Australia performed better for dentsu than many markets in APAC in the June quarter.
The Japan-based global advertising group reported Australia’s first half organic growth at 8%, ahead of the region’s 4.8% (excluding Japan).
This compared to the 8.2% organic growth reported for the group globally and strong growth forecast for the full year.
In Australia, the big benefit was from growing scope in dentsu’s gaming business supported by favourable growth in CXM (customer experience management) and media with strong pipeline conversion.
Demand for data, tech enablement and customer experience solutions remained high.
The APAC region also saw strong growth in India, Korea and Singapore.
The Chinese market continued to be impacted by social restrictions due to COVID which began to be lifted as the quarter progressed.
India reported a very strong quarter, with organic growth up double digits, following increased scope from clients in both creative and media.
Globally by service line:
CREATIVE: Year-to-date the creative service line reported just over 1% organic growth, with more than 4% growth in EMEA and the Americas offset by weakness in APAC, particularly the Chinese market. The Creative service line launched the new integrated offer, Dentsu Creative. Dentsu Creative will serve as the sole creative network for Dentsu International. The launch is part of a broader strategy aimed at simplifying client engagement and injecting creativity across all client work.
MEDIA: First half organic growth for Media was 5.8% with double digit growth in the Americas and APAC. The group’s largest clients continue to grow faster than the wider client base. The pipeline of opportunities in media is strong at over $US5 billion with a good mix of local and global clients. The pipeline is more than 75% offensive opportunities. Brand investment continues as clients wish to retain the premium price points of the products and services.
CXM: Year-to-date reported growth of 13.6%, with double digit organic growth across all three regions. EMEA reported growth of over 20% with UK and Germany particular highlights in the second quarter. The acquisition of UK based Pexlify will further strengthen the client offer in the EMEA region, expanding our Salesforce capabilities. In APAC momentum remains strong in Australia with new business wins. The pipeline remains strong across all three regions.
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