketing and communications.


Key Team

Kate Stewart (Head of Investor Relations)

Anna Lake (Regional Marketing and Communications Director)

Takaki Hibino (Executive Officer)

Yuya Furukawa (Chief Creative Officer)

Jun Shibata (Executive Officer)

Arinobu Soga (Executive VP, CFO and Director)

Norihiro Kuretani (Executive Officer and Director)


Products and Services

Tokyo-based Dentsu is a global leader in marketing communications, offering a comprehensive suite of products and services that empower businesses to connect with their audiences effectively. One of its core strengths lies in advertising, where Dentsu excels in crafting compelling and resonant messages that drive brand awareness and engagement. Leveraging their expertise in media planning, the agency ensures that the clients' communication reach the right audiences through the most suitable channels, maximizing the impact of their clients' campaigns. Moreover, their media buying capabilities enable businesses to secure prime advertising placements, optimizing their return on investment.

Dentsu's commitment to people-based marketing sets them apart in the industry. By harnessing consumer data and insights, they create personalized marketing strategies that target individuals rather than demographics. This customer-centric approach enhances engagement and loyalty, driving business growth. Dentsu's creative team fuels innovation, developing cutting-edge campaigns that captivate audiences and leave a lasting impression. Their expertise in data and technology underpins all of these services, enabling data-driven decision-making and the implementation of advanced marketing solutions. Through this holistic approach, Dentsu empowers businesses to stay at the forefront of the industry, ensuring that their clients achieve success in their advertising, marketing and branding strategies.


References
Dentsu
Leadership team

Yuya Furukawa  (Chief Creative Officer)

Anna Lake (Regional Marketing and Communications Director)

Arinobu Soga  (Executive VP, CFO and Director)

Industries

Media and Communications

Products/ Services
Marketing -Digital Marketing -Creative Sphere -Promotions -Media -Content -PR -Global Business
Number of Employees
Above 50,000
Headquarters
1-8-1 Higashishinbashi, Minato City, Tokyo 105-0021, Japan
Established
1901
Company Type
Public Limited Company
Net Income
1B - 20B
Revenue
Above - 1B
Traded as
4324.T
Social Media

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Sat Mar 02 2024
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