Print is in no danger of being dislodged as the most preferred medium as far as media planning is concerned, this assurance was given by Hans-Peter Rohner, CEO, PubliGroupe, at the Impact-One-on-One event. He was speaking on ‘Is ROI driving media planning or is the development of media promoting ROI-thinking?’
According to Rohner, the print medium was still going strong and had contributed nearly 80 per cent to its revenues. In 2005, PubliGroupe, a marketing and sales organisation dedicated to the sale of advertising space for media in Switzerland and other countries, clocked a turnover of CHF 2,015 million. The group has recorded a turnover of CHF 1,035 million in the first half of 2006.
Rohner, however, added that the print medium was drastically changing and it was probable that in future it might become even more important than any other medium. This fact is testified by the number of new print launches in 2006, especially in the European market.
He was confident of the print medium ruling the roost despite the emerging digital medium. “PubliGroupe in India, which currently has a minority stake in Mediascope Publicitas, is exploring the possibility of offering tailor-made media communication solutions to our clients in India,” Rohner said.
He further pointed out four facts that defined the value chain – clients, advertisers, financial investors and ROI. The first fact, according to him, was the radical change in ownership that media was witnessing today. “From being family owned businesses, now media is attracting the interest of professional investors, which is changing the media industry. The new ownership has led to a radical look that the industry now reflects upon the Key Performance Indicators (KPI). This has in turn led to a much more aggressive view on ROI,” Rohner said.
“The second fact is that ad revenue and commercial communication revenue are gaining importance, which is also supported by the fact that ad spends globally are increasing tremendously. Also, competition within the media category and between media categories is also increasing. Hence, pricing decision becomes crucial and media agencies are in the process of drastically changing their role in the value chain,” he added.
The third fact, according to Rohner, was that advertising for most public companies was an important cost factor and media auditing could actually raise to the status of a new industry.”
“Lastly, Internet-based advertising is gaining momentum, which promises better performance and efficiency,” he further said.
But is this a threat or an opportunity? Rohner definitely saw these trends as opportunities. He said that the media and advertising industry was in the process of globally raising to the status of a ‘normal’ industry.
Commenting on India’s role in the domain, he said, “India has an attractive position as a growing media and advertising market, especially with its skill set in areas such as IT and design.”
Commenting on the conflict between short term and long term ROI, Rohner said that several times these fluctuations were due to pressure within the company ranging from reasons delivering during quarter results to response to stock market scenario.
He concluded by saying, “PubliGroupe, with its association with Mediascope Publicitas, is definitely looking at further developing the association to contribute to the Indian market.”