Osaka Expo, Dentsu's return to the market increases orders - Is it possible to break out of the sluggish momentum?
On September 2, 2024, the Japan Expo Association announced that it will outsource the operation of the media center at the Osaka Expo to a consortium represented by Dentsu. As Dentsu's involvement deepens after the suspension of bidding is lifted, it will be interesting to see how the company contributes to building momentum.
The Media Center is an important hub for domestic and international media to disseminate information about the Expo, and plays a major role in fostering momentum during the exhibition. The call for proposals will be held from July 12th ~ August 13th, and on the 29th, a selection committee consisting of three members, a lawyer, an expo producer, and a university professor, will hold the competition. Electricity and so on. The proposed amount is approximately 1.58 billion yen, and the other constituents of the consortium have not been disclosed.
| * At the end of June 2024, the Osaka Expo Association revised its rules to disclose the name of the representative company of the consortium in order to ensure transparency in the process of determining the business operator when announcing the business contract. However, the names of the other constituent companies will remain private. |
Dentsu returned in February this year from the suspension of bidding due to allegations of bid-rigging at the Tokyo Olympics, and from the new fiscal year onward, (1) Osaka 万博の協赈 fundraising business (lots of materials) and (2) Opening ceremony related work (approx. 970 million yen) 、 (3) Admission ticket sales promotion (approx. 1.05 billion yen) 、 (4) Six months ago, event-related work (approx. 32 million yen) Commissioned. As a new large-scale project, (5) Media center operation (approx. 1.58 billion yen) We have been entrusted with the In the Osaka Expo business, we are accumulating a track record of overwhelmingly outsourcing other major advertising companies such as Hakuhodo and ADK, which have also returned from the suspension of bidding nominations.
Problems with the Osaka Expo, sluggish momentum, and expectations for Dentsu?
In February 2023, when Dentsu suspended its bidding nomination in Osaka Prefecture, Osaka Governor Hirofumi Yoshimura, a member of the board of directors of the Expo Association, expressed concern that [Dentsu's absence] would affect momentum building. After that, the budget soared, the withdrawal of participating countries, criticism of the building, the careless remarks of the leader, the abandonment of flying cars, the methane gas explosion, IR construction during the period... Various issues have been reported, and we have not yet been able to grasp the trigger for the increase in momentum. In addition, there are growing headwinds against the Osaka Restoration Party, a regional political party that was instrumental in the bid to host the Osaka Expo.
At the Osaka Expo, it will be interesting to see if Dentsu's involvement in media and event-related operations will help to break away from the sluggish momentum. In the first half of September, the Expo Association plans to decide on a contractor for the "Media Plan Business" (up to 600 million yen), an advertising and promotional activity aimed at improving the favorability of the Expo.
