Dear MxM by Jaisurya Das: How long should one wait to figure if a new media enterprise is successful?

08 Jun,2017

By Jaisurya Das

 

Ladies and Gentleman, Welcome back to yet another edition of Dear MxM, the fraternity’s very own sounding board! PwC’s Global Entertainment and Media Outlook 2017-2021 was released this week with an encouraging estimate that the Indian Media and Entertainment industry will cross Rs 291,000 crore by Year 2021.

While internet will remain the fastest growing in percentile points, the bit that caught my fancy is that globally internet advertising has already surpassed TV. While this was expected, I didn’t think it would happen this quick. 

What does this hold in store for the mainline players of our country? That is the question that will soon demand soul searching. Internet advertising is poised to grow at a robust 18% + vis a vis a worrying 3% for publishing or 11 %+ for TV. 

There is speculation however that the aftermath of the GST regime may unsettle things. If this happens, we can expect a fair degree of variance in these projections by PWC who have hitherto been more or less accurate in their predictions in the past. The challenge will however be faced by the smaller players in mainline print and TV who may find themselves unable to balance the cost equation.

Downsizing is already here so the obvious cut will then be on quality and marketing expenditure, both of which are lethal to play around with… 

One thing is certain and that is the fact that the digital space will garner significant shares of the advertising pie and the sensible will wait for this to happen. It isn’t easy considering the costs of running media platforms, yet to build a successful enterprise, the entrepreneur must distinguish between a cost and an investment.

For now, let’s just invest in our readers queries for the week, this time from the cities of Pune and Mumbai:

 

Sir, I read Dear MxM of a few weeks back where you had written about the job security or the lack of it in a new English news channel. How long should one wait to figure if a new media enterprise is successful?

Good question! In today’s world there remains no stability and hence it is tough to classify any one company as

safe and stable to work for. This is the element of risk one has to take.

However it is advisable to wait and see how their first year pans out ( if you are cautious kind ) and their year end numbers which may give you an indication of their performance and assets. Normally the first 12 months is a good indication of where the media firm is headed.  Yes, launch expenditure and marketing costs remain high in the first year but that can be discounted to give you a more realistic picture before you take the plunge.

Additionally, checking their market equity is recommended as often their performance depends highly on how the market perceives the company and the brand in question.

 

I am a sportsman, but I also interested in an advertising sales job. But do publications or channels encourage sportspersons to take up sports and represent the company and later state and country in a sport? There are various organisations which do it, hence the question.

Yes indeed! There are several firms sponsoring sportsman and promoting sport in a big way, though I must confess most of them are public sector or very large business conglomerates. I haven’t seen too many media and advertising companies going hammer and tong about their sports talent ( beyond participation in smaller tournaments ) save one or two in South India.

It would be advisable for you to check this in detail with the concerned HR departments in order for you to be able to leverage your sporting talent. If you are serious about your sport and have the skill then i would pick a company that seriously values this. A career choice is important to make and hence take a firm call now.

 

I have seen your answer to the question on creativity in digital advertising. As someone employed with a digital agency, my view is that while clients and agency bosses may look at the easier way out, there’s always scope for doing something out of the box. New ideas are always welcome.

May I draw your attention once again to my response. I didn’t think the clients adopted the easy route and my point was the mentality to just seek an adaptation of their mainline campaign to the digital medium. This obviously stems from the lack of finite understanding of the internet medium.

Digital offers much more than just new ideas and as you mention, creativity and thinking laterally can all be showcased effectively in this medium. To add to that, the medium itself is on a vertical growth trajectory and this in turn leads to several options being available for the advertiser.

I am more than convinced of its efficacy and ability to provide a vibrant platform to showcase great creative talent.

 

On that creative note, it is time that I move on with the rest of the week before I can put my feet up and soak in the onset of the monsoon! As of now, Pune has seen just about 14 minutes of rain over the past week. That doesn’t really translate very well into ‘mm’ and thus time shall be the measure for me as of now! And yes, enjoy your weekend, rain or otherwise.  Sayonara and God bless!

 

Jaisurya Das, maverick and media evangelist, eats, sleeps and makes love to brands. His consulting interventions are aimed at making brands powerful and sustainable. He is also the Contributing Editor of MxM India and Co-Founder of pune365.com.

 

For more on his work visit www.xanadu.co.in The views expressed in this column are his own. 

 

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