In a bid to accelerate and advance business with its clients engaged in different business practices, Dentsu has announced that it plans to launch Dentsu Media Runway Inc.
Registered on the 1st of April 2019, the new company will contribute further to Dentsu’s media solution services, with the goal of expanding and optimizing the client business. According to the release, the name is taken from the concept of models on a runway, with Dentsu collaborating with clients in the limelight.
Dentsu believes this move will deepen and evolve media solutions to align with the evolution of digital technology through campaign planning that incorporates media planning, campaign execution paired with media buying, and measurement of its effectiveness.
The new agency will commence business on the 1st of July 2019 and will be led by Katsuhiko Tsurumoto as the CEO, while Shigeyuki Kawakatsu will serve as the COO. According to release, the Tokyo-based new media solution provider will have 35 employees and is backed by $1.37 million in paid-up capital.
The focus on launching media solutions on the back of digital technology, such as programmatic, comes just as marketing technology overtakes advertising technology, according to the analysis conducted by GroupM of LinkedIn data.
Depending on the labor intensiveness of the new Dentsu company, it appears to fall into the advertising technology classification, in that it focuses externally on media trading and third-party data.
“Ad tech is generally funded as part of a media budget while martech is more often funded as part of a technology or general marketing budget,” said Brian Wieser, Global President, Business Intelligence at GroupM. “Ad tech generally has a higher profile for the new and sexy ways it is can be applied (driving the growth in connected TV, for instance).”
With Japan representing a major market for digital advertising and marketing technology companies such as Adobe, Salesforce, Oracle, Facebook, and Google, it seems like the new venture is a reflection of Japan’s digital sophistication and maturity, with the role of Merkle serving as a prime example of digital media effectiveness measurement for Dentsu.