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.
