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.
