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Dentsu, Facebook: the problem with digital advertising

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MUMBAI: The advertising industry just got a hit in an area where it hurts: right in the solar plexus. Last week, Japanese ad agency Dentsu which accounts for a lion’s share of advertising in Japan, admitted that it had overcharged (read: “fleeced”) digital clients to the tune of Yen 230 million between November 2012 and to date. Now, if that sounds like a lot of money it is only $2.3 million or about Rs 14-15 crore. The agency management discovered more than 633 suspicious transactions with 111 advertisers being impacted. Around 14 advertisers were charged but the ads were not placed on the internet at all.

Dentsu has been expanding globally and it acquired the Aegis Network in 2012 at a cost of $5 billion and today around 50 per cent of its advertising comes from global operations. In India, it is led by Asish Bhasin with a clutch of agencies below its umbrella. Bhasin has been charting aggressive growth for the Dentsu Aegis Network (DAN) and has been shopping around for growth opportunities through acquisition. His latest buy was mega PR firm Perfect Relations.

Coming back to the fudging of bills by Dentsu, its president and CEO Tadashi Ishii has clarified that it is restricted only to Japan. Said he in a press release issued earlier this week: “In relation to a part of our digital advertising services for advertisers (including performance-based digital advertising services) provided by our company and some of our group companies in Japan, it has been found that there were multiple incidents where services were provided inappropriately. Types of irregularities involving inappropriate operations which we have detected to date include discrepancies in advertising placement periods either made consciously or by human error, failure of placement, and false reporting regarding performance results or achievements. Additionally, it has been detected that there were incidents where our invoices did not reflect actual results, resulting in unjust overcharged billing.”

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He went on to add the agency was taking the matter very seriously and corrective measures are being taken to prevent a recurrence. “As an interim measure, in order to ensure that human errors or inappropriate operations in digital advertising will be prevented and detected, in early September we transferred operations to verify the specifics of advertising placements, publications and billing to a separate section which is independent from the section previously responsible for such operations, and we have endeavored to strengthen our business system for such verifying operations.”

“Our company is determined to clarify the causes leading to the inapropriate operations and to establish further requisite measures for resolving the situations and fundamental preventive measures, and to implement such steps faithfully and steadily in order to restore confidence in our company. Following the taking of such steps, we plan to report the progress of our efforts to our clients and business partners including advertisers, related associations and organizations and all other stakeholders. At this stage, we are aiming at doing so by the end of this year.”

He went to sincerely apologies to Dentsu clients and shareholders “from the bottom of our hearts for causing concern and trouble. At this moment, we do not believe that our business results would be materially affected. However, if we find any new matter which would materially affect our business results in the future, we will disclose such new matter promptly, as soon as it comes to our attention.”

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In April, Dentsu had consolidated its digital business under a new offshoot called Dentsu Digital Inc in a bid to increase its hold internet advertising, which was not its strong area in the land of the rising sun.

Dentsu in India has been pushing aggressively in digital and around 30 per cent of its revenues come from online advertising. In the urge to grow could some wrong doing have happened in India too? These are questions Bhasin and DAN will have to address. Nonetheless sources say that the India office did meet some of its Japanese clients over the past two days to allay any concerns.

Be that as it may, this is not the only instance where the advertising industry has got its face muddied in the past week. Facebook, the word’s largest social network, too issued an apology on Friday saying that it had overstated on its video viewership metrics, that it had been giving marketers an inflated number for the average time being spent viewing online clips.

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Facebook admitted that it had been boosting its average viewing time by only counting videos as viewed if it had been seen for more than three second. It had excluded from its calculations videos not viewed or those which had a view time of less than three seconds.

The two instances above indicate the high-pressured advertising industry’s urge to surge and its excesses. No doubt, it will dent the ad industry’s image where it hurts the most: the area of trust. As it is, consumers are tending to have a sense of disbelief about the claims advertisers are making in advertising, online and in TVCs. There’s very limited monitoring of online advertising and the claims made online, compared to the volume of advertising that’s out there on the internet. And that is a cause for worry. With users shifting to consuming a lot more news, videos online and on mobile devices, the cases of inappropriate, false claims ads will only rise.

It’s over to the ad industry to find some solutions.

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Advertising Rocks Season 4 returns to Goafest 2026 with musical flair

Industry talent takes centre stage as music meets creativity at Goafest

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MUMBAI: The spotlight is back on music and marketing as Advertising Rocks Season 4 gears up for a high-energy return at Goafest 2026, promising a louder and more vibrant celebration of creative talent within the industry.

Now in its fourth edition, the platform continues to carve a niche as a space where professionals from advertising, media and marketing step beyond boardrooms to showcase their musical side. Open to solo and duet performers, the competition will unfold across multiple rounds before culminating in a live finale at the festival. Shortlisted participants will also receive complimentary access to Goafest, adding to the appeal.

Each category will feature four finalists, with winners decided through a mix of jury evaluation and audience votes, making the experience interactive as well as competitive. The stakes are equally compelling, with cash prizes ranging from Rs 25,000 to Rs 1,00,000 across categories.

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Reflecting on the journey so far, BBH former CEO Subhash Kamath said, “This will be the 4th edition of Advertising Rocks and every year, it’s become better and better. We have some amazing musical talent in our industry and what better stage to perform than at Goafest. I hope we get more entries this time and I’m really looking forward to hearing some fabulous talent.”

Echoing the sentiment, Havas Media Network India chief executive officer Mohit Joshi said, “Season 4 of Advertising Rocks perfectly captures the spirit of our industry, where creativity doesn’t end at the workplace, it finds expression in many forms. At Goafest 2026, we are excited to bring back Season 4, bigger and more vibrant, giving professionals a platform to showcase their musical talent.”

Registrations for the competition are currently open, with entries accepted until April 30. Participants are invited to submit their performances and take a shot at the stage.

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Co-hosted by the Advertising Agencies Association of India and The Advertising Club, Goafest 2026 will be held from May 20 to 22 in Goa. With Advertising Rocks returning to the lineup, the festival is set to strike a chord that goes well beyond advertising, blending ideas with rhythm and a touch of showmanship.

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