Magz Osborne
Dec 7, 2011

CAMPAIGN TV: Omnicom's Cupples on payment by success

ASIA-PACIFIC - In the third of a four-part series looking at Asia's changing media landscape, Omnicom Media Group Asia CEO Barry Cupples says he expects a lot from 2012 and hopes it's the year agencies start earning based on success.

wide player in 16:9 format. Used on article page for Campaign.

Cupples says even though media channels will vary by market over the next five years, the themes will be the same. He talks about the sheer scale of online video in China, the conundrum of a commercial model for mobile, social media, in particular Indonesia, and performance platforms. 

He goes on to say that television is by no means dead but still very important in the region. It will be played out in screen media, not just television screens, but other screens involved, including mobile.

Asked how the role of agencies will change now that clients opt for earned instead of paid media, Cupples says it doesn't really matter as a lot of clients are moving away from the commission model towards working on a fees basis instead. He agrees earned media is going to be critically important, but not enough to change the agency model. 

"We're just going to look at different ways of getting paid, maybe through fees, maybe through success. I'm hoping that 2012 will be a start of payment by success or success fees."

As for his advice to clients in a recession, Cupples refers to his advice from the GFC, "Don't waste a good recession," he says. While doubtful whether we're actually on our way into another recession, he would advise clients and in-house teams to streamline the business and look out for opportunities despite the negativity. 

As for mobile, Cupples reckons the greatest innovation would be a consistent business or commercial model you can work towards. He adds the industry needs people willing to make the investment needed to drive innovation within a media like mobile, but connected to all media.

The Changing Media Landscape Campaign TV series kicked off on 24 November with Barney Loehnis, head of digital for Ogilvy & Mather Asia-Pacific, followed by Cheong Tai Leung, Nielsen Asia-Pacific, the Middle East and Africa president. The fourth and final interview will be published on Thursday December 15.

Source:
Campaign Asia

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