M&M RESEARCH On the


media side, more than 56% of those in agencies expect to shake up the way that adspend is allocated this year


Continent. Magazines were preferred by those in Europe and the rest of the world. As an indication that improvements must still be made, only 7% of agencies felt pan- regional media was


very effective, although that rose to 22% for


advertisers. Agencies were


positive on their reasoning for not using more of it, blaming


national budget structures and


irrelevance for their target audience. More advertisers suggested it was not accountable enough. Among the agencies, TGI Europa was the most used of the syndicated surveys, followed by Synovate’s EMS. Geographical divides become


prominent again in regards to media owners working directly with clients. The practice is becoming more commonplace, with 50% of advertisers stating that they were ‘often’ dealing with media owners directly. Bypassing an agency to work directly with media owners was more common in the UK, 50%, and the rest of the world, 57%, than on the Continent with 46%. Only 5% of advertisers claimed to ‘never’ work directly with media owners.


PROSPECTS FOR 2010 Looking forward, staffing numbers across the board are expected to rise or stay the same. Those in the UK are the most optimistic about improved work conditions, a possible result of suffering the sharpest cuts in 2009.


COST VERSUS CREATIVITY 14% 5%


of agency respondents say that cost is the top priority over creativity


of agency respondents say that creativity is a greater priority than cost


of agency staff think that cost and creativity are equally important


of media owners have creative solutions departments


Source: M&M Sales Team Benchmarking Survey, 2010 www.mandmglobal.com 11%


of agency respondents don’t think media owners are creative


27% 60% 36%


of agencies think media owners have become more creative


In terms of spend, more than 56% of those in agencies expect to shake up the way they allocate it this year; 40% expect the changes not to be significant, but only 3% expect not to make any changes at all. Their choices were in line with industry expectations that both TV and print are set to lose out to online, with agencies saying they would up spend on the platform from 15% to 20%. Advertisers were slightly more


forward-thinking than their agencies, suggesting spend online should reach 28%, cutting deeper into print than TV. After all the cuts, there are growing


expectations that this year will be marked by fluidity in the job market. When respondents were asked where they’d most like to work, Google came out on top, then BBC World News for UK employees, or CNN and ESPN for those based elsewhere. ○


M&M VIEWPOINT


Digital was crowned the darling of agencies last year as clients demanded more bang for their buck and tangible proof of return on investment. There is still a measure of naivety about how accountable digital really is, but other platforms clearly need to up their game to challenge perceptions, by being more innovative and skilled in ROI delivery, otherwise they will continue to lose out to digital. The recession can be credited for sharpening expectations; media owners will only have to work harder and harder to meet them.


An opportunity or compromise?


Is pan-regional media right for the personality of emerging markets?


China


“Pan-regional media owners were the first to develop integrated solutions across different platforms, but local media owners are fast diversifying their offers and developing strategic alliances across the region.” Connie Chan, managing director, MEC Singapore


India


“A pan-regional team would not be effective. For most advertisers, India is a focus market and they do not want to compromise on that.” Sam Balsara, chairman and managing director, Madison World


Russia


“Pan-regional media is like an all you can eat buffet. It seems like a good idea but the quality is rarely good. It is more cost-effective to buy locally.” Gareth Brown, ADV client service director, Initiative Russia


Ghana


“Data is underdeveloped; it’s hard to say how many people watch a particular programme and difficult to know if you’re getting what you paid for, so local knowledge is critical.” Kofi Amoo-Gottfried, managing director, Publicis Ghana


HOW MUCH HAS THE ECONOMIC CLIMATE AFFECTED YOUR WORK ON A SCALE OF ONE (no affect) TO FIVE (affected me a lot)


0% 10% 20% 30% 40% 50%


40% 30% 25% 20% 17% 10% 11% 7% 3% 3% 4% 1 Advertiser Agency 2 Media owner Source: M&M Sales Team Benchmarking Survey, 2010 M&M Q2 2010 29 3 4 5 24%


38% 36%


34%


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