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