Editor's View

Risky business

Platform: Internet | Author: Danielle Long | Source: nma.co.uk | Published: 16.07.08

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Is it a dangerous time to have digital in your job title?

It seems these days not a week goes by without the axing of a digital director or two as companies increasingly shave down digital staff.

Restructures are seeing digital pulled out of its ghetto and integrated into businesses through mergers with comms planning and marketing departments.

In recent weeks, Bauer has axed the digital sales director role, Johnston Press dumped...

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... its digital publishing director role and TIML-owned Virgin Media dropped its digital director when it merged its digital and marketing departments.

It's a sign of optimism from media companies who believe and understand that digital is an integral part of their business, and so should be treated accordingly. But, will the loss of so many digital experts, come at the expense of digital innovation?

This week's Bellwether Report revealed there's still growth in the market. Despite the downwards trends overall, internet ad spend grew 6% in Q2, although this is well below market forecasts and the smallest increase the market has seen since 2002.

At a time when budgets are shrinking and clients are spending less, the very people well placed to help drive digital innovation may not be there if this trend continues.

Digital remains the shining star in the ad market. Let's hope the industry can maintain this.

Tough competition - 02.07.08

This week's move by The Office of Fair Trading to refer Kangaroo, the joint venture on-demand service from the BBC Worldwide, ITV and Channel 4, to the Competition Commission has ruffled feathers far and wide.

It's a toughie too, because both arguments are fairly compelling.

On one side, it's easy to see the arguments around the so called 'monopoly', if users can go to one platform and get all the content they want and need - be it free or otherwise - it's obvious to see why competitors like Sky, Joost, Virgin Media et al are against the venture.

However, the follow-on effect that such an undoubtedly impressive service will provide to the on-demand market in the UK is undeniable. As TV audiences dwindle, the more people going online for content the better, right?

And, whichever side of the fence you sit on the potential implications for pricing are of significant importance to the marketplace.

Those against Kangaroo have readily bandied about terms such as 'monopoly' and 'cartel'. But, if we live in a truly global digital world, then it's necessary that the UK competes on such a stage and if so Kangaroo would surely be a great example of the UK's best, particularly if Five and other broadcasters jump on board.

Kangaroo and particularly ITV chairman Michael Grade have argued that the delay to Kangaroo will only benefit non-UK players such as Apple and Google who will benefit from attracting UK audiences, to the disadvantage of UK advertisers, producers and viewers.

But, while the broadcasters fight for their piece of pie, perhaps one of the most significant points is being missed - how can the on-demand market be monetised?

Advertisers are reluctant to jump on board a still untested market, with ongoing discussions around CPMs and the merits of pre and post-roll ads versus overlays or otherwise, and none of the players are yet to come up with a workable pricing model for content.

NMA reported this week on ComScore research, which revealed UK audiences were leading the way in online video consumption, with 27.4m UK users tuning in online. Almost half of these viewers were watching via YouTube, which leaves the UK's traditional broadcasters a long way behind the curve.

The CC has quite a task ahead of it if it hopes to wade through this mess and come up with a solution. As one production company head put it: "You're damned if you do and you're damned if you don't."

But perhaps the real hurdle for the marketplace is working out just how anyone, cartels or otherwise, can actually make some money from on-demand. Maybe this is where the real debate should be taking place?

Can-do attitude - 20.06.08

The Cyber Lions Awards at Cannes this year were a triumph for the little guys. Small independent agencies were up against, and in many cases beat, the heavyweights to take home gongs.

From a shortlist rich with hotshops like AKQA, FarFar, Crispin Porter + Bogusky, R/GA and North Kingdom, small shops like Japan's Projector - a two-man team - and the UK's 21-strong Lean Mean Fighting Machine walked away with the some of the highest honours.

That's not to say the big guys didn't pick up plaudits as well. All the agencies listed above won something, but it was the little-known names that took the Grand Prix: Oslo's Mediafront, 42 Entertainment in the US and Projector.

Lean Mean's storming performance to win Cyber Agency of the Year, along with two golds, a silver and a bronze Lion, has not only firmly established the creative shop's presence on the international stage, it has helped restore the reputation of the overall UK market.

After what was slated as a lacklustre performance at Cannes last year, the UK digital industry stepped up to the podium to collect 11 coveted Cyber Lions, won by Poke, Glue, BBH, BMB, Archibald Ingall Stretton and The Viral Factory.

It was a bigger swag than achieved by the much-lauded creative hotshops in Brazil and Sweden, and just behind the US, which bagged 15 gongs.

As one Cyber Lions judge told NMA, "For banners, the UK owns online advertising."

There's no denying the market needs to continue to push this creativity and drive innovation across the sector, but this year's festival has proven the UK digital market is in healthy shape.