DOOH Advertising

Dentsu's 2023 post-restructuring strategy aims at 4% organic growth

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February 27, 2023

Japan-based global advertising group Dentsu is predicting 4% organic growth in 2023 thanks in part to new structure and strategy priorities like customer transformation and technology, a category that has risen to providing 32% of its revenue, according to a report by AdNews.

Coming in the wake of a national scandal in Japan, which resulted in investigations and restrictions on bidding for future government contracts, Dentsu's predicted growth leans in part on new global organization structures, including the "One Management Team" organization strategy launched in 2022, which integrates local and global Japan operations.

Dentsu also aims to leverage major acquisitions in its growth strategy, including Aware Services, an Australian consultancy with a focus on Salesforce, MuleSoft and Tableau, along with its ongoing investment in the creative vertical (recently announcing Liam Bagnall's selection to lead Dentsu Creative ANZ).

"Our acquisitions bring a mix of consulting expertise, cloud engineering knowledge and customer experience capabilities," Hiroshi Igarashi, CEO at Dentsu, said in the report. "All of which allow us to expand our offer beyond advertising to deliver growth, driving solutions for our clients, as well as continued value creation for our shareholders."

"We do see growth across Japan and international being reasonably equal in 2023," Nick Priday, CFO at Dentsu, said in the report.

Rounding out positive outlook from executives, Jacki Kelley, chief global client officer and CEO of Dentsu Americas, said: "When you look overall, we feel very good about the opportunities that we're seeing... In terms of the Creative pipeline, we've gained GBP 388 million (about $466.8 million USD) in revenue. Major wins include Electrolux in Spain, Orchard Health Care in India and then recently reported Apple+ work in the US."