Transcript Dentsu

The Dentsu Advertising Agency:
A Servant or Master of Media?
B05473 Haruka Ueda
Outline
Introduction
Defining Terms
Evidence for Servant of media
Evidence for Master of media
Analysis
Conclusion
What I have thought thorough this
research
Introduction
What is the role of Advertising Agency?
“provide service which is dedicated
to creating, planning and handling ads
for its client……..also handle overall
marketing and branding strategies
and sales promotions for its client.”
(Wikipedia)
Introduction
Client
(company)
Media will sell
the space for
advertisement
Media A
Advertisement
Agency
Media B
Ads Agency
will provide ads
from the client
Media C
Introduction
Importance of advertisement for media
any kind of media need ads for
running their TV programs, newspapers
and magazines. If they do not sell
space/frame of ads they cannot get
budget.
Defining Terms
What does it mean by servant of media?
= company who is just providing
service to customer
Defining Terms
What does it mean by master of media?
= company who is providing service to
customers
and also…
putting some pressures to restrict
bashing of its important client.
Defining Terms
What does it mean by media?
“all the organizations such as TV,
radio, newspapers, magazines and
internet that provide news and
information for the public “
(Longman English Dictionary)
Outline
Introduction
Defining Terms
Evidence for Servant of media
Evidence for Master of media
Analysis
Conclusion
What I have thought thorough this
research
Evidence of being servant
1) Disappearance of dominance
2) New market share
3) Examples of losing
Evidence of being servant
1) Disappearance of dominance
□Dominance of Dentsu until 2003
→Dentsu’s audit doubles the amount of Hakuhodo
Table1: 2000’s Total Sales of Major
Advertisement Agencies
Yomiko
Tokyu Agency
Daiko
ADK
Hakuhodo
Dentsu
0
500,000
1,000,000
1,500,000
Evidence of being servant
1) Disappearance of dominance
□In 2003 Hakuhodo, Daiko, Yomiko
consolidated
→became Hakuhodo DY
Table1: 2000’s Total Sales of Major Advertisement
Agencies
Table2: 2004’s Total Sales of Major Advertisement
Agencies
Tokyu Agency
Yomiko
Tokyu Agency
ADK
Daiko
ADK
Hakuhodo DY
Hakuhodo
Dentsu
Dentsu
0
500,000
1,000,000
1,500,000
0
500,000
1,000,000
1,500,000
Evidence of being servant
2) Internet Market: New type of advertisement
The growth of advertising market in
the internet is very big
□ 1814億円(2005)→2808億円(2006)
□ Compared to TV advertisement, even small
companies can actually compete against
big companies
Evidence of being servant
2) Internet Market: New type of advertisement
Table3: Advertising share in Internet
Cyber Agent
Opt
Septeni
Dentsu
HDY
Other
Evidence of being servant
2) Internet Market: New type of advertisement
Table4: 2000's Net Sales
Table5: 2005's Net Sales
Dentsu
Hakuhodo
ADK
Tokyu Agency
Daiko
Yomiko
Others
Dentsu
Hakuhodo DY
ADK
Tokyu Agency
Others
Evidence of being servant
“揺らぐ「島国での一人勝ち」”
(週刊金曜)
The failure of Dentsu over advertisement
competition for running election.
Prap Japan has taken a commission
from Liberal Democratic party in 2006
election. It was result of the competition
between advertising agencies including
Dentsu.
Evidence for Master of media
1) Its Net sales continues to grow
2) Examples of putting pressure
3) The impact of brand “Dentsu”
Evidence of being master
Table4: 2000's Net Sales
Table5: 2005's Net Sales
Dentsu
Hakuhodo
ADK
Tokyu Agency
Daiko
Yomiko
Others
Dentsu
Hakuhodo DY
ADK
Tokyu Agency
Others
Evidence of being master
1) Its Net Sales continues to grow
2005
2004
Hakuhodo
Dentsu
2003
2000
1995
0
500
1,000
1,500
2,000
Evidence of being master
1) Its Net Sales continues to grow
Asahi Shimbun 15th November
広告会社首位の電通と2位の博報堂DYホール
ディングス(HD)の06年9月中間決算は、パソコンや
携帯電話のポータルサイトなどインターネットメディアの
広告枠の売り上げが高い伸びを示した。電通(単体
ベース)が前年同期比34%増の109億円、博報堂DY
(HD傘下の主要4社の合算)が同19%増の74億円と
2けたの伸び率。
(Asahi Shimbun 15h November:a)
Evidence of being master
2) Examples of putting pressure on the media
Karel van Wolfren calls Dentsu as
a “hidden media boss”. That means
Dentsu is taking control of the media
and sometimes putting restrictions not
to publish or report particular news.
(The Enigma of Japanese power: 176)
Evidence of being master
2) Examples of putting pressure on the media
Pressures that Dentsu put was….
□1955 Morinaga milk Industry’s powdered milk
→control news about arsenic contamination
□1965 Taisyo Pharmaceutical cold medicine death
→pressure not to report or not mention the name
□2003 Kanebo being ranked in top 49 companies
which are about to bankrupt
→as soon as they catch info, put pressure to
republish and reject their brand name
Evidence of being master
3) The impact of brand “Dentsu”
Dentsu’s name value is a good sales point
(It has done great deal of work and involved
in running big festivals)
□The 2005 World Exposition in Aichi
□2002 FIFA World Cup
□The 1990 International Garden and
Greenery Exposition in Osaka
Dentsu seems to be much more trustworthy
Evidence of being master
3) The impact of brand “Dentsu”
Companies are changing its ads agency:
□2003
Honda & Itoyokado changed from ADK
and Hakuhodo
□August 2004
Seven Eleven changed from Tokyu
Agency
Outline
Introduction
Defining Terms
Evidence for Servant of media
Evidence for Master of media
Analysis
Conclusion
What I have thought thorough this
research
Analysis
Servant of Media?
Master of Media?
1) Disappearance of dominance
1) Its Net Sales continues to grow
・・・・・・・・・○
2) New market share
・・・・・・・・・△
3) Examples of losing
・・・・・・・・・△
・・・・・・・・・◎
2) Examples of putting pressure
・・・・・・・・・△
3) Impact of the brand “Dentsu”
・・・・・・・・・○
Conclusion
A Servant or master??
Dentsu is still a master of media!!
Outline
Introduction
Defining Terms
Evidence for Servant of media
Evidence for Master of media
Analysis
Conclusion
What I have thought thorough this
research
Thank you….