| Indiantelevision.com's
interview with MindShare Worldwide CEO Dominic Proctor |
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'We
will get much more into entertainment and sports marketing'
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| Posted
on 14 March 2005 |
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Dominic
Proctor, the man who launched MindShare
Worldwide in September 1997, has seen the company grow to become
the worlds largest media investment management company, with
over 4000 employees in a network of 87 agencies. MindShare is a
brand leader in a very competitive sector. It was recognised as
Global Agency of the Year in both 2003 and 2004.
Proctor,
who was in Mumbai last week as part of a mini-tour that would take
him to the WPP analytics centre in Bangalore and New Delhi, took
some time out for a chat with Indiantelevision.com about
the state of the media business and MindShare's plans ahead.
And
pretty ambitious plans they are, what with one-fourth of MindShare's
revenues already coming in from Asia-Pacific, and expected to grow
to "one-third in five years'' time, with China and India accounting
for the bulk of it.
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Ok,
first off, what brings you to these parts?
India
is a very big market for us. We have a number of agencies and around
400 people working here (out of 4,000 worldwide). We have had a
change in the management (Ashutosh Srivastava taking over from Andre
Nair). So I decided to spend a week in India. Bangalore, where we
have a big local centre and Delhi are also on my itinerary.
The
analytics centre in Bangalore will soon be the worldwide hub. It
is a fantastic global resource. A lot of countries already use it.
It is a very good quality of business.
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MindShare,
the result of the merging of Ogilvy & Mather's and J Walter
Thompson's media specialists, became the world's largest media research,
planning and buying company by end-2000. Where are you today in
terms of global media market share and turnover?
The only real source for that kind of data is a French research
company Recma. It measures the size of agencies. They say that we
have $ 20 billion in billings. This makes us the number one agency
in terms of volume.
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Just how large is MindShare today and can it grow any further? Europe
and US are saturated, so one would expect it is the Asia Pacific
and South America where growth will come.
For
Latin America we see huge growth in Mexico and Brazil. Not so much
Argentina because of the economy. India, China, Russia, Indonesia,
Malaysia are important areas of growth. Turkey might come after
that. That is why we decided to put so much money into these markets.
Of course in Asia, Indonesia and Taiwan are secondary to India and
China.
Looked
at from an advertising & media perspective, would you agree
that India, in a sense is as sophisticated as the West in the way
the business is managed.
I am not sure that India is mature in an economical and financial
sense. It is mature in the processes and analytics senses as well
as relative intelligence and business sophistication. It is a growing
market but behaving like a grown up.
How
does India stack up when compared to China?
China would be 50 per cent bigger than India in terms of volume.
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What do you see as the key growth areas in India?
We
want to increase our market share. We want to win big businesses.
Our growth will come from diversifying our product.
We
will definitely broaden the services of the Bangalore centre. We
will increase our general research businesses like consumer research.
We will get much more into sports marketing and entertainment. Sports
marketing is limited in India due to the dominance of cricket in
India. Linking our clients with film, studio and television is an
area that has enormous potential.
These
tie-ups for the future are not just about product placement or sponsorship.
Our aim is to invest in films whether it is a pure financial play
or as a barter agreement for international distribution for skewing
content towards brand structure.
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Outside
cricket which is cluttered is there scope for sports marketing?
We have to find new ways to use cricket. Then you have upcoming
tennis and racing players. The base of sports could broaden. However
cricket could dominate forever. If (Sania) Mirza and (Narain) Karthikeyan
can carry the flag they will be rich people.
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"MindShare's
growth has been organic and not through acquisitions"
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There are some common threads or obsessions if one may call them
that that run through all WPP companies: growth through launching
of new business units and acquiring of companies. This in turn would
help grow new business by pulling in the best talent. Is that the
core philosophy?
WPP
is a group of individual operating companies. MindShare's growth
has been organic and not through acquisitions. The WPP's strategy
is that each company should run autonomously. WPP has no intention
of being an ad agency itself. It is a parent company with lots of
children. They play together and fight together. Sometimes if there
is a pitch like HSBC the companies come together for that pitch.
However that is not a strategy that dominates our businesses.
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WPP companies pride themselves on being channel agnostic. You have
operating systems that look at different parameters --- who are the
consumers, what are their brand needs, core values, core messages
and a whole host of other elements to throw up solutions. All fine,
but how useful are such tools in China for instance where for one
brand you would need 100 different media plans for 100 different cities?
Systems in those markets are only a guiding light. Media is still
governed, I would hope, intuitively. However systems can back up common
sense judgment. A system can help make the call between two competing
opportunities. Essentially our clients are not paying to scientifically
lead them down a path. It is a combination of art and science, intuition
and systems. The balance between the two depends on the client and
the market. That is not to say that we should not continue to develop
systems so that we can make better judgments in a fragmented market
like China.
What
drives our planners has got much more to do with insight rather
than systems. The insight is very often born out of research and
data. Sometimes it is born through observation. We spend a lot of
money on proprietary research that brings insights into our clients
brands and how brand consumers use the media.
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Do
you have any specific examples on how a local sensitivity can design
or impact on a global pitch, brand?
The way the global strategy was executed locally for Dove is an
example. Local activation must be absolutely appropriate to that
market. Strategy may be global but activation is and has to be local.
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Make
different media act together. That has been the major focus for
MindShare. There is an issue I have though. And that is the threat
of sameness creeping in. The one size fits pretty much all line
of action. What this often leads to is lack of differentiation.
And as you yourself have put it at one time - "a gap of distinction".
It is the responsibility for creative agencies to differentiate
the brand. However it is media as well. There are different applications
for mass products for using mass media like television. That is
different from news companies like yours that can target accurately
and can send me specific information on sports teams I follow or
stocks that I am interested in. It depends on the product or brand
territory you are in. It is just as important for the media to be
distinctive and not just the brand messages they carry. In India
you have 200 television channels. How many of them are distinctive
from the other? Is it a morass of similar channels carrying similar
programmes?
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"The
trouble is that the media is so gossipy that it forgets that
it is there to serve the consumers"
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The
consolidation for the media business worldwide has gone hand in
hand with consolidation of the media ownership side all over the
world. But whereas in many countries there is a social and political
resistance to all this cultural homogenization, aren't the same
fears equally relevant in the case of advertising media?
I would say that there is differentiation. Fox News has become a
different proposition from the other networks like CNN. Therefore
it is the most successful as they have taken a point of distinction.
You might not like it as it is oppressive but they have capitalised
on their distinctiveness.
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Take
another instance. In radio, which is such a local friendly medium,
you have media behemoths standardising their product offerings.
Radio is a consumer market. They will develop to suit the needs
of the consumer. The media sometimes is so introspective that it
spends too much time looking at itself most of the time. Market
forces will tell you that the media will programme their content
to the consumer. The trouble is that the media is so gossipy that
it forgets that it is there to serve the consumers.
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Which
brings me to a related question. What are the challenges facing the
international media agencies?
The challenge is to continue the trends of getting higher up the marketing
hierarchy. Media agencies started in low positions. In the last five
years because they have invested in research into clients brands they
are much further up the hierarchy. Our ambition is to be lead marketing
partners for our clients. We are on our way to achieving a higher
status. We are trying to make our businesses more strategically relevant.
Our next aim is to broaden what we do. It is about getting into data
management in Bangalore or getting into sports marketing. Looking
at non conventional areas and getting beyond the traditional usage
of media is a priority. |
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How
is MindShare distinctive?
It is difficult to achieve this in a service company. It comes
in a hard form in terms of products or in a soft form in terms of
our culture. Our distinctive is in the form of a global network.
We are one office in 100 locations. Our business base is global
or international clients. I think that we will be more distinctive
in terms of the breadth of services. On the softer side it is a
cultural thing. I think that MindShare is an international glocal
network in the way it operates.
That
drives a certain cultural difference too. Our people in China and
India feel that they are part of a global family. The execution
of business is done locally. We have become the airline industry's
favourite customer. We do so many conferences. We move people from
country to country. We interact with each other daily. This the
best way to have a uniform progressive culture. You cannot achieve
a global culture by just sending PowerPoint presentations from one
end to the other.
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