'MSO's are a reflection of changing media environment': Andre Nair

'MSO's are a reflection of changing media environment': Andre Nair

Author | Ritu Midha | Friday, Nov 29,2002 6:21 AM

'MSO's are a reflection of changing media environment': Andre Nair

In a talk organized by Ad Club, Mumbai, Andre Nair, CEO, MindShare India and South Asia, had an engrossed audience as he took them through the changing media scenario and the reasons and impact of the same.

Nair began with defining a Media Specialist Organisations (MSO) according to RECMA criteria, which includes a specialization centered on media, autonomous profit and loss centre, independent management and independent reporting structure.

He discussed the factors that have impacted the change in advertising scenario, i.e., media owners, advertisers and competition. These changes, according to him, have made media environment dynamic and volatile with many choices and more media reach. There is budget fragmentation due to audience fragmentation, which in turn is result of availability of so many media options And media landscape, therefore, requires greater degree of attention and focus.

He brought out some interesting global facts which showed that though media spend has increased, the share of individual channels has gone down. And also that Media owners are consolidating - for instance, AOL Time Warner, which now has a presence in all media

Situation in India, he believes, is not very different. Here the mediums are consolidating and growing through alliance (eg ZEE and MGM) and extension (Eg, Mid Day moving to outdoor, internet, radio and events).

Nair exhorted that media spend is growing, and hence the advertisers would greater RoI on their investments and more accountability. MSO's (Media Specialist Organisations) and media owners have to work in tandem, trust each other and work towards increasing the clients' RoI.

As far as increase in media spend is concerned, he presented a study which showed that globally only 7% of ad spend went to media in 1989, and in 2000 it sky rocketed to 85%. And the situation is not very dissimilar in India.

However, Nair explained that MSO's did not cause change - they are a reflection of these changes. He went to say that creative is not a department in an ad agency, it is a state of mind and even media can be creative and innovative.

He said that media planning is not simply about price, good media planning is about maximizing RoI, strategic planning, remuneration and accountability.

A study conducted in Dec 2001 indicated that most of the clients (approximately 60%) believed that getting better rates is the main role of a good media planner and buyer. However, he compared it with another study conducted in Asia which indicated that clients have increasingly started believing that strategic media planning is indeed very important. He emphasized that scenario would change in India too.

He briefly touched upon the remuneration also, and stated that it should be a combination of commission, and an incentive based on brand performance.

The well attended programme was sponsored by Dainik Jagran.

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