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Dentsu Inc. (Japanese: 株式会社電通 Kabushiki-gaisha Dentsū or 電通 Dentsū for short) is a Japanese international advertising and public relations joint stock company headquartered in Tokyo. Dentsu is currently the fifth largest advertising agency network in the world in terms of worldwide revenues. Dentsu bought Aegis in 2012 and formed Dentsu Aegis Network, which is headquartered in London and operates in 145 countries worldwide with around 45,000 employees. Dentsu Aegis Network is made up of 10 global network brands—Carat, Dentsu, Dentsu media, iProspect, Isobar, mcgarrybowen, Merkle, MKTG, Posterscope and Vizeum and supported by its specialist/multi-market brands.
|Traded as||TYO: 4324|
|Founded||July 1, 1901(as Japan Advertising Ltd.)|
|Revenue||¥1.678 trillion (2010)|
|¥132.3 billion (FY 2015)|
Number of employees
|Subsidiaries||Dentsu Aegis Network|
Dentsu was originally established as Japan Advertising Ltd. (日本広告株式会社 Nihon Kōkoku Kabushiki-gaisha) and Telegraphic Service Co. (電報通信社 Denpō Tsūshin-sha) by Hoshiro Mitsunaga. In 1906, Telegraphic Service Co. became Japan Telegraphic Communication Co., Ltd. (株式会社日本電報通信社 Kabushiki-gaisha Nihon Denpō Tsūshin-sha). The next year, Japan Advertising Ltd. merged with Japan Telegraphic Communication Co., Ltd. to create advertising and communications operations.
In 1936, Japan Telegraphic Communication Co., Ltd. sold off its news division to Doumei News Agency, to change the company's focus to specialized advertising. In 1943, 16 companies were acquired in order to supplement Japan Telegraphic's advertising business. That same year, operational bases were established in Tokyo, Osaka, Nagoya, and Kyūshū.
In 1951, with the arrival of commercial radio broadcasting in Japan, the Radio Division was established at Japan Telegraphic's head and local offices.
In 1955, Japan Telegraphic Communication Co., Ltd. changed its name to Dentsu Inc.
In 1995, Dentsu created five domestic regional subsidiaries.
Initial public offeringEdit
Dentsu was listed on the Tokyo Stock Exchange in 2001. During the initial public offering of Dentsu, in December 2001, a trader at UBS Warburg, the Swiss investment bank, sent an order to sell 610,000 shares in this company at ¥6 each, while he intended to sell 16 shares at ¥600,000. The bank lost £71 million.
Dentsu's sales are more than double its nearest competitor, Hakuhodo or ADK, in the Japanese market, thanks to the company's origins as a media representative during the early part of the 20th century, producing the first newspaper advertisements as well as the first television commercials in Japan.
On November 12, 2008, Dentsu announced that it was selling 80.1% of its ownership in Geneon to NBCUniversal's Universal Pictures International Entertainment (UPI), who planned to merge the company with its Universal Pictures Japan division to form a new company. The merger closed on February 1, 2009.
On 12 July 2012 Dentsu agreed to acquire British-based Aegis Group plc in a cash deal worth $4.9 billion. The deal was completed in March 2013. Dentsu announced that it would launch Dentsu Aegis Network, which would manage all Aegis Media work and non-Japanese Dentsu operations worldwide.
Mr. Tadashi Ishii, Representative Director and President & CEO, notified Dentsu on December 28, 2016 that he will resign as Representative Director and President & CEO. His papers were sent to the prosecutors office because of the violation of the Labor Standards Act.
In July 2017, the company, Dentsu, was officially charged by Japanese authorities for the death of Takahashi. No individuals were charged, only the corporation.
A 2017 attempt to encourage letting workers "leave the office at 3 p.m. on the last Friday of the month" did not get much participation.
Dentsu Inc. categorises project markets in four different parts: National advertisement market; Advertisement-related market; New market; Foreign market (in addition to Dentsu Aegis Network, its overseas subsidiary, which operates in over 120 countries). National advertisement market consists of media projects. Advertisement related projects consist of marketing services. New market consists of sport events advertisement. Foreign market contains above mentioned three categories in the foreign market.
The Dentsu Building is a high-rise building in Shiodome, Minato, Tokyo, which houses Dentsu's corporate offices. With 48 floors that rise to 213.34 m (700 ft), it is the eleventh-tallest building in Tokyo. It was designed by Jean Nouvel, the French architect, and completed in 2002. It was built over the site of Tokyo's first train station, and sits aside the Hamarikyu Gardens, formerly the site of a shōgun's vacation home.
Mount Fuji climbing traditionEdit
Since 1925 Dentsu employees have had a company tradition of climbing Mount Fuji. Every July all new staff and newly promoted executives climb Mt Fuji. Employees who are not physically able to do so are exempt. A former employee gave the reasoning behind this as: "The message is: 'We are going to conquer the one symbol that represents Japan more than anything else. And, once we do that, it will signify that we can do anything.'"
Dentsu Group companies in JapanEdit
- First-tier subsidiaries
- Ad Area Co., Ltd.
- Ad Dentsu Osaka Inc.
- Battery Inc.
- Bless You Inc.
- Boardwalk Inc.
- Build Creativehaus Inc.
- Creative Associates Ltd.
- Cyber Communications Inc.
- Dentsu Ad-Gear Inc.
- Dentsu Casting and Entertainment Inc.
- Dentsu Consulting Inc.
- Dentsu Creative Force Inc.
- Dentsu Creative X Inc.
- Dentsu Digital Holdings Inc.
- Dentsu Direct Force Inc.
- Dentsu East Japan Inc.
- Dentsu Hokkaido Inc.
- Dentsu Kyushu Inc.
- Dentsu Management Services Inc.
- Dentsu Marketing East Asia Inc.
- Dentsu Marketing Insight Inc.
- Dentsu Meitetsu Communications Inc.
- Dentsu Music and Entertainment Inc.
- Dentsu Okinawa Inc.
- Dentsu Operations Development Inc.
- Dentsu Public Relations Inc.
- Dentsu Sports Partners Inc.
- Dentsu Sudler & Hennessey Inc.
- Dentsu Tec Inc.
- Dentsu West Japan Inc.
- Dentsu Works Inc.
- Dentsu Young & Rubicam Inc.
- Dof Inc.
- Drill Inc.
- The Goal Inc.
- Ignite Inc.
- Information Services International-Dentsu, Ltd.
- JEB Co., Ltd.
- Nakahata Inc.
- One Sky Inc.
- OOH Media Solution, Inc.
- Pict Inc. (Producing Image Creation & Technology)
- Shingata Azabu Inc.
- Shingata Inc.
- Watson-Crick Inc.
- Wunderman Dentsu Inc.
- XrossFace Inc.
- Yokohama Super Factory Co., Ltd.
- Second-tier subsidiaries
- 3P Corp.
- DA search & link Inc.
- Dentsu Customer Access Center Inc.
- Dentsu e-marketing One Inc.
- Dentsu Isobar Inc.
- Dentsu Macromill Inc.
- Dentsu On-Demand Graphics Inc.
- Dentsu Retail Marketing Inc.
- Dentsu Table Media Communications Inc.
- Estech Corp.
- iCON Inc.
- In-Store Communications Inc.
- Interlogics, Inc.
- ISID Advanced Outsourcing, Ltd.
- ISID Assist, Ltd.
- ISID Fairness, Ltd.
- ISID InterTechnologies, Ltd.
- iTiD Consulting, Ltd.
- Affiliates and shareholdings
Dentsu Group companies outside JapanEdit
- "Annual Report 2014". Dentsu. Retrieved January 12, 2016.
- "Corporate Data - WHO WE ARE - DENTSU INC". www.dentsu.com.
- World's largest in 1984; Philip H. Dougherty (April 23, 1984). "Dentsu of Japan Still Largest Agency". The New York Times. others outgrew it.
- In 1981, Dentsu and Young & Rubicam were the two largest ad agencies in the world. Philip H. Dougherty (May 22, 1981). "Y.&R. and Dentsu start joint ad venture in Japan". The New York Times.
- "Dentsu Company History (Japanese)". Dentsu. Retrieved 2019-05-29.
- "Dentsu Company History (English)". Dentsu. Retrieved 2019-05-29.
- "Fat fingered typing costs a trader's bosses £128m-News-World-Asia-TimesOnline". 16 February 2007.
- "Dentsu acquires Pioneer - News". Anime News Network. 2003-07-21. Retrieved 2013-11-05.
- "ジェネオン エンタテインメント㈱一部株式のUPIEへの譲渡とジェネオン エンタテインメント㈱とUPIE子会社との合併について" (PDF). Dentsu. 2008-11-12. Retrieved 2019-05-29.
- "Geneon to Merge with Universal Pictures Japan - News". Anime News Network. 2008-11-12. Retrieved 2013-11-05.
- "Japan's Dentsu to Acquire Aegis Group for $4.9 billion". AdAge. 12 July 2012.
- "Dentsu Closes $5 Billion Acquisition of Aegis Group". adage.com. Ad Age. Retrieved 2015-11-03.
- Jonathan Soble (December 28, 2016). "Chief of Dentsu, Japanese Ad Agency, to Resign Over Employee's Suicide". The New York Times.
- Yamaguchi, Mari (2016-10-28). "Latest Dentsu death shows 'karoshi' a part of Japan Inc. that toothless laws can't fix". The Japan Times Online. ISSN 0447-5763. Retrieved 2016-11-04.
- "Dentsu Announces Change (Resignation) of Representative Director" (PDF).
- "Japan's Dentsu advertising agency charged over employee suicide". BBC News. 8 Jul 2017. Retrieved 9 July 2017.
- Makiko Inoue; Megan Specia (October 5, 2017). "Young Worker Clocked 159 Hours of Overtime in a Month. Then She Died". The New York Times.
- Dentsu and Facebook Announce Agreement to Support Advertisers in Japan, February 28, 2011 Retrieved January 14, 2016
- Clash, Jim. "Sacred Mountain" November 17, 2006 Forbes Retrieved September 7, 2015
- O'Reilly, Lara "This company makes all its new employees climb Mount Fuji" May 5, 2015. Business Insider. Retrieved September 7, 2015.
- started as Lord, Dentsu & Partners, renamed 1997.Shelly Freierman (January 6, 1997). "Lord, Dentsu Now the Lord Group". The New York Times.
- "Dentsu of Japan Acquires 40% Stake in London's C.D.P." The New York Times. October 31, 1990.
- Annual Report 2015. Dentsu 2015.
- Kawashima, Nobuko. "Advertising agencies, media and consumer market: The changing quality of TV advertising in Japan." Media, Culture & Society 28#3 (2006): 393-410.
- Moriarty, Sandra, et al. Advertising: Principles and practice (Pearson Australia, 2014), Australian perspectives
- Sugiyama, Kotaro, and Tim Andree. The Dentsu Way: Secrets of Cross Switch Marketing from the World's Most Innovative Advertising Agency (2010)