‘Traditional ad agency’ ADK planning to transform itself into a holding company

Japanese agency ADK has announced that it will be transitioning to a holding company structure in January of 2019, once the plan has been approved by shareholders.

The move is designed to take the organisation “beyond the traditional advertising agency business model and transform the organization into a marketing communications company that can provide clients with solutions that will activate consumer behaviour”.

The announcement:

ASATSU-DK Inc. (headquarters: Minato-ku, Tokyo, Japan; President & CEO: Shinichi Ueno) has announced today, that ADK group will complete its transition to a holding company structure as of January 2019. The official announcement will be subject to approval by the general shareholders meeting and the board of directors meeting scheduled for each company on January 1, 2019 or January 4, 2019. 1.

Background and objective of transition to holding company structure In 2013, ADK announced “VISION 2020”, envisioning the growth up to 2020 based on the objective of becoming a true Consumer Activation Company. This focus was to go beyond the traditional advertising agency business model and transform the organization into a marketing communications company that can provide clients with solutions that will activate consumer behaviour.

With the dramatic evolution of digital technology and the rapid penetration of social media, ADK has further evolved to embrace these changes to provide real-time future-facing solutions – solutions that will truly activate consumers. ADK believe that optimising its core assets of professionalism and productivity is necessary in order to become the leading Consumer Activation Company.

Based on such imperative, ADK will further invest in its content business and strengthen its ability to provide best-in-class marketing services by accelerating and optimising data and technology. Following the TOB by Bain Capital and the delisting from the Tokyo stock exchange in March of 2018, ADK has been accelerating its restructuring and structural reform towards strengthening professional areas and increasing productivity.

This has resulted in the establishment of a new creative company and further enhancement of strength in direct business. Through these reform measures, ADK group will evolve into a collective group of business entities with distinctive expertise, strengthening autonomous expertise in each business sector and increasing the output each entity can offer.

These development led to the decision to transform into a holding company structure. By restructuring itself to become a group of specialized companies with a common mission of Consumer Activation, each entity will optimise its core output and professional strengths, culminating in effective network collaboration.

From January 2019, ADK group will transform into a holding company structure with ADK Holdings Inc. (ADKHD) functioning solely as a pure holding company, and ADK Marketing Solutions Inc., ADK Creative One Inc., and ADK Emotions Inc. being operating companies affiliated with ADKHD. ADK Marketing Solutions Inc. will be responsible for providing integrated solutions in the marketing field, focusing on communication and planning / buying of digital and mass media, and utilising marketing data.

ADK Creative One Inc., the product of a merger between the former Creative Solutions Sector of ASATSU-DK Inc. and ADK Arts Inc, will be a fully integrated creative company, providing one-stop solution to its clients, ranging from planning through production & implementation in the creative and promotion areas. ADK Emotions Inc. will further demonstrate its uniqueness and strength in the content business and will firmly establish its foundation in the rights marketing business. As a result, ADK group will become a collective group in which each operating company has its own expertise and strengths.

Source: ADK press release


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