Understanding the Americas: Interview with Michael Komasinski, CEO of dentsu Americas

The Dentsu Group operates in over 145 countries and regions worldwide. Under the new management structure, the Group Management Team, launched last year, the Group is structured around four key business regions: Japan, Americas, EMEA, and APAC. This series interviews top management leading each overseas business region. We explore how they are developing business while confronting unique challenges in each region, alongside trends in these overseas business regions.

For the third installment, we spoke with Michael Komasinski, CEO of dentsu Americas, based in New York, about trends in the Americas region.

 

*The interview was conducted online on December 7, 2023.

 

Michael Komasinski: CEO of dentsu Americas, Global President - Data & Technology, Dentsu Group Inc. Member of the Group Executive Management, the management committee of the Dentsu Group (dentsu). Joined Merkle, Inc. in the U.S. in 2015 as COO of the Digital Media Group. Subsequently moved to London to serve as President of Merkle's EMEA region. Returned to the U.S. in 2023 to assume the role of CEO of dentsu Americas.

 

A defining feature of the U.S. market is the availability of personal data.

──First, please tell us about your current responsibilities.

I serve as CEO of dentsu Americas and Global President - Data & Technology for the Dentsu Group Inc. I joined Merkle Group Inc. (※), a provider of customer experience management services, in 2015. When Merkle became part of the Dentsu Group the following year, I joined dentsu. In 2023, I was appointed CEO of dentsu Americas, overseeing the Americas region.

※Merkle Group Inc.: One of the largest independent data marketing companies in the U.S. Leads the service domain of delivering personalized customer experiences optimized for each individual through the use of data and technology. Operates globally in over 50 countries and regions.

 

──Please tell us about the characteristics of the U.S. market, the core of the Americas region comprising North, Central, and South America.

The most significant characteristic is the availability of personal data. Unlike other countries, U.S. privacy laws generally follow an opt-out approach (Editor's note: an action where users explicitly decline consent when receiving information or when their information is used). In this case, users must intentionally opt out, but most people do not. In contrast, Europe is regulated by the GDPR (General Data Protection Regulation), which applies an opt-in principle (Editor's note: an action where users explicitly consent to receiving information or having their data used). This significantly alters the types of data that can be collected and the marketing strategies that can be implemented.

Another key characteristic is the pace of business. The US is an extremely innovative country, and with its robust venture capital and private equity industries, the pace is simply fast. The pace of technological change and innovation is also relatively rapid. Furthermore, 60-70% of major global clients are based in the US, making it an exceptionally dynamic and exciting market. It's not that other markets are better or worse, but simply different. Having worked extensively in the EMEA (Europe, Middle East, Africa) region helped me understand these distinctions.

──Can you share insights on market trends outside the US, like in Canada or Brazil?

While not necessarily unique to each country, there are several interesting macro trends. One, which is often discussed lately, is that customers want simpler relationships with the brands they choose. Our lives have become busier and noisier due to digital technology, which has increased our choices and direct interactions with brands. Consequently, many people want to simplify their relationships by limiting the number of brands they transact with—for example, their bank, car company, or favorite fashion brand. Even with many brands available, people have limited capacity to engage with them all. Therefore, from the client's perspective, the challenge is to be chosen as one of those brands. It's essential to provide an experience that makes people want to be with you, or from an employment perspective, want to work with you.

This is why I firmly believe in the importance of customer experience transformation. I believe it represents a major customer trend not just for Merkle, but for the entire Dentsu Group. Daily life is cluttered. That's precisely why brands need to stand out as something customers can easily incorporate and integrate into their lives.

The scale of the U.S. market is the challenge

──Could you share the challenges of doing business in the Americas region?

When doing business in the Americas, you're primarily driving the U.S. market, and the scale is simply different. It might seem like one market, but its size is immense. It encompasses hundreds of millions of people and trillions of dollars in transactions. In other words, scale is the challenge. Looking only at the overall numbers, it might seem like a straightforward market at first glance, but when you actually do business there, you realize it's incredibly complex.

──Please tell us about dentsu Americas' clients in the Americas region. Also, what strategic approaches do you take to meet client needs?

Our clients include global tech giants, leading U.S. consumer goods manufacturers, automakers, credit card companies, banks, hotels, and many other companies across diverse industries, as well as globally recognized Japanese brands.

There are several key points for addressing client needs. One is to continue investing in and innovating around data, starting with digital identity (Editor's note: a collection of various digitized attributes about an individual, such as name, age, and preferences). Providing personalized interactions cannot succeed without understanding who the individual is. That is fundamental. Therefore, having a platform like "Merkury" (*) is essential for our client proposals.

※Merkury: Merkle's proprietary enterprise platform. It connects media and technology platforms by leveraging client companies' first-party data and individual-based third-party data.

 

Second, investments in M&A and in capabilities that complement Dentsu Inc. This enables service delivery at every touchpoint where people experience a brand.

Third is the "one dentsu" strategy, which unifies the organization and unleashes the innovation, creativity, and talent abundant within our group network. We constantly focus on pooling the group's strengths to comprehensively understand clients' businesses and how we can become a truly trusted business partner. We believe this mindset is paramount.

Japanese companies are category leaders, engaging in strategic discussions

──Are there common traits among Japanese clients of dentsu Americas, or differences compared to companies in other countries?

I haven't really thought about it that way. While this applies to all clients, it's crucial to remember they are never just one client. In our work, we engage in conversations with executives and board members at the client's headquarters. Meanwhile, some regional leaders wield significant influence and make independent decisions. These decisions may align with or deviate from headquarters' intentions. We must adapt accordingly. Yet I always find this dynamic fascinating. Different products and regions have distinct power dynamics. Therefore, we must deeply understand our clients. Often, the reality differs from our expectations, but that very difference can present opportunities for us.

──It's said that Japanese companies have been losing power since the 1990s. What do you think is needed for a revival?

I don't entirely agree with that view. Some clients succeed over time, while others don't, so I don't think there's an inherent problem with Japanese clients. Generally, Japanese companies have many highly successful and influential brands. If power is declining, it's less about being Japanese and more about industry trends – the same applies to clients in the UK, France, or Spain. On the other hand, companies that pursue innovation within their industries and constantly look ahead achieve long-term success.

For example, in the automotive industry, it's often said that "EVs are the solution." But will consumers really transition to EVs that quickly? What matters is having a strategic perspective on the shift to EVs. And Japanese automakers are, without a doubt, leading category leaders in strategic and global discussions. It's not just the automotive industry. Across various sectors, Japanese companies are in a leadership position driving the conversation.

──Finally, could you share your aspirations for the future?

2024 will be the year the effects of the "One Dentsu Strategy" become evident. Our business model, which enables seamless global consumer engagement with the highest level of capability, is extremely powerful. We will continue to strive to become the best possible partner for our clients, more than ever before.