Tradition losing out says Dentsu boss

The boss of one of the world’s largest advertising and marketing companies has said that traditional advertising will become less and less important as more clients look to use total communication services.

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By  Tim Addington Published  March 26, 2006

The boss of one of the world’s largest advertising and marketing companies has said that traditional advertising will become less and less important as more clients look to use total communication services. In a rare public appearance outside of his native Japan, Tateo Mataki, president and CEO of Dentsu, told delegates at the IAA World Congress that agencies needed to be more creative and strategic in the way they provide services to clients. “Marketing services disciplines such as sales promotions, public relations and research will continue to play a bigger role in the future,” he said. “Clients will continue to seek the most efficient communications with consumers at multiple touch points. It can’t be over emphasised how the industry will become less dependent on advertising. It is total communication services that clients will seek more and more. “Full service, one-stop shopping and integration. These buzz words are now commonplace in our industry. At Dentsu, we are continually asking ourselves are we delivering on the promises inherent in these words. To continue to flourish now and into the future we must deliver on these promises.” Denstu is one of the fastest and most profitable agencies in the world. In 2004 it posted a US$2.9 billion profit and the company dominates the domestic TV market, with 50% of commercial airtime. Last year it entered into a joint venture with Saudi Arabia’s Drive Communications. Mataki said that he no longer classed Dentsu as an advertising agency but rather an advertising company, reflecting its diversification into other media areas. He said: “We understand that change happens today faster than ever before. “We have the opportunity to transcend the old definition of the advertising agency to create a vital new role model in the future.”

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