The Secret Formula of Communication 2016 by Diplomacy&Commerce magazine

The

SECRET FORMULA OF COMMUNICATION SPECIAL SUPPLEMENT

D I P L O M AC Y & CO M M E RC E 2016

THE SECRET

Formula of Communication

IT IS ALL ABOUT SOUL I N T E RV I E W

If we lose sight of the need to engage and excite consumers, then advertising will also lose its soul!

lthough it is still too early to say how Brexit affected the European advertising market, Dominic Lyle, the Director General of European Association of Communications Agencies (EACA), expects a dip in confidence on the continent as the implications of Brexit for the EU become more widely understood. This dynamics adds to the already complex situation in the industry which is changing in line with technological changes. However, Lyle as an expert with 25 years in the communications business in London & Brussels, thinks that the industry is able to cope with changes as long as it sticks to its basic principles. “Effective advertising today is very much what it was yesterday, namely, delivering measurable results against pre-determined objectives”, says Lyle. The European Association of Communications Agencies represents the interests of commercial communications agencies in Europe. Since joining EACA in 2002, Lyle has co-ordinated major initiatives for the European agencies in areas such as Sustainable Development, Corporate Social Responsibility, obesity, alcoholic beverages, advertising to children, self-regulation and effective advertising awards. He is currently an Executive Board Member of the European Advertising Standards Alliance and Treasurer of the European Interactive Digital Advertising Alliance. After spending almost four decades in the communications business, do you feel dizzy as

the pace of changes in the industry constantly speeds up or there are always some tricks of the trade which stay the same? › It’s true that there has been a whole lot of change, but it comes at a reasonable speed, so there is time to absorb, understand and adjust. What doesn’t change are the fundamentals of good advertising, which remain constant through changing media, new target audiences, technological miracles – if we lose sight of the need to engage and excite consumers, then advertising will also lose its soul! What is effective advertising today and how is industry coping with new challenges? › Effective advertising today is very much what it was yesterday, namely, delivering measurable results against pre-determined objectives. The delivery and measurement systems may develop, but the need to demonstrate that a campaign produced a positive result for the brand or client is still paramount. As our own Euro Effies demonstrate, industry is coping very well with the new challenges. Interestingly, as part of the Euro Effies 20th Anniversary this year, Kantor Millward Brown have undertaken a study analysing over 100 Euro Effie cases from the last 6 years. This clearly shows that, despite the massive shift to digital and social media, the four key elements that differentiate winners from runners-up are tried and tested – ‘The Big Idea’, ‘Family Resemblance’, ‘Working as a Team’ and ‘Pass it on’, indicate how likely an

entry is to be successful and still provide the cornerstone of effective commercial communications today.

DOMINIC LY L E Director General, European Association of Communications Agencies (EACA)

Effective advertising today is very much what it was yesterday

What do you see as major trends in the market for 2017? › There are many! The move to mobile platforms will continue, probably focusing on bigger screen size; there will be more calls for proper auditing of digital media – witness Facebook acknowledging that they have not been measuring video advertising performance correctly; calls for stricter regulation in sensitive sectors, such as alcohol and food, will become more insistent; a continued growth in programmatic advertising will lead to better leverage of data and, simultaneously, better adaptation of creative to new formats to counter adblocking; there will more clarity around viewable impressions as the industry moves to introduce more consistent measurement standards and consumer-led brand engagement will become the norm. What the EACA Advertising Business Confidence Index says about trends throughout EU after the Brexit vote? › The next Index comes out at the end of October, so it is too early to see what the reaction has been, but the last report, covering the period up to June 2016, showed a sizeable dip in confidence in the UK. I would expect this to be improved in the post-Brexit period as the financial indicators have been more positive than many people expected. Conversely, while the period to June showed little change in the rest of Europe, I would expect a dip in confidence on the continent as the implications of Brexit for the EU become more widely understood. ‹

AT T H E E N D

EACA’S KEY GOALS WHAT ARE THE EACA’S KEY GOALS FOR 2017? We have just relaunched our corporate ID and websites, so a key goal will be to make sure they are widely seen and used. Other objectives are membership growth (is 2017 the year Serbia finally joins EACA??), an expansion of our training and education initiatives and the introduction of a new thought leadership initiative to examine the key issues facing the agency business in depth.

THE SECRET

Formula of Communication

GROWING IMPORTANCE OF COMMUNICATION I N T E RV I E W

PR is a profession that has undergone great transformation and professionals now have to manage completely different demands and tools in doing their job. The significance of PR as communicators, in defining and bringing informations to the public is today bigger than ever before

he The mission of the Public Relations Society of Serbia, as the country’s only professional communications association, is to bring together the representatives of leading companies, agencies, the media, educational institutions and individual experts with the goal of working together on promoting the importance of communication, applying the highest professional and ethical standards, developing projects, and promoting professional achievements. What does membership in the ICCO mean for the Public Relations Society of Serbia? ›The ICCO comprises similar associations from 48 countries in the world, and our membership is just one of the indicators proving that we have been working hard on promoting the importance of communications and the complexity of our profession, while providing our members with opportunities to network and develop further. We were one of the very few oldest PR associations that were not members of the ICCO. We are also working on solidifying our position and profession in Serbia, and on increasing the visibility of our society in the region and interna-

tionally. Our colleagues from the ICCO say that creativity and professionalism are the qualities that PR professionals from Serbia are best known for in the region. How has the Society been promoting the importance of communications in Serbia? ›The Society has an important role and responsibility in Serbia. We cooperate with many organisations, institutions and peers, advocating our well-deserved prominence and working towards the better positioning of our profession. We have been regularly organising professional gatherings, and once a year we host the gala evening PRiJEM at which the best PR practices from the previous year are awarded with PRiZNANJE Awards in 16 different categories, honouring the best communication activities of the previous year and rewarding both individuals and organisations. How much has the PR profession evolved as a result of technological changes? ›New tendencies in our profession, like developing and integrating digital communications, have also been recognised in Serbia, which contributes considerably to the development and ad-

J E L E NA ŠA R E NAC Chairwoman of the Managing Board, Public Relations Society of Serbia

MISSION

WORKING TOGETHER THE SECRET FORMULA Promote the PR profession, apply the highest standards, develop projects, and promote professional achievements.

The Society has an important role and responsibility in Serbia

vancement of the PR sector. Public communication channels are now amalgamated with PR, advertising and digital business, and when you further integrate online and offline elements into PR activities, you get even better results in developing and publicly presenting brands.

To what extent do PR professionals follow the latest trends in this field and how much are they able to further improve their skills? ›The Society carries out numerous activities throughout the year with the sole purpose of further developing the skills of communicators. This year we are staging a conference called “#PRilika 2016 – New age. New trends. New communications.”, which will be held in Belgrade on 2nd and 3rd December. The conference will include the participation of numerous lecturers from all over the world, the countries of the region and Serbia. Allow me to mention just a few of them: Scott Fahlman, research professor from Carnegie Mellon School of Computer Science, Arun Sudhaman, Editor-in-Chief of the Holmes Report, Brian Lott, President of MEPRA and Communications Director at Mubadala Development Company, Lazar Džamić, Xoogler and Lecturer, Anđelko Trpković, Executive Director of Publicis One, Milica Stefanović, senior PR and communications manager at Coca-Cola,

Kristina Ercegović, founder of the Business Caffe, and many others. How open are Serbian companies to adopting new communications techniques? ›Serbian companies follow the latest trends very closely and invest a lot of effort in perfecting communications techniques. Large companies are aware of the power and importance of investing in communication, nurturing integrated communications and building good relations with clients and consumers. The public, in its broadest sense, cannot be segmented easily today, because all channels are interconnected and all information is readily available. At the same time, this poses a great challenge to smaller companies or those domestic companies that were forced, in a way, to present their operations to the wider public in order to grow. I am happy to see that smaller companies have also recognised the importance of communication for success in business. ‹

THE SECRET

Formula of Communication

IMPROVING THE REPUTATION OF PROFESSION IAA SERBIA

Bearing in mind its mission as a tripartite professional association, IAA Serbia has accomplished satisfactory results in several different areas

THE AN SWER

ur efforts have always been geared towards improving conditions for doing business, as well as towards improving the reputation of our profession. The overall impression is that, for the most part, we have succeeded in what is the most important and most difficult thing to achieve – putting general interest above personal. Our engagement is focused on several issues that are important for our profession. The first of these is certainly regulation, or rather establishing a self-regulating body. In terms of the Advertising Law, we have tried to initiate a continuous dialogue with the Ministry of Trade, Tourism and Telecommunications, from the very beginning of drafting the new Advertising Law. We have also organized a round table discussion at which the IAA members could openly and constructively talk to the Ministry’s representatives about the shortcomings of the previous law and suggest different solutions for the draft law. The IAA’s President, Miloš Simić was also a member of the task force that was involved in drafting this document. In regard to self-regulation, the

IAA has taken all the necessary steps in order for Serbia to establish this system, just like other, developed countries, with the aim of making the market as regulated as possible. Our draft Code on Advertising and Marketing Communications, which is a result of several months of work by the renowned experts from this industry, has been accepted by all relevant associations in the country. The European Advertising Standards Alliance (EASA) has been unequivocally supporting us in our efforts to form a self-regulating body. Our view that our profession can develop long-term only if we invest in young people was given a practical meaning when we formed the Young Professionals (YP) section which has been successfully working for the past five years. Today, YP has over 60 young members and some of them have already achieved excellent results on the global level. For instance, Đorđe Janković was given the IAA Inspire Award by IAA Worldwide last year for his exceptional contribution to the Association’s operations. Education is also one of our priorities which can be seen in the

Our engagement is focused on several issues that are important for our profession

fact that we launched the AcademIAA educational programme in September. This is an in-depth, three-month training programme covering the area of marketing communications through 6 modules (Research, Business, Media, Creativity, Digital, and All Stars). Following relevant tests, we selected 25 of the most talented students that will be given an opportunity to listen to the lectures of over 75 national and regional experts starting in early December (http://academiaa.rs/). Although, other IAA branches also invest a lot in education, this programme is by far the most comprehensive and the most ambitious. We have already received praises from the IAA Worldwide executives on the account of it. The idea is for this programme to be executed every year. The issue of having a local festival has been one of the most important issues for our profession for decades. Undoubtedly, we need a serious and relevant festival. With that in mind, we have an exclusive for you – IAA Serbia has signed an agreement with Effie Worldwide which stipulates holding the Effie Festival in Serbia. The negotiations lasted for a year and a half, and, for us, this is recognition that we did the right thing when we decided to launch a festival with an international license in Serbia. We are going to release more information about Effie, its prestigious character, and importance for our profession soon. ‹

IMPROVING FORMULA Improving conditions for doing business, reputation of profession, and education which is also one of our priorities.

THE SECRET

Formula of Communication

CHANGES ARE TWICE AS FAST FOR US

I N T E RV I E W

Communication is an integral part of successful business

oday's communication processes do not resemble those of 5 or 10 years ago in the slightest, because people and organisations now function differently. This is a continuous process based on ongoing research and focused on accomplishing business goals. To what extent does technology influence the job of communicators? › Companies and brands have that kind of effect in today’s rapidly changing world. As consultants, we change twice as fast, because we have to predict development directions. We also use all available analytical methods and prepare strategic plans to ensure the timely implementation of the communication activities of companies and brands, based on current circumstances and the achieving of business goals, enhanced by creative content that captures the attention of target groups. We are surrounded by a huge quantity of information 24/7. We are using several devices at once. Consequently, the average attention span today is only 8 seconds, with a tendency of dropping to 5 seconds by the end of this decade. That’s why every single brand and organisation has to deal with a substantial surplus of information and their target groups not having enough time.

Technology has made our lives incomparably easier and has generated some great opportunities, creates challenges that we have to overcome. Apart from supporting companies and brands, we have tried to find solutions for the problems of this modern day and age through important socially responsible ideas, thereby changing the world for the better regardless of the nature of the problem at hand – be it supporting vulnerable groups or tolerating diversity. How much are companies in Serbia willing to spend on communication? › Communication does not happen by itself or for itself. Just look at any interview, advertising campaign, street event, or Facebook post. There is a clear business goal behind all of these activities, which contribute to a broader strategy. Most companies recognise that modern times are very much like playing Tetris – change is never-ending. Companies are aware of the fact that product consumption is changing together with the perception of brands. Transparency is growing, while proactive communication is today a must. The way in which companies conduct dialogue with their target groups is changing and companies are much more ex-

posed today. This means that the need for them to be ready has become even more pressing. To that end, preparing for crisis situations are becoming increasingly important components, as are modifying or preparing crisis manuals for companies, communication training for management, and simulating crisis situations. Some companies have been investing in proactive communication for some time now, while some do this only when they have to deal with a problem. For some, crisis is a trigger, just like competition, a new product or innovation, an anniversary, a new website or the need to build bridges with the local community, the media, staff, or business partners. My advice for companies is to maintain and continue improving this process, because nothing is stagnant in the world of business, including competition. One-off investments are not justified, while the breakdown in communication, by default, annuls the value that has been created. Hence, from my experience and speaking longterm, communication is also a business reflection of an organisation. What does the uber-ization of public relations mean precisely? › We unlock our phones 150 times a day on average. Do

TA M A RA B E KČ I Ć Director and Co-Founder of Chapter 4 Agency

THE AN SWER

THE FACTORS THE SECRET FORMULA Our knowledge and experience are the factors that influence our activities on directing and advising our clients.

you think that this number will decrease over time? Uber-ization is a positive term. Now, more than ever, PR is based on data and measurements. They help us to think above and beyond the usual channels and contacts. Technology gives us information and tools for marketing content, while we are the ones that shape this content, put it in context, and ‘season’ it with big ideas. What do you think is the most important thing for a PR agency to be successful? › In the last few years, Chapter 4 has received several awards from national professional associations, as well as at European events, despite very tough international competition. This is a strong argument in our favour that also speaks volumes about the importance of the quality of services and having a modern approach to working with clients. Furthermore, we in Serbia have had many opportunities to manage important regional projects on behalf of our clients that spanned several continents. We proved to ourselves that we know and can. As the agency's director, I think that people are our most important asset that has to be nurtured. An agency is as strong as its team. Our knowledge and experience are the factors that influence our activities on directing and advising our clients. Hence, it is of utmost importance to invest in people, their skills and motivation; to continue pushing the envelope, so to speak. ‹

THE SECRET

Formula of Communication

EIGHT SECONDS FOR US Today, the challenge of reaching consumers is bigger than ever before, and communication with them has become closer and more dynamic

hen it comes to the digital sphere, modern brands have to be social beings – friendly, open, authentic, interactive, courageous, entertaining, informative, and with an attitude. Consumers like to be included, so include them. But don't forget to also be quick. The traditional communication model has changed significantly in the last few years, as a result of modifications in the way we consume messages, our spare time and consumer needs. Today, 59% of the population, from the ages of 16 to 34, use several devices at the same time, 8 out of 10 go online at least once a day, and an incredible 93% of the Serbian population, aged from 25 to 34, use smartphones. Some 60 million hours of YouTube video clips are watched in Serbia every month. Consumers are mobile, they multitask and multiscreen, and they delight in video content. According to Wave's survey on the habits of social network users, we have a whole eight seconds to capture their attention. New technology has facilitated real time communication and created opportunities for brands to participate in a dialogue with their consumers, based on information and events in real time. The Oreo brand was the first to test this communication format following a power outage at the biggest sporting event in the United States – the Super Bowl. Their tweet – “Power out? No problem!” – with an image of an Oreo biscuit and the caption “You can still dunk in the dark”, was a big moment in winning over American consumers. This tweet set new standards in the speed of communication with consumers, because it went online only a few minutes after the power outage.

Many companies have set real time communication as their business standard. Lego won over the 2016 Academy Awards’ audience by linking the celebration of Leonardo Dicaprio's long awaited Oscar to its brand and this real time event. Snickers used a humorous approach to the incident at the Football World Cup, when Luis Suarez bit Giorgio Chiellini, to win over consumers. Technology has significantly changed the way we communicate and we can safely say that faceto-face communication has now moved to the online world. A clear and receptive brand image comprises experiences and contacts between brands and consumers. Digital has returned communication with emotions and storytelling to the pedestal. We are now able to communicate longer and, thanks to the right content, brands are able to connect to the feelings and needs of consumers. The video engagement of consumers dominates digital platforms today. GoPro has been promoting its Hero camera on the back of the heroic story of a fireman saving a kitten. The video clip, in which a firemen is reviving a kitten following a rescue operation, has demonstrated the quality of this camera, told through a story that won over the hearts of many consumers, while GoPro has positioned itself as a brand that cares about and supports heroes. By sharing their emotions with the brand, consumers are making a connection, noticing and remembering. Today's brands have an opportunity to respond to consumer needs in everyday life by providing support at the right time. The ‘how to’ tutorials are the first form of assistance that consumers reach for. Back in the day, we used to call our parents, neighbours and friends to

COMMENT

J E L E NA ANĐELIĆ Managing Director of DRIVE

Today’s brands have to be social beings – friendly, open, authentic, interactive, courageous, entertaining, informative and with an attitude

help us with a problem or a task. Today, it is brands that are helping us. L'Oreal has recognised a need for women and girls to acquire more knowledge about putting on makeup and has now become both a mentor and friend that can help women look beautiful on any occasion, thus getting involved in communication at a time when the consumers really needs it. Mobile devices have forever changed the dynamic of life. Life is now comprised of moments of need, emotion and experience, and today we often talk about communicating with consumers during these micro-moments. Consumers in the digital world are very vocal about what they want. By leaving traces/messages via information about their whereabouts and interests, consumers want us to use the moments that are important to them. They are no longer only observers, but rather have become hosts and content editors, explicitly stating their views. Digital makes it possible for us to find out what consumers want from us before we possibly make a mistake. Many TV stations engage their viewers in the process of choosing actors or the end of a certain episode, thus turning viewers into screenwriters. Conversation itself is a very important moment in forming an attachment to a brand or a product. Today, more than ever, it has become incredibly important to be in the right place at the right time and with the right content. Communication can no longer satisfy just one segment. Today’s brands have to be social beings – friendly, open, authentic, interactive, courageous, entertaining, informative and with an attitude. Consumers like to be included, so include them. Changes happen on a daily basis and it is up to us to deal with the challenges of growing with them, learning from them and creating despite them. ‹

THE AN SWER

WHAT'S IMPORTANT THE SECRET FORMULA Today, more than ever, it has become incredibly important to be in the right place at the right time and with the right content.

This article uses data from the UM agency network's Wave survey, YouTube Adriatics 2016, and the 2015 Consumer Barometer.

THE SECRET

ŽIKICA MILOŠEVIĆ

Formula of Communication

EXPLORING PATHS TO PROSPERITY THE CONFERENCE S U M M A RY

SEE lags behind CEE but doing fine

he fifth EU-Southeast Europe Summit, Exploring paths to prosperity, was held in Vienna on October 5th. Organised by The Economist and supported by Advantage Austria/Austrian Federal Economic Chamber (WKO), the summit brought together entrepreneurs, innovators, businesses, international organisations and politicians from Austria, the EU and the Southeast and Central Europe region. John Andrews, Joan Hoey and Laza Kekić discussed the economic and political outlook for SEE and considered the likely impact of external developments, including Brexit on the region’s development. Laza Kekić emphasised that the growth rates in the region are set to overtake those of the Visegrád states in 2016-17 according to The Economist Intelligence Unit (EIU) and the Brexit will unleash UK's creativity and there's much more space than the pretectionist club called EU. Romania, is set to grow by 4.8% in 2016 and 3.4% in 2017. Bulgaria will have growth averaging 3% per year in 2016-17 and the western Balkans will have 3.1% per year in 2016 -17. Joan Hoey argued that a return to conflict is unlikely for several reasons: there is no appetite for it among political elites or the public; though

waning, support for EU membership is still high; Republika Srpska leader Milorad Dodik wants to restore the original Dayton accords, not dismantle them, the Bosnian Croats, Muslims and Serbs no longer have separate armies; Serbian PM Aleksandar Vučić is continuing the policy regional reconciliation. However, there's no room for compacency given still high unemployment, widespread public dissatisfaction with political elites, and the spread of Islamic radicalism in Bosnia and Kosovo. The net impact of the Brexit decision on the region is likely to be neutral. The EU cannot afford a return to serious instability in the Balkans and offering the prospect of EU membership is a cheap way of keeping the region stable. It is likely that opt outs on free movement of labour from the region will be longer even than they were for Bulgaria and Romania (7 years). Mainstream parties in France, Germany and the Netherlands are facing a growing populist challenge and have little incentive to push for more eastwards enlargement. In addition, the EU’s dependence on Turkey on the migration issue means that it may not want to be seen to be privileging the integration prospects of the Western Balkans when Turkey’s mem-

Yana Mikhailova of the Foreign Investors Council (FIC) of Serbia and Radu Burnete of the Romanian FIC both enthused about the prospects for the region

bership is going nowhere. The Bulgarian deputy PM Meglena Kuneva said that support for the EU in Bulgaria had fallen below 50%, which was unprecedented, and trust in the EU stood at 39%-and that is in a country which has not taken in a wave of migrants. Walter Koren, general, Advantage Austria, said that Austria had a strong connection with the SEE region by virtue of geography, historical links, cultural ties and, as a result, a unique understanding of Slavic countries. Claus J Raidl, president of the Austrian Central Bank and spokesperson for 21st Austria, focused on the point that CEE region has experienced successful convergence on average, but SEE has lagged behind. Yana Mikhailova of the Foreign Investors Council (FIC) of Serbia and Radu Burnete of the Romanian FIC both enthused about the prospects for the region. Austria's Minister of Finance, Hans Jorg Schelling, said that Austria can play a vital role as a bridgehead to the region and a promoter of investment. Dejan Ljuština of PwC, Menelaos Makrigiannis of SiEBEN, Andreas Tschas of Pioneers and Matthias Reisinger of Impact Hub Vienna echoed the minister's enthusiasm for unlocking the potential of the fourth machine age in SEE. Konstantin Simonov (Russia) and Niki Tzavela (Greece) discussed developments in the energy map of Europe and considered how this would impact on SEE. Russia will continue to play a major role in energy supply in the region, even as the EU tries to diversify its source of supply and improve its energy security in the process. ‹

THE SECRET

Formula of Communication

SEVENTH GENERATION OF GRADUATE STUDENTS Comment by

DIRECT MEDIA

The DMA students have passed their final exams, defended their graduation theses and proved yet again that they possess marketing and communication knowledge and undisputed talent

or the seventh consecutive time, Direct Media Academy, an educational development programme created by the Direct Media system, traditionally took place in a different country this year – Croatia. How can we transform traditional advertising? Have we learned everything there is to know about content management? How do we use the brand language and neuro-scientific technologies in marketing? These are just some of the questions that DMA students were given answers to. In the beginning of year, Direct Media selects the most successful employees for a three-day seminar conducted by the Agency’s development education centre. After a series of lectures, the students test their knowledge and are given an opportunity to demonstrate what they have learned in a very short amount of time. Arrival of a new

brand on the market, repositioning of existing brands, targeting, re-targeting, creating and advertising content, and a brand new approach to using the media were the tasks that DMA students had to tackle in less than 24 hours. “We live in the time in which branding concept, advertising and communications have never changed so quickly. In order to be successful at what we do, we need to change our approach to work almost every single day”, says Mitja Tuškej, Director of Direct Media Slovenia and one of the long-standing lecturers at the DMA. „If co-creating is magic and if we agree that conventional advertising is slowly dying out, than we have to change our state of mind and start working in a completely different way. We have to constantly tap into new types of creativity and this is what we have been teaching our students at the DMA this year“, Tuškej explains.

The leading regional and European economy, semiotics, strategic branding, digital marketing and psychology experts were the lecturers this year

The leading regional and European economy, semiotics, strategic branding, digital marketing and psychology experts were the lecturers this year. Macroeconomic analyst from Erste Bank, Milana Deskar-Škrbić talked about the economic potential of Southeast Europe. The founder of Kupujemprodajem. com, Bojan Leković came from the Netherlands especially to talk to the DMA students about the ways in which IT paved the way for further development of media, and the look of advertising when print media go completely digital and when TV programmes transform into mobile applications. Executive Director of the Digital Communications Institute from Belgrade, Ana Mirković taught about personal branding on social networks and explained who had the key role in development of a personal brand on social networks – us or people who follow us. Creative leader at one of the most renowned global agencies Hasan&partners from Finland, Tobias Wecker gave great examples from his own agency while reminding of the famous Ogilvy’s quote that “The customer is not a moron. She’s your wife.” as the baseline for marketing campaigns. President and co-owner of Valicon, Zelen Batagelj presented the results of a research on the use of neuro-scientific technology in marketing, and demonstrated what kind of campaigns really attract consumer

attention and cause an emotional reaction. Anthony Mathe, a semantic brand auditing expert who lives and works in London, spoke to the students about this topic. Speaking about branding as Achilles heel of today’s advertising,, Mr. Mathe underlined that very little was known about brand semantics and that that area was crucial for consistent and successful brand communication. Emotional intelligence expert, Tamara Tomović spoke about emotional intelligence skills, and the way in which they could be developed to contribute to the success of both individuals and organizations. DMA party was also held this year as a great end to this threeday gathering of advertising professionals from the entire region. In the year when Direct Media celebrates its 15th anniversary of successful operations, the company celebrated the completion of yet another successful Direct Media Academy in the picturesque surroundings of the nearby castle with the message that it would continue investing in its people and business. THE AN SWER

EDUCATION FORMULA Direct Media Academy continues to invest in its people and business.

THE SECRET

Formula of Communication

THE AGENCY OF THE FUTURE

I N T E RV I E W

The thing I hear often is that we do high quality stuff, and that we do it consistently

e were pioneers in digital and amongst first to offer fully integrated approach to communications. Executive Group is an agile and forward looking organization constantly searching for better ways to run our business and deliver exceptional service to our clients. How do you maintain that quality in the market that we often hear is growingly turbulent? › We sustain the quality of our work by attracting and developing top talent at every level of our organization and in every service line we offer. We are only as good as people we have. This is a daily task for us, to help our people to grow, their knowledge and skills. It’s by far the biggest investment we make in our business and there is a direct correlation with the success we produce in the market place. How do you ensure that each of your many clients is served equally well? › To each of our clients we are, first of all, a thought partner. For us, this means that we are advisor that helps our clients improve their business, overcome challenges and realize opportunities. In order to succeed, we have to know our clients, their industry, business model and brand. We have to, not only respond to their communications needs, but also to be proactive and anticipate their marketing and reputation challenges. Where is Executive Group today compared to 2002 when you started?

DA R KO M AT I JA Š E V I Ć Managing Director of Executive Group

Our goal is to keep growing in every sense of the word THE AN SWER

PEOPLE THE SECRET FORMULA We are only as good as people we have. This is a daily task for us – helping our people grow. It’s by far the biggest investment we make in our business and there is a direct correlation with the success we produce.

› We have come a long way. Today we are a team of over 80 people serving over 30 clients in 7 countries of the region. In the last ten years we have recorded double digit (year-on-year) growth eight times and we do not intend to stop. This year alone, we have 15 new clients. We are servicing clients that have invested over 4 billion euros in the region over the past 15 years, including major international brands present in Serbia such as: Philip Morris International, Vip mobile, Erste Bank, Nestlé, The Coca Cola Company, Carlsberg Serbia, AmCham Serbia, McDonald's, Novartis, MasterCard, Delhaize, Lactalis, LG, Sony, as well as some of the most successful Serbian companies such as MK Group, Peštan, Zlatiborac and many others. What are you most proud of in the development of Executive Group? › I am proud of our people! We recruit and strive to keep the best talent, making the best of them partners in the company. Executive Group alumni hold top management positions in leading corporations and not only in marketing and communications functions. I take personal pride in the fact that we began as a garage startup in 2012 and have been fully independent ever since. We have, despite, or because of it, become one of the market leaders in the region. You have mentioned that business model of the com-

munications agency is changing. In your opinion, what will an agency of the future look like?

› The clients and the brands are changing, the consumers are changing, and above all, media and technology is changing. Communications agencies have no choice but to adapt to these changes or perish. The agency model we have known so far, the big, the slow and the silos thinking types are no longer. As Marc Pritchard, Procter & Gamble Chief Brand Officer has recently put it in his message to agencies: "Frankly, your complexity should not be our problem, so we want you to make that complexity invisible", the future is in the simpler but more versatile model. This means that we are able to service all of the client communications needs with the minimum complexity. As for the core business, we still expect that the strategic approach is a must, except that now, with all the data available, we have an ability to tap into the best of insights. Finally, one thing I don’t expect to change much is that generating an amazing, innovative and original creative ideas and content will continue to set apart industry game changers from the mediocre agencies. As for being channel agnostic, I do not see it as the future. It is already a must for us. For our clients, we create big ideas that we meticulously implement through digital, PR, public affairs or adver-

tising, or, as most often is the case, we seamlessly integrate them through all the channels. What are the biggest challenges of communications industry in Serbia? › The two main things I see as key challenges are: the lack of courage and scarce talent. Often we hear complaints of the size of Serbian marketing budgets. But, it is not the size of the budgets that is the problem, it is what brands do with them, or to put it frankly, how bold both brands and their agencies are to break with a comfortable and more traditional approach and expand boundaries of their communications. In order to do this we all need amazing people. Not only the people with knowledge and talent but also people with vision and risk-taking behavior, and these are the most difficult to find. How do you see the future of Executive Group? What are your goals? › To keep growing in every sense of the word. We will continue to grow our people and our capabilities. In the process we also hope to help grow the market in the region. We already have a few clients from the EU and the US that engage us on their global marketing and communications works stream. We will certainly do more of this with the objective to overcome physical and geographic boundaries and serve clients all over the world. ‹

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Formula of Communication

WELL INFORMED OPTIMIST I N T E RV I E W

If ‘evil’ agencies that ‘make a lot of money’ disappear, local brands will, unfortunately, follow suit

“I

f we are talking about the future and you ask me what is going to happen, I have to be totally honest and say that our and couple of other agencies are the last Mohicans who can still remember how things were done and can compare ‘then’ to ‘now’. “ We are talking to the founder and director of Grey Agency in Serbia, Marin Šimurina about globalization, the agency’s jubilee, digitalization, trends and latest developments in the communications industry in Serbia and the rest of the world. This year you are celebrating the 20th anniversary of the agency’s inception. What can you tell us about the agency’s activities in the last two decades? › How can I sum up all the changes that happened in the last two decades in a single sentence?! A lot has changed… For instance, 20 years ago, the Internet was in its infancy, video material was sent via courier service, and the approval of cost estimates used to come in by fax. Everything has become incredibly faster since then. Agencies used to live off the socalled creative fee which was actually a percentage of cumulative media costs. And their success directly depended on the success of and an investment in a brand. On the other hand, international teams used to cooperate much more and there was a serious approach to localization of global creative solutions and cre-

ation of local solutions. Today, everything is done much faster, and, I am sorry to say this, quality has gone down. Campaigns are leaning too much on the solutions devised for other markets, and domestic companies are more focused on cutting back on costs rather than long-term development of a brand. Everything is done ad hoc and there is no longterm strategy or partnership. Agencies are replaced more frequently than office suppliers. Every new generation of agencies has its own view of what a brand is and how problems could be solved. Everybody claims that this boosts competition and that it is a positive thing. Well, I am not too sure about that, especially when they change their business partners for the reason that “the other agency costs us less”. In our business, cheaper doesn’t necessarily mean better. Of course, all of this affects our agency too, as well as all other agencies on the market. Also, all of this resulted in local media being on the verge of profitability, local production becoming almost extinguished, creative agencies trying to cut down on costs by constantly replacing staff and domestic brands slowly but surely disappearing. If ‘evil’ agencies that ‘make a lot of money’ disappear, local brands will, unfortunately, follow suit. Somebody might argue that I am too pessimistic but I have to reassure them and say that I am, unfortunately, a well informed optimist.

MARIN Š I M U R I NA Founder and Director of Grey Agency

What are the most important market trends in our region from your agency’s perspective considering that you operate in several countries? › As I said earlier, the most important trends are cost reduction and digitalization. In short, digitalization has resulted in new communication channels which are hungry for content and new solutions with the end goal of boosting business. The main question is how to have quality content that is also brand-relevant at the same time? This is the key to development of all agencies and stakeholders in the near and distant future. How can we create more content that will facilitate better brand preference? Those people who understand what I am talking about know what to do, and those who don’t understand cannot be really called relevant or serious clients and they can do that for themselves. I mean, they can do it with the agencies and individuals that are “cheaper”. What plans do you have for further expansion and acquisition of new clients?

Somebody might argue that I am too pessimistic but I have to reassure them and say that I am, unfortunately, a well informed optimist

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Formula of Communication

The fact that our companies are using statistical data in a desperate attempt to try to prove to us that everything is moving forward is just an illusion behind the real reason of why we export our products › How can I give you a straightforward answer without revealing too much? The only solution that is currently valid is to be better and more affordable but not in comparison to local agencies but in comparison to the agencies that are in our surroundings. If everybody in the world only cares about the price (in exchange for certain quality), how can we, in Serbia, create something that is more affordable and sell that to companies in the UK, the U.S., Germany etc. This is what they mean by digitalization of agencies. What are the biggest challenges on the Serbian and regional market? › As I mentioned previously, I think that Serbian companies are, unfortunately, in for a rude awakening, and I think that this awakening will come too late. The fact that our companies are using statistical data in a desperate attempt to try to prove to us that everything is moving forward is just an illusion behind the real reason of why we export our products. Regional manufacturers and retail chains from Croatia and Slovenia use products from Serbia as a cheap alternative to the products from the EU. They have created the so-called private label brands and products on a grand scale which completely impede the development of local brands and hinder the profit margin of local producers. When local producers are left without opportunities to do business, these private label brands are just

going to switch to products from other countries. We’ll see! Oh, yes, and this is called globalization. What does it mean to you personally that you work in one of the most awarded advertising agencies in the world? › Every award is also an individual award for the agency that received it. The good thing is that our Group appreciates not only the financial results but also creative ones too. Agencies are compared by their creative solutions and the way in which they deal with clients’ problems, not by how much they earn or how big they are. This operating principle creates enough room for our agency to offer its services abroad too. How much does your industry contribute to economic development and what can be improved further? › I think I have already answered that. Unfortunately, Serbian economy does not comprehend the importance of local creative agencies. Most of the company executives are occupied only with short-term results and that’s why we constantly have sales, trade marketing activities and like. There are very few people who take consumers’ preferences, brand loyalty and creating the perception of added value seriously. I won’t even go into managing brand portfolio. Everybody’s timeframe is a year or two and then they rotate. How can we improve this? Well, look at the most suc-

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BUSINESS PARTNER FORMULA Treat your agency as a business partner, and not as a commissioned contractor.

cessful companies in your industry and how often they change their agencies and business partners. Treat your agency as a BUSINESS PARTNER, and not as a commissioned contractor. What are Grey’s secret communication formulas? › We are very open with our clients. We say what we think. That’s why some people like us and why we have a long-term cooperation with them. As for the other group, they will just switch to another agency because we are ‘expensive’, you know. ‹

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Formula of Communication

IMPORTANCE OF BOTH, IDEAS AND NEWS I N T E RV I E W

was lucky enough to have worked both in the media and agencies, and this experience-based knowledge has opened many doors for me. Without blowing our own horn too much, I have to say that our profession is constantly evolving, educating and keeping up with trends.

You have been in the media and communications world for two and a half decades and you have worked in the Citibank. How can Serbia showcase its expertise and know-how? › The first thing I would like to underline is my experience from working in London with multi-national clients, i.e. the synergy between the media and PR. I have always been advocating the idea of everybody working in communications spending some time in an editorial office and feeling what “other side” needs. We have fantastically creative people and great communication professionals in Serbia. We are lucky enough to be able to exchange our experiences with our peers from the region and from the so-called more developed countries. So, the potential is definitely there. If I compare London to Belgrade, I can say that we are missing a market, or rather sufficient number of clients willing to explore and be brave together with us. Then there are smaller budgets, fear of change, and common belief that customers never change their habits. That’s why I always try to commend and reward innovative campaigns, thinking out of the box, and participation in panel discussions

M A R I NA G R I H OV I Ć Director of Headline Agency and co-owner of DKit Agency

I believe that the era of integrated campaigns will continue and that there will be more presence on social networks

No trend is important if we don’t have good ideas and good news

where we exchange experiences, as well as being members of jury when best communication projects are awarded.

line partnered with the DKit Agency two years ago. Now, we are growing together in this particular communication field.

digital for further propagation. But it was the idea, in the first place, that lead to everything else developing generically.

Are there any communication areas that are undeveloped in Serbia? › There isn’t enough room in Serbia to develop financial PR (you have to have a developed stock exchange in order to have there), or enough room for serious lobbying like in the European Parliament. It rarely happens that the companies, which are direct competitors but have the same market interests, get together and campaign for changing certain laws, opening or closing of the market, or implementation of standards. This is common practice in Europe and this is what pushes them forward compared to the Serbian market. I would also like to point out that such lobbying has nothing to do with corruption or political interests, but it is done with the big picture and interests in mind. That’s what we lack in communications sector and in everyday life.

You have recently participated in a panel discussion and were a member of jury at the Kaktus Integrated Communications Festival. How much has changed this year compared to the last one? › Although, last year was about one campaign, there were two or three others that introduced certain novelties and got the attention of communication specialists. This year, there are more successful, properly integrated

What trends can we expect in 2017? › We all talk about content, but I maintain that we have always had content which just changes its form and will continue to change. However, in our profession, trends change quickly just like in IT. We are all going to have to widen our activities, cooperate with our peers from other agencies more closely and get thoroughly acquainted with new trends. That’s why having frequent conferences is an important thing and we should always set aside time for them. In conclusion, I will reiterate what I said earlier, because I am old school after all. It is important to have good news, and to know how to communicate well first with our colleagues and then with our clients, media and consumers. If we do this, we can adapt to different communication channels.

Everybody is talking about the digital era and technological changes. How successful are we in this respect and how important is personal development in this? › This is a profession where you cannot take a break because new things are constantly happening. The Internet and all its channels no longer represent the future, but the present. The entire communication is now moved onto digital networks which is the reason why Head-

campaigns where ideas are not modified to suit just one communication channels. However, the best and bravest ideas are still waiting to be implemented because clients still fear a crisis. That’s why I don’t want to single out our campaign but the one that became legendary in only 24 hours and that is the “Brad is Single” campaign. What was so special about this campaign is a fast reaction, print media as the first choice of a communication channel and then switching onto

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THE IDEA THE SECRET FORMULA It was the idea, in the first place, that lead to everything else developing generically.

What is your ‘secret formula’ of communication? › - I think that my last sentence partially answers your question. The biggest secret is communicating well within the agency itself and with my wonderful co-workers because without them we wouldn’t not be where we are today, survive on this market for almost a decade, and develop new stories. Start with your own ‘house’, and everything else will fall into place when it is supposed to. ‹

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TRUTH WELL TOLD IS BEHIND OUR SUCCESS I N T E RV I E W

T I JA NA Š KO R I Ć TO M I Ć Executive Director I&F McCann Grupa

Secret formula in a single sentence

tices in our agencies. And, last but not least, we want to present to the business community the benefits of investments in Serbia and our region.

What does this acquisition mean for your operations and positioning on the market? › Our business philosophy is based on growth. And by that I mean geographical growth, growth of services, knowledge, clients and, of course, people. When we discussed growth internally, we always wanted to spread our services beyond our region. After 20 years of cooperation, IPG and McCann Worldgroup were satisfied with what Srđan Šaper and our team had done in Southeast Europe, and so they decided to offer I&F McCann Grupa a similar business model in Scandinavia. The idea is to effectively interlink the work and experience of our agency in the south and the north of Europe. A lot of things connect us and we see our opportunity to advance our services in branding, strategy and design, having a diversified talent pool, and also to work more on implementing successful Nordic business prac-

In this time of the globalisation of industry, how do you measure relations between global and local market approaches and what will your Scandinavian experience bring you in this regard? › The work principles are the same as they are in every other McCann agency anywhere in the world, and this is our advantage. Our strategic approach is to combine the best of local and global knowledge and experience, and we implement this in our everyday business. This is the only way to truly succeed and create a team that will always respond successfully to our clients’ needs, whether that be in Serbia or, for example, in Sweden. Our Scandinavian experience can only help us grow further. We have always aspired to be the best, not the biggest. With the expansion into Scandinavia, we obtain new services that we did not have in our portfolio, such as McCann Health, a specialised agency for healthcare, or the Scandinavian Design Group, which is recognised for its outstanding design solutions. With their specialised approach to certain segments, we are becoming very competitive and are

he news that I&F McCann Grupa recently acquired a business in Scandinavia, thereby becoming one of the biggest partners within the McCann Worldgroup, sends a strong message that creative industry can be a one of the drivers of economic growth and is a crucial and strategic resource for raising competitiveness within the knowledge-based economy.

We have always aspired to be the best, not the biggest

FORMULA

THE BEGINNING WHAT ARE THE SECRET FORMULAS OF COMMUNICATION FOR I&F MCCANN GRUPA? A single sentence which we’ve had since the beginning of McCann Worldgroup, over a century ago: “Truth well told”.

able to offer companies a service that has a deep understanding of the trends in specific industrial sectors. Moreover, we are able to offer a “one-stop shop”, through which we can respond to the needs of all of our clients by way of an integrated service. To what extent is your industry recognised in Serbia as an export force of the country? › In Serbia and the region, the potential of the creative industry is not recognised nearly enough. Creativity is a driver of economic growth and is a crucial and strategic resource for raising competitiveness within the knowledge-based economy. For this reason, we are working at the regional level, together with other agencies and associations, to promote the potential and contribution of the creative industry. The advertising industry is the main engine of growth for the cultural and creative industries in Europe, both in terms of revenue and the number of people it employs, and it can be a powerful growth engine for countries in the region. Growth of the cultural and creative industries offers Serbia and the other countries of the region the possibility to integrate much more quickly into European economic and cultural flows, because success is based on innovation and creativity, and ex-

porting services with high added value, not on a cheap workforce and exports of raw materials. How much could the creative industry contribute to the growth of Serbian GDP and what experience and expertise could I&F McCann Grupa offer in that respect? › At the global level, data from analysis conducted by E&Y shows that the Cultural and Creative Industries (CCI) contribute 3% to global GDP and 1% to employment. In our country, according to the latest data from the Serbian Chamber of Commerce and Industry, the creative industries contribute 4% to GDP and represent the fastest growing segment of the Serbian economy, with 65% of exports growing in the period from 2008 to 2012. Most importantly, they account for 4% of total employment. I am proud that I&F McCann Grupa employs over 400 talented and highly-educated people in the Southeast Europe region, who could work anywhere in the world but have decided to work here. With our agencies in the region, we collaborate with numerous local brands and contribute with our work to their recognition on foreign markets. All of this confirms the importance of our industry, which is kick-starting other economic branches and is an important stimulus for overall development. ‹

Formula of Communication

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IDEAS, INTELLIGENCE AND INTEGRATION COMMENT

Engaging and growing the best talent for diversity of skills, acquiring greater consumer knowledge and finding most appropriate structural fit is our priority and our pathway to improved quality, agility and relevance – all much needed in order to be genuine partners to clients and creators of ideas and services people will be fond of

O L I V E RA P E R KOV I Ć Managing Director of McCann Beograd

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CHANGING THE SECRET FORMULA In conclusion how quickly and smart we adapt to change is important.

ignificance, richness and relevance of creative idea are the constant in our business. Everything else changes throughout time. Along the change agencies and clients search for best cooperation models, structures, teams, individuals in support to those great ideas. Importance of talent is essential for all of us, yet the definition of best talent also changes. Whether the change in business originates in evolving technology and media, whether from contexts we work and live in, or market conditions we operate in, the talent nowadays is redefined. Advertising goes beyond advertising with the power of technology, and with the power of brands that can initiate and bring about change. Along that notion talent forces go beyond standardly recognizable art directors, copywriters, accounts and planners. Accounts in a way will operate as producers, “arts and copies” are best joined with people of various professions – fine or performing arts and beyond. Diversity that comes from culture, age and various roles in life is needed to ensure the richness and depth of the ideas and effectiveness of execution. Communication planners will become PR strategist, social strategists, and brand planners - architects of that brand or advisors to clients’ marketing teams. Diversity of skills is our priority both in terms of having that talent inside the agency and in the way we work in partnering up with external talents. Another field both agencies and

Surely everything goes quicker nowadays and effectiveness is the driver

client have to win in is consumer knowledge. A lot has been said on data marketing and brands that due to nature of their customer centric business models acquire so much inteligence on their consumers, therefore so much leverage. Winning with customer understanding is another priority and that is also a constant in our business. The way we go about acquiring that knowledge changes and also what we do with valuable information on their needs and behavior patterns. All should be aimed in creating services, products or experiences that add value to their everyday lives – so we move away from messaging to consumer into providing much needed value, convenience, help or fun... What we witnessed in recent years when it comes to acquiring data are acquisitions of data management companies and investment in analytics platforms and tools. We work in most convenient age, and technologies are there to simplify our lives and work, yet the complexities of managing abundance of information, as well as sensitivities and smartness in selecting right insights and targeting requires great skill. New circumstances require new skills and ongoing education and we all find ourselves in trying on and searching for right modalities in work. How we structure our business and approach in light of the idea richness and consumer relevance is final focus point. Truly integrated agency or popularly called “one stop shop” is certainly one trend we are wit-

nessing more and more and following the restructuring and centralizing efforts from clients’ side and creating matching model from agency side is one of the undergoing initiatives. Whether we have a specialty agency model or truly integrated, both models are valid and depending on the direction agency takes the talents are acquired or engaged. Direction certainly reshapes the way we work, engage, think and employ to prepare adequately for it. Throughout last several years McCann system has expanded in our region, as well as into territory of Nordic countries. The exciting opportunities for qualitative development, for sharing and enriching knowledge, learning from different cultures and experiences are in front of us. This touches on these important points – the importance of talents needed, the diversity from contextual and cultural stand point from which we can benefit, as well as opportunities to form different centers of excellence and provide best practices and learnings from different markets to our clients. In conclusion how quickly and smart we adapt to change is important. Surely everything goes quicker nowadays and effectiveness is the driver. There is no perfect model to simply copy, but it remains on agencies to articulate in close cooperation with clients. Winning in the above mentioned three areas is our priority and our path to true loyalty in partnerships and true value we want to create. ‹

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Formula of Communication

JOIN FORCES FOR LOFTY GOALS

cation channels and tools, as well as strategies that we have created for them. We are available 24/7 to our clients and they know this very well. Monitoring is carried out all the time and our work principle is simple – we are always here for you. We are about to present our brand new services of video animation and producing video content. We are very excited about this and we cannot wait to show you the great things we have prepared for next year.

I N T E RV I E W

For us, our job is our love, passion and the driving force New Media Team is celebrating its 7thanniversary. What sets you apart from other PR agencies on the very competitive market? › We work to come up with solutions that are different and better, where the details are both a trick and a pearl at the same time. We always try to surpass ourselves and constantly develop. I have never encouraged our team to be something special. All I want from them is to work, love their job, come to and leave work with a smile on their face, be professional, pedantic, creative and utterly committed to clients. How much today's clients understand the increasing complexity of PR and how willing are they to accept PR as a part of their external and internal communications? › Our relations with clients are a two-way street. We openly and comprehensively present them our vision of the road that we have to cover together and the results we can achieve together. When we join forces and commit ourselves to overcome the perceived challenges, than achieving very lofty goals becomes quite attainable. Sometimes, the goal entails bolstering the existing or positioning of a new brand, product or service. Sometimes it inolves improving client's reputation or increasing the customers' trust while sometimes it all boils down to improving the internal communication or their presence on social networks. Companies and individuals are becoming aware of

the fact that technological revolution did happen and, on one hand, made it possible for us to build our own communication channels and our independence, as well as to strive to create interesting content that will attract many people. On the other hand, 40% of our population uses social networks to protest or express their dissatisfaction. It seems that this has prompted companies to work even better and to be willing to change. What does 'telling a story about the client' entail today? › It means to attract attention, to create content that will be attention worthy both for you, me, my friends and mothers, if they are the target group. Do not create content that you would not read or see while waiting to have your hair done at the hairdresser's. Be attractive, put real people in the middle of the story, imagine and play because every story is interesting if you can't tell how it ends within the first five seconds of hearing about it. Bearing in mind the agency's impressive and versatile portfolio, could you tell us how did your clients' needs affect the development of your internal resources? › Business is life. Everything happens fast and everything changes. Let me give you a great quote here: „It's Not the Big That Eat the Small, It's the Fast That Eat the Slow”. We are developing by closely paying attention to the needs of our clients, or rather by adapting the communi-

THE SECRET

BE BETTER WE ARE A TEAM We breathe as one, we rejoice, we spend time, laugh, learn and create together, and we always try to be better than before.

A L E K SA N D RA RA D U J KO Managing Director of New Media Team

What are New Media Team's secret communication formulas? › First and foremost, we are a team. We are constantly searching for ideas that would first leave us and then our clients breathless. When we were working together with our wonderful client Jelena Đoković last year on creating Original magazine, when we designed clothes for the patients with rheumatoid arthritis and showcased them at a fashion show where they were the models, when we created the Wanagive campaign with UNICEF and Wanabe magazine, or when we launched our own, internal magazine Pharma Swiss, we always had one thing on our mind – to be creative, different and to have everybody talking about it. We have launched dozens of such campaigns in the past and we are proud of every single one of them. Which services does New Media Team provide? › The Agency provides communication, criris, corporate, brand and personal PR services in all industries. We have a team of designers who creates visual identity for our campaigns and all materials that we produce, an event team which recorded a fantastic growth this year with over 20 big events that organized for our clients, a social network team that creates content and campaigns on the channels that our clients use, and a creative team that is dedicated to making every single appearance of our clients as interesting as possible. Even when we are entrusted to do a simple presentation, we always try to make it unique, different and dynamic because every contact we make with the public and every appearance sends a certain message. ‹

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Formula of Communication

GOOD IDEA STILL MOST IMPORTANT Agency Nova PR aims to introduce a new way of thinking and a different approach to clients

lIn the next few years, the importance of PR's role will correspond to the size of marketing budgets. Ideas are still going to be the most important in winning over clients' trust because only ideas can overcome limitations imposed by different crises which, I think, are now behind us. You say that PR is not only a profession but a lifestyle too. What does this mean in practice in terms of how committed is your agency to clients? › I was referring to the lifestyle of everybody, meaning the ordinary people too, and not only the people in communications. This is particularly prounounced in the business world because the communication, the language we use, the way we communicate, our knowledge, contacts and ideas are what we 'sell' and present to our clients and business associates. This is exceptionally important for us, as a PR agency that uses ideas and communication to build, boost and nurture the image of the companies we work with. By having clients in the forefront of our mind all the time, we are also thinking about ourselves. Their PR is also our ID. We live in the time when people are becoming increasingly jaded about advertising and often think that spinning and PR are one and the same thing. Where

do the ethical limits of PR lie and how far-reaching can good PR be for clients? › When your task is to raise the value of a certain product or a company, to position it, in a way that it becomes more visible and to develop emotional relations with consumers, which is highly desirable, than the tools you are going to use are means that will make this happen. In its classical sense, PR is certainly not spinning although spinning does have its place when it comes to reaching the desired outcome in crisis situations and crisis communication. PR rules are wellknown and respected and it is not in anybody's interest to have to further explain the negative consequences of something that goes against generally accepted views. Ethical boundaries are an integral part of the PR rules and of ourselves, while the far-reachng accomplishment of PR is having mutual respect (client-agency), listening closely to clients' needs and interests and having ideas, which are always the most important. How much have the PR tools and the approach changed in the time of integrated communications and how applicable are they in Serbia? › If we consider the general definition which says that integrated communications are a planning concept that recognizes an added value of a detailed plan which

I N T E RV I E W

B O BA N S PA S O J E V I Ć New Business Director of Nova PR

Like its name, Nova PR is full of new ideas and has a fresh approach to clients THE AN SWER

ALL TOGETHER FORMULA One of the best PR professionals who runs our agency, professionals with knowledge and experience, and new blood, making the secret.

estimates the strategic roles of a series of communication disciplines and combines them with the intent of ensuring clarity, consistency and the maximum effect of communications, the PR tools, as a part of this all, have not changed, if that is the right word, but rather they have adapted. Yes, the usual PR tools are still applicable because target groups of almost every single campaign are very diverse. We have target groups that understand the language of the new era, and those who do not. I think that we should not disregard Serbia as a market because this is a country where 70% of people use the Internet. For the sake of the argument, let’s say that at least a half of them are involved with all modern communications channels. In terms of numbers, this is sufficient for integrated communications and all implementation tools to be applicable. Still, we should not disregard ‘the classic’ communication channels which are still the main avenue to get the message across. What PR trends do you envisage in 2017? › I think that next year will be all about digital, in a sense that its influence and volume will grow, and, subsequently, PR will certainly have to adapt to that. Actually, I think that this will be an ongoing trend even after 2017. Of course, all other communication channels used to get the PR

messages and content across are going to be used to their full capacity. The importance of PR's role will correspond to the size of marketing budgets because, if anything, the leading trends have shown that everything is connected and mutually dependent. Ideas are still going to be the most important in winning over clients' trust because only ideas can overcome limitations imposed by different crises which, I think, are now behind us. What secret PR communication formulas does Nova PR possess? › Like its name, Nova PR is full of new ideas and has a fresh approach to clients. Most of our staff are young people who, although different from each other, are working towards the same goal – boosting the value and the image of the agency in order for our clients to be satisfied. satisfied clients, satisfied agency. All formulas are individual, and yet interconnected into something that generates a good end result. One of the best PR professionals who runs our agency, professionals who have enough knowledge and experience to manage things in the best possible way, and our youngest employees who are „new blood“, all together are making the secret which, combined with the formula for success, brings about the end result which is that we are at the very top of the PR business. ‹

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ART IN SERVICE OF BUSINESS Comment by

OVAT I O N B B D O

very advertising agency’s mission is to fight for the position in which it could be able to set new trends and create standards applicable to the market in which it operates. In that sense, efficiency depends on how capable and how fast we are in answering clients’ needs, using standards we have primarily set to ourselves. OvationBBDO sticks to the “Learn from the best” formula, completely aware that it would not work without creating productive and efficient in-house eco-system. That’s why “The WORK. The WORK. The WORK.” is our slogan.

BREAK THROUGH THE “SEEN ALREADY” Comparing to developed European business environments, Serbia and other Western Balkans countries are small markets, but competitiveness between advertising agencies is on a high level. What we’re trying to offer to the market is supply diversification, which should, in the long term, create opportunity for clients and brands to step ahead of the competition. What we least like to hear or read when the brief arrives is “we want this or that kind of campaign” or “we want a campaign you crafted for that other client”. On the contrary, whenever there’s an opportunity for that, we’re trying to offer fresh approach with at least a touch of risky, unusual solutions. Whenever there was an opportunity to actually execute that kind of campaign, client ended up with ceiling-breaking results. In the past few years, we’ve had a vast number of examples that prove this thesis (see some of that on our website - ovationbbdo.rs/ allwork). No matter how strict the industry is, there is always space for

stepping out of the usual concepts, preconditioned by creating good chemistry with clients. Our privilege was to have the opportunity to launch some brave campaigns for clients from financial services, pharmaceutical and other “rigid” industries, which immediately resulted in boosted sales. These campaigns were recognized both by the customers and the profession.

Advertising is the art creation process in service of needs of our clients clients’ side. On the other side, this market will face social and communicational earthquake as soon as Millenial Generation takes highest consumer and decision-making positions and Generation Z (demographic group following the Millenials) grows up. Pictures we have seen at the latest Balkan tube fest in the packed Sava Centar theatre speak more than words – thousands of young adults hysterically saluting to their Youtube idols are a clear signal of upcoming market shifting. Answering demanding consumer needs of these generations will most certainly be the biggest communicational challenge in future years. Being aware of that, we in OvationBBDO are developing our digital capacities, so that we could be ready to ride that wave instead of letting it drown the industry.

ART APPLIED FOR BOTH BUSINESS AND SOCIAL CAUSE We find it very important to explore the existing scope of opportunities, accept specific client’s demands, utilize that experience and then craft the unique tailor-made solution for every brand separately. From OvationBBDO perspective, advertising is the art creation process in service of needs of our clients; art that never goes out of comprehention sight of client’s potential consumers, nor it stays in the mud of mediocrity. Merged with strong strategy net designed to answer key insights of the target group and supported by prudent communicational channels selection, this applied art brings multiple benefits. While it helps business boost for clients, it raises standards for the whole advertising branch. On larger scale, it indirectly helps society development step by step, making customers feel more convenient in everyday life. Having that in mind, we are approaching to every project convinced that we’re doing the right thing in every level of human interaction.

THINKING DIGITAL Our market is longing for adequate use of online channels and that’s something that should be thought about on both agencies’ and

we are approaching to every project convinced that we’re doing the right thing in every level of human interaction

IT’S ALWAYS ABOUT INDIVIDUAL Although we find digital department extremely important, what we are trying to nurture in our corporate culture is a simple approach that all our employees are free, creative and responsible, first of all - to themselves, then to their colleagues and, at the end of the day – to our clients. Self-esteem is in the root of mutual respect and that is something we in OvationBBDO firmly believe. That is why we are trying our best to invest in fresh talents with different backgrounds, integrating them in existing settings, permanent specialization and education. This works both for our employees and the people we mostly cooperate with – our clients. ‹

THE SECRET

STEP AHEAD DIVERSIFICATION What we’re trying to offer to the market is supply diversification, which should create opportunity for clients and brands to step ahead of the competition.

THE SECRET

Formula of Communication

YOU CAN ALWAYS ACHIEVE MORE I N T E RV I E W

I think there is enough room and business for anyone who wants to work and loves this ‘crazy’ profession of ours

here are we and where we should be? How does crisis affect development of creativity and increasing workload and how important is education and acquiring new skills which use, along with experience and a desire for new challenges, can eliminate any crisis? These are the topics that Director of the Red Communication Agency, Danijela Popović Jurić is talking about in the interview. You have managed to position yourself as one of the most important market stakeholders in a very short amount of time. What contributed the most to this - the slowdown of the established agencies, new clients arriving to the market, or something else? › In life, you often come to an intersection and ask yourself what should I do next. You reach a certain plateau and even if you ask yourself can you do more, you know that you can. You realize that you are missing that initial rush of adrenaline that had moved you before, or the spark that will start a new fire that will pushe you forward. I think there is enough room and business for anyone who wants to work and loves this ‘crazy’ profession of ours. Everything is a challenge in life. It all depends on how badly do you want new challenges and new ‘fires’. As a matter of fact, it is quite simple. Just like in life, we like to complicate things. Work, order, discipline and love – these are the most important things. That’s it, nothing more to it. If you are diligent and loyal, and if you love what you do, people will recognize and want that. That’s why they pick you instead of someone else.

How do you view crisis from the point of creativity? Do you think that the crisis opened a new door by a force of circumstances, or did it hinder a creative ascent on our market? › In 2008, at the onset of the crisis and its spillover into all industries and all countries, I think that marketing was hit the hardest and that companies were very quick to get rid off marketing budgets. Although money disappeared from the market, that time was the most creative period in our recent marketing history. Agencies tried to outdo each other with creativity and, by doing so, prompt clients to assign a small portion of their funds to them. Marketing ideas had to be impossible to refuse. In terms of PR, the crisis brought a lot more work to us. It is all very simple, really. Every message that had been communicated via advertisements, now switched over to PR. Actually, I think that most PR agencies on this market grew incredibly during that period. I believe that the crisis brought challenges to all of us and pushed us to find out just how creative we could be, as well as to think in which way we communicated with the increasingly impoverished consumers, deal with reduced budgets of our clients, test us just how much could we ‘play around’ with social networks, taught us how to present clients to the media which had become increasingly critical, and many other challenges. How can we remain successful in the sea of change that has washed over the industry here and globally?

DA N I J E L A P O P OV I Ć JURIĆ Director of Red Communication

Everything is a challenge in life. It all depends on how badly do you want new challenges and new ‘fires

› We need to learn, learn and learn. Education should never stop. We need to invest a lot of effort and hard work, and develop the know-how, technology and the way we communicate. Only by doing so, we can embrace fast changes that are happening in all segments. I know that Serbia is a breeding ground for smart and creative people, and I am proud of the fact that our ideas have been used by some of the biggest global companies at their quite developed markets. It just goes to show how much we know and can do. What is the secret communication formula of Red Communication? › My wonderful Red Communication team gave an answer to this question. And they are the crucial part of it. Although I sent each and every one of them a test to see what they think, they wanted to formulate the answer together, not individually. So, here it is: „In an unpredictable enviroment, like the world of communications, it is almost impossible to view things through stereotypes. If there were a simple formula (a+b=c) that would be applicable to our everday work, everybody would become a communication expert in a successful PR agency. The main components of the RED formula are rapid action and being well-informed, open, and professional. We listen closely and we speak honestly. Along with creativity and dedication, this is what makes us successful communicators and helps us to achieve our results. However, the most important component is the fact that we do what we love, and that we love each other. This is what motivates us every day to become even better and more successful.” ‹

THE SECRET

RED FORMULA MY ANSWER The main components of the RED formula are rapid action and being well-informed, open, professional and loving.

THE SECRET

Formula of Communication

A FORMULA FOR EARNING TRUST I N T E RV I E W

niversal Media (UM) believes that the job of a 21st-century media agency is to tell a story about a product and make an idea lovable and known to consumers, whilst understanding all of the challenges of new technology. We offer you a tissue at the exact moment when you sneeze. In this time of new technologies and a plethora of information, it is important to understand places, time and context, as well as the split seconds that are important to consumers and relevant to the product being marketed.

THE KEY

IMPORTANT MOMENTS THE SECRET FORMULA To have a better understanding of data, to use technology, to integrate with creative ideas and to recognise small, personal media moments that are important to consumers.

The UM global network of agencies, to which your agency belongs, was awarded this year by the two most prestigious advertising and creativity magazines – AdAge and AdWeek. What challenges does this pose to you at the regional level? › These were awards for the best and most creative media agency, chosen among the entire global network of media agencies. On one hand, we have managed to retain our existing clients, while on the other we gained crucial new clients at a time when trust in media agencies is constantly being questioned. Given that advertisers entrust media agencies with their investments, it is understandable that clients want a reliable partner who is going to control their budget with the utmost prudence and success. Trust is easily broken. However, there is a formula for earning trust. There is a saying that trust equals the credibility-to-reliability-to-empathy ratio, on one hand, and personal interest, on the other. The aforementioned awards prove that we have perfected this formula. In terms of our region, we are proud of the fact that the noted trust formula has been recognised by our clients, with whom we have long-term, partner relations.We are also very proud of the fact that UM Belgrade has been recognised by the BalCannes' jury, and we are the only media agency that has made it into the TOP 25 regional projects.

B I LJA NA KO L A KOV I Ć Regional Managing Director at Universal Media (UM)

Having relevant and interesting idea is a general prerequisite and has always been a secret to success

It is quite obvious that all regional agencies have been investing in data processing and new tools. Where is the fine balance between the dominance of numbers and creativity? › UM is the first agency to understand the importance of data, and is also an agency that has been investing in data for a number of years, both in Serbia and the region. We compensate for the lack of industrial data by localising the tools that our network has developed. This means that we invest in research which generates data that is then processed with the help of software. This gives us great insight into consumer habits that are important to our clients. However, the key lies in analysing, understanding and translating data into the moments that are important for the lives of consumers. These moments help us to reach consumers in an unobtrusive way and to achieve desired results. Considering the current economic circumstances, do you find the market in which you operate too small, or is it big enough to find new and interesting clients? › Owing to our regional vision and global network, we don't think of limits and we don't feel distress. Through regional expansion, we have been given an opportunity to do business with clients from different categories and markets and, in that respect, to develop expertise in various segments. We are especially looking forward to the development of e-commerce in Serbia, which is still in its infancy and which will result in higher investments in mobile platforms and online media. This will also make it possible for small and medium-sized enterprises to go digital and become serious advertisers.

We read and interpret data and use it to recognise which motional moments are important in the life of a consumer How can you survive in this industry, considering that we are living in a time when an increasing number of people dismiss advertisements on social networks and usually opt for advertisement-free media? › Having relevant and interesting idea is a general prerequisite and has always been a secret to success. Technology did not change people's basic needs. We still want to have fun, to learn, to be loved and to progress. What is different is that, in today’s day and age, we are doing all of this with the help of new devices and platforms. What is UM’s secret communication formula? › At this time the media has become very unpredictable and belongs to the group of industries that are considered as being the most advanced, along with IT and telecommunications. On one side, all of this creates endless opportunities for us, because we can tell from the abundance of data that people’s exposure to the media is much higher than it was ten years ago. On the other side, it is this abundance of content that causes a short attention span, provides an escape from boredom and keeps people interested for only a few seconds. We believe that the time has come to have a better understanding of data, to use technology, to integrate with creative ideas and to recognise small, personal media moments that are important to consumers, which is the key to the success of any brand today. I would like to illustrate this point by mentioning a widely popular print advertisement by Norwegian Air Shuttle for their flights to Los Angeles, which read “Brad is single again”. ‹