agency CEOs ponder the future

The 41st International Advertising Association (IAA) World Congress in Washington, D.C. in early April, provided a platform for a number of advertising leaders to offer their views of the future of the advertising agency. The perspectives of three CEOs are presented here.

Dentsu’s Mataki Advocates An Agency of Entrepreneurs

“It is fitting that we are meeting here in Washington. What better place than the capital of American democracy to come together, debate the issues that challenge us, exchange new ideas, and work toward a bright future for our industry? That is the democratic spirit at its best.

At the IAA meeting in Dubai in 2006, I talked about our need to go beyond the traditional definition of the advertising agency. I am sure you will agree that a business model in which the agency’s sole function is to create advertising and buy media on behalf of clients is no longer viable.

Indeed, we need a new business model. Concepts such as ‘Media Neutral’ and ‘three sixty-degree communications’ have worked effectively, but I believe the new business model for agencies must reach beyond these concepts.

The agencies of the 21st century need to develop relationships with clients where both parties share risks and rewards equally in true partnership, transcending the traditional agency/client relationship.

And if we agencies are to become equal business partners with our clients, then we must be proactive. Rather than simply accepting and implementing assignments, we must go out and create value.

To win new business, we at Dentsu have gone beyond simply providing traditional client services. We have sought to create ‘New Values,’ such as new platforms for communications and new disciplines for business. And we match these platforms and new disciplines with clients and media.

This kind of change simply cannot be mandated from the top down. ‘New Values’ are possible at Dentsu because we are, at heart, a collection of 17,000 entrepreneurs… Entrepreneurs who challenge themselves to manage change courageously, take risks, and create unprecedented new values for our clients.

Dentsu’s entrepreneurial spirit was not born yesterday. Our fourth president, Hideo Yoshida, who was known as “the demon of advertising,” laid the foundation for Japan’s current advertising and marketing industry during his tenure from 1947 to 1963. ‘President Yoshida’s 10 Principles,’ created provides the source of our entrepreneurship that still resonates with every one of our 17,000 entrepreneurs.

At Dentsu, entrepreneurship contributes to our organic growth. I have to tell you that in Japan, just as in America, entrepreneurs have a reputation for being out-of-the-box thinkers. They are insightful, original and innovative business partners whom their clients trust without reservation.

American society has always valued entrepreneurship and inspired great entrepreneurs. My only hesitation is that sharing our way of thinking may lead to more competition for us! But as any true entrepreneur would agree, competition drives us to greater heights of innovation, and that is always to be welcomed.”

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