“We Have Too Many Brands!” Dentsu Announces Consolidation Of Its Operations Into Six Global Agencies

“We Have Too Many Brands!” Dentsu Announces Consolidation Of Its Operations Into Six Global Agencies

Dentsu has today announced it will be restructuring its operations into four operating pillars after deciding to consolidate its brand agencies into six global brands. The new plans will come into effect in February 2021.

Announcing the move, Toshihiro Yamamoto, president and chief executive officer at Dentsu Group, said: “We simply have too many brands almost, 300 across both Japan and internationally.

“This radical new structure will be more logical and transparent for our clients, enabling us to serve them better.”

It’s hoped the new efficiencies will allow the holding company to “reduce costs significantly”.

Dentsu has had its balance sheet battered by COVID. Back in August it announced its Q2 profits were down a a staggering 39.2 per cent YOY, with it’s Aussie operations weighing heavy on Tokyo’s bottom line.

However, the agency’s problems aguably set in well before COVID.

Back in December it announced it would cut 11 per cent of its total headcount across seven markets – including Australia – as a result of “ongoing underperformance”.

The cuts represented a saving of almost $200m annually (£100m).

“We remain committed to these markets to enable their long-term success but must ensure they are structured appropriately to drive operating margin improvements, deliver revenue growth and achieve a better service for our clients and experience for our people,” a Dentus spokesperson said at the time.

“Within the international business, there are a small number of large, complex and challenged markets that have reported ongoing underperformance over recent quarters,” the spokesperson added.




Please login with linkedin to comment

Dentsu

Latest News

Indy Enigma Delivers Signage For NSW’S First Purpose-built Surf Park
  • Campaigns

Indy Enigma Delivers Signage For NSW’S First Purpose-built Surf Park

Enigma, one of Australia’s largest full-service independent agencies, today unveiled a bespoke placemaking campaign for URBNSURF – Sydney’s new, world-leading, purpose-built surf park. The creative team behind Enigma’s Property & Place division has developed a unique set of wayfinding and environmental graphics and signage for URBNSURF Sydney, ahead of its opening at Sydney Olympic Park […]

JCDecaux Secures All Major Bus Advertising Contracts Across Sydney 
  • Advertising

JCDecaux Secures All Major Bus Advertising Contracts Across Sydney 

JCDecaux has been awarded the Transport for NSW (TfNSW) bus advertising contract for all buses in the Sydney Metropolitan regions. Lead image: Ben White, general manager. Winning the competitive tender process marks a significant expansion of JCDecaux’s current bus advertising contracts across Sydney. It extends JCDecaux’s Transit reach across the whole of Sydney Metropolitan regions […]

CommBank Launches The Brighter Side TV On 10 And 10 Play
  • Marketing
  • Media

CommBank Launches The Brighter Side TV On 10 And 10 Play

CommBank has today unveiled The Brighter Side, a new television series to be broadcast on 10 and 10 Play to inform and empower Australians with practical tips and bright ideas to help them take control of their financial future. The Brighter Side showcases a diverse range of stories to inspire Australians to make their money […]

IMAA Announces Next Female Leaders Of Tomorrow Programme
  • Media

IMAA Announces Next Female Leaders Of Tomorrow Programme

The IMAA is celebrating the success of its inaugural Female Leaders of Tomorrow programme for providing a real-world solution to address the gender pay gap at senior levels* with events in Sydney and Melbourne. It has also announced its new 2024-25 programme. The 2023-24 programme’s 16 mentees and mentors, along with mentee leaders, IMAA directors […]

QMS Boosts NSW Billboard Network With Australian Turf Club Agreement
  • Advertising

QMS Boosts NSW Billboard Network With Australian Turf Club Agreement

Leading digital outdoor company QMS today announced a further expansion of its NSW network, signing a new agreement with the Australian Turf Club to manage key assets at Sydney’s iconic Rosehill Gardens Racecourse. The agreement, which was secured as part of a competitive tender process, takes effect on 3 June 2024 and covers six locations […]

VMO Signs Deal With Stockland Shopping Centres.
  • Advertising

VMO Signs Deal With Stockland Shopping Centres.

VMO has secured an exclusive agreement with Stockland to manage the operations of 22 large format digital screens, strategically positioned throughout nine Stockland town centres across Australia. These centres include Stockland Piccadilly in Sydney’s CBD, Stockland Merrylands, and Wetherill Park in Western Sydney, Stockland Green Hills in the Hunter region, Stockland Shellharbour on the south […]

Day Management Appoints Paramount’s Tim Wall As Head Of Talent And Publicity
  • Media

Day Management Appoints Paramount’s Tim Wall As Head Of Talent And Publicity

Day Management has appointed Tim Wall in a newly-created role of head of talent and publicity. Wall will be responsible for managing and overseeing Day’s broad and impressive portfolio of talent, including Day’s most-recent coup, the highly sought-after breakout star of Married At First Sight Australia, Lucinda Light. Wall was previously senior publicist at Paramount […]

Enjoy A Hahn Solo… And May The Fourth Be With You
  • Campaigns

Enjoy A Hahn Solo… And May The Fourth Be With You

This May the fourth Hahn will celebrate alongside Star Wars fans rewarding their passion via a giant Hahn travelling solo through the sky. It’s the one day of the year when all sci-fi fans rejoice and giggle to themselves and Hahn in partnership with Thinkerbell, UM and Affinity is celebrating with an out of this […]