Interview with MPG India's V Ramani and Jeffrey Crasto
 

"Currently, media specialists are not sure whether they are doing justice to certain excellent media properties on niche channels"

"The ratings game is over. The future belongs to a mix of TVRs, subscriptions and 'perceived value' of a channel based on the loyalty factor"
Posted on 28 April 2003
 

The irrepressible duo is back to re-create the magic which they created during their stint in Contract Advertising with brands such as Philips! Internationally renowned Havas' media buying arm, Media Planning Group (MPG) recently set up shop in the country and V Ramani (executive director) and Jeffrey Crasto (regional media buying director for India and South Asia) have joined hands to guide the fortunes of the MPG India.

By their own admission, the first few weeks were hectic as the stalwarts were pushed into a major pitch - FMCG major Reckitt Benckiser. After bagging the prestigious account, the media specialist agency, Ramani, Crasto and Sandeep Tarkas are gearing up for an expansion mode. Twelve new people have been taken on to service clients such as Reckitt, Novartis, SAS, Air France, Radico Khaitan, Century Plywood, Weekender, Dell, Voltas, Intel, Microsoft, Sony Entertainment Television, HDFC Bank and Credit Cards.

Ramani, meanwhile, is also juggling between MPG India and Mediaturf.com, the online media consultancy which is promoted by Euro RSCG, eVentures and Chrysalis. Crasto is shouldering the burden of supervising media strategy and buying operations.

Considering, the amount of travelling done by the inseparable duo, we would say that indiantelevision.com's Ashwin Kotian was lucky to get both of them at the same time. Excerpts:

 

How has the TV, advertising and media business changed?

Ramani: The last 12 months have been very significant for the industry - in fact, I would say it was a revelation. It is good in a sense because the advertising industry is constantly going through a phase of evolution. One must remember that metamorphosis never happens for the wrong reasons - a new order always emerges.

As far as the television advertising is concerned, the women in the active age group (15-45 years old) still control 70 per cent of the spends. They still dictate where the ad money will go.

Earlier, clients tended to believe in brand building but lately the focus has changed. Clients are interested in short-term sales focus - they believe in "flavour of the moment". The short-term sales focus has put pressure on everyone down the line.

Advertising industry professionals have been transformed too - in their mindsets, approach, actions. They have learnt to be more professional - everyone, including media specialists, has become involved in new business development. Yes, agencies have been more accountable; I believe that media, too, has become equally accountable to both agencies and clients.

New business pitches have been decided on the basis, or should we say, strength of relationships. Medium to smaller ad agencies have pitched and won accounts beating some of the big guns in the business.

Jeffrey: I believe that it is all about relationships even now. Earlier, too, when the head honcho of a top agency moved out, there used to be a lot of insecurity and people took it for granted that accounts will shift. The same kind of scenario exists even now as relationships dominate the business.

Clients still prefer to deal with individuals - not with global networks, reputations, past successes, tools or techniques. It is all about servicing and about the bond developed between the client/agency - everything else comes to a naught.

Similarly, the relationships between agencies and media owners/sales teams is equally important. Our experience has indicated that we get a lot out of media owners not just on volumes but on relationships. Relationships result in organic growth - this is something which will never change.

 

What is your take on the future of TV programming and spends on channels?

Ramani: The last 12 months have been horrid due to the "pull" syndrome. A few programmes have "pulled" advertisers towards them. The "push" factor hasn't been able to counter the "pull". Still, one gets a feeling that that the ninth and tenth spot out of every 10 spots taken on a top programme could have been utilised somewhere else with better results.

Niche channels will definitely rule post the conditional access system (CAS). Currently, media specialists are not sure whether they are doing justice to certain excellent media properties on niche channels. Some of them go unnoticed on niche channels. For instance, are we creating value out of the movie on English/Hindi movie channels aired on the same time slot as Kyunki Saas Bhi...?

As far as the entertainment channels are concerned, the top three will continue to dominate. Women audiences have got hooked on to them. Indian women have no time or inclination to experiment too much. Our research indicates that the same women (not just in terms of psychographic or demographic profile) watch the same programmes on certain time bands on certain days across channels.

The audiences will take their own sweet time to switch on to Sahara and SABe - despite the recent strong bids made by these channels. The key is to ideate - it was Digvijay Singh (Zee TV), Ramani and Jeffrey who jointly created a great value proposition called Philips Top 10. Similarly, Antakshari, was a concept which was part and parcel of Indian life and we saw inherent value in pushing the concept on TV.

Jeffrey: The top three channels have snatched the first-mover advantage and clung on it. However, the game is all about innovating. Whoever innovates will pull audiences overnight. Increasingly, the agency-client-broadcaster combination will create successful entertainment brands or properties. You will see a lot of consolidated efforts and derivations.

As far as news channels are concerned, they have a long way to go. There is too much of "me too" ism! The picture will be clear after six months and some will emerge stronger and dominate proceedings. Also, those news channels which wish to succeed need to penetrate towards the length and breadth of the country.

Yes, the ad spend for news channels, probably for all the niche and entertainment channels, will increase - so long as they play their cards well. They need to act, make the right moves and then results will follow.

 

"During the next 2-3 years, further distilling will take place to determine the extent to which media planning/buying has impacted sales for clients"

V Ramani

"The strategic business units created spun off by agencies aren't in the interest of the business in the current scenario"

Jeffrey Crasto

 

What do you feel about the new remuneration norms for media specialist agencies?

Ramani: The remuneration process has also changed in terms of incentive-based bonuses. During the next phase of two to three years, further distilling will take place to determine the extent to which media planning/buying have impacted sales for clients.

The methodology will evolve and refine eventually. In a way, it is good for the ad industry as it can earn much more than what it did earlier - there are no fixed norms.

I also feel that this 360 degrees spin which agencies have started talking about is still a long way off. It is being practised to a certain extent - not the way it should be.

Jeffrey: Remuneration should be proportional to the value created. The clients must perceive that the agency (and its divisions) has created value. Many clients do their outdoor advertising themselves in order to save on the 15 per cent commission.

Recently, the new divisions spun off by agencies have been vying for the same ad spend. These new divisions have taken away a chunk which was due to go to some other division within the same organisation. I feel that this is unhealthy. The strategic business units spun off by agencies aren't exactly in the interest of business in the current scenario. They will have a role to play sometime in the future when the market develops.

 

What do you think will happen post CAS?

Jeffrey: Post CAS, the most important thing which will happen is proper auditing. I feel that third party auditors will have to assess different parameters. For instance, when consumer households choose any particular channel; that by itself, will provide insights into the "premiumness" of that particular channel.

The owners of that particular media property will have to communicate this dimension and not be scared to charge a premium over and above the existing one. The ratings game is over - the future belongs to a mix of TVRs, subscriptions and "perceived" value of a channel determined by the loyalty factor.

Ramani: Yes, I want to add that DD (Doordarshan) will benefit post CAS by dint of sheer geographic expanse. However, DD needs to get more professional and serious. DD will not benefit from the "premiumness" or "loyalty" factor at least in the metros.

 
"It is upto the media specialists to ensure that complacency doesn't set in due to pressure"
Jeffrey Crasto

"Nearly 80 per cent of our managers are on the dynamic curve and intrinsically motivated"
V Ramani

 

Will media planning still retain its relevance? How was the MPG team constituted?

Jeffrey: However, media planning will remain a key aspect of the business. In some ways, media planning could become as static as the accounting business. It is up to the media specialists to ensure that complacency doesn't set in due to pressures. An experienced media planner will infuse the right element of dynamism. However, the media planner needs to strike a balance by maintain the "static" aspects.

Ramani: When we decided to rope in people, we had to do it fast. I must say that we were shooting in the dark. After reviewing the performance of our team, I must admit that we were lucky. We found the right people despite the pressures and time constraints. Nearly 80 per cent of our managers are on the dynamic curve and are intrinsically motivated.

 

What is your vision for MPG India?
Jeffrey: When we pitched for the Reckitt business, we were one of the smallest amongst 12 agencies. The client's clearcut brief was - "Get me the best available for whatever I am spending". We won on the basis of relationships - not necessarily the qualitative or quantitative strengths - which our team had with media owners.

Ramani: We cannot even take the EuroRSCG media business for granted. We are happy increasing our rooster of clients as far as we can deliver and live upto their expectations.

However, our mission is to expand rapidly and reach the No. 3 or No. 4 position. We shall maintain ourselves at that level. We don't want to seated in the No 1 slot as this has its own pitfalls.

 
 
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