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THE NEXT WAVE OFOF INTERNNAATIOONANAL ADVERTISERS FOR ADVERTISING, MARKETING + MEDIA FOR PROFESSIONALS ADVERTISING, MARKETING + MEDIA january 2004

Grey’s Carolyn Japan In Carter On Focus: Global Brands Tackling The In The 21st W orld’s No. 2 inside issue Century Ad Market www.inter-national-ist.com ist national inter ist national inter ist national inter ist na inter FEATURES t io STAFF christine yun gardiner yun christine ranieri-certainjoan garston april nancy s. giges s. nancy malone deborah mark grimaldi mark DEPARTMENTS nal AdAsia. in Hong Kong Hong in JungleLovin’ Track Career The RainbowNationfindsitsfeet in... DoingBusiness Places and People On SiteinO&M’s newTokyo offices Successes inthemarketplace Focus in Japan Examining CPM Matters Media Reports from Frontlines Letters Publisherthe from Editor Word and A ne ainlithsbe rae osreteitrainlmreigcmuiain nuty ti ulcto o n yinte by and for publication a is It communications industry. marketing international the serve tocreated been has ist national inter The latestmediasurveysandmore in the21 Grey’s CAROLYN CARTER’Sviewofglobalbrands Commentary of internationaladvertisers DOUGLAS GRUEHLhelpsLegatobecomepartofthe“nextwave” Profile Story Cover THE NEXTWAVE OFINTERNATIONAL ADVERTISERS South AfricaSouth Advertising Age /4 CREATIVE DIRECTOR CREATIVE WEBMASTER EDITOR ist national inter st PUBLISHER century /7 inter national ist is published six times a year by DMNY Global. ©2004 DMNY Global. Excerpts may be quoted with proper attribut proper quotedwith be Excerpts may Global. DMNY ©2004 Global. DMNY by year a times six published is ist national inter /35 1-914-683-5108 [email protected] 1-914-683-5108 EINCNUTN c CONSULTANT DESIGN /36 /24 , Meio &Mensagem, www.mjg-designs.com AKTN,ICLTO,EERHc MARKETING,CIRCULATION,RESEARCH /26 1-917-816-6416 [email protected] 1-917-816-6416 /32 /34 [email protected] ist national inter ist national inter cover photo: ©brian fraunfelter/solus images fraunfelter/solus ©brian photo: cover [email protected] [email protected] ist national inter inter ist national /4 inter national ist inter national inter national ist inter national inter national ist inter national ist national inter DM•NY GLOBAL DM•NY GLOBAL rnational marketing and media professionals.media and marketing rnational DM•NY GLOBAL DM•NY GLOBAL Printed by Miller Johnson, Inc.,Johnson, CT.Miller Meriden, by Printed BPA International Membership Applied for. Applied Membership InternationalBPA issue Group discounts Group bulk shipping. bulk ion to inter national ist.national interto ion available for available SUBSCRIBE january 2004 january D GLOBAL D GLOBAL ONLINE M M • • NY NY DM•NY GLOBAL DM•NY GLOBAL

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ARGENTINA Rogelio Pianezza 54.11.4951.0575 [email protected] AUSTRALIA Heather robert crozier Leembruggen 61.2.9922.2515 [email protected] PUBLISHER AUSTRIA Eva Spani 43.1.531.170 [email protected] FORBES GLOBAL BAHRAIN Saritha Fernandes 973.22.52.62 [email protected] BOSNIA/HERZEGOVINA Samra Luckin 387.33.261.230 [email protected] BULGARIA Lyudmila Kableshkova neil gluckin 359.2.943.3341 [email protected] CHILE Henry Northcote 56.2.232.6610 EXECUTIVE DIRECTOR [email protected] CHINA Zeman Zhang 86.10.6331.7507 BRAND STRATEGY [email protected] CROATIA Marko Stojakovic 385.1.48.34.470 UBS AG [email protected] DENMARK Donald Nekman 45.7020.1126 [email protected] DOMINICAN REPUBLIC Donald Rowland toby hayward 809.562.3882 [email protected] EGYPT Mouchira Said 202.578.4951 [email protected] FINLAND Nina Franco EXECUTIVE VICE PRESIDENT 358.9.122.3361 [email protected] FRANCE ADVERTISING SALES Dominique Martin 33.1.4742.1342 [email protected] STAR GROUP LIMITED GERMANY Lutz Weidner 49.228.949.130 [email protected] HONG KONG Jessica Kam john holmes 852.2313.8023 [email protected] HUNGARY Adrienne Kaminszky 36.1.349.2717 [email protected] INDIA Pheroza Bilimoria CHAIRMAN 91.22.282.4883 [email protected] LATIN AMERICA & CARIBBEAN ISRAEL David Admon 972.3.5656356 [email protected] J. WALTER THOMPSON ITALY Alessandra De Bevoise 39.2.885.8921 [email protected] JAPAN Minoru Ichihana 81.3.3569.0351 graeme hutton [email protected] JORDAN Asmaa H. Abu Ghazaleh 962.77.446441 [email protected] KOREA Wooshik Hong SENIOR VICE PRESIDENT [email protected] KUWAIT Daoud Moujaes 965.968.3916 GLOBAL CLIENT SERVICES DIRECTOR [email protected] LEBANON Alfred Barakat ZENITHOPTIMEDIA GROUP 961.3.242.299 [email protected] MALAYSIA J. Matthews 60.3.7460.8535 [email protected] MALTA Joe Zammit robin kent 356.3291.4616 [email protected] MEXICO Lucia Abdo 52.5.5728.4800 [email protected] NIGERIA May Nzeribe CHAIRMAN & CEO 234.1.496.6197 [email protected] PAKISTAN Syed Mahmood UNIVERSAL MCCANN Hashmi 92.2.756.0530 [email protected] PARAGUAY Ruben Ovelar Melgarejo 595.21.453.090 kevin razvi [email protected] RUSSIA Erkin Salakhitdinov EXECUTIVE VICE PRESIDENT 7.095.234.2805/06/07 [email protected] SINGAPORE Patsy Ee CNN ADSALES [email protected] SLOVENIA Marko Majer 386.61.2000.800 [email protected] SPAIN Ana de la Puente 34.91.315.9936 SRI LANKA Mangala Yasashri Wickramarachchi alan rutherford 94.1.597.551 [email protected] SWEDEN Ronnie Eide WORLDWIDE HEAD OF MEDIA 46.70.557.4295 [email protected] SWITZERLAND UNILEVER Edith Moosbrugger 41.1.383.2662 [email protected] SYRIA Jocelyne Vitale 963.11.612.9404 [email protected] TAIPEI Raymond Hung So 886.2.771.80888 [email protected] andrew sibley TURKEY Aysenur Atli 90.212.325.3790 ADVERTISING MANAGER EMEA [email protected] UAE Carla Hosni CISCO SYSTEMS 971.4.394.0286 [email protected] UNITED KINGDOM Annika McCaskie 44.207.381.8777 [email protected] URUGUAY Silvana Saavedra 598.2.903.24.41 [email protected] anne c. toulouse US-FLORIDA Muriel Sommers 1.305.529.5006 [email protected] VICE PRESIDENT US-MID AMERICA Daniel M O’Brien 1.312.693.7826 BRAND MANAGEMENT & ADVERTISING [email protected] US-NEW YORK THE BOEING CO. Bernadette Brennan 1.646.495.5160 [email protected] US-WEST Ian Beavis [email protected] 1.415.218.8612 UZBEKISTAN Victoria Kim 998.71.1173.2887/86/2934 [email protected] VENEZUELA Raul Sanz-Machado 58.2.237.8322 [email protected] COMING march issue Cover Story: What Is Next? The New Advertising Reality Commentary by Simon Sherwood, chief operating officer, Bartle Bogle Hegarty

future issues Marketing Accountability: Is ROI the Only Answer? Re-marriage: Media & Creative Together Again?

Editorial submissions are encouraged. Submissions may be edited for length and style. Send your story suggestions and ideas including photos and calendar items to [email protected]. IMPORTANT DATES march issue mayissue AD RESERVATIONS: February 2 AD RESERVATIONS: March 24 MATERIALS: February 9 MATERIALS: April 7 Contact: advertising @inter-national-ist.com View from the Board: The Role of International Media in the Lives of Business Decision Makers

A global study that brings new light on how and why top executives consume international media.

the from Bo w ar ie d V : The Role of International Media in the Lives of Business Decision Makers

For information and a presentation of the findings, please call your contact at any of the companies mentioned above. LETTERS

SORTING OUT COMPLEXITY I just received a copy of inter national ist. Congrats on [having] …the guts and the vision to launch a new product during uncertain economic forecasts—if only your optimism can spill over It’s hard to believe that a year has passed since we took the plunge to clients and agencies maybe the global economy into the tough world of publishing … at a time we knew would be tough but also will pick up sooner and faster. Best of luck. one that we thought may give a boost to this important industry.And we would like to STEPHEN A. O’CONNOR CEO & Group Publisher think that we are helping to make a difference.As we said then and believe even more Budapest, Warsaw, Prague Business Journals so now, the viability of an international advertising and marketing communications My, how some things have changed since industry is vitally important to the needs of modern society.As the year progressed, we spoke this summer in preparation for your story in the [October/November] issue of inter national ist. we heard increasing signs of optimism, and those continue. The airline industry, at least from an advertising perspective is, in some parts of the world, beginning to resemble its old self. In the We knew that even the definition of “international” was complex U.K., for example, airline advertising has become much less tactical in nature, with a number when it comes to communications, and that has been reinforced in this past year as we of airlines running branding ads aimed at both the leisure and business traveler. Product talked to scores of people in this industry about the global-local challenge. It’s become features ranging from extra leg room in the economy section to fully reclining complex for lots of reasons…expert communicators know that pan-regional and global sleeper seats in club (business) class are now running with a fair amount of regularity. vehicles are vital as indicated by the most recent study “A View from the Board” To be sure, the airlines and hotels are still reported on in this issue. Equally vital are strong national media that talk to people in running price-led advertising aimed at putting “bottoms in seats” and “heads in beds,” their own language, and we use the word “language” in the broadest sense. respectively. That said, branding advertising from the airline business, though, has begun to again be a rather regular feature among publications in the U.K., and But there are other elements that complicate.We have been in on discussions I suspect, in other parts of the world. LARRY COHEN about how to incorporate the important non-traditional ways of reaching audiences President Northeast Media as changing lifestyles mean many people aren’t spending as much time reading newspapers and magazines and listening to radio and television. So events, the Internet, I have just received issue No. 5 and all sorts of yet undiscovered ways of getting messages to people today will continue of the inter national ist and it looks great. Again, congratulations. to make a bigger impact. It doesn’t mean traditional media companies are losing out; ANDRZEJ RATTINGER Director General it means that the mix of what they are offering advertisers is broader. Merca2.0 Some of the most popular Websites with business advertisers carry the same brands I have to write you from 30,000 feet over Kansas to as the media vehicles where they have placed their broadcast say I have just read three issues of your magazine cover to cover and I am blown away. It’s insightful, and print all along.And some of the most innovative and valuable relevant, well-written, and an overall exciting read. events are being staged by traditional media companies. My copies are now all marked up, and I’ve gleaned useful information which I’ll use. TIM BRASETH We know that no one has all the answers, but as we sort out issues and meet new challenges, we value your input and thank you for your support. Send letters, your opinions, and views

to [email protected]. deborah malone nancy s. giges PUBLISHER EDITOR Please limit letters to 50 words. inter national ist

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4 www.inter-national-ist.com FRONTLINES dancing to a different beat in latin america It’s an accepted fact that Latin publication but a publication Telecom Italia handsets in Brazil America zigs when the rest of that happens to be distributed are branded with various Cartoon the world zags.That’s how on American Airlines’ planes. Network characters. Robert Rosenthal, president, That solves distributing in For example, Cartoon TBWA\Latin America, a region known for difficulties. Network, in association with describes the perennial state “Advertisers have latched Telecom Italia in Brazil, of affairs in the region. onto that,” Kazmierski says. introduced the first co-branded Today, zigging for some Meanwhile, recognizing cell phone in Latin America, media companies consists of that regional cable had targeted to kids ages 6 to 11. new initiatives aimed at slowed,Turner is talking to While the deal includes a attracting advertisers. advertisers and asking “how strong advertising component, For instance,American can we help you drive sales,” “it was much more than just Airlines’Nexos, a growing presence according to Gretchen Colón, selling the rights of our cartoons in the region, is increasing its senior VP-advertising, sales, or ad space,” Colón says. frequency from quarterly to marketing, & promotional Although this deal was These kinds of innovative every other month starting in licensing for TBS Latin specific to Brazil,Turner is now activities are being replicated April, and TBS Latin America America.“That’s helping us talking to cellular phone providers throughout the region to create is creating more customized move the needle big time in Argentina and Mexico. excitement in the advertising cross-platform packages to with our top partners,”she says. For TNT,Turner created a and marketing community. obtain greater revenues than twist on the reality show concept TBWA’s Rosenthal says, from a traditional media buy. to offer product placement, not “Argentina rocks on in spite Nexos Publisher Randy usually possible since TNT buys of the worst financial collapse Kazmierski says the timing is right. movies from major studios.A in the history of advertising, The magazine, which is series was created that captured and as always, Brazil weathers published in Spanish with the entire frantic process of top the momentary lull and feels summaries in Portuguese, cinema students creating a short quite optimistic for the wasn’t created as in-flight film in just 48 hours, incorporating upcoming year.” The surprises, With 20 million passengers product placements from he predicts, will come from traveling on American Airlines’ advertisers such as Nokia, the little places like Uruguay Latin American flights annually, Peugeot, and MasterCard. and Guatemala. • Nexos offers broad reach.

adAsia: a celebration of an entire region AdAsia, held in Jaipur, India, was a celebration of the newly There were also new priorities.While once aspiring manufacturers recognized creative power and self-confidence of agencies not only sought mainly to penetrate the North American and European in India but throughout Asia as they recognize the values and markets,entering China to build brands in this newly opened traditions of their own historic cultures and make these relevant to market is a key priority for many. But after the Elephant polo, the modern-day marketing challenges. fashion shows had closed, and palatial banquets had been gorged, For India especially,there was also recognition that when the Jaipur royalty had retired, when the beauty queens had the country already has home-grown companies ready to gone to beauty sleep, and the famous film stars had returned to move onto a world stage and vie with established global Bollywood, there were also worries.As one Indian CEO summed brands.Tata, for example, is already a global leader in tea, these up: “You never heard people talking about accountability or and its cars sell in Europe and Asia. For many,the rapid responsibility.The advertising industry is in danger of becoming rise of Korea’s brand leaders, Samsung, LG Electronics, like Bollywood. Creative directors are in danger of becoming and Hyundai Motor, provide a road map for what can be mega-stars. If [any famous CD] blesses a campaign, for some achieved, more so than Western or even Japanese brands. advertisers nothing else matters at all.” • —David Kilburn

Delegates gather at the entrance to the Birla Convention Centre in Jaipur.

7 FRONTLINES

asia on the mend, FROM REPORT faster than expected Even before SARS, the triple growth rate for 2003. whammy of a jobless recovery “Flipping from a recession in the U.S., the Iraq war, and to an overall good year is a terrorism scares stunted pretty good result, and this growth throughout Southeast year, GDP could be up to 5% Asia. But marketers and con- growth.There is cautious sumers surprisingly see light optimism,” said O’Shea. at the end of the tunnel. “Asians are incredibly Guided by templates and images on The SARS (severe acute resilient, and the resurgence respiratory syndrome) epidemic in consumer optimism post- Ernst & Young’s The Branding Zone intranet, these ads led to drastic cuts in media SARS and even during the spending in hubs such as on-going war in Iraq shouldn’t were created for the U.K. market. Hong Kong and Singapore, surprise anyone,” added particularly for categories like George Singleton, regional travel, retail, and entertainment, strategy director,Asia/Pacific benefits from the as tourists stayed home and for Publicis Worldwide. locals avoided public outings. Consumer confidence for branding zone “The incident of SARS the coming year has spread to With the growing focus on and other materials to and war on Iraq caused a real other markets, such as Hong ROI, companies are looking employees electronically and setback to consumer confidence Kong, where shoppers are at all kinds of ways to stretch incorporating a photo library a few months ago and led many snapping up technology gadgets their advertising and marketing that can be used to produce to think that a rebound in 2003 such as home computers, budgets. Ernst & Young’s brochures and other materials. would be a dream,” recalled mobile phones, digital cameras, award-winning intranet, called David Reyes-Guerra, Frank Martell,ACNielsen’s and flat screen TVs while The Branding Zone, incorporates director of brand management president,Asia/Pacific and spending freely on out-of-home an “advertising section” that & communications, noted emerging markets. entertainment, clothing and, to not only helps reduce that by having ad templates “We thought 2003 would a lesser extent, international travel. production and reproduction on the site, the production be a terribly tough year,” stated “Cities like Singapore, costs but serves as the cost of international ads has John O’Shea, managing director, Hong Kong, and Taiwan, authoritative source on the been effectively reduced by Leo Burnett, Singapore. Many which were hit by SARS, Ernst & Young brand. 900% with a corresponding agencies watched nervously as have actually regained their The site initially set out to increase in ad production revenues fell by double digits momentum relatively quickly, communicate a unified brand activity of 50%. in the first half of the year. and the people in India and vision and look, but has evolved Additionally, the 25,000 However, Singapore and Thailand also sound particularly into a multi-dimensional tool icons downloaded to date other Southeast Asian markets upbeat about their future,” said for easy access by offices around represent an annual download saw a surge in spending, and Martell.As do, no doubt, many the globe.The “ad campaign” rate of some 6,000 per year, celebrating, at shopping malls, advertising executives in Asia. • section provides the organization’s and of those, about half were restaurants, and bars after the —Normandy Madden, based television and print ads and used to develop advertising, crisis abated, rewarding in Hong Kong, is Asia editor of resources to adapt national ads he said. Singapore with 1% GDP Advertising Age. for local usage globally. E&W also found that its Wylie Cheung/discoverhongkong.com Wylie According to Jim Speros, ten largest country practices Shoppers are back browsing chief marketing officer, the outside the U.S. visit The company has averaged savings Branding Zone for advertising and buying at Hong Kong’s of $7 million to $10 million purposes more than 15 times a year by distributing manuals per month. • popular electronics stores.

8 www.inter-national-ist.com FRONTLINES new for the half a billion mobile phones bookshelf The Super Bowl, that sold globally in 2003

American most-watched, COMPANY THIRD QUARTER MARKET SHARE (%) most-expensive advertising Nokia 34.2 showcase...is the $2 million- plus worth it? Reaching 750 Motorola 14.7 million viewers worldwide, Samsung 11.2 the program offers up more writer Bernice Kanner may Siemens 9.1 Dataquest Gartner Source: than twice as many viewers not offer the definitive answer, LG 5.3 as any other TV event.While the book is an interesting read of “The Super Bowl of Advertising: the commercials that have run Sony Ericsson 5.3 How the Commercials Won the on the program over the past Others 20.2 Game” by veteran advertising 36 years. (Bloomberg Press) •

global media a must-read, must-see for top execs International media needs are they are at home and when VP-director of global accounts by international media. Just increasing as a result of they travel. Cultural differences at Universal McCann, who over half watch an international globalization, and consequently, are also a factor. But clearly oversaw the study,“In the last news channel every day, most global media are playing a the need is there and growing. two years, pan regional and watching at least once a significant role in the lives of At home, executives look global media had trouble week.The majority read at top decision makers. to international TV and getting on the radar screen of least one international daily, Those are key findings in publications for information global marketing people one international weekly and a study organized by Universal about the rest of the world. because of a belief that it two monthlies or fortnightlies. McCann and sponsored by the While traveling, they look for didn’t provide a valuable (www.objectiveresearch.com) BBC World,CNN International, what is happening at home. platform for global brands. Asian Target Market Economist, Financial Times, Although there were no This clearly shows that’s not Survey (ATMS) from Nielsen New York Times/International big surprises, Humphrey the case. It shows that people Media Research tracks the Herald Tribune, and Time. Rolleston, marketing and are looking for something media and product consumption Fieldwork was conducted by research director of the with a certain level of ubiquity habits, lifestyle, and socio- NFO WorldGroup. Economist, says he was a bit around the world.” economic characteristics of Called “A View from the taken aback at the extent Other recent surveys: high-income individuals across Board,” the qualitative study to which this group’s lives Global Capital Markets seven Asian capital cities. involved 150 in-depth have become so closely linked Survey from Objective Conducted 10,500 face-to- personal interviews with senior to the Web.“They have Research surveys senior face interviews. international professionals in embraced the Web as have all corporate and financial decision KEY FINDINGS: Spending on eight countries. other audiences.Three or four makers. Received 1,717 travel and luxury goods The study found that these years ago, that would not responses representing a universe remains high among these decision makers, the majority have been the case.The Web of 9,300 in 22 countries. affluent consumers.Among being C-level executives is seen as a very important KEY FINDINGS: More than their most preferred brands or reporting to them, have medium along with TV and any other group, these individuals are Cathay Pacific airline, different reasons for consuming print,” he says. take time regularly to access Shangri-La Hotel Group, international media when Notes Sasa Savic, senior reporting and analysis provided Nokia phones, Rolex watches. •

9 FRONTLINES COMING EVENTS COMING EOTFROM REPORT ALL PRICES ARE IN brazilian networks hone weapons for 2004 LOCAL CURRENCY after No. 2 SBT (24%). But RedeTV will broadcast some UNLESS OTHERWISE STATED The Brazilian networks are gearing up for a predicted SBT, owned by media tycoon of the major European soccer JANUARY 26-27 economic recovery this year Silvio Santos, is not inclined championships in addition to STRATEGIC RESEARCH by getting their weapons ready to relinquish a position held a new kids’ program in the INSTITUTE for the battle for audiences almost since its launching 20 early morning, which still is 10TH ANNUAL MARKETING years ago.And both RedeTV being discussed. TO U.S. HISPANICS as well as advertisers. & LATIN AMERICA While they hold the (3%) and Band are aiming for While the government is PLACE: Roney Palace Reach Resort, biggest chunk of media the third place. looking at developing a Miami Beach spending in the country (59% All networks are investing code of ethics to improve the RESERVATIONS: 1-888-666-8514; of US$2.6 billion through in “teledrama,” either in quality of programming, soap 1-646-336-7030; September), investment in TV the soap opera or short series operas won’t disappear [email protected]; http://www.srinstitute.com/cm406 has been declining for the last formats and betting on fads to because of the love Brazilian PRICE: $1,995 conference and three years so the competition differentiate from each other. audiences have for them. workshop; $1,595 conference only. is keen. SBT intends to open an That’s where Globo is TV Globo, the dominant alternative soap opera slot and especially strong since it is JANUARY 28 network with a comfortable is in court fighting to regain one of the world’s biggest IAA FRANCE 54% share of the total audience, the broadcast rights of the São producers of the genre, and BETTER BUSINESS BREAKFAST HOW TO MARKET YOUR BRAND though hurt somewhat by the Paulo soccer championships. its most popular soap opera, AT THE OLYMPICS aggressive competition, waited It is also expecting to revive that airs at 9 p.m., captures PLACE: Le Press Club de France, until the latest possible time an earlier successful reality show. a large audience. But rivals Paris to detail its programming. In Bandeirantes will broadcast all have plans for new RESERVATIONS: Ingrid Paun the meantime, rivals moved to the Athens Olympic games, productions to try to grab 33-68-543-27-89 or [email protected]; gain position. open a new slot for movies, attention and a bigger piece Mary L Rega 33-68-68-04179 TV Bandeirantes, with an and launch a Latin soap opera of the audience pie. • PRICE: Member €50; average share of 5% (in 2002), still being negotiated. Record —Regina Augusto is editor-in- non-member €70 wants to recover third place will air the major soccer chief of Meio & Mensagem, a lost to TV Record (8%), championship games and a publication covering advertising FEBRUARY 5 which in turn promises to go new movie package.And and communications in Brazil. IAA NEW YORK

LUNCHEON SPEAKER: Martin Homlish, exec VP & regulation news global chief marketing officer, SAP A court case in New Zealand Additionally, all non- restrictions being adopted PLACE: Time & Life Building, has made comparative advertising Ukrainian trademarks must in Europe. New York The Indian government RESERVATIONS: 1-646-495-5160 or legal for the first time.The carry a Ukrainian translation. plans [email protected] court ruled that it is permissible According to the law firm of to introduce a bill in parliament PRICE: Member $85; to use another’s registered Hall Dickler Kent Goldstein to ban the advertising and member’s guest $95; trademark as long as it is “in & Wood, this is an important promotion of tobacco non-member: $115 accordance with honest practices development even though products.The ban would affect in industrial or commercial Ukraine is not a major market tobacco advertising on matters” and “does not take because it could lead to a trend of television, radio, and in print. advantage of, or is detrimental similar nationalistic requirements If passed, India will be the to, the distinctive character or in other developing countries. seventh country to ratify the the repute of the trademark.” The Federation of European Framework Convention on All advertising in Ukraine Direct Marketing, fearing Tobacco Control which was must be exclusively in local the adoption of do-not-call adopted unanimously by the Submit your events to language under a law enacted regulations, is looking for World Health Assembly four [email protected] in October. industry solutions to prevent years ago •

10 www.inter-national-ist.com FRONTLINES

FEBRUARY 11 IAA U.K. loerke named to head wfa BUSINESS LUNCH Stephan Loerke has been appointed managing director of the World PLACE: Savoy Hotel, London Federation of Advertisers, succeeding Bernhard Adriaensens. Loerke joined RESERVATIONS: [email protected]; the WFA in 1998 and was appointed deputy managing director in 2002. 44-(0)20-7381-877 PRICE: Member £95 The WFA represents advertiser associations in 46 countries and a number plus VAT per person of multinational corporations.Adriaensens will remain on the WFA executive committee and will lead the WFA’s work on corporate social MARCH 11 responsibility and alcohol advertising issues. IAA/FLORIDA CHAPTER • MARCH SPRING FLING GALA DINNER DANCE PLACE: The Biltmore Hotel, Coral Gables, Fla. london wfa best ads ever RESERVATIONS: Muriel Sommers international 305-529-5006 or [email protected] COMING EVENTS advertising PRICE: US$250 per person; awards US$2500 per table; sponsorships available

MARCH 30 IAA FRANCE SPECIAL CNN BETTER BUSINESS BREAKFAST HOW TO KEEP THE WORLD CONNECTED PLACE: Le Press Club de France, AUTOMOTIVE (TV) Paris Client/Brand Honda Accord BEST SAGA RESERVATIONS: Ingrid Paun Agency Wieden + Kennedy, London Client/Brand 33-68-543-27-89 or Levi's [email protected]; Mary L Rega 33-68-68-04179 Agency PRICE: Member €50; Bartle Bogle Hegarty non-member €70 London 1980s/90s MAY 2-5 AMERICAN BUSINESS MEDIA ANNUAL SPRING MEETING BEST CAMPAIGN (TV) PLACE: Hotel Del Coronado, HOME ENTERTAINMENT Client/Brand Audi Coronado, Calif. EQUIPMENT (Print) Agency BBDO, Düsseldorf RESERVATIONS: [email protected]; 1-212-661-6360; Client/Brand Panasonic Deutschland 1986 www.americanbusinessmedia.com Agency Springer & Jacoby, Hamburg PRICE:N.A. BEST CAMPAIGN (Print) Client/Brand Volkswagen Agency DDB New York 1960

OFFICE EQUIPMENT (Print) Client/Brand 3 M Post-It

editors' selections from among winners Agency Grey Brasil, São Paulo

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12 www.inter-national-ist.com COVER STORY 13

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c s b o a e l e a j r s r B Y N A N C Y S. G I G E S E G I G S. e Y C N A g N Y B t s b d t m e a e b o n a r t o n h n o h l g e I u t a c n l g a g t a r s w , i i s s n n p , E o d f g d b e o I t t l s . e e n e / G s o d u i z e m k e g h s i s , t m h s e n o r n a e d n t n e d a s M e i b e e e o t g n r r i e h n W c a h i s o a B r i k t b ; r t e s b n r s I a i i c s e e p t t k f f e l , k o s e s m p c r e b a t t o n f M a n o u a e i b d n u m t s o i l d b h y r l a o s d y o n t y o u l h u i n o n t i f h n n n B n o h e g g r a a a o g s h l n i a r s c t h i i ’ e e i , p s a a t s T i e h e h l o o m i r w . m n t b m u y t c t h , M s s t a o t n o r s , o e y O o r n b m a r a c o g i u a l c h d l l e n e r l t e m F n s a o m i g i h a y p f e e k t t v n x n t C n v e l i o m t - M a e v e d s u s e a i a a , , l h a n t p r s t a n o c ’ s i a r o w w o d s l t d e F l t e m e a s e v l i h h C a d x n c d t e n d n e l m a e r o e h r o a n a t t a i e t n d D g g e a o n e m w c e h i s n t a h i n i t t s r M R r t a g i a u e t n n e r h i o t r e t e t s n w e e i v t t k e d O d n r n a u i a m a o , o m d e S e l n p . d i a f a y o n l l c o e p o i s d x T t i d a e w n n r o a e d t l t e n i d i r e a s of international advertisers v i o next wave p COVER STORY

others put regions like Asia and needed a fast way to meet a deadline for specifically emerging international deploying critical enterprise applications to companies from China high on 12,400 individual desktops. Featuring Delta Air the watch list as well as Lines CIO Curtis Robb, one ad in the series says, traditional categories, such as “Deploying our ERP application on our tight autos, in the “last frontier,” a deadline would have been impossible. With Citrix software, used by reference to Latin America. Still others cite the Citrix, we not only made our deadline, we also nearly 50 million people issue of corporate social responsibility as one to drastically reduced our deployment costs.” Other in more than 120,000 watch plus the whole area of traditional advertisers testimonials come from Hartwig Faber, CIO of companies around the replacing unrecognizable names on the Web. SMART GmbH, a brand of DaimlerChrysler; world, has been until In any case, waves of new and different Joyce Vonada, CIO of AutoNation Inc.; and now a well-kept secret, groups are starting to make a splash. “In the tech Anthony Lackey, CTO of ABM Industries. says Kate Hutchison, sector, the [companies] that survived are looking Created by J. Walter Thompson Technology Citrix senior VP-marketing. more confident,” says Justin Halliley, VP- Communications Group, the campaign includes The global campaign, advertising sales director of Discovery print, online, outdoor, and radio reaching designed to raise Networks International. Many have reached audiences in North America, Europe, and Asia. In awareness, includes mag- the point of profitability or are close and are print, the ad schedule includes BusinessWeek, azine, newspaper, and ready to spend to become better known. CIO Magazine, Financial Times, Handelsblatt, online advertising. If the names WebEx, Legato, and Citrix InformationWeek, Les Echos, several of the Nikkei don’t immediately ring a bell today, they publications, and The Wall Street Journal. will soon since they are representative of the Online sites include CNET,TechWeb, Wall Street technology-related companies starting to Journal Online, and ZDNet. When the second invest in international advertising. phase of the campaign begins in March, Last fall, Citrix took the plunge by it will expand to include Canada and Australia. launching a $14 million global campaign. Legato, also a business-to-business software The company’s software enables networked marketer, began an international foray at about PCs and wireless devices to remotely access the same time (see Profile on page 17). WebEx, applications from a central server. According a leading provider of Web conferencing, is also to Kate Hutchison, Citrix senior VP- stepping up its international activity, starting with marketing, the goal is to raise awareness of a heavy dose of Web advertising after admittedly the company, especially among senior level being skeptical about the Web as an advertising information technology executives. and branding medium. The ads are testimonials from Citrix “People are gaining a fresh appreciation of customers, who explain how Citrix software the Web for branding and advertising,” says David is helping them improve and grow their Thompson, WebEx VP-worldwide marketing. businesses. For example, Delta Air Lines “I know I am.” the next wave of asian challengers

japan WebEx is one of the survivor companies that came of age during the height of the dot-com SHISEIDO (cosmetics) KAO (personal and home care) boom. “We took advantage of that to build our TOSHIBA (technology products) brand [in the U.S.] very aggressively…and were RYOHIN KEIKAKU CO./MUJI able to do some pretty high profile things, such as (no frills retailing) a 2000 Super Bowl spot,”Thompson says. FAST RETAILING/UNIQLO With the crash came budget crunch time. (specialty clothing) Now that WebEx has passed the profitability milestone, the company wants to grow revenue korea again. The international marketplace is a key SAMSUNG ELECTRONICS target, says Thompson, adding, “In terms of (technology products) LG (technology products) advertising, our strategy is to leverage the Web. HYUNDAI MOTOR (autos) ...Banners have turned into billboards of AMORE PACIFIC (cosmetics) the modern age. What we were able to do with HANKOOK TIRE billboards domestically we can now accomplish at very low cost on international Websites.” china WebEx also is heavily into search and supports HAIER (white goods) its efforts with a strong PR program, local LEGEND (personal computers) marketing, including trade shows and other YANGJIN BEER events. Traditional media will come later as it TSINGTAO BEER did in the U.S. taiwan WebEx uses a group of agencies including ACER (personal computers) Antenna Group Public Relations, San Francisco; TATUNG (technology products,white goods) Brands2Life, London; Babcock & Jenkins,

Beaverton, Ore.; and Free Range Chicken recognition global to aspires cargill Ranch,Willow Glen, Calif. Tech companies are just For banners, the sites Thompson a start. Agricultural chose, working with Starling Media company Cargill Inc., Services, Shingle Springs, Calif., although 138 years either belong to traditional old and doingbusiness international media, such as the in scores of countries, had until recently Financial Times, or are leading Web not invested in a names, such as Google and Yahoo!. brand strategy. Now, Thompson says banners are used to the company aims to be achieve brand recognition and “search” the recognized global for click-through when prospects leader in providing express an interest in Web video agricultural and food chain solutions conferencing. “We’ve made extensive to customers by 2010. use of those venues to get name recognition in a With a new look and reasonably targeted way with banner ads.” communications to employees For many traditional publishers and networks, well underway, Cargill is now growth in online advertising has benefited their telling its plans to the world. online editions. “Now publishers have to offer The advertising, created and placed by Martin Williams in their full infantry including online and marketing Minneapolis, started in the packages, says Nick Edgley, international ad U.S., and included some airing manager of The Telegraph Group. internationally on CNBC and CNN That doesn’t mean major advertisers are and ads in the Wall Street Journal making major wholesale shifts to online but in Europe and Asia. That’s just it’s definitely getting more attention in the a start, according to Ann Ness, director of advertising & brand media mix. Discovery’s Halliley believes more management, who says the company confidence among advertisers in general is intends to broaden the international program when the budget allows, continued on page 18 “as soon as this year.” •

PROFILE douglas gruehl Legato takes its message around the world, A technology company that is part of the “next wave”

Legato is not exactly a household name in its “The creative must be able to play home country much less elsewhere. Nor does it worldwide,” Gruehl says. “If we take any other aspire to become part of dinner table conversations approach, we would be diluting our visual brand around the world. and that is a road fraught with all sorts of But the Silicon Valley company whose disconnects and lack of clarity. We truly believe software backs up and protects data contained and that you have to have a common denominator of stored throughout an enterprise, in systems and one brand, one visual, one message worldwide, a various devices, would like to be better known solid base that absolutely everyone regardless of Legato ads have the same within the general business community—and country can leverage. Different versions—as nice on the global playing field. And it’s the as they are at times—when you step back from a look, feel, and copy kind of company that is expected to comprise the strategic or visionary standpoint, it truly does not Lnext wave of advertisers in the technology serve you as well or provide you with as clear an everywhere, whether they field as they take their messages to the ROI as you can achieve if you do take the international marketplace. approach we do.” are in English, French, When Douglas Gruehl, senior director Gruehl also says he gained extra mileage by of worldwide communications, joined Legato integrating the visuals with the same message into or German. some three years ago, he knew the global trade show signage and direct marketing pieces. advertising arena was in the cards, but with tight Legato’s marketing and budgets, the technology meltdown, and other advertising professionals challenges, he knew the right thing was to take it within countries also slow. By this past fall, he was ready to make a determine which publications, first foray outside the U.S. with the same series of local or pan regional, will ads Legato had been running in the U.S. The give them the most timing was auspicious because Legato was in the impact for the money final stages of being purchased by another invested. technology company, EMC2. “We start with four By year-end, the list of publications running publications in each outside the U.S. included Business Week, Financial region or country and Times, Handelsblatt, International Herald Tribune, have a formal discussion, Les Echos, and the Wall Street Journal. title by title, balanced After a holiday break, the ads are starting against where we have to appear again in January, and depending on good editorial relationships, readership results, the schedule may change. what is the reality of the Although Gruehl says he doesn’t have any formal coverage of our market data yet, anecdotal information is saying the space [and other factors],” advertising is a resounding success. Gruehl says. The campaign by JWT Technology uses a He notes that it’s a very methodical vetting clean layout and makes the name of the company and elimination process, ending up with the the most prominent element in the ad to get the choice of a daily,weekly,or a monthly.The review name “out there.” The same creative is used in process takes place at least once a quarter. And every market—translated into French and it’s not taken lightly, he says. German when appropriate—after consensus on In fact, Gruehl is adamant: “I’m very creative by a worldwide team from Legato. passionate about the discipline.” •

17 COVER STORY

WebEx, which gained awareness in the U.S. with advertising encouraging them to look for new things.“They agencies when he joined Microsoft two years ago, featuring comedian were beginning to feel it out in 2003 and now his first objective was to gain credibility and Lily Tomlin as the sassy moving in 2004.They have budget approvals and legitimacy by changing how the online industry switchboard operator are looking into serious advertising this year.” interacted with clients. “Microsoft has been used Ernestine, is using the One area in particular, he says is tourism boards. to being a dominant player in its market space. In Web extensively as a Edgley says it’s more important than ever to the media space, we are not dominant.We are in medium to introduce understand advertisers’ goals. “The next wave of a completely different place, and the behavior WebEx to a global international advertisers will need to be set and customer relationship set that are audience. approached by publishers with the…view that the required to build the business from that low deals are not just advertising or sponsorship deals place is quite different.” [but] a partnership. He adds, “We’ve always had our audience [to For instance,WebEx’s international advertising offer advertisers], but we’ve been damn poor at is timed to highlight the launch of French, making people feel comfortable about it and to German, and U.K. Websites that allow the full want it as part of their communication plan.” WebEx meeting experience, allowing demos in Now the list of highest spenders online is no local language during normal business hours and longer a “mystery list” of clients but names everyone supporting pay-per-use meetings charged online recognizes, a trend he expects to continue as to a credit card. Previously, those country WebEx online audiences welcome names they recognize, sites were only informational. he says.And the categories that have seen success, “Having the French, German, and U.K. sites such as financial, autos, and telecommunications, staffed to do demonstrations, linked with the will only grow bigger, he predicts. advertising that we do on the Web, is But he warns that the industry must respect a cost-effective way to bring its audience.“Consumers are aware all of this stuff new customers to the table,” on the Internet can’t be free, and there must be a Thompson says. “The very tradeoff, which is advertising, but [you can’t] push nature of meetings is that it,” he says. “We are coming to understand how every WebEx meeting is consumers behave a lot better and are trying to advertisement for WebEx. fit advertising in a way that is unobtrusive and Many people haven’t been supports what they are doing at the time.” in one, and the first time Research shows that state-of-mind and they so, it’s an ‘a-ha’ receptiveness to advertising can change in moment. It’s like ‘wow! I the course of a five-minute journey from didn’t realize I could save entertainment to writing an e-mail to checking so much time and energy and stock prices. “For example, we don’t force be so effective communicating advertising on people when they are writing a using online meetings.’” Hotmail message.We show them a message when Chris Dobson, general manager of they get the confirmation page that they have sent digital marketing sales and trade marketing of it. Research shows that they are much more MSN International, agrees that advertising online receptive to a message at that point. These is catching on,and the next wave is going to include considerations are unique to the online world, a slew of traditional advertisers.The McDonald’s, something that TV doesn’t have to worry about. Sonys, Vodafones are beginning to incorporate We have to be protective of consumers in that space.” online into their media plans globally, he says. Protecting consumers seems to be in vogue in It’s finally happening, he says, because the IT other ways. Another potential area of growth is industry woke up to the fact that it is in the media international advertising related to corporate business. There was a lot of hype, far too social responsibility initiatives. A recent survey by much over-promising and jargon that nobody CSR Europe, Deloitte, and Euronext of the understood, Dobson readily admits. Frankly, “we European financial community found that social weren’t professional enough to be part of and environmental performance will become a [major marketers’ media] mix,” he says. significant part of mainstream investment Armed with his experience from media decisions over the next three years, and some

18 www.inter-national-ist.com 56% of survey respondents think communication are getting greater visibility is through sports practices about social and environmental sponsorship. Haier has linked up with a cricket performance can get better. club in England, and China Kejian Corp., a In Asia too, growth is expected, Masaaki Ii, pioneer in wireless communication, sponsors general manager of international advertising for Everton, one of England’s top soccer teams. the The Asahi Shimbun, believes campaigns related There is no question that “the hot theme of the to sustainability and social issues will increase in day for Chinese companies is ‘going global,’” says the very near future. Last year, The Asahi Shimbun Thomas D.Gorman, chairman of CCI Asia-Pacific James Murdoch (left), launched a “sustainability project” that includes Ltd. who founded Fortune China. “So I think we former CEO-chairman a focus from both editorial and advertising will see a number of new Chinese entrants into of STAR, and Akio perspectives on how companies are carrying out international advertising over the next five years.” Toyoda, senior managing their social responsibilities. He expects the advertising to start in specific director, Toyota Motor Advertisers are running ads, Ii says, to countries because of focus and budget constraints Corp., announce a communicate what they are doing, including but in many countries. He emphasizes that it partnership to promote Toyota in the auto industry, NTT DoCoMo in will be a gradual trend, not a sudden surge.“The motorization in China. telecoms, and Canon in information technology. biggest components of growth [so far] have been The Asahi Shimbun also featured reports of 65 in the domestic Chinese market among local companies that ended up being requested by companies,” adds Gorman. some 50,000 readers. Other advertisers have Within China, Farrar says from his personal included Fujitsu, Fuji Film,Fuji Xerox, and Sony. experience working with major luxury Undoubtedly, the biggest talk in Asia these goods clients, he’s witnessing “a land-grab days about ad growth involves China. “We are of major proportions by advertisers that already witnessing the first signs of Chinese are building significant presence not only companies recognizing the need to build their in Shanghai and Beijing but also the secondary brands beyond their home markets—whether in and tertiary cities. …At the same time IT, white goods, financial, or trade fair sectors. I there are plenty of other growth sectors in fully expect that within the next 12 months this China—for example automotive.” trend will develop rapidly,” says Matthew Farrar, In fact, Star Group and Toyota Motor managing director, Mercury Publicity Asia. Corp. recently announced a partnership Already, in Japan stores carry brand name to promote motorization in China. Under appliances from Haier, the leading Chinese the agreement,Toyota will sponsor a series electronics maker. Its wares are presented, priced, of prime time programming on Xing and ranked on the same level as well-known Japanese Kong, Star’s flagship entertainment channel makers. Market observers say it is not hard to in China. The series to be called “Zai envisage Haier and other Chinese corporations Meng Xian Feng” translates as “pioneer in following in the footsteps of Korean companies that transporting aspirations into reality.” The have achieved global recognition over the last 15 years. shows to be launched early this year will NEC, National (the Until now,much activity has been in emerging feature the latest trends and lifestyles in brand name of markets, but according to the McKinsey Quarterly China, while highlighting the usage of Panasonic in Japan), newsletter, the move to developed markets is cars in an innovative and trendy manner. and Daimler Chrysler already underway as evidenced by Haier. The In announcing the partnership, Akio are among a number appliance maker has ambitious plans to win 10% Toyoda, senior managing director of of companies running of the U.S. market for full-size refrigerators by Toyota, expressed his company’s desire campaigns in Japan 2005, the newsletter reports. Another company, to contribute to the development of about how they Legend, China’s biggest computer maker, has the Chinese society, as motorization are meeting their launched Lenovo as a global brand to position expands.”By introducing a “Fun to Drive” responsibilities as itself for overseas expansion, and electronics a concept emphasizing enrichment and good corporate citizens. company SVA is forming partnerships with major enhancing life through motoring companies around the world as it sells its own activities,“we are confident that partnering brand of plasma televisions in U.S. warehouse with STAR…will enable us to achieve stores, like Costco. One way these companies our goals.” • 19 global brands COMMENTARY

We’re four years into the 21st century but it’s over 20 since Harvard professor Ted Levitt coined the phrase “global” brands. For two decades global brand strategy has been a challenging and changing topic—and still is. in the Most recently, global brands have become caught up in a “clash of civilizations” that makes anything with a global prefix a dirty word. This is wasted dialectic for those who believe there’s no such thing as a global brand anyway, because st brands exist only in the consumer’s psyche, and 21 century Wno such species as a “global consumer” exists. Still, the global grail shimmers as the cost of building and nurturing brands escalates and marketers remain committed to the quest to leverage scale. the right definition of “global” There’s no doubt that the last two decades Share of Interbrand’s definition of a global brand as one have pushed us beyond “lowest common that derives 20% of sales outside its home market denominator” simplification that gave global “category is may already be outdated. In the ’90s a global marketers a bad name. The pendulum has now brand could be delivered through success in strongly swung from centralization to favor giving way developed markets and “coverage” of “rest of world.” localization in the delicate and evolving balance to “share of Today, China is the world’s fastest growing of “global vision, local touch.” market, a source of brands as well as volume— Is today the footprint for the future? mindset” as a and global marketers are demanding brand vision that embraces developing economies. let’s fix our perspective truer measure Fresh into the new century it’s tempting, but of brand the new role of brand values probably a bit premature, to define the past and As global marketers reduce their portfolios to declare the future.The reality is, in the big picture strength. brands strong enough to justify investment, core we’re all transition managers:it’s more that brands are stretched and the separation the world is changing than it has changed. of brand and functional product It isn’t that mass advertising never benefit is greater than ever. Emotional works anymore or that viral marketing, ” relevance is increasingly the main or “buzz,”always works. Mass advertising source of sustainable competitive works some of the time and there are viral advantage. successes too. When some of the old The consequence? The single rules work some of the time and some biggest question for marketers is of the new rules work some of the “What are the values I want to anchor my time, it means there aren’t clear rules to brand to?” Share of category is giving make success consistently predictable. way to “share of mindset” as a truer So it’s a critical time for every manager measure of brand strength, a measure to keep questioning and challenging. where brands like Virgin excel. That said, we can clearly see some interrelated drivers that make today consumer apathy— different from the past and will the ugly reality increasingly influence success of global The need for emotional relevance is brands in—at least—the “wonder” underscored by research in many years of the third millennium (for those categories, which confirms that of you who have forgotten, those are consumers simply don’t care about years 1–12). brands as they once did.The availability

BY CAROLYN CARTER

21 of multiple acceptable substitutes has moved the it’s about culture challenge from brand switch to share of brand When brands need to own emotional territories, repertoire. be locally relevant in diverse markets, cross To reach an inner-directed consumer, we must consumer touchpoints and generations—it’s not recognize consumers are more interested in how just a question of brand ideas vs. ads—it’s much brands define them than in the brand. Future- more. A strong and encompassing brand culture facing global brands like Nokia have powerfully must be built, internally and externally,so everyone leveraged self-expression into brand preference. who touches the brand “walks the talk.” Externally, brands will be represented by the connect, entertain, engage communities that embrace them. Internally, Consumer detachment from traditional advertising the greatest enemy of global brands may well be is symptomatic of a consumer in control of the two-year global brand manager. the messages received while disengaging from The need for big ideas, focus, and flexibility information overload—two trends very likely to can only be met by “cutting the fat” of re-work intensify.The need to be invited drives “content” and re-think on a rotation basis. Some of the carriers of brand messages and the development smartest marketers are redefining career paths to of tangible ways to experience the brand. rotate talent by skill but within brand. With “millennials” spending more time online than in front of television, Internet-driven which brings us back to the grail engagement will exponentially increase in An emotionally distinctive and appealing brand importance. Marketing partnerships with the culture is both the culmination and result of these entertainment industry are already making films forces shaping global brands today. and programs the new global executions. Global brands We see third millennium prescience in brands “have become like Nokia, Oracle, and MTV that were “born generational change global” vs. weighted down by the past. Brands like In addition to juggling markets at different caught up in these have created their own culture, even their stages of development, global brands that came own language, appealing enough to be invited of age in the ’90s need to juggle generations. a “clash of into people’s lives. They walk the talk internally, Fast-moving consumer goods that were “classic civilizations” externally and consistently. colonizers” and became global by rolling out Oddly,this may bring us to a place where most worldwide are mature in some markets and young that makes execution is local—but Levitt is still right. in others. Of course, in all markets the ultimate Powerful global brands will draw strength from a payout of brand value over time requires constant almost anything singular cultural integrity but consumers will customer acquisition. Old generation brands like with a global experience that culture where they live. • BMW and new generation brands like MTV equally reinvent themselves to reach younger prefix a Carolyn Carter is president consumers, increasingly cynical about brands, and dirty word. of Grey Global Group Europe, embody all the challenges just outlined. ” Middle East & Africa. MEDIA MATTERS examining cpm

One benefit of a global ad recession is that media CPM tends to fall and ad budgets can be stretched. So what to expect now with recovery on the way?

BY The inflation of media prices looks on paper.And on paper, CHARLIE is an issue that has recurred it’s no wonder that more CROWE more times over the years procurement directors are being Tthan releases of “The Matrix.” given the keys to the marketing And like the movie, the plot director’s filing cabinet. gets darker and more desperate Even TV prices in Germany with every passing year. and the U.K. will start to recover In 2004, 80% of all markets in 2004, with TV costs up by across the world will experience 2% and 6%, respectively, year- inflation in TV prices against on-year. In the U.S.,TV cost- 2003.With the exception of per-thousand will be up by 13% Japan, the cost-per-thousand in 2004.Across all media, Brazil, prices for traditional media in China, India, and Russia will the world’s eight largest see the most significant media advertising markets will all rise price rises in 2004.Across the this year. Of course, some board, advertising on cinema people in the business (mostly will be the most expensive media owners) might deny across the world in terms of that this really is a desperate state of affairs, noting that a In 2004, return to more robust pricing is a positive consequence of a 80% of all healthier trading environment. markets...will However, with very few experience exceptions, cost-per-thousand inflation across most markets inflation in is running ahead of the general TV prices. level of economic growth. Charlie Crowe is This is a consequence of the media cost-per-thousand, advertising industry’s traditional outgunning the average cost of managing director and systemic tendency to other media by around seven of C Squared. over-perform in boom times times.These figures come from while under-performing in Initiative’s latest media inflation The company the lean times. report, an overview of cost- website is at But once again, the marketing per-thousand in 36 countries. www.csquared.cc director has to go cap-in-hand The report is one of the few to the finance director to ask publications to reveal media for a real increase in the prices and to give some wider marketing budget, merely to assessment of the state of the maintain the previous year’s market rather than confidential impact. Or at least, that’s how it agency prices submitted at MEDIA MATTERS

agency pitches.What the report on the advertising markets. In a relative cost-per-thousand highlights is that such a key the U.S., the potential lifting analysis? The ultimate worth issue for advertisers is poorly of the 28-year ban on owning of the union is in the Head researched and so often misused. a newspaper and television & Shoulders long-term brand For example, an article in a station in the same city and value and in sales against U.K. newspaper reviewing the the loosening of criteria to projected targets. business of JC Decaux made allow companies to own two You could say that there reference to the fact that one or more television stations in is a revolution in brand great advantage of outdoor one city will undoubtedly communication with consumers. advertising is that television’s harden up pricing. Recently, I’ve seen Beiersdorf’s cost-per-thousand is five times So keeping a watchful eye Nivea promote its shower gel products in Thailand by Sometimes the best ideas cannot towing a portable shower cubicle around the streets of even be classified in terms Bangkok—complete with a of cost-per-thousand costs. foamed-up and semi-naked model behind the glass.This greater than outdoor. on media cost-per-thousand probably had more impact The point was made in is fundamental for advertisers than a week of TV spots. relation to the news that the two looking to maximize budgets. In the same sector, Unilever major British commercial Although good negotiation recently lifted its sales of a television companies would merge can avoid the cost-per-thousand particular brand by over 50% to form a single broadcaster rises, a good idea can be worth by devoting one-third of the with a near monopoly on a whole department of total annual promotional advertising airtime.The implication procurement directors. So it budget, courtesy of Initiative was that advertising money is perhaps possible that media and J.Walter Thompson, to the would naturally shift towards inflation as an issue could sponsorship of a TV program outdoor media. But in fact,TV become less important in the that didn’t originally promise cost-per-thousand in the U.K. future as advertisers, agencies, to be a ratings success. is more expensive than outdoor and media owners team up to Unilever has even encapsulated by only a factor of three, not produce something out of the such risk-taking and broad five (when cable and satellite ordinary. Indeed, sometimes thinking in a marketing are entered into the mix). the best ideas cannot even be mantra, known internally as There are many other classified in terms of cost-per- “Brand Activation.” examples of similar claims that thousand costs. So while costs and media use old data or which are For example, Procter & cost-per-thousand are crucial, tainted by bias when it comes Gamble and Cosmopolitan the right balance must be to discussing relative media recently teamed up globally to struck between the numbers prices.While the statistic promote the Head & Shoulders and creativity.The years have doesn’t diminish the quality or brand. In this deal, Cosmo seen a fluctuation in the relevance of outdoor, it does is not just a media partner, it relative importance of these show that figures must be reliable. is part of the actual creative. two variables—both within The issue of media inflation Everywhere, from in-store to client companies and in their will no doubt continue to persist outdoor, the Cosmo endorsement agencies.The numbers vs. as more media companies of the product appears in the creativity has long been a unite and while the regulators brand communication.The defining tension in the media continue to allow the Clear newspaper deals were just part business.There are now signs Channels and News Corp.’s of of an overall marketing that agencies are beginning to the world to extend their grip partnership—so what use is get the balance right. • JAPAN IN FOCUS

As the world’s second largest ad market, Japan is an economic force that cannot be ignored. Although not as densely populated as some of the other markets in Asia, Japan accounts for more than 10% of the world’s total ad expenditure. Now with reports of corporate optimism and signs of recovery, Japan is a must market for every major multinational marketer’s 2004 plan.

inside info international brands that have • The majority of TV made their marks in japan spots are only 15 seconds 123AUTOS: BMW, Mercedes, Mini Most TV spots use well- • FINANCIAL SERVICES: Citibank, MasterCard known personalities— FOOD AND BEVERAGE: Coca-Cola, Nestlé usually Japanese These spreads were part of INFORMATION TECHNOLOGY: Dell, IBM In many categories, 90% • INTERNET: Amazon, Yahoo! a series of three-page ads of the purchase choice is 456LUXURY GOODS: DeBeers, Hermès, Louis Vuitton made in-store (third page of details about PERSONAL CARE: Dove shampoo, Johnson & Johnson, Pampers The quality and the quantity • RETAIL: Carrefour, McDonald’s, Toys “R” Us, Wal-Mart each benefit not shown) that of media research in Japan SPORTING GOODS: Nike is generally considered conveyed six different BRANDS TO WATCH: adidas, Aflac, Apple MAC poor/inadequate by 789and i-pod, Samsung, Starbucks, Vodafone • Windows XP end benefits, such Western media agency companies as speed (car) and safety (key). • Nearly all major advertisers successes in the marketplace make increasing use of the how microsoft windows xp jumpstarted a flat market mobile Internet (i-mode, By 2003, the PC market had “This winter, spend some transit posters, hanging straps, for example). For instance, a flattened.There were fewer digi-cam time. Upload, see, and online in order to brand might have store new PC users, and the market and send digital photos. reach the target audience in location maps accessible on was shifting to a replacement With XP,it’s easy.This winter, a variety of ways. the mobile phone screen to mentality with users upgrading upgrade your broadband All ads communicated the show where to purchase rather than replacing entire environment. Introducing core message but also guided • Many Japanese agencies systems.Windows XP, Microsoft Windows XP.” readers online, where those are wholly or partly owned launched a year earlier, was Other end benefits and their who registered participated in by media companies. losing its momentum in driving visuals were a car to promote a promotion event.That led to Others act as media the market. the speed of broadband possible PR exposure and created buzz. wholesalers and buy large To encourage upgrading, with the software; a key to After eight months, the blocks of media time/space Microsoft and McCann- promote automatic updates of number of PCs sold was up to sell on at “market Erickson developed a launch PC security; a suitcase to more than 6%, and the number prices.” Consequently, program for a new version promote use in the office and of PCs with Windows XP “media neutral” planning is of Windows XP to promote at home; a bracelet to promote installed increased by more rare outside Western upgrading among PC users. staying in touch with a loved than 7% achieving 31.6% multinational agencies. Six different visuals one every day with XP’s share by the end of the • Transparency is rarely communicated six different video phone; and a sofa to campaign period.The success obtainable from Japanese end benefits through high suggest that even video is easy was attributed to the focus on agencies who disclose impact ads that metaphorically to watch with XP. the upgrade and how it was neither their suppliers’ costs communicate the benefits. Magazine ads ran in a variety communicated with emphasis nor the true net cost of For example, an ad showing of publications; the campaign on the end benefits. • media they buy. a stylized camera says, also included station and continued on p.30 BY DAVID BY KILBURN DAVID •

26 www.inter-national-ist.com JAPAN IN FOCUS ON SITE combining funk and minimalism

BY DAVID KILBURN

Branding is discreet yet powerful in Ogilvy & Mather’s new Tokyo offices on the 25th floor of a modern tower. All 300+ employees in Japan—whether in advertising, direct marketing, interactive, PR, sales promotion, or brand design—can interact on joint projects as well pursue missions within their own zones. The combination of modern Japanese minimalism and intrusive funky touches reminds everyone that the agency’s mission is not only the hard work of building brands but also to create the Gone are the traditional acres of unexpected. Ogilvy teamed with Wonderwall, a Tokyo architectural red carpeting. In, is a and design boutique, to create the new space. red logo embedded in the soft white walls and geometrically When creative teams come together, patterned grey carpeting that nothing less than a feast of ideas emphasizes a new sense of space. is expected. The department features a seven-meter table, lit by two huge antique chandeliers rescued from the antique bazaars of Tokyo and lovingly restored. Work may be serious, but ideas have a life of their own and can evolve in ways that are wacky and wonderful. Visitors may Windows span the building and provide wonder why one party to a panoramic vistas across Tokyo. A pair of conversation sits atop a giant giant binoculars can scan the distances black foot but that is all part of bringing Mt. Fuji into view on a clear the magic of working in ways day or can even zoom into the detail of that suit the spirit of the moment. consumer life on the city streets.

28 www.inter-national-ist.com JAPAN IN FOCUS

successes in dentsu’s hit products in 2003 SUGGESTING A RENEWED SENSE OF VITALITY AND SIGNS OF A FULL-SCALE the marketplace RECOVERY IN INDIVIDUAL CONSUMPTION DURING THE NEXT YEAR Source: Dentsu’s Center for Consumer Studies Consumer for Center Dentsu’s Source: ups links with a powerful japanese partner 1. Broadband Internet to strengthen its position 2. Amino acid drinks UPS and Yamato Express have such as facts about the number 3. “Bayside Shakedown THE MOVIE 2” (film) been business partners in of planes in service, number 4. Compact digital cameras Japan for many years, but in of personnel, and number 5. Japanese baseball players in U.S. Major Leagues 2000, the two formed several of packages delivered around 6. (HDD and DVD) hybrid recorders new ventures together, the world. 7. “Fountain of Trivia” (TV program and best-selling book) including UPS Yamato The 2002 executions 8. Thin-screen (plasma/LCD) televisions Express to specialize in express continued to build the brand 9. “Harry Potter” delivery services. image playing up the logo 10. Internet- auctions An ad campaign by and brown color. By 2003, McCann-Erickson that first ads were noting,“Which introduced the new entity international business delivery hakuhodo dubbed 2003 the joining the world’s leading you choose is integral to your year of “un-miserly package delivery service with business strategy.” Japan’s No. 1 service was Initially, media included spending,” characterized by customized specifically for the only print with 70% of the investment in change: Products to make life better, such as Japanese market.According to budget going into newspapers flat-screen TVs, large-capacity DVD recorders, high-end air purifiers. Source: Hakuhodo Inc. Hakuhodo Source: the agency, the intent was to and the remainder into focus on individual interests and self: Figurines/photo-stamps be highly relevant to this magazines, mainly business- of oneself, whiskey blending kits, made-to-order soap, services for pets, market and to close the brand focused. By 2003, outdoor, hot spring leisure facilities, shopping and entertainment megaplexes. image gap between the U.S. terrestrial and cable TV value shifting: Finding a value in everyday products, and Japan.The campaign has were added.As a result ad such as body-fat reducing green tea, gum for smokers, high-grade evolved from an introduction awareness and corporate cup noodles with better toppings. to more comprehensive effort brand awareness have both perception busters: Innovative concepts that turn convention communicating and building been enhanced, the agency on its head: backless and strapless bras, spray-on stockings,Y-fronts the brand and reinforcing the says. One key to success for women, roller-sneakers, drinking ice cream. services the company provides. in Japan was the leveraging a super-narrow focus: Single-function products, such as canned By 2001, ads included of the strength of the UPS coffee for morning, laundry detergent for clothes dried indoors, details about the company, brand globally. • micro fiber face cloths, lash-doubling mascara. • Source: Dentsu Inc. Dentsu Source: These ads, run in 2003, reinforced the services UPS provides japan snapshot

and carried the message that the choice of an international Total ad expenditure*: ¥5,703.2 billion AD SPENDING BY MEDIUM business delivery service is integral to business strategy. 33.9% TELEVISION 18.8% NEWSPAPERS 8.0% FLYERS 7.1% MAGAZINES 3.2% RADIO 6.1% DIRECT MAIL 5.8% EXHIBITIONS 5.1% OUTDOOR 4.1% TRANSIT ^ 3.0% P-O-P 2.7% TELEPHONE DIRECTORIES *for year 2002, latest figures available 1.5% INTERNET 0.7% SATELLITE MEDIA-RELATED

30 www.inter-national-ist.com To advertise AirTouch

Foundation, which and yet have chosen SK II. mix skews to offer additional

required a significant In Japan, actress Kaori information through advertorial, Momoi has used SKII for editorial, events, and counseling. change in application more than 20 years and has A prime example is AirTouch

habits, Max Factor relied appeared in the campaign for Foundation, an ionized 10 years. She is known for foundation that provides a heavily on public being independent and flawless foundation finish.This

relations to encourage extremely honest.Women product requires women to across Japan recognize that. apply it with an ionizer wand and editorial coverage as well Similarly, actresses such

as five-page print ads to as Sammi Cheng, Stephanie Shiao, SuQi, Sopidnapa tell the full story. Dabbaransi, and M. Jang have been long-time users in other markets in Asia. Q. Please explain how successes in the marketplace you use both advertising and advertorial. a foreign company creates a local product A. Advertising, particularly SK II, a full-range premium point, SK II seeks to educate print, plays a key role in skincare line from Procter & consumers so that they can building excitement and trial. Gamble’s Max Factor, was achieve their best skin results. developed in Japan and has been By leveraging a strong launched in most of Asia and advertising campaign that England. Its leadership as the remains true to its history and No. 1 prestige skincare brand has equities, the brand achieves come in part from localization, outstanding trial and growth. featuring a celebrity. The campaign showcases Jim Franzen, account director, women who are passionate Beacon Communications, believers in the brand and who discussed the brand’s success. share their secrets and experiences Q. How does SK II remain in the brand while endorsing fresh and appealing? the product’s efficacy. Actress Kaori Momoi was featured in the eight-page series that A. First and foremost, SK II The women, although local discussed SK II’s role in helping to prevent aging of skin. offers amazing products that celebrities, are shown because answer the needs of real women. they are users of the brand; Advertorial and editorial to apply it with their eyes closed. Q. What role does the fact that they are celebrities efforts work together to provide This required a significant advertising play? underscores the fact they extra details and in-depth habit change.Throughout the A. At every consumer touch have access to any product information that skincare launch year, we provided intensive women demand varying levels of information, before deciding to buy a support, and follow-up through product. In addition, advertorial each consumer touch point. In and editorial are highly magazines that target more effective in communicating intensive cosmetics users, we The full-range of premium the brand history which is placed five-page print ads that SK II products includes a harder to cover in advertising. detail the whole story of If a particular product AirTouch Foundation to special anti-wrinkle product requires more detailed knowledge ensure better understanding called De-Wrinkle Active. or a habit change, the marketing and successful usage. •

31 PEOPLE AND PLACES

Ready for Latin America

MIAMI Participants at the IAA Florida's Latin American conference took a break from the sessions. (All names left to right.)

1 Claudia Dávila, Interamericana-Audi; Marcelo Salup, Foote, Cone & Belding; Margot Bradley, Grupo Uno. 1 2 David Byles, Mindshare Latin America; Gustavo Vallejo, Mattel. 2 3 John Holmes, J. Walter Thompson Latin America.

4 Randy Kazmierski, Juliana Kollinger, 4 Ivonne Sullivan, Eliane Nobile, all American Airlines’ Nexos magazine group.

5 Tom Coughlin, TC Media International

6 Carlos Alfaro, TACA International Airlines; 3 Claudia Damas, Poster Publicity.

5 6

BRUSSELS When the World Federation of Advertisers held its global congress, attendees discussed key issues and celebrated the organization’s 50th anniversary. (All names left to right.)

1 Jim Bull, IP Network; Michel Grégoire, European Group of Television Advertising; Walter Neuhauser, IP Network.

3 2 Jim Stengel, Procter & Gamble, with an actress 1 2 posing as a typical user of P&G’s Swiffer. 4 3 John Perriss, ZenithOptimedia.

4 John Ellery, Poster Publicity; Bob Liodice, Association of National Advertisers.

5 Kyohei Noguchi, Nissan Motor Co.

6 Bernhard Glock, Procter & Gamble Europe. 5 7 7 Stephan Loerke, World Federation 6 of Advertisers. PEOPLE AND PLACES

AdASIA

Thousands gathered for Ad ASIA 2003 in Jaipur, India, where days were packed with business and pleasure. (All names left to right.)

1 Shadi Bteddini, B.E. International.

2 Yan Gang, Beijing Guoan Advertising; Deborah Malone, inter national ist; Shi Zuezhi, China Advertising Association; 2 3 Chen Yong, Modern Advertising. 5 6 1 3 Fernando Mariano, Multimedia Inc.

4 Raymond So, BBDO Asia Pacific.

5 Toby Hayward, StarTV.

6 Tsuyoshi Hamagushi, Asahi Shimbun; 811 Michael Lee, Lee & Steel; Kenji Watanabe, Asahi Shimbun. 9 10 7 Frank Cutitta, International Advertising 4 Association. 7 8 Irwin Gotlieb, Group M Worldwide.

9 K.M. Shetty, Interspace; Avinash Pandey, TV Today India.

10 David Kilburn, inter national ist, and Jade Kilburn.

11 Rezani Azia, Nimal Gunewardena, both Bates Sri Lanka. 6 11

LONDON Fedele Confalonieri (l.), president of Mediaset, and Patrick Cross, managing director, BBC World, seal a deal between the British and Italian networks. Jonathan Howlett Jonathan

HONG KONG With the theme “Jungle Fever” for the Society of Publishers in Asia’s annual Publisher’s Ball, Gautam Dutt (above left), Euro RSCG, and Randy Weddle, International Herald Tribune, celebrate IHT’s award-winning “Best Dressed Table.” Also having fun: (center photo) Eileen Soh, Rachel Choy, both International Herald Tribune. (right) Lisa Benskin, Euro RSCG.

STOCKHOLM Founding members of IAA Sweden gather at a breakfast seminar: (from l.) NEW DELHI Lars Axelsson, Lowebrindfors; Mats Rönne, Asia-Pacific members of the independent agency Electrolux; Maj-Britt Neuman, Mediaedge:cia; network ICOM bonded in traditional dress at their Lotta Boman, Sandberg Trygg; Jörgen Krabbe; SCP, annual meeting here. Attending: (front row from l.) Ronnie Eide, IMS; Karin Södersten, Interdeco; Vivek Srivastava, Triton Communications; Michael Karnig, K4M; Martin Sundberg, MediaCom; Willie Garcia, Adformatix; Shoichi Hoshi, Nihon Keizai; Vanja Spreitz Armborst, Financial Times; John Cohen, PMP; H.S. Lim, Smart Group; Kent Högberg, PO Wildell, Wildell Gruppen; Akinori Maruo, Nihon Keizai; Carishma Ahluwalia, Triton. Back row: George Romanyk, Creative In-House; Kerstin Säll, formerly SAS; Åke Johansson, Eurosport. Robbie Gilchrist, Creative In-House; Ali Merchant, Triton; Andrew Wilson, Wilson Everard; Gary Burandt, ICOM; Munawar Syed, Triton.

33 south africa The Rainbow Nation finds its feet after years of political and economic turmoil

Once upon a not-so-long ago, South Africa was condescending advertising. They want advertising seen as a political and economic anathema, rife to reflect diversity with respect.” with political turmoil, economically fragile, and For example, she says, it would be fine to show a closed to new ideas and new products. But when group of young black and white men drinking majority rule ended apartheid in 1994, South beer together, but it would not be at all acceptable

DOING BUSINESS IN Africa began to take its place as a regional and to black society to see a black woman drinking beer. perhaps world market of great importance. “Women who drink beer are still looked at as ‘bad “Before Nelson Mandela became president, it girls’ by all sectors of the society,” she explains. was a time of great tension.After the election was Luxury cars are still not seen as the realm absolute euphoria. Now we’ve had the time to settle of blacks, although there is a substantial black into a new way of living, thinking, and looking demographic in the market for such products. at our country and the world, and it’s good, very Sometimes a contrarian viewpoint gets a point Contrarian thinking: O good,” says Reg Lascaris, chairman of Hunt- across. South African Airways recently sponsored a Lascaris TBWA and TBWA’s regional director for soccer tournament. Since soccer has traditionally This ad for a South African Africa, Europe and the Middle East. been a black-dominated sport, Herdbuoys turned During the apartheid years, South Africa was the tables by depicting a white taxi driver, Airways–sponsored closed to much major branding.“Now the borders unheard of in South African culture. “We wanted are open and black Africa sees us as the New York to debunk the stereotype. It got a lot of attention, football tournament shows of Africa.You can find virtually any brand you’d and people loved it,” says Marutlulle. find in the U.S. or Europe.We find ourselves in a Herdbuoys is particularly well-positioned since a white taxi driver, frontier-age economy that is very entrepreneurial it was the first black-owned agency in the country, and everyone is jumping on the big (expansion) started by black partners who mortgaged their something unheard of in bandwagon,” says Lascaris. modest homes for startup capital. The creation of a black middle class has “Everybody’s looking for a sense of reality,” the old South Africa. opened the way for huge expansion in consumer agrees Lascaris, whose agency now has 26% black goods. Airlines, hotels, cell phone companies, ownership under a government initiative called computer manufacturers all compete for a Black Empowerment. growing market. This euphoria has created some In 1994, Hunt-Lascaris sold 26% of its interest fantasy images of a country where blacks and to Cyril Ramaphosa, a pivotal figure in the whites go to cocktail parties together in happy transition to democratic rule in South Africa and Herdbuoys McCann-Erickson 2003 suburban enclaves. There now one of the country’s most successful black are ads that depict this businessmen. Ramaphosa brought with him the South Africa’s population, at ^ fantasy world, and they’re account for promoting Mandela’s political party, 45 million, is growing steadily not particularly successful, the African National Congress, in that first despite the enormity of the impact says Sizikele Marutlulle, democratic election.That translated into some tidy of the AIDS epidemic. deputy managing director of revenue and impressive political clout in the New A newly created black middle class Herdbuoys McCann-Erickson. South Africa. has created a greatly expanded “It’s a difficult space to Herdbuoys says its 1997 alliance with McCann market for all the accoutrements of navigate between symbolic brought the already-successful agency an entree to the middle class: vehicles, travel, inclusion and substance. international branding that was sweeping the electronics, clothing. Many blacks are offended country. “Black empowerment has been a win- Teenagers, with few memories of the by stereotypical or even win for us,” say both Lascaris and Marutlulle. • apartheid era, are ushering in a new atmosphere of tolerance and BY KATHLEEN BARNES friendship creating rich fodder for CULTURAL CUES CULTURAL marketing opportunities. WORKING TOKYO McCann-Erickson Japan SYDNEY McCann-Erickson Asia Pacific SYDNEY Carat NEW YORK Discovery Networks International 2003 NEW YORK Newsweek 2003 2003 2003 2002 NEW YORK Broadcasting International Turner LONDON Assessor 2001 2001 SYDNEY Carat NEW YORK Mediaedge:cia NEW YORK Dow Jones International CAREER TRACK CAREER 2000 2000 2000 LONDON CNN International LONDON McCann-Erickson London 1999 1999 LONDON MediaCom/Grey Advertising SINGAPORE Dow Jones International 1997 1997 SEOUL McCann-Erickson Korea NEW YORK Street Journal The Wall 1995 1995 LONDON Disney Co. The Walt CHICAGO DDBNeedham Advertising 1994 1994 NEW YORK McCann-Erickson New York 1993 BIRMINGHAM, ENGLAND GEC-Alsthom LONDON The Media Centre 1992 1992 LONDON McCann-Erickson London , Associate Publisher/ Director-International Sales , Associate Publisher/ Director-International 1990 DUBLIN DMB&B Carat Australia, Investment & Development Director Discovery Networks International, VP-Advertising Sales Director Newsweek 1989 LONDON Newspapers Times Mediaedge:cia, Chief Client Officer Worldwide LONDON OMD McCann-Erickson Japan, Executive VP/Executive Creative Director/Regional Creative Director, Asia Pacific McCann-Erickson Japan, Executive VP/Executive Creative Director/Regional Director, 1988 1988 SYDNEY NEW YORK NEW TOKYO NEW YORK NEW NEW YORK NEW LONDON Lintas Overseas LONDON Haymarket Publishing LONDON Optimus 1985 1984 1984 MELBOURNE Saatchi & LEAN 1981 C Jeremy PERROTT Justin HALLILEY James PARKINSON Rhona MURPHY Andrew M

Send your suggestions for people whose careers have taken them around the world to [email protected]. Hong Kong (as you know) is a very special place. It’s so powerful. But it will show major face to So friendly. So fake. So tall. So … polluted. It’s just so! Face it, it’s top your guests who are then bound of the pops! There’s so much to see and do in this non-stop city, to sign that big ad deal right?! Er... especially if it has to do with food and drink. You’ll be bombarded with If that’s not your style, may we suggest the following bright lights and so many other sights, sounds, and scents from the great dinner venues: Song, minute you step foot in the territory until you leave its borders. tucked away on Wyndham Wherever you choose to dine or have fun, it’s a wonderfully wild and Street, serves Vietnamese with a modern twist. Try Back non-stop adventure. Really, all you have to do is enjoy. Room on Lyndhurst Terrace or Aqua restaurant with its restaurants with 172 carcinogens, Philippe Starck’s early ventures. amazing view. And also nearby

from hubculture.com a genuine welcome? You’ll love your first moment in all with fluorescent lighting and 2. Silently rap your knuckles on Alibi is a hot place for drinks. Hong Kong. But not necessarily a lazy susan. You can check out the table when your host They also do manicures the one where you pass the the snake market. You can eat serves you tea. Again, don’t ask. and martinis on Tuesday’s, but scallops and prawns in garlic

temperature scanner that discoverhongkong.com automatically reads your forehead and dumplings with chili sauce. for signs of severe acute higher You can eat all day and all night temperature or the way the because the food is that yum. immigration guy eyes you up Then you can while away and down and asks why you the night sipping champagne at Critters from the sea have just an overnight bag if you the Grand Hyatt piano bar trying caught fresh daily, like this came from Sydney. to spot Jackie Chan with Bianca It’s the moment when the Jagger or dance all night at lobster, make a popular blue bullet train glides up to Drop, waiting for DJ Joel Lai to your exhausted worn-out self wave the bartender over to fix meal in this food mecca, and silently slides open in a you another watermelon martini. where gastronomy is quite welcome gesture of love, with Best martini in town. a squeaky voice that squawks Then you can swish to Dragon-i a serious endeavor. “Welcome aboard Airport and let owners Gilbert and Gordon Express. I am your train introduce you to their wild ways. 3. If the French can eat baby that’s another story. In Quarry ambassador. Please stand clear Gilbert is sort of like a don in duck livers and the British Bay (a big media hothouse), the of the doors.” You’re no Hong Kong, holding sway over can eat blood-filled cow best thing is to hit the little ambassador! You’re the ticket where the models go out. Don’t ask. intestines, there should be Japanese noodle houses that girl! But we love you anyway. nothing wrong with a little dot the landscape. It’s where The first thing about Hong this is about business chicken foot for you, dear sir! everyone goes for their informal Kong is to know that most of it And for business you just need tête-à-têtes, and the sashimi in is jungle. This is true and not to know three things. more is more rice bowl is FABU. true. Granted, parts are green, 1. Stay at the Mandarin When doing business in the city but other parts are concrete. Oriental. It’s old, well locat- of life, remember that more is hong kong is Just over that steamy ed, and has a certain level of more. More talk. More food. soooo much fun Wanchai soup, scented with history emanating from the More drinks. Pile it on. This is Just don’t bring your tired-face. TGI Friday’s and The Big Apple old Captain’s Bar that is plain not a city for shy people. It’s like New York, without the lie acres of undisturbed hiking irresistible. They also have For those swanky business attitude. It’s also like a village. and scenic wildlife, with such great room service. It’s just dinners, may we suggest the A tribal village, with lots of wild creatures as the last living where you stay. Unless of newly opened Cipriani, hosted young things beating out each snail, three stray dogs, and two course you are doing by David Tang. If you want to other in the live-fast and leave- expensive parrots lost at a media Kowloon side, in which case get some confidential work a-skid-mark sweepstakes. cocktail party a few years ago splash out on the Peninsula. done, this is a great place Go quickly, and enjoy. Just try when they escaped their cage. The world’s most flashy hotel because no one goes there. to make it out of the jungle in also has the world’s greatest The food is good etc., but it’s one piece. • a nature lover’s paradise views of the harbor from the very expensive and you need old yet reliable Felix restaurant, the corporate membership from www.hubculture.com is in the know You can eat 170 kinds of fish in on the places where members of the

JUNGLE LOVIN’ JUNGLE IN LOVIN’ HONG KONG Hong Kong in your choice of 171 one of contemporary designer the local office to squeeze in. global society stay, eat, shop, and play.

36 www.inter-national-ist.com