Word: dentsu
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...earnings will decline for the first time in 19 years. Sorrell insists that he will encounter no such obstacles. But first he will have to win the fight for Ogilvy, which is likely to seek higher bidders. Among Sorrell's possible rivals for Ogilvy: Japan's Dentsu and the U.S. firms Interpublic and Young & Rubicam. Sorrell may not be the only ad mogul who still thinks that bigger is better...
...American companies are facing formidable competition from Tokyo's Dentsu (1985 billings: $3.62 billion) and London's Saatchi & Saatchi ($3 billion). Perhaps the most ravenous of all the advertising firms, Saatchi & Saatchi took over twelve companies last year. Flush with $600 million raised through a stock offering, Brothers Charles and Maurice Saatchi are prowling for more prey and are determined to build the world's largest agency. Doyle Dane Bernbach turned down a Saatchi offer before deciding to merge with BBDO and Needham; so far, Ted Bates has also ducked Saatchi's advances. Says Abbott Jones, president of the Chicago...
...Last week the company agreed to pay an estimated $100 million to acquire New York City's Backer & Spielvogel (billings: $400 million), a fast-growing agency best known for its Miller Lite ads. The acquisition will make Saatchi & Saatchi the world's third ranking ad agency, behind Tokyo's Dentsu ($3.62 billion) and New York City-based Young & Rubicam ($3.57 billion), according to Advertising Age, a trade journal...
...eighth largest agency (billings: $750 million), for an undisclosed price. The acquisition of SSC & B (formerly Sullivan, Stauffer, Colwell & Bayles) would boost Interpublic's combined billings to more than $2.6 billion, making it almost twice the size of its nearest international rival, Japan's Dentsu, and all but dwarfing the two other U.S. giants, J. Walter Thompson and Young & Rubicam...
Founded in 1902 as a news service, Dentsu did not shift into advertising in earnest until the mid-1930s. The caliber of that era's ads is summed up in a Dentsu candy promotion, which showed the silhouette of a Japanese bomber over China under the headline: EVEN OUR WILD EAGLES TAKE ALONG MORINAGA CARAMEL ON BOMBING RUNS...