Mr. Erwin Guerrovich discussed with ARAB AD his views on the development of the advertising scene in the area, and the way he visualised the future. Following, are excerpts of the interview:
Pan Arab publications are here to stay. Their role and position are not at stake. All over the world, regional publications exist serving information and advertising needs. The Middle East is no exception. Their future however, is difficult but interesting. Difficult owing to the substantial development of local media and the area stabilisation alter the oil boom period. But interesting, as there is a wide scope advertisers for Pan Arab publications. Creative salesmanship on potential clients worldwide can expand their market and volume.
Mr. Guerrovich also said that local newspapers could increase their revenue by promoting the use of more classified ads. Lebanese are not yet used to the benefits of classified ads. They need to be educated and attracted. No impact and progress take place when the reader sees a few ads. Classified ads are a major source of revenue to European newspapers. Without going that far, see the Gulf newspapers, especially in Kuwait and Dubai. Classified ads occupy good space and are expanding.
When asked about his views on mergers. Mr. Guerrovich expressed his approval of these methods, but only when done under certain conditions:
1. That mere must be "a complementing factor on the professional aspect" In other words, that each company lacks an aspect that is found in the other. Therefore, both companies need each other.
2. That the "merger be the result of a harmonious development for the two companies" Under these conditions both the human and the professional elements are needed, thus resulting in a "natural merger". Otherwise, it is no more a merger but an absorbation.
Mr. Guerrovich expressed reservations about the mega-mergers on the international level. He pointed out that major international clients did not applaud to these mega-mergers, emitting doubts as to the benefits for better advertising.
Another item that we discussed with Mr. Guerrovich was the new medium of video advertising. In the Middle East, there is over 75 percent penetration of video machines in households. This represents a strong source of advertising, since in terms of cost and reach, video advertising is sometimes better than TV. However, the problem faced with video advertising, "especially in our area, is a psychological one for advertisers". Control of video advertising is not easy. Clients have a tendency to prefer the easily monitored media, such as Television.
The relationship between local and international agencies was another topic that Mr. Guerrovich discussed. Overall, he said, there is always an inter-dependence between international and local agencies. Our markets being mainly importers of branded goods, international agencies need local agencies to channel advertising to the Middle East and to perform the servicing at our end.
The relationship can be divided in three periods. One period being the years preceding 1973. Media m the Middle East were still scarce, budgets volume low, international clients most of the time, not affording anything more than the adoption of their international material. During that period, most advertising came from international agencies dealing with local agencies acting as their correspondents.
The second period was between 1974-1983 Budgets volume substantially increased, media opportunities developed, the big local Pan Arab agencies expanded in geographical coverage and in servicing, both strategic thinking and creativity. It led to a shift, international clients preferring to deal directly with the Pan-Arab agencies rather than their international agencies.
The third period is 1984 onwards. It is very much a balanced situation. The strength of Pan Arab agencies and the interest towards the Middle East, had led international agencies to enter the area. As most of them have not fared well some even folding, like Young & Rubicam, Lintas, and Ogilvy & Mather - the inter-dependence international agencies/ local agencies still largely exists.
Finally, for Mr. Guerrovich, the problem facing advertising in the Middle East has to do mainly with creativity. On one hand, local talents are scarce. On the other, the area lacks the creative atmosphere and facilities existing in Europe and the United Stales. However, great improvements have taken place, especially in the leading Pan-Arab agencies. They have the means to invest in a creative force and their structure which includes European offices, allows transfers lo regain creative impetus and exposure 10 new creative techniques.
(ArabAd)
