OPINION: Media groups face Japan dilemma

I arrived in Japan as CEO of MindShare about 100 days ago. MindShare made its entrance to the market nearly 100 weeks ago. Much has happened in that time to the Japanese media market. One thing that strikes you as soon as you arrive in Japan is the cost of everything. The same is true for those media organisations keen to penetrate Japan in a meaningful way. The set-up and investment costs are enormous, as is, however, the potential return. WPP with MindShare has made a serious commitment by acquiring a stake in ADK (Japan's third largest agency) to open up a meaningful buying arm, invested USdollars 1.5 million in year one alone on research, implemented massive and comprehensive training plans and brought in experienced people from other markets to help put MindShare on the map here. I am sure the other media organisations beginning to or planning to set up here are facing the same difficult investment decisions. Not helped by the fact that the economy has yet to reinvigorate itself. So what will they and what did I find when I got here? Crucially, that things are beginning to change in the media market as a result of a number of structural, economic and client pressures. The introduction and greater influence and flexibility of new media owners in the digital TV, online and mobile sectors is helping. Client demand for accountability and results are also forcing agencies to rethink their media product. And finally the emergence of media planning as a key tool in the communications armoury is also a cause of interest for a growing number of clients. So what evidence do I have that the media scene is beginning to shift in some ways from the total domination by the major media owners and the handful of Japanese ad agencies? I can of course speak only from my own experience: - A number of clients asking for their buying by the big established Japanese agencies to be "audited " by media planning companies like MindShare. - More and more media planning pitches, with clients prepared to allow us to act as the media middle man between them and their buying agencies and media owners. - Clients demanding the imaginative and creative media ideas they see cutting through in other markets. - The ability to attract staff seeking "real" media planning from other Japanese and international ad agencies. - And finally, media owners who are prepared to talk to us directly to generate new and breakthrough uses of media. The advent of digital TV in December and the growth of mobile and Internet based media owners has acted as a catalyst to this. Now don't get me wrong. I am not saying that there is going to be a wholesale and overnight revolution in the Japanese media market with the advent of more media-specific agencies. All that is starting and will continue to happen is that there will be a greater degree of choice for clients as to how and through whom they decide to deploy their media investment. Up until the last two years there has been limited choice. As in every other market in the world, clients will defer and appoint a media company that in culture, personality and intellect fits their own needs best. What MindShare and other Western media companies have to offer will be attractive to some, of interest to others and completely "off piste" for many here. What we are finding is that some of our seed, and more than we probably hoped for at this stage, is falling on fertile ground. Finally as we are all aware our businesses are only as successful as, and are dependent on, the people in them. Again many of the preconceptions and myths I had stored up have been rapidly dispelled as I have settled into life in Tokyo. I have been stimulated, challenged and consistently impressed with the marketing and media people I have met in my time here, in clients, agencies, media owners and my own company. There is a willingness and almost a sense of urgency in some quarters to change and adopt and adapt new ways of thinking. Obviously there are those who have an interest in the status quo. I have no problem with that. The ultimate decision is with the clients, they will decide what is best for them. At least we are now starting to make them aware that there are alternatives.

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