In this presentation I try to unravel one of the marketing industry’s most enduring mysteries: why Japanese ad agencies have succeeded in holding on to such a dominant position in the Japanese market, despite all the efforts of the major global agency networks. I believe the answer lies in a fundamental difference between Japanese and western audiences and the models the agencies use to approach them. The account planning model first emerged from JWT London in the 1960’s and from there became the default paradigm for planning brand communications in the marketing empires that emanated from the UK, US and Europe. It is not designed to remove creativity from advertising, rather to impose structure and authority on an otherwise potentially chaotic and subjective process, and hence give these advertising agencies a process around which to scale up in a way that combines both business rationality and creativity. By defining the creative task through a rational process, and then letting the best creative ideas compete with each other to be executed, the client can feel confident that the idea finally chosen is going to be the right one for her brand, right here, right now. It also gives the creative teams the freedom of a tight brief, as opposed a long rope with which to hang themselves. Rationality & creativity combined The model goes something like this (with the role that takes the lead in each step shown in brackets): Unearth relevant target insight (account planner, possibly working with researchers) Clarify the unique thing about the brand or product that needs to be communicated (account planner) Come up with a concept that ties these two together (account planner) Based on the concept, create multiple communication ideas, pick the best one (creative team) Execute the chosen idea in a contemporary style (creative team & production) It works because the worst that can happen is that the ad says the right thing but fails to get noticed much. When it goes really well, communications get made that jump off the medium and strike the viewers’ consciousness with a thwack and everyone involves gets to go to Cannes to pick up the awards. Based around this model, western advertising agencies have colonised every developed economy and are well placed in developing ones too. Every one except that is for Japan, where they have captured a small sliver of a huge market and if anything are getting weaker at this point. So what happened in Japan? I have heard numerous explanations for this state of affairs, the most common being that local competition is so historically strong and immovable with local media monopolies, particularly DENTSU, that there is not shifting them; the challenge of hiring top talent as a foreign company in Japan (even though foreign companies in other industries manage it); nepotistic relationships between domestic brands and agencies…. There is some truth to all of these, but the argument that the ... (se