Which explains why two traditional networks, one large one small, have rejigged their digital offerings to give them more bite.
McCann WorldGroup in Thailand and M&C Saatchi in Singapore have, within a week of each other, created hubs to suck in digital work from around the region.
McCann WorldGroup in Thailand and M&C Saatchi in Singapore have, within a week of each other, created hubs to suck in digital work from around the region.
The reality is that, outside of these hub offices, both networks have struggled to make their local digital operations reach fighting weight. Mark Ingrouille, CEO of McCann WorldGroup Thailand, explains: “Getting talent and client buy-in in other markets has been tough. They haven’t quite reached critical mass.”
In Thailand, however, MRM, McCann’s direct and digital arm, has grown from 13 to 35 people since January and is equipped to take on the extra work with the help of a hotshot (Jinn Powprapai) drafted in from Silicon Valley.
At M&C Saatchi Singapore, meanwhile, digital creative head Jonathan McKenzie will see his workload pile up as briefs come in from Malaysia and beyond.
“While we’ve been winning effectiveness awards for our digital work, ironically, making money from it has been hard,” admits Kim Walker, president and CEO of M&C Saatchi Asia. “Clients looking for digital have been loathe to hire agencies they see as from the old-school analogue world.”
Nothing new, of course, notes Walker, who remembers when direct marketing was treated the same way: “Clients didn’t understand DM, and a veil of complexity was drawn over it by specialists who claimed to know better.”
Hubbing is a good idea, says Pushkar Sane, Asia GM of Starcom IP, especially as the nature of the medium allows most functions to be done centrally with ease.
Production, research, data mining, fine. There are savings to be made. “But not if strategy and client-facing operations are outsourced too. You need people who understand the market on the ground,” he says.
Rod Strother, MD of Proximity Singapore, says that his agency is toying with the idea of setting up centres of excellence - a data hub in the Philippines, for instance - but not at the expense of local operations. “If you didn’t have interactive capability in your office, would you be so interested in selling it?” he wonders.
Clients in Asia are still not entirely comfortable with digital, Strother admits. But it’s up to agencies to show them where the opportunities lie. Besides, digital is one channel where everything can be done under one roof - and there’s good money to be made from owning the whole process.
He adds: “Agencies often forget to remind their clients how good they are, and clients are always on the look-out for a ‘sexy new girlfriend’ round the corner.”
Peversely, though, a good digital reputation isn’t always ideal. “We’re getting asked to pitch every other week,” says Strother. “But we don’t want to push digital alone. We want recognition for our CRM and DM work too.”
