Advertising agencies need local, multinational strength
Advertising agencies need local, multinational strength
NUSA DUA, Bali (JP): The biggest challenge for advertising
agencies in Asia is to achieve a good balance of local and
multinational strength, says the chief executive officer of the
world's largest advertising and marketing services company.
Martin Sorrell, of WPP Group, said during sessions on the
second day of the 19th Asian Advertising Congress here yesterday
that because many companies in the region are about to expand
globally they require ad agencies which are strong locally and in
other countries.
"Hence, the biggest challenge is to have the strategic
thinking on a worldwide basis. A locally-based multinational ad
agency," he noted.
Some ad agencies are strong locally but they lack strength
internationally and several others are the other way around. Most
multinational ad agencies are now based in large cities, like New
York, in developed countries.
Sorrell felt the need for more multinational ad agencies to
have a stronger representation in Asia as the center of the
world's fastest growing economy.
The WPP Group, a London-based multinational company, with
total turnovers of US$9.3 billion in 1993, includes such ad
subsidiaries as Ogilvy & Mather Worldwide, J. Walter Thompson,
Hill & Knowlton public relations company.
The group's affiliates in Indonesia include a J.Walter
Thompson tie-up with ad agency Adforce and Ogilvy & Mather with
Indo-Ad.
Sorrell reasoned that as companies now often have to operate
in several countries in order to continue growth, ad agencies
must possess the capability to serve their clients in different
markets because although the strategic thinking could be the same
the execution should be adapted to the specific local conditions
and environment.
"Global branding is very rare now and in fact there are only a
few truly worldwide ads," Sorrell told The Jakarta Post, citing
Coca-Cola, Marlboro, IBM and American Express as examples.
Ad agencies should be able to execute strategic thinking
according to the needs of the different markets, he commented.
Even Asia cannot be classified into a single regional market.
"There are, I think, at least seven different markets in the
Asian region, namely: Japan, South Korea, Indochina, greater
China, the ASEAN countries, India and Pakistan and Australia and
New Zealand," he said.
These different markets need different approaches, different
designs, identities, creative ideas and the capability to
coordinate campaigns.
Especially, now as a result of the interaction of the
multimedia, advertisers can now reach the consumers in a totally
new way, in a highly individual way.
"For example, the television, though remaining a powerful
instrument, no longer has the power that it had many years ago;
that is a monopolistic power," he noted.
There are now a number of other alternatives for communication
which have become increasingly important. (vin)