Chintamani Rao, President, Universal McCann
“Of course, transparency has to be there in the media business, there can’t be two opinions on that. But I feel that people are getting confused between negotiability and transparency. What we have to keep in mind is that lack of transparency is not really an outcome of negotiability of rates.”
Q. What should be the essence of a good media plan?
I will answer your question this way. Media planning is not just about numbers, it is more about connecting with people. It is not about number crunching for number crunching sake; what we try to do is arrive at a media plan that is an optimum way to connect with the audience. To our mind everything begins with the consumer. Good media planning means you look at the world with the perspective of the consumer. You make media plans to enhance the value of the creative work and support it. We advise our clients to first approach media before they go to creative, and I am happy to say that two or three of our clients are following this practice.
Q. Is the monstrous growth of GroupM likely to stifle the growth of other media houses?
Stifle isn’t the right word. They are big and more resourceful also. But it won’t hamper our plans. In fact, we have won a pitch against GroupM.
Q. What do you feel should be done to check this unhealthy trend?
First, clients have to become sharp enough to ask these questions. Clients who fall for such low prices should become more observant. Second, I think the time has come for introducing media audit. We have worked with them in the past and we think that good media auditors bring value to the business. Many people perceive media auditors as policemen waiting to catch media agencies. But if you run a business transparently there is nothing to be scared about. I have seen media auditors adding value to our business.
Media auditors know a media house inside out because of their wide experience. They are present in media presentations, and because of their incisive knowledge they are able to tell the client whether he is wrong or right. They help the client see our point of view. Media auditors are intellectually honest, neutral and give quality professional advice. They help clients make better media decisions which is an advantage to media houses. Media auditors can help clean up this market which will be a huge advantage to organizations like Universal McCann.
Q. A client is pushing you to buy space and you have no alternative but to negotiate at the lowest possible level. You can’t afford to lose your client. What do you do?
Let’s get one thing clear, we are not prostitutes, neither are we pimps. We are agents who will buy what needs to be bought and we get commission for doing that. If you have done your homework, you will respond to the client and advise him where to spend his money. But we can only plan and advise; at the end of the day it is the client’s prerogative what he wants. But our argument should be supported by logic and facts.
Q. Any instance over the last two-three months where Universal McCann has innovatively enhanced the personality of its client?
We created a property, “Trial by Fire”, for Van Heusen, which ran as a quiz show on CNBC. It was a branded property entirely created by us along with the channel.
Q. Which are the clients that you are presently handling? And what is Universal McCann’s vision for the next two years?
At present, we have Nestle, General Motors, TVS, Microsoft, Dabur, Johnson & Johnson, UTI Bank and others.
We believe in following our fundamental beliefs, to continue driving on the same path as we are doing presently. One, we believe that we are in the business of making consumer connection. We are not in the business of mass media buying and selling. We are always seeking to find an optimum consumer connection between the client’s messages and the audience. We approach everything from the consumer’s perception and it is my honest hope that time will prove that intellectual integrity and financial integrity is the winner.
Q. One last question. Given a limited budget, how will you optimally use Radio to maximize business or impact for your client?
Well, radio is a different medium. The fact is that radio is a highly localized media. I can run a different spot in Delhi and a different spot in Mumbai. I can run a spot from 11 am to 3 pm if I wish to. I can use it to direct traffic towards an event, right now. I can use radio for spot coverage.
Q. When do you see the US kind of transparency entering the Indian media business? Are you transparent at Universal McCann?
Well, we can only be responsible for the way we conduct our business. We are totally transparent; it is part of Universal McCann’s global corporate governance requirement. We have very stringent audits. I know the way I run my business. The point is, in some ways, the clients have become sharper.
Ok, I will put this more simply. You are the client and have invited a pitch. Two agencies, both very competent, get shortlisted and are now at the stage of negotiating. One of them is willing to work for a very low commission and the other is asking what appears to be closer to market norms. Do you actually believe that the person willing to work at half or one-third price is going to deliver true quality? Wouldn’t you wonder how they will manage? After all, they are in the business to make money, not to do charity to clients! But your objective is to inform the boss that you got the deal for 1 per cent, you don’t care how much you have been ripped off. Just think about it: you use the same talent pool, similar premises, operate in the same city, use the same research work and incur the same kind of expenses. One works at half the price and the other does not. That’s where the transparency issue becomes important. We don’t work like that at Universal McCann.
Q. How does this help the client or your media planning/buying strategy?
How else can a creative team know what is the best way to connect with the consumer? Often, the creative team works out a 40-second commercial, and the media people come back and tell them, “Hey guys, this needs to be edited”. There is a lot of argument. Rubbish, the creative guys will say, but then, the poor guys have no other alternative but to churn out a 20-second or whatever time limit commercial. It’s like you have written a novel and the editor says that it will go as a story! Isn’t it better that you are told in the beginning itself that it is a short story that will be published?
Why can’t we tell the creative agency about the resources available for the brand? Then if the creative agency says that I know that you have money for three 20-second ads, but I as your creative agency will advise you to run the powerful 60-second ad once rather than the 20-second ad three times. They have every right to say that. But if they are not conveyed the right strategy right at the outset, then the situation leads to needless arguments, everybody is frustrated, especially the creative guys. An industry where ideas are hacked to fit the minimum space, it doesn’t do any good to the client or the brand.
Media planning is not about numbers leading to some logical distribution of money. It has got to be based on consumer knowledge, a sense of how media works and strategic thinking on a brand backed up with hard information and research data.
Q. How often do you review your media strategy?
Q. Transparency has become a major issue with the media business. People say it is all because of media rates being negotiable. What is your view in this debate?
Of course, transparency has to be there, there can’t be two opinions on that. But I feel that people are getting confused between negotiability and transparency. What we have to keep in mind is that lack of transparency is not really an outcome of negotiability of rates. In the past we only dealt with AIR and Doordarshan and the print was non-negotiable. Take a look at the US media market. It is the most negotiable market in the world, yet, at the same time, it also the most transparent. Very simply put, transparency is a matter of disclosing all relevant information.
