Lean times suggest more advertising will go online.

1. 22 Media 13 November 2008
OPINION 1
Lai loses out, but may LETTERS TO THE EDITOR 23/F The Centrium, 60 Wyndham Street, Central, Hong Kong
letters@media.asia
be the winner after all Lean times suggest more advertising will go online
It is hard to keep Jimmy Lai out of the press.No sooner had Dear editor, are: 2009 is going to be an excep- imbalance will be re-addressed to
his Next Magazine taken tabloid titillation to its logical I would like to add to the recent ar- tionally difficult time for advertis- the detriment of TV and print ad-
ticle ‘Lean times call for creative ing revenues; this is not going to be vertising.
conclusion by featuring a copulating couple on its cover,
thinking at agencies’ (Media, 16 a bounce-back recovery but a long In Asia, premium and blind ad
reports began to filter through that Lai was mulling a October. recovery (my reading is that we are networks are still in their infancy.
liaison of a rather different sort. Asia follows (and often lags be- in for a lean two to five years);con- There are no companies, such as
hind) North American and Euro- serve cash now and extend the run- Advertising.com, Gorilla Nation,
In bidding for the venerable China Times Group,Lai was
pean markets, and this financial way before it is too late;and finally, Tribal Fusion, Revenue Science,
perhaps hoping to drive the final nail into the coffin of crisis has only just reached Asian cash is king. Unanimis and ValueClick sourcing
Taiwan’s largest newspaper group.After all,it was the shores.At Oriented Media, we op- So what does this mean for the ads from across Asia.The Asian ad
erate a publisher network with a Asian online market? The reces- network market is still very frag-
launch of Apple Daily in 2003 that has done so much to
footprint that is 60 per cent Ameri- sion will force marketers and their mented.There are few affiliate net-
hasten China Times’ decline from being the island’s can and 20 per cent European. agencies to do things differently works either. In the same way that
dominant broadsheet to a newspaper haemorrhaging Even accounting for seasonal vari- and to take different approaches. the quantitative search specialists
advertising dollars and readers.That Lai’s bid was pipped ations, we have seen online CPM Unlike the cost-cutting exercises (those using quantitative algo-
rates in these markets recently currently being carried out, this is rithms) are now moving into and
at the eleventh hour by Tsai Eng-meng,chairman of
drop to 60 per cent of last year’s fig- not going to happen overnight. investing in Asia,this recession will
China’s largest rice-cracker maker,has raised some ures. Interestingly, the underlying The internet is not going to stop open up online advertising oppor-
eyebrows,mainly because Tsai is a newcomer to the media CPM rates remain stable, but fill growing as recession hits us and as tunities for a host of existing US/
rates have dropped from 80 per corporations reduce headcount to European and Asia-Pacific ad net-
industry.For Lai,the outcome is disappointing but hardly
cent to 20 per cent. survive. Online advertising in the works and affiliate groups capital-
disastrous.Not only will Tsai’s media inexperience work in Over the past few weeks, a num- mature markets of the Northern ising on the Asian online upswing.
Lai’s favour,but it is thought that the snack food mogul ber of US blogs have covered how Hemisphere typically accounts for As your article states, media
Ron Conway, Sequoia Capital and 20 to 25 per cent of total ad budgets. agency clients will be forced to “re-
paid a considerable premium for China Times.The paper
Benchmark Capital — three key Here in Asia, online advertising is evaluate how they’re spending
also tried to ensure that it remained in its current form for Silicon Valley venture capitalists typically under five per cent of the their budgets and to reconsider
the next 10 years.Given its urgent need for restructuring, — have prepped the entrepreneurs overall budget. Given that ROI is whether they should be doing
they have invested in on how to likely to be the short-term focus of things differently”.
this condition may yet hand Lai a handsome advantage as
Peter Burton,operations director,
survive a major recession. This is advertisers, and given the greater
he plots further growth for his Taiwan media operations. Oriented Media
compelling reading.The highlights measurability of the internet, this
Ultimately,it is likely that political forces may have
conspired to prevent Lai from wresting too much control
Now is the time to get taken on a whole new meaning and (Media, 30 October). At DDB,
of Taiwan’s newspaper market.His ability to turn this
is no longer limited to gossip around we’re not in denial about the storm
outsider status into an advantage should not be
ready for the next boom the water-cooler. When customers clouds on the horizon, however we
discounted.Despite losing the battle for China Times,Lai buzz online, the world is listening. believe that, no matter the prevail-
Dear editor, Through social media, consumers ing environment, talented people
may yet have the last laugh when the dust settles.
I’m hearing more and more about are becoming increasingly powerful remain just that.We’re unwavering
how bad the economy will be next in determining the future of brands. in our belief that talent is the ulti-
Education is key to Chinese mobile year and how severely businesses Capitalise on the digital opinion mate resource of any creative en-
will be affected. leaders, and place the marketing terprise.
Announcing his agency’s joint venture with iconmobile,
People are inviting a depression function in their hands. Through DDB is resolute in its commit-
Chris Reitermann,president of OgilvyOne China,said the into their lives without thinking of their word-of-mouth and brand rec- ment to the identification, recruit-
only thing holding back China’s mobile industry has been how easily it can be avoided.After ommendations, they may become ment and nurturing of talent and,
every economic downturn, there your best, most affordable market- during challenging times,probably
the absence of “someone who knows what they’re doing”.
will be a significant upturn.Under- ing manager. more so. We always have and al-
It’s a telling observation — not least because OgilvyOne, Peter Steyn,MD,Aha! Research
standing customers now is critical ways will continue to invest in nur-
as the region’s biggest digital specialist,must share some of to best serve them in the boom turing our people and hiring the
The downturn has not
times. While I understand budgets best in the industry.
the blame.Given the user numbers,mobile should be a
are being cut, collecting consumer So,if you’re feeling a little left out
major ad medium in China.Yet it remains a fragmented
stopped DDB’s hiring
data in the digital age is extremely in the cold at your current agency,
and complex industry dominated by operators that are cost-efficient. consider joining one that believes
half-hearted about the medium’s marketing potential and Traditional and digital marketers Dear editor, in its core product:people.
Craig Lonnee,regional talent MD,
should recognise the importance of I read with interest WPP’s decision
by firms seeking to make money quickly through mass
DDB Asia-Pacific
digital word-of-mouth, which has to ‘Batten down the hatches’
SMS campaigns.One of iconmobile’s biggest challenges
will be educating the market. Opinions expressed are not those of the publisher.Letters may be edited for content and clarity before publication
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