Media agencies are going through a rough time because of the pricing issues and financial pressure. In a conversation with exchange4media, David Klien, Publishing and Editorial Director, Advertising Age said that in this challenging environment, media agencies in India needed to get marketers to spend more on advertising.
David Klein was in India for the Pitch CMO Summit 2009. Elaborating further on his point, he said, “The amount spent on advertising as a percentage of GDP is low, while in the US, it is much higher. Companies here spend on the product and infrastructure, but getting them to spend on advertising is the challenge.”
He added that multinationals come to India and spend on advertising because they are used to it abroad. But to convince domestic advertisers for doing so is a challenge that media agencies will have to grapple with.
When asked about the biggest flaws that came to his mind from a marketing viewpoint, he said, “There have been many brands that have fumbled on occasions, like Coke, Microsoft, etc but the real question is how fast you recover from that mistake.” He cited the example of how the new Coke recovered from its mistake and how Dominos handled the bad publicity created by one of its employees. He affirmed that today below-the-line (BTL) activities are more profitable as opposed to traditional media.
Klein feels that the recent slowdown phase is only a minor snag in the journey. He said that the entire world was looking at the BRIC (Brazil, Russia, India and China) nations and out of all, he scaled India and China to be similar in many ways of development. “When I look at both, I feel India is more open as an economy. The country has some high quality and sophisticated work in marketing and advertising,” he added.