At a Glance
- 11,000+ clients globally, served by 43,000 professionals
- Gross profit international ratio1 reached 51%, exceeding the Japan business ratio of 49% for the first time
- No. 1 brand agency globally2
3rd largest media agency group in the world3
- Leading position with a 25% share of the advertising market in Japan
- Leverage global competitiveness through a “One P&L” per market operating model
- Digital domain ratio4 accounts for 43% at Dentsu Aegis Network and 30% for the entire Dentsu Group
- Placed 2nd in the “Most Awarded Agencies in the World in 2014”5 rankings in recognition of creative strength, one of our capabilities
- World’s largest agency in the field of sports marketing, with a track record of over 40 years through long-term, successful relationships with a number of major sports federations
- Both sales and profits increased in fiscal 2014, with gross profit reaching a record-high ¥676.9 billion
Organic growth rate1, 6 of Dentsu Aegis Network reached 10.3%,7 outperforming the peer group
- 1
- Based on gross profit
- 2
- Source: Advertising Age, May 4, 2015 edition
- 3
- Media billings of WPP, Publicis, Omnicom, Interpublic Group and Havas are based on overall activity billings in RECMA Overall Activity Rankings 2014. The Dentsu Group’s media billings are a simple sum of Dentsu Aegis Network’s media billings and Dentsu’s non-consolidated media billings. Dentsu Aegis Network’s media billings are based on overall activity billings in RECMA Overall Activity Rankings 2014. Dentsu’s U.S. dollar-denominated non-consolidated media billings are converted from yen to U.S. dollars using the average exchange rate for 2014 (calendar year).
- 4
- Based on gross profit of Internet-related marketing services, entrusted development and sales of information technology systems
- 5
- Source: THE GUNN REPORT SHOWREEL OF THE YEAR 2014
- 6
- Represents the constant currency year-on-year growth after adjusting for the effect of business acquired or disposed of since the beginning of the previous year
- 7
- 5.8% for the Dentsu Group (Consolidated)
Expansion of International Business
The global business operates with 380 offices and 43,000 employees in 124 countries around the world.
In terms of the percentage mix by major region, Japan accounts for 49%; EMEA,1 20%; the Americas,2 17%; and APAC,3 14%.
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- Europe, Middle East and Africa
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- North, Central and South America
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- Asia Pacific (excl. Japan)
With the acquisition of Aegis Group plc in March 2013, the international contribution to the Dentsu Group’s gross profit grew significantly, and its business structure is much more regionally diverse.
Positioning as a Global Network
Dentsu ranks as the No. 1 brand agency globally1; the 3rd largest media agency group in the world2; and in Japan it has a leading share of the market. The Dentsu Group is evolving into a truly global network:
- 1
- Source: Advertising Age, May 4, 2015 edition
- 2
- Media billings of WPP, Publicis, Omnicom, Interpublic Group and Havas are based on overall activity billings in RECMA Overall Activity Rankings 2014. The Dentsu Group’s media billings are a simple sum of Dentsu Aegis Network’s media billings and Dentsu’s non-consolidated media billings. Dentsu Aegis Network’s media billings are based on overall activity billings in RECMA Overall Activity Rankings 2014. Dentsu’s U.S. dollar-denominated non-consolidated media billings are converted from yen to U.S. dollars using the average exchange rate for 2014 (calendar year).
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- (1)
- HDY is the total of net sales by Hakuhodo, Daiko Advertising and Yomiuri Advertising.
- (2)
- Under JGAAP, net sales are calculated in calendar 2014.
- Sources:
- Advertising and Economy, Current Situation of Japanese Advertising Agencies and 2014 Advertising Expenditures in Japan (Dentsu)
Unique Operating Model
Leveraging the structural advantage of “One P&L” per market in a unique, scalable operating model
The Dentsu Group has established a “One P&L” per market operating model, which is unique and collaborative. Group companies are incentivized to collaborate across agencies and countries. This model enables Dentsu to provide integrated and specialist services for clients across markets and regions.
In an age of marketing convergence,* advertisers are looking for integrated and specialist services from their agency partners. Our operating model offers a source of differentiation that gives the Dentsu Group an edge over the peer group, and has been a key driving force in our strong performance in recent years.
- *
- New marketing paradigm reflecting spread of digital media and social media in recent years as well as changing consumer behavior patterns and progress in all kinds of technologies
The Dentsu Group’s Management Structure
The Japan business is spearheaded by Dentsu while the international business is led by Dentsu Aegis Network, which includes Aegis and Dentsu’s legacy international businesses.
