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Dentsu

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Dentsu Inc.
Native name
株式会社電通
Company typePublic KK
TYO: 4324
IndustryAdvertising
Public relations
FoundedJuly 1, 1901; 123 years ago (1901-07-01) (as Japan Advertising Ltd.)
Headquarters
Minato, Tokyo
,
Japan
Key people
Tadashi Ishii,
(President & CEO)
Tatsuyoshi Takashima,
(Chairman)
RevenueIncrease ¥1.678 trillion (2010)[1]
Increase ¥132.3 billion (FY 2015)[1]
Number of employees
47,324 (2016)[2]
SubsidiariesDentsu Aegis Network
Websitewww.dentsu.com

Dentsu Inc. (株式会社電通, Kabushiki-gaisha Dentsū) is a Japanese international advertising and public relations company whose headquarters are located in the Dentsu Building in the Shiodome district of Minato, Tokyo.[3] It is the parent company of Dentsu Aegis Network.

History

Dentsu was originally established as Japan Advertising Ltd. and Telegraphic Service Co. by Hoshiro Mitsunaga. In 1906, Telegraphic Service Co. became Japan Telegraphic Communication Co., Ltd. (日本電報通信社, Nippon Denpo Tsushin-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 1946, 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.[citation needed]

In 1995, Dentsu created five domestic regional subsidiaries.[citation needed]

Initial public offering

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 ¥1 each, while he intended to sell 1 share at ¥610,000. The bank lost £71 million.[4]

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.[citation needed]

Aegis Group

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.[5] Dentsu announced that it would launch Dentsu Aegis Network, which would manage all Aegis Media work and non-Japanese Dentsu operations worldwide.[6]

Overworking

On December 25th 2015, Matsuri Takahashi, a Dentsu employee, committed suicide. The Japanese government officially recognized her suicide as karoshi. In August 2015, Dentsu was caught exceeding its own 70-hour monthly maximum overtime limit. [7]

Projects

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.

In March 2011, Dentsu formed an official partnership with Facebook to help develop Facebook pages, Facebook ads, and marketing strategies in general.[8] The partnership also provides Dentsu with premium advertising space on Facebook.

Dentsu Building

Main article: Dentsu Building

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 Shogun's vacation home.

Mount Fuji climbing tradition

Since 1925 Dentsu employees have had a company tradition of climbing Mount Fuji.[9] 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.'"[10]

Dentsu Group companies in Japan

First-tier subsidiaries
  • Dentsu East Japan Inc.
  • Dentsu West Japan Inc.
  • Dentsu Kyushu Inc.
  • Dentsu Hokkaido Inc.
  • Dentsu Okinawa Inc.
  • Ad Dentsu Osaka Inc.
  • Dentsu Meitetsu Communications Inc.
  • Dentsu Ad-Gear Inc.
  • Dentsu Young & Rubicam Inc.
  • Dentsu Sudler & Hennessey Inc.
  • Wunderman Dentsu Inc.
  • Cyber Communications Inc.
  • The Goal Inc.
  • OOH Media Solution, Inc.
  • Dentsu Tec Inc.
  • Dentsu Public Relations Inc.
  • Dentsu Marketing Insight Inc.
  • Dentsu Casting and Entertainment Inc.
  • One Sky Inc.
  • Shingata Inc.
  • Shingata Azabu Inc.
  • Build Creativehaus Inc.
  • Bless You Inc.
  • Battery Inc.
  • Dof Inc.
  • Nakahata Inc.
  • Watson-Crick Inc.
  • Dentsu Creative Force Inc.
  • Dentsu Creative X Inc.
  • Pict Inc. (Producing Image Creation & Technology)
  • Yokohama Super Factory Co., Ltd.
  • Drill Inc.
  • Dentsu Operations Development Inc.
  • Dentsu Direct Force Inc.
  • Dentsu Consulting Inc.
  • Ignite Inc.
  • Information Services International-Dentsu, Ltd.
  • Creative Associates Ltd.
  • Dentsu Music and Entertainment Inc.
  • Dentsu Sports Partners Inc.
  • JEB Co., Ltd.
  • Dentsu Digital Holdings Inc.
  • Ad Area Co., Ltd.
  • Dentsu Marketing East Asia Inc.
  • XrossFace Inc.
  • Boardwalk Inc.
  • Dentsu Works Inc.
  • Dentsu Management Services Inc.
Second-tier subsidiaries
  • DA search & link Inc.
  • Dentsu e-marketing One Inc.
  • Interlogics, Inc.
  • Dentsu Isobar Inc.
  • iCON Inc.
  • Dentsu Retail Marketing Inc.
  • Dentsu Customer Access Center Inc.
  • Dentsu On-Demand Graphics Inc.
  • Dentsu Macromill Inc.
  • Dentsu Table Media Communications Inc.
  • 3P Corp.
  • In-Store Communications Inc.
  • ISID InterTechnologies, Ltd.
  • ISID Assist, Ltd.
  • Estech Corp.
  • iTiD Consulting, Ltd.
  • ISID Advanced Outsourcing, Ltd.
  • ISID Fairness, Ltd.
Affiliates and shareholdings

See also

References

Notes
  1. ^ a b "Annual Report 2014" (html). Dentsu. Retrieved January 12, 2016.
  2. ^ http://www.dentsu.com/whoweare/summary/
  3. ^ "Company details". Dentsu. Retrieved on November 9, 2009.
  4. ^ Fat fingered typing costs a trader’s bosses £128m
  5. ^ "Japan's Dentsu to Acquire Aegis Group for $4.9 billion". AdAge. 12 July 2012.
  6. ^ "Dentsu Closes $5 Billion Acquisition of Aegis Group". adage.com. Ad Age. Retrieved 2015-11-03.
  7. ^ 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.
  8. ^ Dentsu and Facebook Announce Agreement to Support Advertisers in Japan, February 28, 2011 Retrieved January 14, 2016
  9. ^ Clash, Jim Sacred Mountain November 17, 2006 Forbes Retrieved September 7, 2015
  10. ^ O'Reilly, Lara This company makes all its new employees climb Mount Fuji May 5, 2015 Business Insider Retrieved September 7, 2015
  11. ^ Geneon Universal is a formerly fully owned Dentsu subsidiary, where Dentsu now holds 19.9% of the company compared to NBCUniversal's 80.1%.
Sources

Further reading

  • 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)
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