Dubai: Content matters — and that’s true as much for the advertising industry as it is for publishers fighting a daily battle against the forces of digital. And in a content-driven space, its originators matter just as much.
“The advertising industry model needs to change ... until recently, most agencies worked on a model where originators and creators were outnumbered by the marketers and distributors of content,” said Avi Bhojani, Group CEO at BPG, one of the biggest marketing services networks in the region. “You look at the cost structure of any agency and there is a greater cost around [marketing] distribution.
“What’s worse is that the content creators have also got used to being in a box — they now need to go direct with their clients and [reduce dependence on] the intermediaries. There is no more need for so many sales and distribution people who were thriving on content created by others.
“People are eliminating overheads on one side; the jargon for that is ‘complexity reduction’. Some may call it restructuring. That’s what’s needed.
“People prefer to meet the creators of the content rather than layers of intermediaries. We need to smell the coffee and get back to that.
“With less intermediaries, you need more productive resources and less layers of message conveyors. That’s how the advertising industry will be tomorrow.
“We have to start working on lower margins … and our services have to cost less.”
These are combative words from an ad industry insider who has clocked in 35 years fighting and winning many a battle. And he’s gearing up for more — his agency network has just gone through some far-reaching changes its management structure. It has created more focused teams and with direct responsibilities in creating the solutions clients want.
“Responsibility and authority became more aligned … we had layers with business heads in a few businesses were not adding value with clients. Those positions have been knocked off.” (Bhojani rates three of BPG’s business units — led by BPG Maxus, followed by BPG Kuwait and BPG Cohn&Wolfe — as performing well, while two — BPG Bates and BPG Possible — had a “challenging year”.)
Which brings Bhojani back to the hot-potato issue of what sort of content should be out there. With the word “fake” preceding news and fake websites proliferating to try and dupe advertisers of their ad spends.
“Both publishing and marketing services have a huge repository of content and an ability to create newer content,” said Bhojani. “Whichever model you look at, the need is for credible content. If it gets fictitious, the kind of harm it creates on reputations is often irreparable.
“It’s still a work in progress, within distinct parts making up digital assets. Digital asset creation needs one set of skills. The other aspect is its amplification on social media. Within that, there is both content and production.
“Everyone knows that in social media, moving images gives you exponentially more impact than static. That’s why the smart money is on Instagram than Twitter. A year ago, Twitter felt like everything. With Instagram, the static is moving away. There are crowdsourcing sites which can do your logo for $50.
“Tomorrow’s marketing services organisations will come back to where your marketing communications service provider covered all your needs.”
For advertising agencies in the Middle East, the changes brought on by the digital revolution have not been easy. At a certain point, it was never going to be enough to set up “digital-facing agencies” within their networks and keep hoping the business will keep on coming. But, as everyone knows, that’s not how it turned out.
Digital platforms are themselves turning into media powerhouses, whether it be as a source to take in news or get acquainted with instant marketing messages.
“Everyone in communication needs to be concerned — Google and Facebook are connecting directly with brand owners. eliminating intermediaries,” said Bhojani. “And then you have the big consulting companies in downward integration — Accenture has bought a hot creative boutique in London, and McKinsey a branding shop in the US as have Deloitte and others. “The ad industry is sandwiched — there is no substitute to us having to reinvent quickly. We need to go in for some degree of rescaling.
“Any restructuring essentially ensures that the way resourcing is done is right. People who are responsible for client relationships need to be more empowered Elsewhere, the generic agency networks are effecting change. WPP, the world’s largest marketing communications group and which has a minority stake in BPG, has already “done the team structure”. “Across different agencies and functions they deliver to one client — some of these teams will get bigger and some will bundle into one brand.
“More global marketers are centralising their brand decision making — P&G, Pepsi, Unilever. Earlier, in every country they had would have localised brand decisions. Today, the only local need is activation and media buying.
“Ad agencies are finding it difficult to cope with that.”
But there is one detail Bhojani hopes will still be retained among the changes convulsing the industry — the unique culture that defines each ad agency and that shows up in its creative content, its people and the way they work.
“The culture bit is critical in our business — I’m not 100 per cent sure where we as an industry are headed to. But I would still hope that our unique culture will help us differentiate and re-emerge.”
Part-time workers can become the new theme for local ad industry
With local laws now allowing businesses to tap part-timers, the ad industry should use every opportunity to utilise the opportunities, says Avi Bhojani of BPG Group. “There are tens of thousands of graduates passing through local colleges and there could be many among them who want to be in advertising,” he said. “There are issues involved with taking in part-timers, but these are manageable. It will mean less need for full-time employees and keeping costs in check.”
The BPG network is finalising the launch of a boutique agency that will cater to the marketing services needs of start-ups and small businesses.
