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Power shift, Part II

Power shift, Part II

The economic downturn may have jolted the region’s media industry, but it is triggering changes that are long overdue, Part II.


September 21, 2009 9:44 by

And the prospects for those surviving companies should also be good, according to Gabay: “We are in a region where almost 50 percent of the population is under 25, and where GDP per capita is one of the highest on the planet. The new leaders in this region are smart, and they will continue to invest in their own countries to help recover and relaunch the economy locally. All these economies will come back really strong.”

The challenges for the future are becoming clear. They include a landmark shift in revenue models, from commission and retainer-based activity to response and results-based fees. Globally, Coca-Cola is introducing a payment model that will only compensate results, and it’s a matter of time before such arrangements become common in the region ­ provided, of course, measurable data is available.

Then there’s the new frontier: the inevitable switch to digital. The growth of new media has been slow in the region so far, constrained by a poor infrastructure. But with ongoing investment this is rapidly changing. With change in the air, media companies are now preparing for a dramatic shift in expectations and power.

First seen in Trends magazine.

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