VIEWPOINT: Shakeout looms but 'Net is still luring agency staff

<p>Asia's advertising industry has to act quickly to stem the brain </p><p>drain of talent to the world of the Internet. </p><p><BR><BR> </p><p>You know the industry is in serious trouble when even senior executives </p><p>are taking the plunge, despite the very possibility of Internet bubble </p><p>bursting sooner rather than later. </p><p><BR><BR> </p><p>When will a consolidation occur? No one can say for certain. Some say </p><p>within six months. Others are talking of a shakedown by the middle of </p><p>next year. </p><p><BR><BR> </p><p>A few believe that with spectacular failures in the West - notably </p><p>online sports retailer boo.com, which had the backing of blue chip </p><p>retail giants like LVMH and Benetton - the shake-out has already </p><p>started. </p><p><BR><BR> </p><p>In the event of a massive consolidation, it is estimated that up to 70 </p><p>per cent of Internet companies we now see will fall by the wayside or be </p><p>gobbled up by larger competitors. </p><p><BR><BR> </p><p>But even with these less than optimistic predictions, the advertising </p><p>industry is still being sucked dry by the dotcoms. </p><p><BR><BR> </p><p>The point is hammered home in the latest MEDIA-CNBC Asian Advertising </p><p>Industry poll. </p><p><BR><BR> </p><p>When agencies across Asia-Pacific were asked what percentage of their </p><p>staff had recently left for a dotcom, 37 per cent stated they had lost </p><p>between one to five people. </p><p><BR><BR> </p><p>One-in-five replied that they had lost six or more, with four per cent </p><p>reporting that at least 20 had left in search of fame and fortune in a </p><p>cyber firm. </p><p><BR><BR> </p><p>Just over half of the respondents believed that the trend of talent </p><p>defecting to dotcoms would create a void in the advertising industry, </p><p>which would spark a major change in the way agencies operate. </p><p><BR><BR> </p><p>Individual agencies and networks have attempted to rectify the situation </p><p>by beefing up training, introducing interactive divisions and giving </p><p>huge pay rises to keep their best people. </p><p><BR><BR> </p><p>The 4As in many of the Asian countries have also tried to find ways to </p><p>rejuvenate advertising's appeal to both people considering a career in </p><p>advertising and by preventing talent from leaving the industry. However, </p><p>this must be seen as piecemeal and, at this time, too little, too </p><p>late. </p><p><BR><BR> </p><p>Perhaps the time has come for a more united approach. A regional </p><p>approach. </p><p><BR><BR> </p><p>Perhaps the 4As of the different Asian countries - Hong Kong and </p><p>Singapore initially - could come together to discuss the manpower issue </p><p>and work on formulating measures to stem the brain drain. </p><p><BR><BR> </p><p>Only on a united platform, can the region's advertising industry hope to </p><p>keep its most talented people, who are the best advertisement to promote </p><p>the industry. </p><p><BR><BR> </p><p>If we keep losing people, the effect on advertising standards will be </p><p>disastrous. </p><p><BR><BR> </p><p>It would be a sad day indeed if standards regressed to the level of a </p><p>decade or more ago. </p><p><BR><BR> </p>