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| Mark Holden Managing Partner PHD Australia |
Ruth Stubbs President Mediabrands AP |
| Can margins be squeezed any further? | |
| MH: No, not until we see the full impact of any additional automation systems that can speed up what we do. RS: Our clients will still be pushed for better operational efficiencies (as are we) and, as service providers, we will be a source of those savings. There is a positive side. Competitive pressure drives margin squeeze, and if competition is up, business is up and everyone benefits. We have a great opportunity to redefine our operations. We can create our own reality and put ourselves in control. |
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| What is your biggest wish for 2010? | |
| MH: For new product development to be seen as the central offering for the agency. RS: Innovation. The recession has altered the media management business, and that is a good thing. Our business should evolve and we should embrace that change together. Now we have a chance to blow up legacy business models and remove those stale procedures and processes that are not working. Our industry needs to use this opportunity to breathe new life into the way we operate. |
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| Where will you be investing most heavily? | |
| MH: We will continue to invest more and more in online, in traditional display advertising and increasingly in social media and in creating applications to engage people. RS: In China and in digital. Search, mobile, performance and social are all a priority. In talent, North Asia, and in training, technology and tools. |
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| Will the big global pitches continue into 2010? | |
| MH: Absolutely. Clients are looking for more efficiency and for agencies to allow them greater control over their media usage, so the pitching is certain to continue. RS: Yes, and we are more than prepared to participate. |
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| Should agencies be excited or frightened by 2010? | |
| MH: They should be excited because if you are motivated by craft there is no better time to be in the business. This year we’ll start seeing the benefits of the recession, which has allowed us to focus on the areas of media that we know work. RS: The year ahead is a time of change. Mediabrands is committed to exploring, changing and evolving its current business model. |
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| What percentage of revenue do you predict will come from branded content over the next 12 months? | |
| MH: Around two to five per cent. Branded content is very important but still very small. It takes great share of mind, but that is not represented by the revenue. RS: We will see a spike. But not a game-changing amount. |
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Got a view?
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This article was originally published in the 14 January 2010 issue of Media.
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