CSR
An Overview of Our Progress and Achievements in Corporate Social Responsibility

Key Differentiators

Leading market position in Japan

Japan is the world's third largest advertising market and is an important leverage point for advertisers looking to expand across Asia Pacific, for example into other important countries in the region like China and Australia. Dentsu was founded in Japan in 1901, originally as a news and advertising agency, and later setting up the first commercial broadcast networks in the country. Today, as a result of successfully combining superior creative services and planning capabilities with unparalleled media buying power in Japan, Dentsu is the number one advertising agency there. Dentsu is 80% larger than the number two player in Japan, on a revenue basis, accounting for around 25% of the domestic market.

Dentsu's Share of the Japanese Advertising Market (2014)


Truly global scale

With the establishment of Dentsu Aegis Network in March 2013, following the acquisition of global media and digital communications group Aegis Group plc, Dentsu has a truly global scale, with over 47,000 employees in 140 countries and territories around the world. Dentsu is the only global agency group with a position in Japan and the only group to be headquartered in APAC. Our global scale is enabling us to fully support and advise our clients, as they look to grow and expand their businesses on an international basis. Furthermore, Dentsu Aegis Network has significant potential to develop its business and gain shared knowledge and influence from the size and success of Dentsu in Japan, with the unique and unrivalled scale and capability Dentsu has there.


Diversifying geographic profile

Dentsu has been successful in diversifying its geographic gross profit profile over the last 10 years, with a particular focus on growing the proportion of gross profit from its international business. In 2006, gross profit from Dentsu's international business was just 6%, increasing to 15% by 2012. Following the acquisition of Aegis in 2013, Dentsu's international gross profit exposure stood at 47%, increasing to 51% in 2014. Within the international business, there is a balanced mix of gross profit from its three key regions—EMEA, the Americas and APAC. Dentsu is targeting to further increase its gross profit from its international business to a minimum of 55% by 2017


Leading position in digital

In an increasingly complex media environment, digital technologies are changing the way in which advertisers need to market their products to consumers. Advertisers are therefore looking to agencies to help them innovate across multiple channels and platforms. With this in mind, Dentsu has scale, depth and integration in digital, through global digital agencies like Isobar and iProspect, to support advertisers as they look to continue to innovate. Dentsu will continue to build its digital capabilities and increase its focus on innovation through making bolt-on acquisitions in digital in the future. With digital advertising spend continuing to grow at three times the rate of traditional advertising, driven by significant on-going growth in channels like mobile, social and video, Dentsu is targeting to achieve gross profit derived from digital of a minimum of 35% by 2017.

Isobar Global, borderless digital marketing agency with a team of 4,000 working in 70 locations across 44 markets.
  • Market leading position within Gartner's 'Magic Quartet' agencies.
  • Recognition from Forrester as a leading innovation agency.
  • APAC Digital Network of the Year award for the third year running.
iProspect The world’s leading digital performance agency.
RECMA’s digital agency report confirms iProspect as the world’s largest digital media and performance agency.
Amnet Amnet trading desk was created in response to the technology driven revolution in digital media buying and provides best in class service and expertise in emerging data-driven media strategies.
Grown from 0 to 33 markets in 2years, doubling revenue in 2014.

Unique operating model

Dentsu Aegis Network has a unique operating model, designed for marketing convergence and globalization. This operating model is enabled by a one P&L per country structure, unique in the industry, which empowers local teams to offer specialist and integrated services to clients at a local level, supported by a regional and global infrastructure. A key element of this infrastructure is our global network agencies, which deliver an integrated and specialist approach, supported by local and multinational agency brands in certain countries. This operating model drives a culture of collaboration and delivery among Dentsu’s people, supported by a consistent vision and set of values, which ensures they deliver their best work for clients.


Peer group outperformance

Dentsu remains focused on continuing to outperform the global agency peer group in organic gross profit growth. As a group, Dentsu outperformed this peer group in 2014, with Dentsu Aegis Network in particular outperforming the peer group by a factor of over two times. This is a demonstration of the continued positive momentum Dentsu is achieving throughout the organization, as it continues to deliver high quality service and innovative capabilities to clients. Furthermore, Dentsu’s on-going peer group outperformance is evidence that management has the right strategy in place, supported by a consistent culture driven through the organization, and is focusing on the most important priority areas to grow the business in the future. Most importantly, our outperformance of our peer group is a testament to the high quality of talent working at Dentsu.

Overseas organic growth far exceeding that of competitors


Strong capabilities in media, creative and sports marketing

Dentsu has a globally scaled media footprint through its media agencies Carat, Vizeum and Dentsu media, with strong regional creative capability through the Dentsu Brand Agencies, mcgarrybowen and other creative agencies. These networks are in the right geographies for clients, with a balanced mix of capabilities in EMEA, the Americas and APAC. In particular, Dentsu remains competitive in media and creative in the world’s two largest advertising markets, the US and China. Dentsu is also the originator of a number of unique capabilities that are delivered to clients to support their marketing activities, including sports marketing and content creation, curation and investment around music, movies, and entertainment. In sports marketing in particular, Dentsu has a strong rights business and sponsorship support, with long-standing relationships with key federations.

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