Staff Reporters
Apr 15, 2010

Could Asia host an independent media agency?

After the recession and falling profits for the multinationals, is there a gap in the market for an independent media agency in Asia? We've asked an agency founder, a media network CEO, a client marketer and media agency head for their opinion.

Could Asia host an independent media agency?

Mike Wilson, founding partner of Naked, says YES

“Still mired in the post–war mass-market philosophy and practices where a 30-second spot solved all communication problems, today’s ad agencies perpetuate a mythology that gets easier to dismantle by the day.

The world of communications has changed to such an extent that the old production-based models of the ad agency, the media agencies and their lumbering multinational owners are so obviously broken it is embarrassing. Should the idea ‘stretch’ beyond traditional paid-for media? Of course it should. Should incisive understanding of channels, audiences and delivery mechanisms inform idea development? Of course it should. Should brand communications recognise the advocacy role of the consumer, and target them as a starting point rather than the end of communication? Of course they should. And can ad agencies deliver this? Not if they’re ever reliant on producing TVCs, rather than solving strategic problems.

The good news? Independent communication strategy, with a model anchored in collaborative practices, can deliver on all fronts, and does.”

 

Mark Patterson, CEO of GroupM Asia Pacific, says NO

“There is space in the market for an independent agency but not a gap. It is really about sustained success, not fifteen minutes of fame and a new name. The pertinent question should be can an independent media agency start up fulfil its real ambitions and what are the true motivations behind the start up ? Is it lack of opportunity or culture/strategy issues they had at their previous home ? A desire to change the world and offer something that fills a perceived gap in the market (that I don't think exists)? Or the dream of building something that gets bought by one of the big groups in a few years? Dream on.”

 

Adrian Toy, VP of marketing for APAC at Bausch & Lomb, says YES

“The role of media agencies has kept evolving from the day they were born out of creative agencies to drive media efficiencies.

The answer lies in what the client actually needs. Of course, the client wants it all - buying efficiency, strategic planning, analysis, digital and consulting. But will the client pay for it all?

In this region, where the maturity of clients varies significantly, there is room for an independent, which will be able to find a sizeable niche where it can specialise and provide superior service. This is all dependent on the agency demonstrating its willingness to invest time in understanding the client’s business and customers, and move the needle for the client’s business.

The attractiveness of independents is that they are less likely to get distracted with the issues of a holding company imposing profit targets. They aren’t bound to agency group deals and network politics, such as whether a media set-up can offer creative if there is a sister agency involved.

Rather, an independent can compete on a skills and product basis. It can manage itself better, because it is its own master.”

 

Prashant Kumar, CEO at Universal McCann in Malaysia, says YES

“Why not? If you dig beneath the jargon and logos, most - if not all - media agencies today are quite similar. They have had similar heritage and are part of similar thinking networks. They draw upon the same pool of talent, which moves around in a game of musical chairs, and even though there may be a few disruptive individuals here and there, as systems, they are so boringly alike.

While the media space has seen a total revolution, most media agencies have been very incremental in keeping up with it. Future doesn’t fit in the containers of the past. We need a disruptive media agency, which has no legacies, nothing to lose, builds from a white sheet and has a stance that’s fresh and audacious. Such an agency could catalyse change for the whole industry. It could unleash new skill sets, new structures, new partnerships, new revenue models and hopefully a more upstream place for media agencies in the marketing value chain.

For the first time, we have today an ecosystem of clients with sufficient billings and risk appetite to sustain such an outfit.”



Got a view?
Email [email protected]

This article was originally published in the 8 April 2010 issue of Media.

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