Asia’s largest advertising group created
The takeover of UK-based marketing agency Aegis by Japan’s advertising giant Dentsu for $5 billion is creating Asia’s largest advertising conglomerate. The deal will put the newly formed company among the world’s top four advertising corporations.
The Aegis deal is the second-largest purchase by a Japanese firm in 2012, after the acquisition of Royal Bank of Scotland’s aircraft leasing operations by Sumitomo Mitsui Financial Group for $7.3 billion. The deal is subject to a shareholder vote to approve the sale on August 16.
Dentsu’s clients include Toyota, Sony, Canon, Toshiba as well as Microsoft and Philips (in Asia), and the Aegis deal will add large multinationals such as General Motors, Kelloggs, Disney and HSBC. It will also integrate Aegis in Dentsu’s Facebook advertising strategy. In March 2011, Dentsu formed an official partnership with Facebook to support Facebook pages development, Facebook ads and Facebook marketing strategies creation. The partnership also provides Dentsu with premium advertising space on Facebook.
The Aegis takeover now enables Dentsu to expand beyond its home market in Japan, where ad revenue is declining, enjoying a strong presence across Europe and the the US. Both companies will also jointly develop markets in emerging economies in Southeast Asia and Latin America, and, by taking advantage of Aegis’ network, in Russia and India, sources close to the deal said.
The global advertising market is projected to expand by an average of six per cent in 2012 from last year, while year-on-year growth is seen as high as 14.7 per cent in China and 10.7 per cent in South America, in contrast to 1.5 to five per cent in Japan, the US and Europe, according to recent market data.
[caption id="attachment_3834" align="alignleft" width="300"] World advertising market share by countries (click to enlarge)[/caption] The takeover of UK-based marketing agency Aegis by Japan's advertising giant Dentsu for $5 billion is creating Asia's largest advertising conglomerate. The deal will put the newly formed company among the world's top four advertising corporations. The Aegis deal is the second-largest purchase by a Japanese firm in 2012, after the acquisition of Royal Bank of Scotland's aircraft leasing operations by Sumitomo Mitsui Financial Group for $7.3 billion. The deal is subject to a shareholder vote to approve the sale on August 16. Dentsu's clients include Toyota,...
The takeover of UK-based marketing agency Aegis by Japan’s advertising giant Dentsu for $5 billion is creating Asia’s largest advertising conglomerate. The deal will put the newly formed company among the world’s top four advertising corporations.
The Aegis deal is the second-largest purchase by a Japanese firm in 2012, after the acquisition of Royal Bank of Scotland’s aircraft leasing operations by Sumitomo Mitsui Financial Group for $7.3 billion. The deal is subject to a shareholder vote to approve the sale on August 16.
Dentsu’s clients include Toyota, Sony, Canon, Toshiba as well as Microsoft and Philips (in Asia), and the Aegis deal will add large multinationals such as General Motors, Kelloggs, Disney and HSBC. It will also integrate Aegis in Dentsu’s Facebook advertising strategy. In March 2011, Dentsu formed an official partnership with Facebook to support Facebook pages development, Facebook ads and Facebook marketing strategies creation. The partnership also provides Dentsu with premium advertising space on Facebook.
The Aegis takeover now enables Dentsu to expand beyond its home market in Japan, where ad revenue is declining, enjoying a strong presence across Europe and the the US. Both companies will also jointly develop markets in emerging economies in Southeast Asia and Latin America, and, by taking advantage of Aegis’ network, in Russia and India, sources close to the deal said.
The global advertising market is projected to expand by an average of six per cent in 2012 from last year, while year-on-year growth is seen as high as 14.7 per cent in China and 10.7 per cent in South America, in contrast to 1.5 to five per cent in Japan, the US and Europe, according to recent market data.
