Jack Klues, Chairman, Publicis Groupe Media
"The online is real and here to stay. I see more media plans around the world, in the right markets, where digital becomes the foundation of the media plan and the traditional media gets to be on top to punch it up. When that starts happening, we'll know that we have evolved in the right world that is more digitally oriented. We aren't there yet and the only good news is that my competition is not there yet!"
Publicis Groupe Media, the second most powerful group in the business, has kept the Indian media speculating quite a bit on some of the plans that it has for the market. Now, as the group is ready to make some announcements, PGM's Chairman, Jack Klues, speaks more about his views on the India market, the group's proposition of 'scale in context' and the changes in the media agency business.
In this interview with Noor Fathima Warsia, Klues speaks about some of these issues and his expectations from PGM in India, post the formation of India Media Exchange. Excerpts:
Q. Finally, everyone talks about how important India is but on the global scale, whether it is ad revenues or big ideas, we aren't there yet. What is holding us back?
I'm going to have to think about that! It is ad spends related of course. Could it be that just some of the categories in India are underdeveloped – the big ad spends categories like automotives and luxury goods are really not as developed as they are in some of the more mature markets? It could also be that the media environment might be a little less video/TV sophisticated at the moment. This is still a print dependent market. I'm still fishing for the reasons, of course!
Q. Is the game so much about volumes?
Not really. Volumes are important but really, scale in a different context – and I was not trying to sell you the line - scale is more important today in a completely different context than it was some years back. That is why I'm so enthused about the IMX approach. Eventually clients will squeeze every nickel of what they are already spending and they would want something more.
India may not be there already today but it is only a matter of time before it is. China isn't there yet at all -- it is still a price game there. India is behaving more complex from a consumer standpoint and more sophisticated from a business market point of view, much like the UK or the US. Clients have quickly understood the power of consolidation for price here and it is 'what is my next route to get more value for the money that I am investing?' They got the price, now it is about more making the conversation more effective and engaging. They want to see how they make the dollar bigger by the kind of properties they own and sponsor, and that is where the move is -- to an idea space.
And it is not about just any ideas. There was quite a bit of experimentation happening, just to satisfy the client's needs of trying something different. Now they just don't want any idea for the sake of being different but scalable ideas that have the potential to be really big business ideas. We want both Starcom and ZenithOptimedia to drive this in India as well and what better route than IMX now.
Another point to be careful about when it comes to volumes is that, as an industry, we should stop underpricing each other.
Once we move to the idea platform, the clients win, the consumers win, media owners win and it is up to us to generate the best ideas so that we win.
Q. Talking about environments, the media scene has really changed today. How do you look at traditional mediums today - what is the big difference there?
Well, in the case of traditional mediums, the days of big ratings and readership are gone; not only are they gone but they are also wasteful. The way you have to start thinking is that you have find small, rated focussed environments -- smaller audience media. It is about low CPRPs against a big number to waste-free for a smaller number. There is more fragmentation today but there is an opportunity in that for selection and focus. And it is up to us to understand that game. A lot of our clients need to sell a lot of stuff; so, to talk to any one community may not be enough. So you have to find multiple segments but they should be self-contained segments. Earlier it was top down –- find the biggest; now it is the reverse. You find smaller sections, in multiple options -- put them together and you have a relevant, critical mass.
Then there is technological advancement too. The online is real and here to stay. In my mind it is rapid evolution and I see more media plans around the world, in the right markets, where digital becomes the foundation of the media plan and the traditional media gets to be on top to punch it up. When that starts happening, we'll know that we have evolved in the right world that is more digitally oriented. We aren't there yet and the only good news is that my competition is not there yet!
Q. How has the China Media Exchange experience been?
I have to say that the reactions have been mixed so far. But the reason why it is like that is because the scene in China was different. At least a part of the reason why we created CME was because GroupM was already buying as a collective unit there. It was more of a marketplace reaction on our part. In some instances it solidified our clients and in others, it opened us to pitches. Unlike in India, GroupM and us are pretty much equals in China in terms of actual size. It's like a dogfight there and a very close call for clients when it comes to pitches. China really is about size and price, so it places us well there.
Q. You mentioned cross-platform thinking. Is this where contextual planners come in place? What really are contextual planners that you have spoken quite a lot about?
In the media space, it is a new job but in the ad space, it is the same job and different application. Account planners were hired as early as the 80s and they were treated as consumer champions or experts who understood consumer behaviour in such a way that it would help creative write better advertisements. Now some of them still exist, but many just fell out of place and media agencies re-discovered them. We started hiring these account planners -- they were not people we created but they fit in the structure just well. We just apply their expertise as consumer champions to plan where the messages should be seen.
It is about understanding how people consume media, have category insights and using this in picking environments. This consumer loves pets, and I'm going to be attached to the things they love and they are more likely to love my brand, and that is where the contextual planners help you.
Q. You have been quoted saying that pitches are increasingly more about ideas than guys with the green shades...
To some extent yes but I wish it to be more like that.
Q. Beginning with the hottest topic at PGM at present - IMX - are there any precedents of this format, where there is consolidation in one unit and competition in others?
Not in any public way. So, the easier answer would be that India and China are the first -- China Media Exchange was launched last year and now IMX.
Q. Even if 'big business ideas' is what you as an agency is focussing on, in a consolidated structure, there is always the temptation to bundle, especially when you know someone else may be doing it. How do you combat that?
You should build your buying structure to be cross-platform competent rather than go the bundling way and that is the big difference. There are some benefits of bundling, maybe cheaper rates but really nothing else. Cross-platform gives you the bigger opportunity, where the message to be seen, is seen in the right kinds of environment and helps you get to the place where the client feels that they own a section of their target. For instance, if you have the insight that a section of your target happen to be pet lovers, you want to own any media that takes you closer to them. It would be interesting how IMX would progress in that space.
Again, the caution here is that you have to have facts behind that belief versus just instinct. Many times clients think that that sounds right but do I put all I have behind it? That's where data helps. We have applications like MCA that gives you a real close look into your target. I have to state that is where ZenithOptimedia and their appreciation in embracing touch-points have made a huge impact on their products and how they serve clients. I don't think anyone uses MCA the way they use. I thought Starcom was a heavy user but ZenithOptimedia is a super heavy user. Some of the work have made people think more about cross-platforms.
