Q. There have been a number of attempts to move the TV buying process (both network and spot) to more of NASDAQ type “efficient market place.” These types of on line buying systems actually exist in Ukraine and Russia. Do you think that this type of platform may come to pass in the US within the near future?

A. In the US, in terms of national TV, we have a relatively efficient system given that there are relatively few buyers and so much volume going through the pipeline. The problem with establishing an exchange similar to the financial exchanges (whether they be NASDAQ or NYSE), is that this would allow for the “reselling” of inventory. This could lead to a highly speculative market with sophisticated instruments such as derivatives and we have seen the damage that speculation has caused our economy. So I am totally against that. And I believe our clients are as well.

Q. A number of major clients, particularly those with a pronounced youth audience, have set up “experimental” media budgets? Would you care to comment on any which come to mind, particularly those outside of the US.

A. We do very little “experimental” work. Having said that, we believe that every dollar counts and every client deserves at least a dollar of value for every one spent. Having said that for certain clients and brands we have had to use highly fragmented media and aggregate the advertising impressions. However, the risk is that you do not have sufficient scale to make a difference to the consumer. We believe that scale is important in creating impact.

Q. If we look at advertising/marketing as the top of the economic “iceberg” what forces do you see, on a macro level, will jump start the economy and therefore consumer spending? Or do you think there are structural changes happening in the old industrial block of the US, the UK and the primary European countries?

A. We are in the business of creating and fostering demand. Raising consumer confidence through heightened demand will get the nation out of the economic problems that we now face. But we should remember that we have to have healthy media suppliers to deliver the advertising messages. We are, in a sense, an “ecosystem.” We need the media to deliver the message. If there are fewer media, the consumer suffers and so does the economy.

Q. The last few years a lot of the growth for the Media Agencies have come from China in particular and the BRIC nations in general. Do you see a resurgence coming in 2010 and if not, what are advertising agencies doing to recapture growth?

A. First, let me remind you that it is not “BRIC” but “RIC” in that media agencies are still not permitted in Brazil. Further, the Russian economy has had severe problems recently. The economy is so dependent on $90 oil that they probably will be hurting into the near future. On the other hand, China, in particular, and APAC in general will continue to generate 35%-45% of
our growth and continue to be the
growth engine.

Q. Have you found that prospective clients are negotiating fees to the point where it does not make sense for GroupM to pitch certain clients? Any difference depending on region?

A. These are difficult economic times and all clients are pushing for value. And from time to time in a local or regional pitch a competitor will accept a loss making business. If there were such a case, it would be our prerogative not to chase an unprofitable business.

Q. People continue to say, “that things are different now.” What has changed: people’s need for entertainment and information or the media that deliver them? And which media do you think will be the next big thing?
A. Definitions of the various media have changed. Currently mobile has its limits in terms of functionality. However, picture this: a mobile phone that has an LCD display panel, high resolution, and can be folded several times over and fit into your pocket. Then when the screen unfolds, it is close to 81/2 by 11. You would have the ability to read books, magazines, watch videos, etc.
  We say all media are either “lean forward (computer); lean back (TV); or mobile.” We are sure that mobile will emerge into other forms. In geographies where much of the community take mass transport (for one Japan), there will be much more opportunities for mobile consumption.

Q. Finally, you have had (and I might add still have) a great career, so for our readers who are just starting out in the business is there any parting advice that you might have for them?

A. The Media business has been and will continue to be an incredible business. As the world moves to a more digital base, our scope of work will continue to broaden and we will therefore have enormous opportunities. And as the work becomes more specialized it will become more challenging to understand and to perform all of the complicated analysis necessary in the evaluation of alternate media choices. Remember, I started out years ago buying and trafficking media. I understood media at the “granular” level. We believe it is still necessary to do that order understand the strategic issues at the higher level.