The new agency, tentatively called Digit Ones, aims to capitalise on China’s rapidly increasing number of internet users.
Jason Jiang, chief executive of Focus Media, explained that the agency would focus on serving telecom companies in its initial stages, but planned to expand its client base in other areas after two to three years. The client list will include China’s top three telecom companies.
Dentsu currently has three major advertising companies in China - Beijing Dentsu Advertising, Beijing Oriental Rihai Advertising, and Shanghai Oriental Partner Advertising - but is seeking to integrate all the agencies’ digital services into a single operation. Boosting online capability is a priority for Focus Media, which is currently China’s leading advertising group in terms of revenue.
“It’s important for international agencies to be well established before venturing into China,” Jiang said.
Industry observers noted that Dentsu will gain access to Focus Media’s comprehensive distribution network, while Focus can expect to benefit from Dentsu’s digital experience in Japan.