Organic revenue grows by 8.2% at Dentsu in Q2

The company plans to have half of its revenue come from its data- and tech-driven offerings.
dentsu

Dentsu Group grew its revenue in Q2 as it joins the ranks of advertising holding companies citing the strength of their data and technology in helping them weather the possibility of economic recession.

Organic growth was 8.2% in Q2 across the company, with 9.6% growth in the Americas. Through the first half of 2022, organic revenue has grown by 11.5%, with 11.4% growth in the Americas.

In Dentsu’s international markets through the first half of 2022, organic revenue in media is up 5.8%, with creative growing by 1.1%. Organic growth in customer experience and technology is up 13.6%.

Media now makes up 47% of Dentsu’s revenue in international markets, with customer experience making up 36%. Creative services represent 17% of the group’s revenue outside of Japan.

Hiroshi Igarashi, president and CEO of Dentsu Group, cited the growth of data- and technology-driven customer experience for the company’s performance, saying the company is keeping its goal of having this kind of business eventually make up 50% of its revenues.

“By connecting data across our clients’ organizations we can bring a  cohesive,  360-degree  view of their customers– driving competitive differentiation, brand resilience and measurable business results for our clients,” he said.

Like his counterparts at other holding companies, Igarashi said that, despite macroeconomic concerns that could impact ad spend, he was still confident in the company’s performance prospects through the rest of the year. Dentsu did, however, maintain its previous guidance of 4% to 5% organic growth for the full financial year.