Media 360 - Day Two

Asia-Pacific CEO Christophe Bezu defended the sponsorship, which came under scrutiny as rivals such as Li Ning and Nike executed ambush campaigns. “Even if you just look at the figures, it was worth the money to be an Olympic sponsor,” said Bezu. “Look at what our competitors had to spend just to keep up with us.”

At a session focusing on India's potential to marketers, Madison chairman and MD Sam Balsara and OMD India MD Jasmin Sorahbji tipped the country's relatively young population to help steer marketers through rapidly increasing TV clutter. Balsara pointed out that "clutter in TV is now beginning to pose a serious challenge to advertisers." India currently has 405 channels. Meanwhile, Sohrabji noted that young Indians will "usher in a new change in the media landscape", in the same way that TV revolutionised India's media sector in the 90s.

Two sessions looked at the changing communications landscape. First, Barry Cupples, Asia-Pacific CEO of Omnicom Media Group, revealed some predictions for the next five years, focusing on the growing connectivity of consumers and what it means for media agencies. He forecast that media owners would have to join agencies when talking to clients at the beginning of campaign planning, though he admitted there was still some way to go before that happens regularly.

Next a panel of digital experts, moderated by Omnicom vice-president for digital development Jason Kuperman, looked at the prospects for digital. A recurring theme in the session was that the growth in digital marketing spend is not being matched by growing sophistication in the online marketing industry. “In 2010 internet penetration in China will hit 30 per cent. We have less than two years to come up with a solution to how to deal with this.”

A session on China studied opportunities for marketers in tier three, four and five cities. Speakers Winnie Lee, MD of OMD China, and Joy Lee, marketing director at DHL, discussed the needs of consumers in these markets, arguing that marketers need to offer relevant products and think about traditional media channels. The discussion also touched on the results of the single-child policy, which has produced a generation that is more demanding than before, with little brand loyalty. The internet - and bulletin boards in particular - is crucial in approaching this audience.

Successful brand building in a competitive environment may not hinge on a huge marketing budget - but risk-taking is required, according to Puma’s Asia-Pacific marketing director Christoph Peter-Isenbuerger. Speaking in a panel session, he argued that long-term strategic thinking is key to brand-building, although the industry is still looking to strike the balance between creativity and prudence. Big, bold ideas need to be balanced by financially sound thinking as - listed or unlisted - all businesses need to deliver results.

Vietnam is still a green field for marketers to make lasting impression, according to Jim Goh, Omnicom Media Group’s executive director for business development and HSBC Vietnam head of marketing Rose Leng. But patience will be needed. Branded content via TV storylines and TV game shows is a very popular marketing platform for advertisers. Word of mouth is also very important in a market in which advertising is highly restricted.

Concluding Media 360, Jeffrey Cole, director of the Center for the Digital Future, a New York-based think tank, predicted that time was running out for physical entertainment media as we know it. CDs would die out in the next 6 to 7 years, while DVDs would be obsolete within 10 years, he said. However, the good news for advertisers is that his research indicates that consumers are willing to accept online advertising in return for free content – though that advertising must be relevant and non-intrusive.