Why Dentsu Is Opening a New Agency in Ukraine During the War

It’s perhaps unexpected for any advertising network to expand its business into a country that is fighting for its own existence, but Dentsu has chosen to do just that with the opening of its new media agency DentsuX in Ukraine. It’s been almost 14 months since Russia invaded Ukraine, and no end to the conflict seems imminent. And while the aggression has been taking place, the country has learned to work on and rebuild its economy, including its advertising sector, to a functional state. Dentsu Ukraine is made up of over 400 specialists working across agencies such as Carat, iProspect and Vizeum, the latter of which will be consumed by DentsuX. It will be led by Anna Gorkun as its chief executive officer (CEO), who has spent the last four years leading Vizeum Ukraine. Internationally, DentsuX employs around 3,500 people and works with clients such as LVMH, Kao Corporation and Nestlé. According to data released in August by the Statista Research Department, advertising spend in Ukraine across television, online and outdoor surprisingly continued to grow despite the impact of the war, which began in February bringing chaos to the whole country. Oleksandr Gorokhovskyi, CEO of Dentsu Ukraine, explained to Adweek that while the launch was taking place during “a period of unprecedented challenges,” it had also been four years in the making. “Being the leader for the last seven years and developing media business for the last 30 years along with state transformations and socioeconomic disruptions, we have learned that this is a key time to convert difficulties into inspiration and make the business thrive meaningfully,” he added. Ukrainian Advertising Industry Is Fighting to Continue Working and Meeting Client Needs The decision to complete the launch was taken due to Dentsu continuing to “operate successfully” last year, with Gorokhovskyi claiming that the business recovered faster than the market, meaning it was seen as a moment to “maximize” the company’s position in the country. “By launching DentsuX now, Dentsu Ukraine is clearly demonstrating its high level of operational resilience and sending a strong signal in the confidence of the Ukraine business, now and in the future,” he said. The new entity will bring together 70 individuals from across the business, including Vizeum, to deliver media solutions to the local market. The company declined to reveal the founding client list for the new business, saying only that "many" of them had already been on its roster for "a number of years". In a statement, Sanjay Nazerali, global brand president for DentsuX, welcomed the new Ukrainian members to the network. “We have long worked with them as part of the wider Dentsu Group and know them to be a hugely collaborative and talented team of individuals," he said. "As they face ongoing challenges, we look forward to working with them to help build for a brighter future.”