Communicate sat down with Havas’ global CEO, Yannick Bolloré, to discuss the current media landscape, regional challenges and his hopes for the future of the industry and his company.
How are the changes in the global media market impacting the MENA region?
Media has been completely disrupted. The digital medium initiated a fragmentation of the audience. We are all consuming more content and it is becoming hard to catch people’s attention and to monetize this new audience. We need to adapt to the new channel. Digital now represents approximately 25 percent of global investments, and it is completely integrated into every customer’s journey. As communications groups, we need to adapt and we have decided at Havas to promote integration from different media channels to meet our clients’ expectations both now and in the future.
Each region works at its own pace but the movement [in the media market] is global, and this [MENA] region is mature. I know we call it “emerging” but it is a much faster growing region than other “emerging countries”.
What do you see as a challenge in the regional media environment?
There is an issue of monetization. Most of the media, including the press, which is still very important in the region, is suffering from a decrease in its investments in digital. People are consuming the content off the digital space, but we need to monetize this audience properly. The press is key to the local environment. We need to find a way for this new ecosystem to reattribute people that need to be reattributed in order for the medium to be sustained.
How should advertisers go about making the shift to mobile smoother?
We are all aware that the mobile screen is now the first screen. We spend more time watching our mobile than watching the TV, but when focusing on ad spend, TV is still more important. We all have some concerns about monetizing the time spent on mobile. The mistake most brands are making is trying to duplicate the classic TVCs on the mobile platform.
We need to take into consideration that consumers are not using the mobile screen the same way as TV or newspapers. The screens are interactive, but the time spent on the mobile is shorter and more fragmented. There is certainly a place for advertising…we need to do some native mobile advertising.
Is TV is on the decline, globally?
It is important for TV – and its content creators – to see programs as brands that could be aired on different platforms. Whatever type of content you are looking at, there are still blockbusters. The more fragmented the media landscape becomes the more powerful and important the brands can be and the less disrupted they [brands] will be with the shift. The 2015 Superbowl broke the record with the highest ratings in the history of American TV. There is still room for simultaneous mass viewership of premium content but companies need to create premium content.
Today, everyone can create a piece of content. We have a dual reality where we must focus on big blockbusters and small content to a more targeted audience. We should take advantage of the full ecosystem by being present in every aspect of it.
In an industry that is so agile, what do you think is working in your favor?
We have had the chance to boast the best organic growth of the industry. When comparing Havas with the sphere, we have been the best in client retention and new business. So it’s a good sign of the good health of Havas. We have two key advantages. The first one is our scale; we are big enough to manage global clients with 16,000 people all over the world, but at the same time we are still agile and we can adapt. Another competitive advantage is being family owned. We have a chance to develop a long-term strategy, and are not only focused on the short-term profits. My goal is to build the most meaningful group for the future.
