Dentsu Announces Establishment of New Company, Dentsu Digital Inc., to Accelerate Its Growth Strategy in Japan

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April 19, 2016

Dentsu Inc. (Tokyo: 4324; ISIN: JP3551520004; President & CEO: Tadashi Ishii; Head Office: Tokyo; Capital: 74,609.81 million yen) announced today that it will establish Dentsu Digital Inc. (hereinafter "Dentsu Digital"), a new specialist digital marketing company aimed at accelerating its growth strategy in the digital domain in Japan, on July 1 this year.

In recent years, the evolution of digital technology has significantly changed consumer behavior, and companies that in the past focused on individual marketing processes have started to focus on linking them organically at each stage in an effort to maximize effectiveness and efficiency. The Internet is now second only to television in terms of advertising spending in Japan, and digital market-related spending such as IT consulting, Big Data analytics and support for e-commerce, services that are not part of the traditional advertising market, has expanded greatly.

In light of these circumstances Dentsu Digital, in collaboration with other Dentsu Group companies, will focus on accelerating the capture of demand in the expanding market for digital marketing as well as in the existing advertising market. Specifically, the new company will provide functions including consulting, the development and implementation of marketing initiatives, and operational and execution support for client companies pursuing digital transformation; develop integrated customer journey solutions from the discovery of potential customers and customer acquisition through to customer relationship management; and build platforms to support them. In addition to investment activities and technological development in order to maintain state-of-the art capabilities, Dentsu Digital will acquire and develop digital marketing professionals who have the experience and skills to make it a leading digital marketing company in both name and reality.

Dentsu Inc.'s Integrated Digital Marketing Division will be absorbed into Dentsu Digital Inc., along with wholly owned subsidiaries Dentsu e-marketing One Inc. and Nextage Dentsu Inc., both of which are headquartered in Tokyo. Dentsu e-marketing One specializes in customer strategy, channel strategy and e-marketing initiatives, while Nextage Dentsu provides digital performance marketing services.

Services Provided by Dentsu Digital
1. Digital transformation-related services
- Marketing process innovation
- Marketing eco-system building
- Marketing ROI improvement
- Experience design
2. Customer journey-related services
- Marketing automation
- Web integration
- Performance marketing
- Digital advertising operations
- Direct marketing
- Social media marketing
- Content marketing
- Mobile / app marketing
- Customer relationship management (CRM) services
- E-commerce solutions
3. Technology and data-related services
- Data platform / marketing platform building
- Marketing technology / Artificial intelligence (AI) / Internet of Things (IoT) related services

Profile of Dentsu Digital
Company Name:     Dentsu Digital Inc.
Location:    1-8-1, Higashi-shimbashi, Minato-ku, Tokyo
    (Within the Dentsu headquarters building)
Capital:    JPY 440,000,000
Shareholding Ratio:     Dentsu Inc. 100%
Representatives:     CEO: Toshiya Oyama
    (Currently a Dentsu Inc. Executive Officer)
             COO: Yoshito Maruoka
    (Currently Managing Director, Integrated Digital Marketing Division, Dentsu Inc.)
Date of Establishment:    July 1, 2016
Number of Employees:     600 (provisional)



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