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Features
LETTER FROM THE HEART
by Bob Clarke, CEO, Instrumental Media Group
I have decided to make this my last ‘Letterfrom…’.
Back in May 2005, its purpose was to provide the UK screen media sector
with first hand insights from the two biggest growth markets: the USA
and Asia. At the time, John Taylor and I believed the sector would internationalise
rapidly leaving UK businesses well placed to be in the vanguard of this
growth. Two years later, and it seems we were somewhat wrong on both
counts. Whilst the sector has internationalised, it has been the software and
screen providers, not the content and solution providers, who have crossed
continents. The fact that Scala software and a Panasonic screen are available
in multiple markets does not of itself do anything to assist the growth
and strength of the sector. These parties are as far removed from the
strategic and commercial drivers, and the client need, in the sector
as it is possible to be, and yet still claim involvement. Similarly,
there are a handful of UK content businesses that have operated beyond
these shores but none has been able to secure sufficient financial support
to build solid international businesses exporting the market leading
learnings from the UK screen media sector.
During the last couple of years I’ve tried to reflect some of
the market movements taking place beneath the surface of the water in
the US and China in particular, in the hope that it would inspire - or
at least forearm - other UK businesses. The Agencies got it of course
but so many of them, like the Scala’s and Panasonic’s, are
so far removed from the white heat of their clients’ commerce in
sectors like retail that their solution where screens are concerned has
been to ‘talk’ without learning to ‘walk’.
Consequently many of their clients who could by now be benefitting
from out of home screen media as a robust and measurable component
of the
marketing mix are still being advised by organisations that pay lip
service to the thing we all get up in the morning to do. There are
exceptions
of course, both Agencies and specialist providers, but given the scale
of the opportunity, far too few!
Against this background, it seems to be of limited value to continue
to provide Icing in the absence of Cake. And yet, the learnings from
my own hard won experience over the last couple of years are something
I would have given a great deal to have sourced from that of others.
So, in parting, here is a short summary of some of the more expensive
and transferable lessons:
-
The sooner and with more conviction a US business person
says Yes, the greater the chance that the final outcome will be No
-
Everyone in business in America has a boss. And dealing with someone
who believes that is not so in their case, will end in tears
-
US retailers
have been over-promised so many times by this sector that some actually
believe it is possible to get something for nothing,
notwithstanding
the fact that their own businesses have made a science out of misusing
the word ‘free’
-
In China, partnership is a concept which
is completely lost in translation and should not be relied upon in
any situation where ‘labour
is worthy of its hire’
-
Experience is the single most valuable
component required to make any screen media business model succeed
but it is the last thing that
any
funding party is prepared to pay for
-
Many of the most entrepreneurial
individuals and organisations in this sector have been so financially
taken advantage of in connection
with
the preceding point, that they are unable or unwilling to ever
speculate in this sector again
Two years ago this sector seemed set for really significant growth.
The trade show organisers here and abroad have found ways in which to
manipulate market data to present such a picture in the service of filling
their events but those of us at the heart of the business know that sustainable
growth in this sector has been harder to come by than in any other marketing
media established over the last 20 years. I suggest that this is not
unconnected with the kind of marketplace behaviour summarised above.
Reassuringly, out of home screen media will continue to be deployed
in growing numbers of applications but if the expertise at the heart
of the sector does not begin to be nurtured and valued appropriately,
the future will belong, somewhat less reassuringly, to the Scalas and
Panasonics.
Goodbye, good luck and, as they used to say in Hill
St Blues, “Be
careful out there…”
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