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In November, an article in Diamond Weekly called out Vector, a relatively new, fast-growing Japanese PR agency, for employing such tactics. Most recently, in February, Facta, another business title run by former Nikkei journalist Shigeo Abe, accused Dentsu PR of the same in a lengthy exploration of the "degeneration" of media and advertising in Japan.
Abe is an investigative journalist best known for uncovering irregular financial practices by Olympus, which mushroomed into a full-blown scandal. The article goes on to accuse Chikami of hypocrisy in criticising Vector. Among other things, it states that Vector and Dentsu PR had worked together in various instances, and cites a whistleblower who claims Dentsu PR also uses stealth marketing as part of its services. Nomura said he believes the damage as a result of recent coverage will be limited, and does not think firm guidelines are necessary to regulate what can be seen as native advertising.
If the content is appealing, people will read it. It does not matter whether it is a pure article or paid. He said stealth marketing had been an issue for several years but recent coverage had heightened awareness of it. But the need for some sort of way of guaranteeing transparency is very necessary.
Whether that happens or not, "we can say the level of understanding that this is something that could backfire is higher than previously," he said. Both observers agreed that publishers are a big part of the issue and should share the blame for lack of transparency. Non-transparent promotions "are proposed by publishers in most cases", Nomura said.
Especially when clients ask their agencies to pitch less newsworthy topics, agencies tend to rely on this method.
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Dentsu PR & Vector caught up in Japan "stealth marketing" issue
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