The Dentsu Advertising Agency: A Servant or Master of Media? B05473 Haruka Ueda.

The Dentsu Advertising Agency: A Servant or Master of Media?

B05473 Haruka Ueda

Outline

IntroductionDefining TermsEvidence for Servant of mediaEvidence for Master of mediaAnalysisConclusionWhat 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)

IntroductionClient

(company)

Advertisement Agency

Media A Media B Media C

Media will sell the space for advertisement

Ads Agency will provide ads from the client

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 servantservant of media?

= company who is just providing service to customer

Defining Terms

What does it mean by mastermaster 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 mediamedia?

“all the organizations such as TV, radio, newspapers, magazines and internet that provide news and information for the public “

(Longman English Dictionary)

Outline


Evidence of being servant

1) Disappearance of dominance 2) New market share3) Examples of losing

Evidence of being servant 1) Disappearance of dominance

Table1: 2000’s Total Sales of MajorAdvertisement Agencies

0 500,000 1,000,000 1,500,000

Dentsu

Hakuhodo

ADK

Daiko

Tokyu Agency

Yomiko

□Dominance of Dentsu until 2003→Dentsu’s audit doubles the amount of Hakuhodo

Evidence of being servant 1) Disappearance of dominance

Table2: 2004’s Total Sales of Major AdvertisementAgencies

0 500,000 1,000,000 1,500,000

Dentsu

Hakuhodo DY

ADK

Tokyu Agency

Table1: 2000’s Total Sales of Major AdvertisementAgencies

0 500,000 1,000,000 1,500,000

Dentsu

Hakuhodo

ADK

Daiko

Tokyu Agency

Yomiko

□In 2003 Hakuhodo, Daiko, Yomiko consolidated

→became Hakuhodo DY

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


Table3: Advertising share in Internet

Cyber Agent

Opt

Septeni

Dentsu

HDY

Other

Table5: 2005's Net Sales

DentsuHakuhodo DYADKTokyu AgencyOthers


DentsuHakuhodoADKTokyu AgencyDaikoYomikoOthers


Evidence of being servant

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.

“ 揺らぐ「島国での一人勝ち」”（週刊金曜）

Evidence for Master of media

1) Its Net sales continues to grow2) Examples of putting pressure3) The impact of brand “Dentsu”

Evidence of being master


DentsuHakuhodo DYADKTokyu AgencyOthers


DentsuHakuhodoADKTokyu AgencyDaikoYomikoOthers

Evidence of being master 1) Its Net Sales continues to grow

0 500 1,000 1,500 2,000

1995

2000

2003

2004

2005

HakuhodoDentsu

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 bosshidden 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….

□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

□1965 Taisyo Pharmaceutical cold medicine death

　　→ pressure not to report or not mention the name

□1955 Morinaga milk Industry’s powdered milk

　　→ control news about arsenic contamination

Evidence of being master3) 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 master3) 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


Analysis

Servant of Media?

1) Disappearance of dominance

・・・・・・・・・○

2) New market share

・・・・・・・・・△

3) Examples of losing

・・・・・・・・・△

Master of Media?

1) Its Net Sales continues to grow

・・・・・・・・・◎

2) Examples of putting pressure

・・・・・・・・・△

3) Impact of the brand “Dentsu”

・・・・・・・・・○

Conclusion

A Servant or master??

Dentsu is still a master of media!!Dentsu is still a master of media!!

Outline


Thank you….Thank you….

The Dentsu Advertising Agency: A Servant or Master of Media? B05473 Haruka Ueda.

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