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Tag: Takaki Hibino

  • Marketing functions risk lagging the digital race as ‘transformation and innovation’ continue to be ranked among the least important roles for today’s marketing function as CMOs globally are stretched to deliver short-term results

    Dentsu evaluates role of global marketers through latest survey

    By A Correspondent

     

    Dentsu Aegis Network’s 2019 global survey of 1000 CMOs and senior-level marketers in 10 markets – including Australia, China, and Japan in Asia Pacific – highlights a growing challenge for marketing leaders, as they seek to move beyond optimisation and drive business transformation through digital.

     

    Globally, eight out of 10 surveyed recognise the imperative to transform the business in the face of digital disruption, as well as taking more responsibility for product and service innovation over the next 2-3 years. China, in particular, comes out leading this trend with 98 and 96 per cent of respondents respectively prioritising these areas as key elements of the marketing function.

     

    However, global CMOs are finding it difficult to achieve this vision with ‘Business Transformation’ and ‘Disruptive Innovation’ at the bottom of the list for the second year running in terms of functional priorities, and current capabilities beginning to lag behind future needs as short-term metrics dominate their focus.

     

    Within APAC, CMOs are beginning to lead a shift away from this trend, with China, Japan and Australia ranking Business Transformation within the top three priorities for the marketing function today, as well as over the next three years. CMOs in China and Japan also notably outperform global counterparts in their expectations for Disruptive Innovation to rise among marketers’ top 3 priorities in the next three years, at 61 per cent and 47 per cent respectively, well above the global average of 36 per cent.

     

    Marketing functions risk lagging the digital race as performance gaps emerge

     

    Across a spectrum of marketing capabilities, CMOs were asked what they believe to be important to future success, versus their current ability to execute.

     

    Said Takaki Hibino, APAC Executive Chairman, Dentsu Aegis Network:

    “Brands globally have invested heavily in digital but have yet to reap the rewards as short-term metrics rather than driving digital transformation continues to dominate the marketing function’s focus and priorities.

     

    In Asia Pacific however, CMOs are leading the curve with business transformation now firmly positioned as function’s top 3 priorities, and CMOs in the region being more likely to plan their marketing strategies over the long term. This creates a real opportunity for CMOs in this region to truly embed the digital transformation agenda and drive the future capabilities the region depends on for growth.”

     

    We hope India will be included in the next edition of the survey.

     

     

  • Meanwhile, APAC will grow 4.0% amidst global slip of $625 billion to $609 billion this year

    India adspend to grow 11.4% in 2019. DAN ups forecast

     

    By A Correspondent

     

    Dentsu Aegis Network’s latest advertising spend forecast, based on data from 59 markets, predicts global growth will reach +3.6% in 2019, following growth of 4.3% in 2018, taking total investment to US$609.9 billion. In Asia Pacific, there is a predicted +4.0% growth in 2019, following +5.3% in 2018, taking total investment to US$216 billion.

     

    Geographically, Asia Pacific is the leading contributor to the global increase of US$20.9 billion in 2019 compared to the previous year, contributing 39% of the global increase, closely followed by North America 34%. Comparatively, Western Europe is forecast to contribute 14% to new ad dollars with Latin America at 11% and Central and Eastern Europe at 3%.

     

    In Asia Pacific, forecasts have been revised downwards (-0.5%) from January following market softness at the beginning of the year particularly for TV, the lack of major events scheduled was also a contributory factor. China continues to be the leading contributor to Asia Pacific and global ad spend and will continue to grow in 2019 by +5.4% to reach RMB 671 billion, a surprisingly healthy and stable growth rate, which remains on track despite the headwinds from trade tensions with the U.S.

     

    The global forecast reflects softening growth across 9 of the top 13 advertising markets worldwide, with India and Brazil bucking the trend with accelerating growth in 2019. Some markets saw downward revisions from January 2019 forecasts including Italy and Russia with both markets seeing GDP slow alongside ad spend.

     

    Said Takaki Hibino, Executive Chairman, Dentsu Aegis Network Asia Pacific:  “Asia Pacific has long been the melting pot of digital and technology developments. Though we have been facing a tougher economic environment, our ad spend forecast has shown that digital connectivity in APAC remains at its peak and consumer adoption rates have leapfrogged. Our business is built for the digital economy and we’re at the forefront of this growth, working alongside our clients to provide integrated solutions and build long-term sustainable growth for their brands.”

     

    Key market trends 

    :: Australia:2019 is expected to grow by 1.9% to AUD$16.6 billion, which is a modest increase in overall spend from 2018. Majority of the growth is expected to come from Digital and Video channels. Digital continues to drive advertising revenue growth and is expected to increase by 6.8% in 2019 representing roughly half of total media spend (54%). Online Video is a key driver for Digital spend and is expected to increase by 28.4% in 2019. Video is the golden child of digital with strong momentum making up a large proportion of general display. This positive trend is backed by publishers as brands continue to seek premium environments in which to showcase their offerings.

     

    :: China: thead market continues to be a leading contributor to global ad spend and will continue to grow in 2019 by +5.4% to reach RMB 671 billion but at a lower growth rate than the +7.0% growth forecast in the January 2019 report. Growth for the market in 2019 has been revised downwards due to higher than expected decline in TV spend at the start of the year. Digital is still the biggest driver of growth in total ad spend in China with the biggest share (63.6% in 2019) and growth rate. E-commerce is growing consistently and strongly, taking the biggest share within Digital. The decline of TV advertising (-6.8% in 2019) has affected the total market trend. Within TV, ad investments in CCTV and provincial satellite TV are still on an increasing trend, while ad investments in Provincial and Local TV channels have declined significantly.

     

    :: India: forecast double-digit 2019 growth of 11.4%to reach INR 696.9 billion (up from the 10.6% forecast in January and 10.8% growth in 2018) with the Cricket World Cup putting growth on the front foot. Lok Sabha Elections are also set to increase spend in 2019. Digital media spend is forecast to grow by 32.7% in 2019 to account for INR 144.1 billion, making up 21% share of total spend. Infrastructure has propelled the growth in digital consumption. TV continues to be the leading media in 2019 and will contribute 39% share of total spend. Despite digital growth, TV continues to be dominant as it enjoys unmatched share of audiences. With 40% allocation of advertising spends, TV is forecast to expand in 2019 by 9.5% to reach INR 271.4 billion.

     

    Global media trends 

    :: Digital continues to power ad spend growth and is forecast to grow 11.5% in 2019 to reach US$249.7 billion and 41.8% of global share. Growth is steady into 2020 putting digital’s share of ad spend at nearly 45% by the end of the year.

     

    :: Mobile is the fastest growing platform within digital and is forecast to grow 21.4% in 2019. Powering this growth is the increasing consumption of video on mobile – from Instagram Stories, TikTok and Snapchat to YouTube and VOD – with online video in general set to grow 20.5% in 2019.

     

    :: TV ad-spend is forecast to shrink slightly in 2019 (-0.1%) with a return to modest growth in 2020 of 0.6%. Into 2020 growth will be driven by more dynamic TV opportunities and innovation as the penetration of smart TVs continues.

     

    :: The decline of traditional print has accelerated from our January 2019 forecasts (Newspapers -7.7% and Magazines -7.4%) as digital continues to dominate.

     

    :: Out of Home sees continued growth and an upwards revision from January to 4.3% in 2019 to reach 6.3% share. Growth is driven by innovations in DOOH.

     

    Figure 1: Growth in global advertising spend 2018-20f

     

      Year on year % growth at current prices
      2018a 2019f 2020f
    GLOBAL 4.3 (4.1) 3.6 (3.8) 4.1 (4.3)
    NORTH AMERICA 3.3 (3.4) 3.2 (3.1) 3.7 (3.6)
    USA 3.4 (3.4) 3.1 (3.0) 3.6 (3.6)
    CANADA 2.7 (3.7) 5.3 (5.2) 5.7 (5.1)
    W. EUROPE 4.1 (3.4) 2.8 (3.2) 3.1 (3.3)
    UK 8.6 (6.5) 6.3 (6.1) 6.6 (7.1)
    GERMANY 0.2 (1.0) 0.4 (0.5) 0.5 (0.5)
    FRANCE 5.3 (3.6) 3.6 (3.1) 3.0 (2.5)
    ITALY 2.0 (1.6) -1.6 (0.8) 0.6 (1.6)
    SPAIN 2.1 (1.8) 0.5 (1.2) 0.4 (0.8)
    C&EE 8.6 (8.6) 4.9 (5.8) 5.6 (6.2)
    RUSSIA 12.3 (12.0) 4.5 (6.9) 5.8 (6.7)
    ASIA PACIFIC 5.3 (4.6) 4.0 (4.5) 4.9 (4.9)
    AUSTRALIA 6.6 (3.7) 1.9 (2.4) 3.2 (2.6)
    CHINA 7.7 (7.8) 5.4 (7.0) 6.9 (6.4)
    INDIA 10.8 (9.6) 11.4 (10.6) 12.2 (11.6)
    JAPAN 2.2 (0.2) 1.2 (0.6) 1.8 (2.4)
    LATIN AMERICA 7.9 (9.9) 9.1 (7.9) 6.1 (8.6)
    BRAZIL 7.1 (7.1) 8.8 (3.6) 4.5 (6.2)
      Figures in brackets show our previous forecasts from Jan 2019

     

    Figure 2: Share of global ad spend by media, 2018-20 (% y-o-y)

      2018a 2019f 2020f
    Television 34.9 (35.4) 33.6 (34.1) 32.4 (33.2)
    Newspapers 8.0 (8.0) 7.1 (7.1) 6.3 (6.3)
    Magazines 5.0 (5.0) 4.5 (4.5) 4.0 (4.1)
    Radio 6.2 (6.2) 6.1 (6.0) 5.9 (5.8)
    Cinema 0.6 (0.6) 0.6 (0.6) 0.6 (0.6)
    OOH 6.3 (6.3) 6.3 (6.3) 6.3 (6.2)
    Digital 39.0 (38.5) 41.8 (41.4) 44.5 (43.8)
      Figures in brackets show our previous forecasts from Jan 2019

     

  • Dentsu Aegis Network has promoted Ashish Bhasin, currently Chairman and CEO, Dentsu Aegis Network – South Asia to the expanded role of CEO, Dentsu Aegis Network Greater South and Chairman and CEO of India

    Ashish Bhasin now CEO of DAN Greater South, in addition to Chairman & CEO, India

    By A Correspondent

     

    Ashish Bhasin

    Dentsu Aegis Network has promoted Ashish Bhasin, currently Chairman and CEO, Dentsu Aegis Network – South Asia to the expanded role of CEO, Dentsu Aegis Network Greater South and Chairman and CEO of India.

     

    With this announcement, Bhasin will now also be responsible for overseeing India, Sri Lanka, Bangladesh, Indonesia, Thailand, Vietnam, Philippines, Malaysia and Myanmar. He will continue to be based out of India and report to Takaki Hibino, executive chairman of Dentsu Aegis Network APAC.

     

    Commenting on the appointment, Takaki Hibino said: “Ashish has proven himself to be an exceptional leader. Under his direction, India today stands to be one of the most important revenue growth markets for Dentsu Aegis Network globally. I know he will be able to replicate the same story for the important Southeast Asia markets as well, even as he continues to fuel growth in his current responsibilities for South Asia.”

     

    Added Bhasin: “I am extremely excited to take up this new challenge. The newly formed Greater South region is extremely important for Dentsu Aegis Network. Both Southeast Asia and South Asia are very interesting and high potential markets. I feel very lucky to be leading this fantastic set of leaders and managers and hope to take Dentsu Aegis Network forward during these interesting and transformational digital times. Since I have had experience in running Southeast Asia in the past, in some ways it feels like a homecoming and I am excitedly looking forward to it.”

     

    Bhasin’s remit will exclude Singapore which, as a regional hub, will be led by Masaya Nakamura in addition to his role as deputy chairman and chief growth officer of Dentsu Aegis Network APAC.

     

     

  • In India, the new avatar will be headed by Divya Karani as CEO

    Dentsu Media is now dentsu X, in India and elsewhere. Divya Karani to stay as India CEO

    By A Correspondent

     

    Dentsu Aegis Network today announces the launch of dentsuX which will be, as a communique notes, an “integrated agency network combining best-in-class communication and media planning services, content creation, technology, data and behavioural insights, following the rebrand of the Group’s media specialist – Dentsu Media”.

     

    The new proposition, “Experience Beyond Exposure”, relays the brand’s strong belief in the power of experience over exposure, the communique adds.

     

    Takaki Hibino

    Takaki Hibino, Global Brand President of dentsuX,will continue to lead the agency globally. He said:  “When Dentsu Media was first launched in 1999, the use of the word ‘media’ had a very limited meaning. For close to two decades, Dentsu Media alongside its creative agencypartners has expanded to offer much more to our clients than that original definition could describe. This is why we evolved its identity to reflect the potential of our brand and selected ‘X’ to represent the importance of delivering unique experiences. By integrating data, technology, creativity and distribution in the dentsu X offering, we can develop these experiences for clients that are truly focused on digital solutions.”

     

    Nick Waters

    Added Nick Waters, CEO of Dentsu Aegis Network Asia Pacific: “Dentsu Media is unique as a scaled Asian agency network. Integrating within Dentsu Aegis Network portfolio of agencies it has propelled its growth so that it currently leads the Campaign new business tables.”

     

    “This change of branding serves to better reflect the agency’s capabilities and further enhance its position as a global agency network,” Waters added.

     

    Divya Karani

    In India, dentsu X will be headed by Divya Karani as CEO. Said Karani: “Dentsu Media has always believed in reaching ahead, anticipating and embracing change. ‘Experience’ is the currency in the brave new world we live in. dentsu X delivers to this.”

     

    The rebrand of Dentsu Media to dentsu X is effective today.

     

    Editor’s Note: As a policy we do not honour the capitalising or various ways in which brands call themselves. Unless of course it’s a change of spelling. For instance, the communique from Dentsu spells Dentsu Media with a lowercased ‘m’ –Dentsu media and not Dentsu Media. But we don’t write it as that. Since it’s a launch press release, we’ve let it be a lowercased dentsu in the name but from now on, it will be: Dentsu X J