According to the BBC, the software allows children to hold a smartphone over the newspaper to see a child-friendly version of the text.
In a promotional video, Dentsu said the app could 'create a future for the old media newspaper'.
The clip said that 'newspapers were not made for children, adding that 'if newspapers became readable to children, they will contribute to family communication and child's education'.
The demo video shows a father laying a newspaper out on a table as the child holds his smartphone over the page.
Cartoon characters appear on the screen, explaining stories and drawing attention to important words.
Dentsu said that 'difficult articles and social problems, economy and politics became interesting subjects for children', the report added.