US Regulation On Social Media Is Entirely Misguided

Max Hegerman

President, Tribal DDB India

Max Hegerman heads Tribal DDB India, which specializes in interactive and new media. It is a part of Tribal DDB Worldwide, which was awarded Global Agency of the Year by Advertising Age in 2007. Tribal DDB India's roster of clients includes LIC, Times Group, Nike, MTV, Idea Cellular, Volkswagen, Citibank, among others.

Prior to this appointment, Max was the Regional Managing Director at TBWA\Media Arts Lab Beijing, where he opened and managed a MAL office to support regional marketing needs of Apple. Max shares his views on digital world with Rajat Arora of BestMediaInfo.com.

Q) Tribal DDB has a vast network and has presence around the globe, how much advantage does it give you in India?

I believe the global Tribal DDB network is a huge competitive advantage for Tribal DDB India. We have access to an immense collection of industry (and category-specific) research and understanding, as well as detailed case studies. In addition, the network has an impressive collection of world-class marketers that are now turning their attention to India – and digital media. In fact, developing stronger working relationships within the network (primarily in Asia) is one of my key responsibilities.

Q) Within such a huge network how does the process of sharing expertise, experience and knowledge work?

Information, experience and data sharing is vital to the success of the network. Each region contains a repository of information, collected monthly, and it benefits each office to share learnings, case studies and best practices. For the most part, all of this information is stored/accessed digitally.

Q) How is Tribal DDB India doing in its space?

As one of the initial digitally focused advertising agencies in India, we do not own the space like we should. We are highly competitive and competent, but we do not dominate. We have the tools, in terms of creativity, strategy, technology and media. However, we have not been organized (and focused) internally in a manner that would allow us to take it to the top – which is one of the reasons why I am here. So, we are doing some re-focusing and restructuring.

Q) Where do you see Tribal DDB India in coming years?

Out in front. If not, we certainly will be makin' people nervous…

Q) Where do you see India in the digital market space in comparison to the rest of the world?

From my perspective, the digital space in India lags behind the rest of the world. Much of that is directly related to low levels of internet penetration - with broadband access being even lower (4.2%). So, from a pure marketing perspective, brands have remained on the fence, especially if they were looking for reach. Instead, digital has been more of a lead-generation tool. And, since digital is so measurable, the focus has been on ROI, rather than on brand/image building.

That being said, there are brands that see the digital space as an effective means to stimulate meaningful dialog with consumers – creating consumer engagement. The internet can be the most powerful tool for marketers to develop positive brand perceptions and loyalty (at least from a digital ad guy's perspective).

Q) In the UK, where online advertising has surpassed TV advertising, do you think in India the online medium has similar potential?

Truthfully? Probably not. It will be a while before internet penetration levels (especially broadband, which could facilitate that type of entertainment/viewing) reach competitive levels with television.

However, mobility is another issue. Mobile penetration in India is enormous, with more than 400 million subscribers – and steady, rapid growth in rural areas. It has the potential to leapfrog the internet, in terms of information gathering, entertainment and commerce on a national scale. That is where I am putting my money.

Q) Prior to joining Tribal DDB India, you were working for TBWA\Media Arts Lab in Beijing. How much different is working in India in the same domain?

From a traditional advertising perspective, India is a more mature market than China, with more experience in building brand equity. However, the digital space here is not as advanced – again a factor of penetration (or lack thereof). With 388 million online subscribers, China has the critical mass and momentum.

Q) The communications industry is undergoing its biggest transformation since the invention of broadcast media. Do you think the advertisers in India too understand the capabilities of digital platform?

As I mentioned before, some do. However, many do not. And, that is what makes this particular opportunity at Tribal DDB India so enticing. It's like déjà vu all over again (to quote a famous American baseball player). I was there when digital was becoming a viable media tool in the U.S., I am confident that I can leverage that experience here –and help marketers see the online space as a place to truly engage with consumers and build their brand.

Q) Very few big agencies have their digital arms, what do you think is the reason for traditional agencies to refrain from coming out big in the digital space?

Online/digital budgets remain relatively small, and often an afterthought. The focus is still on traditional, or above-the-line activities. Making the investment in digital infrastructure is difficult to justify – especially given the current economic scene.

Q) Social media is becoming a big platform for advertisers to take their message to their TGs in digital space, do you think that social media really works in yielding desired results for the advertisers?

It all depends upon what advertiser's “desired results” are. If it means monetizing their investment, no. However, if it means leveraging an environment that facilitates consumer engagement and long-term brand-consumer relationships, yes.

Q) In America, FTC is all set to revise rules about endorsement and testimonials in advertising. Now bloggers have to give full disclosures of their connection with advertisers. How much will it affect advertising in social media as many advertisers use bloggers and social media sites like facebook and twitter to pitch their wares?

From my perspective, it is unfortunate. Once again, the U.S. has lowered the internet (and common sense) to the lowest common denominator. There are enough opportunities to weed out spammers on the net and in social media. From what I have seen, social media is already largely self-regulated, in terms of endorsements. This regulation holds social media to an entirely different standard than traditional media (even paid reviewers), which is entirely misguided.

Q) Will its repercussions be seen in Indian digital space too? If yes, how?

Laws and regulations have a tendency to migrate quickly and easily. Hopefully, sharper minds will prevail in India...

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