Indiantelevision.com Team

(20 April 2007 6:00 pm)

GOA: The second leg of the Ad Conclave for the advertising festival Goafest, brought together senior executives from across the media spectrum to brain storm on the roadmap for the future of the industry. With three consecutive panel discussions underway, the sessions brought to the forefront many a candid thought on the hindrances towards growth as well as a profound foresight (if not lip service) to chart the way forward.

In their individual attempts to resolve the ongoing issues that the industry has to grapple with, differing ideas flew across the room. The previous day had some thinkers question the validity of whether this sector could be termed as an ‘industry’. However, the conflicting viewpoints did give birth to some positive ideation and a consensus emerged on one issue that the progression for this industry will only come from a collaborative effort and therefore the need for an Indian advertising forum.

While each speaker provided their perspective, better than dwelling on the pitfalls, what follows is an analysis of some key issues highlighted to suffice a growth in the advertising industry to grow from Rs 150 billion to RS 500 billion industry.

Madison MD and chairman Sam Balsara sighted that the most the basic definition of advertising is to be an ‘intermediate’ product and not an end product, that is used by clients (which he pointed out were not present at such a forum) for their growth and profit. Therefore, in his opinion, agencies have to start improving the power of the intermediate product and avoid ad wastage that follows from the notion that ‘more exposure means more sales’.

Saatchi & Saatchi India CEO Shantakumar differed from Balsara's opinion that advertisers are the ones who are the pay masters. Shantakumar raised the question as to whether advertisers are really the source of their revenue; he believes that the revenue for the agencies comes from demand. Therefore, he suggests the industry add more value to the business instead setting goals.

Spatial Access managing partner Meenakshi Madhvani was blunt in saying that the advertising industry often works to limit their own growth, “We don’t value our services and are willing to discount,therefore how can we expect advertisers to value our services. We often get the media owner to fund our incompetence and therefore we don’t inspire leadership,” she asserts. The three pillars that support the industry are the advertisers, the agency and media, but a three legged stool is unstable and therefore the fourth leg is accountability, she believes.

But representing a broadcaster’s perspective Zee network ad sales head Joy Chakraborty in the most literal sense, ‘spat his heart out,’ garnering huge support from the gathering and encouraging some laughs. As opposed to several speakers who looked at the client as uncompromising, Chakraborty opined, “If we didn’t think of you as partners why would we offer net rates.” Chakraborty believes that television will survive because in India distribution revenue continues to outweigh ad rate revenue. As an adjunct (pun intended), he gave a commitment to fund one credible research system that would benefit the whole industry.

Among other panelists for the day, GroupM CEO South Asia Vikram Sakhuja reiterated the benefits of the CPT (cost per thousand) model as a major growth engine for the industry. While Lodestar Universal CEO Shashi Sinha believes that instead of talking frivolously the industry has to “walk the talk.” Now whether all these ideas will actually take shape or will they be left behind in Goa will be seen in time.

But Goafest chairman and Leo Burnett chairman India sub continent Arvin Sharma optimistically believes that a committee such as an Indian Advertising Forum or its equivalent will be created by individual bodies that will promote competition but ensure that it is fair. "Next year this forum will host Goafest, " he assures.