Dentsu

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Dentsu Inc.

Communications Excellence
Dentsu Building in Shiodome, Tokyo
Native name	株式会社電通
Type	Public KK
Traded as	TYO: 4324
Industry	Advertising Public relations Information, Communication
Founded	July 1, 1901; 117 years ago (1901-07-01) (as Japan Advertising Ltd.)
Headquarters	Minato, Tokyo, Japan
Key people	Tatsuyoshi Takashima (Chairman)
Revenue	¥1.678 trillion (2010)[1]
Net income	¥132.3 billion (FY 2015)[1]
Number of employees	47,324 (2016)[2]
Parent	AKS
Subsidiaries	Dentsu Aegis Network
Website	www.dentsu.com

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.

History[edit]

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[edit]

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.^[3]

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[edit]

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.^[4] Dentsu announced that it would launch Dentsu Aegis Network, which would manage all Aegis Media work and non-Japanese Dentsu operations worldwide.^[5]

Overworking[edit]

On December 25, 2015, Matsuri Takahashi, the University of Tokyo graduate and 24-year-old female employee of Dentsu, 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.^[6]

Mr. Tadashi Ishii, Representative Director and President & CEO, has 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.^[7]

In July 2017, the company, Dentsu, was officially charged by Japanese authorities for the death of Takahashi. No individuals were charged, only the corporation.^[8]

Projects[edit]

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.^[9] The partnership also provides Dentsu with premium advertising space on Facebook.

Dentsu Building[edit]

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[edit]

Since 1925 Dentsu employees have had a company tradition of climbing Mount Fuji.^[10] 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.'"^[11]

Dentsu Group companies in Japan[edit]

First-tier subsidiaries

Second-tier subsidiaries

Affiliates and shareholdings

• AKS Co., Ltd. (minority shareholder)
• Geneon Universal Entertainment Japan^[12]
• Madhouse (minority shareholder)
• Shibuya-AX (joint venture)
• TNC (5.1%, minority shareholder)
• Video Research Ltd. (34.2%, leading shareholder)

See also[edit]

References[edit]

Notes

Sources

Further reading[edit]

• 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)

External links[edit]

• Dentsu (Japanese)
• Dentsu (English)
• Dentsu at Anime News Network's encyclopedia
• Dentsu Tec at Anime News Network's encyclopedia
• "Company history books (Shashi)". Shashi Interest Group. April 2016. Wiki collection of bibliographic works on Dentsu