Category
Theme
News
Published Date: 2014/04/25

Bullmann, CEO of Dentsu Inc. Aegis Network, answers questions from Campaign magazine.

One year since becoming CEO of Dentsu Aegis Network (DAN). In an interview with Campaign Asia-Pacific, Jerry Bullmann spoke about the significance and prospects of global networks. The Dentsu Group aims to achieve an overseas ratio of 55% or more of its gross profit by fiscal 2017.

―What competitive advantage does scale bring?

I believe what clients want is an efficient and effective partner that spans hundreds of markets. Increased resources and capabilities enable us to develop our business advantageously. I believe the value of our network lies in its ability to meet complex demands involving many different areas of expertise in markets around the world.

―Generating profits from cross-border M&A is a challenge, but

Aegis has focused on acquiring small-to-medium-sized firms specialized in local markets. We operate under a distinctly different business model: "One P/L." This means viewing all operations across countries as a single profit and loss unit. Our companies don't compete against each other; they function as one team within the same market.

―To retain talented personnel

In the advertising industry, the average employee retention rate after an acquisition is just 30%, but at DAN it reaches 70%. That's because we buy people, not companies. Our network's management includes individuals who were formerly owner-managers. They are executives driven by the desire to advance our shared vision.

―Challenges in sharing a single vision across the entire group

Aegis originally had a vision to "reinvent how brands are built." Dentsu Inc. also has its corporate philosophy, "Good Innovation." Both are based on identical core values. Dentsu Inc. and Aegis started from a shared agreement on this single vision. That itself sets us apart from other acquisitions.

―How will you bridge the gap with competing mega-agencies?

We have no intention of closing the gap. Our focus is not on pursuing scale, but on growing and delivering success for our clients. By clarifying our vision and concentrating on being "different and better" – creating differentiation and enhancing competitiveness – we will have ample opportunities for growth.

―What areas in the Asia-Pacific region do you plan to invest in going forward?

We expect solid returns in China's mobile, social media, data, programmatic, and e-commerce sectors. The expanding middle class and dramatically increasing disposable income will make brands and advertising increasingly prominent.

Was this article helpful?

Share this article

Also read