LEADER: Adapt or suffer from client spending shift

Asia is finally feeling the ill wind which wreaked havoc on the US on September 11, shaking the confidence that Americans once had in their invulnerability like never before. News of job cuts across the regional media and marketing spectrum are now flowing in thick and fast. At any time, redundancies are painful. But it's more so today when people's psyche - and their confidence as consumers - has been so severely battered. The talk of returning to normal - to fly, shop and go about the routine of everyday life - just seems a little too difficult this time around, especially with news at press-time that the US has finally retaliated. Brutal as it may sound, the thinning of agency ranks is one sign that the region is acting to redress the over-capacity and bloated payrolls which had been allowed to occur during the boom years before 1997. All the trimming of fat that occured during the late 90s financial crisis has to some extent helped agencies here. This time around, the cost-cutting appears to be far less savage, although the culling has hit one or two of the international networked agencies much harder than most. What is encouraging in this dark hour is that anecdotal evidence suggests that advertisers are cautious but, unlike the late 90s upheavals, have not turned off the tap completely. They are still spending, but they are also demanding a lot more - from ideas to commitment - from their agencies. Indeed, it's more than just economic blues or the September 11 devastation which is behind agencies' woes. The bigger issue is the fundamental shift away from TV-centric campaigns to efforts which require agencies to ensure advertisers get a decent return on the dollar. Agencies who survive this shake-up will be the ones who adapt to the new environment. In Asia, the path is clear. Agencies need to improve their core competencies, and in doing so morph into specialists, owning categories in which they have an edge in terms of knowledge, understanding and best practices.

Sign In

Trouble signing in?

Reset Password: Click here

Contact Customer Support at

Customerservice@campaignasia.com