OPINION: Media groups face Japan dilemma

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