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

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

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