Michael Maedel, worldwide president, J Walter Thompson (JWT), feels that it’s easier to maintain a certain level of awareness about a brand now than in the past.
Michael Maedel, worldwide president, J Walter Thompson (JWT), feels that it’s easier to maintain a certain level of awareness about a brand now than in the past because of the various mediums available. DNA caught up with him to discuss a host of issues at Goafest’09, the Indian advertising industry’s annual gathering, for which JWT India has worked with the Advertising Agencies Association of India (AAAI) and the Ad Club Bombay.
Excerpts from the interview:
It seems no discussion these days is complete without the mention of the downturn. As an ad man, do you view the slowdown differently from the earlier ones?
It is definitely not business as usual, but India is one of the few countries that are growing. China is showing a decent growth. So are Brazil, Vietnam, Australia and New Zealand.
This recession is different from the earlier ones in its pace. While the slowdowns in the nineties had a slower build-off giving people time to prepare, this one was rapid. But there is no need to panic. As Art Buchwald said, “Whether it’s the best or the worst of times, it’s the only time we have.”
How does an established brand stay afloat with the same kind of equity during the recession as earlier?
Millions of dollars go into the creation of some brands and there are layers and layers of conversation between the brand and its consumers. A brand should primarily be loyal to its pedigree. I think, now it’s easier to maintain a level of awareness about a brand than in the past because of the various mediums available. Since the digital space has a multiplier effect, it is easier to maintain brand than, say, a few years back.
What about the creation of brands during a recession?
There are a lot of opportunities for new brands to emerge in a recession, because the willingness in people to try new brands grows in a slowdown for consumers look for more value.
Some have construed the collapse of economies in the US and Europe as a slap on the face of consumerism. What would be the fallout of this on advertising?
When the American system collapsed, everyone thought, “Let’s blame the bankers and let’s blame the advertisers because they tempted us to buy a lot of things.” I think that’s a very dumb reaction. In the past few years, there has been a very clear shift.
Consumers are now very clearly in control through the technology available to them. There is a dialogue between consumers around the world. If someone is not pleased with the brand, word spreads.
Does the existing business model of agencies need to change?
Yes, certainly. The current fee-based commercial model sucks because an agency is paid for the number of people it assigns for a particular campaign plus the margin it quotes. It is not paid for the value it creates. If I knew what the alternative model was, I would implement it. But then an agency’s participation in brand creation should be reflected monetarily.
With the entry of Wieden+Kennedy into India, do you see the Nike account slipping out of your hands?
Our work for Nike continues to be good as ever and we have done a good job of defending the account. God willing, we will continue to have a good relationship with them.
Are you looking at any acquisitions in India?
Yes, we are exploring possibilities in field marketing and digital spaces, but only if the value is realistic and the company does not think it’s the next Microsoft or Google when it’s been around only for a couple of years.
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