CReATION: Internet driving Singapore's economic recovery as new dotcoms launch by the dozen

<p>Late 1997 and early 1998 saw a flurry of market entries by media </p><p>specialists into Singapore, and within two years their focus on and </p><p>investment in their media product has been recognised by the volume of </p><p>business they now look after. </p><p><BR><BR> </p><p>The entry of MindShare, Zenith, OMD, CIA and other specialists couldn't </p><p>have come at a better time - the economic downturn has made clients </p><p>think twice before investing media dollars. </p><p><BR><BR> </p><p>There was a need for greater accountability, more in-depth insights, and </p><p>thus higher value propositions resulted as media investment decreased </p><p>but expectations didn't. </p><p><BR><BR> </p><p>Media specialists answered with more proprietary research projects, new </p><p>software, and increasingly specialised services. </p><p><BR><BR> </p><p>The fact that the success or failure of specialists depended on the </p><p>quality of their media products was good news for clients. </p><p><BR><BR> </p><p>And the market has responded very positively. </p><p><BR><BR> </p><p>Media specialists placed more than 40 per cent of total adspend last </p><p>year, and this year's exit share is estimated to be 50 per cent. </p><p><BR><BR> </p><p>Media specialists (but especially clients whose business is with media </p><p>specialists) are in a strong position now that the economy is in </p><p>recovery. </p><p><BR><BR> </p><p>Annual adspend dropped 12 per cent in 1998 and only saw a slight three </p><p>per cent increase in 1999, but 2000, spends are projected to increase by </p><p>a much healthier eight per cent. </p><p><BR><BR> </p><p>This growth will primarily be fuelled by the telecom sector hotting up, </p><p>due to the fight for market share in Singapore with the arrival of new </p><p>company, StarHub. </p><p><BR><BR> </p><p>The market will witness one of the most contested categories in years; </p><p>no doubt it will be the largest category for some time to come in </p><p>Singapore. </p><p><BR><BR> </p><p>This is a similar phenomenon to what occurred in Hong Kong, when the </p><p>monopolistic telecom market was opened up to competition. </p><p><BR><BR> </p><p>The Internet is also driving the recovery, with dotcom companies </p><p>launching by the dozen. </p><p><BR><BR> </p><p>The estimated spends of dotcoms will be somewhere between US$25-40 million, with many more forecast to enter the market in the near </p><p>future. </p><p><BR><BR> </p><p>Singapore ranks among the highest Internet and PC penetration markets in </p><p>Asia. Compared with Japan's 40 per cent and Hong Kong's 32 per cent, </p><p>more than 44 per cent of Singaporeans are 'Net users. </p><p><BR><BR> </p><p>Internet spending reflects this trend - adspend is expected to reach </p><p>more than US$15 million this year, from a mere $6 million </p><p>in 1999. 2001 estimates are in the region of $30m. </p><p><BR><BR> </p><p>Media specialists were the first to respond to this new category, with </p><p>specialist divisions dedicated to this area as part of the overall media </p><p>product. </p><p><BR><BR> </p><p>So lucrative is this segment that eight key media vendors - global and </p><p>local - have set up shop in Singapore to cash in on this booming </p><p>market. </p><p><BR><BR> </p><p>ACNielsen announced the launch of e-ratings in early 2000, making </p><p>Singapore the launching pad for Southeast Asia and helping to establish </p><p>the 'Net as an accountable media vehicle in the Lion City. </p><p><BR><BR> </p><p>More sophisticated technologies will soon surface with digital, Web and </p><p>cable TV likely to make their way into the new audience measurement data </p><p>early next year. </p><p><BR><BR> </p><p>Benchmarking and accountability of media investment is now a standard </p><p>offer by most specialists. </p><p><BR><BR> </p><p>Media specialists are ready to put their necks on the line to prove </p><p>efficiency and efficacy of every dollar spent on behalf of their </p><p>clients. </p><p><BR><BR> </p><p>Most media specialists have increased investment in this area to provide </p><p>new media software, and more telling insights through proprietary </p><p>research and sales response modelling techniques than ever before. </p><p><BR><BR> </p><p>Advance Technique Group (ATG), MindShare's specialised unit is one such </p><p>example which works on ROI media models. </p><p><BR><BR> </p><p>Planning methods will change in due course from cost per exposure to </p><p>cost per response. </p><p><BR><BR> </p><p>Permission marketing will tie in more closely with media investment. </p><p><BR><BR> </p><p>New tracking and measurement techniques are soon to follow in </p><p>Singapore. </p><p><BR><BR> </p><p>And surely, reliance on the Internet by most specialists will be part of </p><p>instant response measurement methods. </p><p><BR><BR> </p><p>Most agencies will either invest to establish their media specialist </p><p>units or tie in one or the other way with other media partners to </p><p>deliver a competitive media product to their clients. </p><p><BR><BR> </p><p>The media landscape has changed dramatically in a very short time. </p><p>Advertisers rightly demand increased accountability of their investment </p><p>and without doubt acknowledge the role of media specialists in Singapore </p><p>as being key to improvements in this area. </p><p><BR><BR> </p><p>John S. Coulson said a quarter of a century ago: "We measure the sales </p><p>effectiveness of ads or commercials on their ability to attract </p><p>attention and communicate, on their ability to affect attitude, and on </p><p>some combination of these and we hope to have some evidence to indicate </p><p>that we are really measuring the sales effects of the advertising." </p><p><BR><BR> </p><p>Media specialists are converting hope to reality today. </p><p><BR><BR> </p>