Media Viewpoint - June 2007

If we want the communications industry to evolve to meet today's challenges and steer business solutions, we need to open up, unlearn some things, learn lots of things everyday and raise our bar constantly.

In the communications industry we encounter change more than in most other industries because the consumer is at the heart and centre of everything we do. That it is becoming increasingly challenging to impact this consumer given his changing lifestyles is an understatement. Consumers always shift at a faster pace than the ability of advertisers to reach them, so much so that today it has caused the lines between content and advertising to blur.

Recently, over several business-related encounters, I have given a lot of thought to why we are not evolving at the pace we wish to.

In my opinion, it is the change in mindset and attitude.

Whose, one may ask? Primarily the four most influential groups of the industry - the channel agencies, creative agencies, marketing divisions and the media.

Let's face it: the communications industry has one asset - its people; one output - ideas.

And what hasn't changed at the desired speed in Singapore?

At channel agencies:

• Approach to channel solutions - clients still get plans which only have traditional media
• Integration of technology in campaigns - planners still grappling with technology changes while digital agency set-ups operate in isolation
• Compensation models presented to clients - many still operate on low commissions
• Talent development - still churning out the same type of training programmes and recruiting like in the '90s

At creative agencies:

• Holding onto the territories - resistance to acknowledge creative ideas on a plan
• Appreciation for the need to collaborate with channel agencies for insights and measurement does not come easily

At the marketers:

• Approach to agency relationships - the value equation of the partnership
• Measurement of brand/campaign success - only a few measure impact and effectiveness
• Push for insights - several still use subjective opinions to make decisions rather than scientific techniques and research
• Skepticism of the power of digital media

At the media:

• Understanding of the planning principles
• Measurement of their media - many still provide ‘reach' as a metric in sales pitches and some still don't have any measures
• Definition of innovation starts and ends with just disruption in placements
• Many still do not see the era of convergence is here and its impact on them
• Resistance to accountability

What do we need to do? In my opinion, solutions to changing the mindset could simply be about re-engineering, training, talent management, collaboration and open minds.

There would be no need to hire external people or consultant-type thinkers if we transition to such thinking ourselves.

There is no point knowing the cool, breakthrough work done by challenger brands in other markets if we don't emulate or apply some or all of it right here, right now. An attitude of collaboration, cooperation and co-evolution is critical to co-exist and ultimately deliver best results.

Deepika Nikhilender

Regional Managing Partner

MindShare