The new digital agency is designed to streamline the group's interactive operations to position the company as a stronger player in the digital media sector.
Dentsu Digital Holdings will oversee the planning, media strategy, website planning, production and data analysis for clients’ online campaigns from across the Dentsu group. The division’s creation will see the elimination of internal digital-related departments as they become integrated into a single-agency structure.
Dentsu Digital Holdings will oversee the planning, media strategy, website planning, production and data analysis for clients’ online campaigns from across the Dentsu group. The division’s creation will see the elimination of internal digital-related departments as they become integrated into a single-agency structure.
Dentsu Digital Holdings is slated to launch on 1 January 2010, and will be headed by representative director and CEO Akira Sugimoto, who is executive officer of Dentsu, and director and COO Nobuyuki Tohya, who is the director of Dentsu’s interactive media division.
The news comes as Dentsu released its interim financial results, which display revenue drops in every major medium outside digital.
For the six months to the end of September, Dentsu’s interactive media sales rose 6.5 per cent from the same period last year, to JPY13.8 billion (US$154 million). Yet revenues from newspaper advertising fell 25 per cent from 2008; revenues from magazines fell 30.2 per cent; and sales in radio and television both dropped by roughly 15 per cent.
Overall, Dentsu posted a 17.2 per cent revenue in the six months to September from a year earlier to JPY785.86 billion ($8.7 billion).
The holding group claims nearly 25 per cent of Japan’s advertising market, which is the second-largest ad market in the world.
Earlier this month, Dentsu entered into partnership with Intage, Japan’s largest marketing research firm, to develop a ‘marketing intelligence’ service to support clients.
