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And Now, a Note from Dentsu’s CEO to Staff

timandree

We always love the memos and at least, this one seems like a positive one from Tim Andree, global chief exec of Tokyo-based holding company Dentsu, which among other things, acquired Aegis Group to the tune of $5 billion in spring of this year. We can reserve further explanation as Andree, who helms an agency roster that includes mcgarrybowen, 360i and Firstborn, says it all.

 

“Dear Dentsu Network Family,

In March of this year, we completed the deal to bring Aegis Media together with the Dentsu Network.  Since that time, you’ve all done an amazing job at maintaining stability across our businesses, while continuing to provide first-class service to our clients.

We’ve seen some very positive signs of the market’s interest in our combined offering, with a number of joint new business wins including:

·      Sony: digital projects including Sony PlayStation in the U.S.
·      Burberry: global media and digital account
·      Mondelez: creative, digital and media projects across North America, Europe and Asia
·      Kraft Lunchables: creative, design, digital, media and PR across North America
·      Staples: media, creative and digital across North America

In addition, we have jointly won a number of local and international opportunities which have been equally important for the momentum of our combined businesses.

As we approach the New Year, we are preparing to take the next step toward integrating our two companies.  As of January 1, 2014, Dentsu Network and Aegis Media will both be replaced by the Dentsu Aegis Network.

While this won’t have great impact on most of your day-to-day roles, it will tie us more closely together as a network, helping us deliver more meaningfully on our vision to be the most collaborative and convergent agency network, and creating a stronger platform for growth.

In the coming months, we will be communicating more detail on how our strategy, vision, values and branding for the new group will evolve.  For the time being, though, all branding – including the current websites for Aegis Media and Dentsu Network – will remain in place until further notice.

THE OPERATING MODEL
One of the great assets we gained in our acquisition of Aegis Media was an operating model that Aegis began implementing in 2010.   This operating model is driven by the same values and principles that have built Dentsu Inc. over the past 100 years but we had only started developing outside of Japan with the launch of Dentsu Network in 2012.   A huge differentiator in our industry, this operating model was designed and has been proven to enable frictionless collaboration across multiple agencies, with a range of holistic and specialized capabilities.  And the resulting offering has significantly contributed to Aegis’ growth in recent years.

In 2014, we will be integrating all of Dentsu Network’s agencies into this collaborative operating model.  What this means for you is a whole new world of globally scaled and locally relevant partners, able to provide you and your clients with a broad and complementary range of holistic and specialized expertise, including:

Six Global Network Brands: Carat and Vizeum (holistic media planning and buying), Posterscope (out-of-home specialization), iProspect (search & performance digital), Isobar (digital creative & production) and the Dentsu-branded agencies (integrated media, creative content & innovation)

A strong portfolio of Growing, Multi-Market Brands: including mcgarrybowen (holistic strategic & creative), 360i (digitally led creative & media), Amplifi (global trading & investment platform), Data2Decisions (business metrics modelling & analytics), psLive (event planning & activation), and Mitchell Communications Group (PR).

A diverse and exciting portfolio of Local and Specialist Brands: which enhance our network offering with local knowledge and vertical expertise.

HOW WE ORGANIZE
I will continue to lead the Dentsu Aegis Network as Executive Chairman, alongside Jerry Buhlmann as CEO.  And leaders from Aegis Media and Dentsu Network will come together to form a new Executive Committee, the Dentsu Aegis Network Executive, which will oversee the continued integration and growth of our agencies and client relationships.  From the Dentsu side, this Executive will include Gordon Bowen (Founder, Chairman and Chief Creative Officer of mcgarrybowen), Yuzuru Kato (responsible for the management of the Dentsu agency’s 6000 clients, and a board member/Executive Vice President of Dentsu Inc.), Kuni Matsushima (Vice Chairman of Dentsu Aegis Network and a board member/Senior Vice President of Dentsu Inc.) and Kaz Iwagami (global head of Dentsu Media and an Executive Officer of Dentsu Inc.).

Our functional teams from around the network’s agencies and offices – Finance, HR, Legal, Communications, Technology – will be more connected than ever before through global functional teams, who have already begun working together to leverage best practices across the organization.

Moving forward, each region will continue to have its own regional management executive, responsible for the operational management of the group and for the development of specialist and local brands. The Americas and EMEA Dentsu Aegis Network Regional Executives will be led by Nigel Morris, and the APAC Dentsu Aegis Network Regional Executive will be led by Nick Waters, both of whom have previously held those responsibilities for the Aegis Media network.

LOOKING AHEAD
We can be really proud of all our achievements in 2013 — a year that was destined to be a year of transition for all of our businesses — and even more excited by our prospects for the year to come.

More than ever before, we have a unique offering and strong position in the market with enhanced profiles in the US, Europe, and Asia Pacific. We are highly competitive, with a wide range of first-class, global and distinctive products and services that we will we invest in for the future.  An important part of our coming together will be familiarizing everyone with the incredible capabilities we now have in the network.  This work has already begun, but 2014 will be an important year for continuing to build the ties across our network.

The opportunities ahead are exceptional. Backed by the power and innovative heritage of our parent company Dentsu Inc., and now joined by our colleagues from Aegis, we have a tremendous opportunity to grow our clients’ businesses and our own.  Dentsu Aegis Network is a start-up of sorts and we should all approach it with the same kind of energy and enthusiasm that all successful start-ups have. Today’s announcement is an important and exciting next step in the evolution of our collective business, as the newest power player in our industry. I have no doubt that with clear eyes on the road ahead and pure hearts which will drive collaboration and growth, our team can’t lose.

Thank you for your continued hard work and commitment. Have a wonderful holiday, get some rest, and let’s work together to make 2014 our year to shine!

Best regards,

Tim

Tim Andree | ティム・アンドレー
Director, Executive Vice President, Dentsu Inc.
Executive Chairman, Dentsu Aegis Network

DENTSU AEGIS NETWORK
32 Avenue of the Americas
New York, New York 10013
Tel. <redacted>
Fax. <redacted>
DENTSU INC.
1-8-1 Higashi-shimbashi
Minato-ku, Tokyo, 105-7001  Japan”

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