Credit: Rumman Amin via Unsplash
Dentsu’s new CEO, Takeshi Sano, declaring a steady start to the year, has made his first pitch to the market, outlining media services and indicating that more changes to management are coming
He took over from Hiroshi Igarashi who resigned in February as the Japan-based global advertising group prepared to announce major losses.
Sano, the long time head of dentsu’s profitable domestic Japan business, made fast changes to the management structure, according to a briefing of market analysts.
He has already voiced his intention to get rid of management layers, ditching the global COO position so that regional CEO’s now report directly to him.
"We wanted to create a flat organisation as much as possible,” he said.
And significant changes are being made in Australia, including consolidating media brands, as part of the reboot of dentsu’s unprofitable international business.
Globally, dentsu posted a positive organic growth rate of 0.2% for the March quarter, within expectations and slightly ahead of internal forecasts.
The company reiterated its full year guidance of 1% growth as the company concentrates on a restructure.
“We are moving swiftly to address key management challenges and will continue to deliver steady results,” he told analysts in a briefing on dentsu’s March quarter results.
“We are currently reviewing our midterm management plan in which we have redefined certain objectives and associated targets, and I intend to provide an update in the coming months.”
With media services, dentsu’s focus includes advancing AI-powered media planning.
The company is also strengthening proprietary digital solutions, enhancing capabilities in retail media and in social media.
“Through these initiatives, we have already delivered tangible results, including wins in multiple client pitches,” he said.
He said the group’s vision, AI for Growth, combines human intelligence with AI capabilities to drive growth for both clients and society.
“We do not see AI simply as a tool for improving efficiency,” he said.
“Rather, we position it as a driver and support for growth and innovation of both ourselves and our clients.
“What I feel in my conversations with client leaders is that they are not simply looking for advanced AI capabilities.
“What they are truly seeking is their business growth. They are looking for a true partner that goes beyond the boundaries of advertising to address their broader business challenges by integrating AI, data, creative, and media to drive business transformation and growth.”
Within dentsu Japan, more than 4,500 AI agents and 1,300 AI applications are being used, supporting both the enhancement and efficiency of client operations.
Sano told the analysts the company’s goal is to become a growth partner that realises clients’ medium to long-term growth.
“The three pillars necessary to achieve this are strengthening client centricity, enhancing agility, and accelerating collaboration,” he said.
“At the core of our business is client centricity, a customer-first mindset.
“The marketing expertise we provide in media, creative, and the wider marketing services we offer are not the goal in themselves. They are the means. The true objective is the sustained growth for our clients’ businesses and brands.”
However, Sano said it is critical that dentsu goes beyond responding only to today’s clients’ needs to proactively anticipating challenges they have not yet identified and delivering the most relevant solutions at the right time.
“To realise this client centricity, agility and collaboration are essential,” he said.
“On agility, we are accelerating decision-making and reducing the distance between management, the front line, and ultimately our clients by streamlining management layers and moving to a more agile structure.
“Success depends on being on the right scale, large enough to deliver impact, yet agile enough to remain fast and flexible.”
A slide from the pitch to market analysts:
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