The
SECRET FORMULA OF COMMUNICATION
2018
The
SECRET FORMULA OF COMMUNICATION www.diplomacyandcommerce.rs
CONTENT
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CHALLENGING INDUSTRY REQUIRES MORE CREATIVITY Jelena Gavrilović Šarenac President of the Board of Directors, Serbian Public Relations Association (DSOJ)
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TOGETHER FOR BETTER SOLUTIONS FOR ENTIRE PROFESSION Jelena Ivanović
Executive Director IAA Serbian Chapter
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58 YEARS OF IMPROVING PROFESSIONAL REPUTATION UEPS
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58 YEARS OF IMPROVING PROFESSIONAL REPUTATION Ivana Parčetić Mitić
Founder and CEO, Marketing mreža
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WEB SUMMIT - PLACE WHERE FUTURE IS BORN Chapter 4
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ALWAYS ON THE MOVE Aleksandra Radujko
SPACE FOR FINE COMMUNICATION Nataša Heror
CEO of Heror Media Pont
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WE TRANSFORM THE PROCESS OF CREATING CAMPAIGNS Jasna Dugalić
Deputy Managing Director, Direct Media
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A MIX THAT MAKES A DIFFERENCE Dragana Marković
Deputy Director Drive Agency
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NEED FOR COMMUNICATION IS A CONSTANT Nevena Kurtović
Managing Director Fusion Communications
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WE HAVE NOT LOST OUR INITIAL ENTHUSIASM
SELF-REGULATION – LET’S CLEAN UP OUR OWN YARD! Vanda Kučera
Vice President of I&F McCann Grupa
JasmIna Stojanov
Director General of media buying agency Nova Communications
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THE RIGHT MEASURE OF COMMUNICATION
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Aleksandra Kožul
EMPLOYER BRANDING IN ITS ENTIRETY AND COMPLEXITY Sonja Ćetković
Director of Poslovi.Infostud
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Managing Director, New Media Team
PR & Digital Director, Novaston Marketing Consultancy
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IT’S IMPORTANT TO BE DEDICATED
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SMART
THE AGE OF 'CULTURAL REVOLUTION' Katarina Pribićević
Startegic Planning Director McCann Beograd
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THE IDEA IS THE KEY TO SUCCESS MIRJANA VIŠNJIĆ
General Manager , We media agency d.o.o.
”Color Media Communications” LTD, 21132 Petrovaradin, Štrosmajerova 3 TIN 107871532 • Matriculation number 20887303 Phone: +381 21 4897 100 • Fax: +381 21 4897 126 Office: Vase Čarapića 3/IV/38, Belgrade • 011 4044 960
TANJA BANKOVIĆ Editor in Chief
JOVANA MARKOVIĆ Advertising manager
ILIJA PETROVIĆ INDIGOCHILD Art director
NATAŠA NEŠIĆ Advertising manager DRAGANA RADOVIĆ Advertising manager
JELENA RANĐELOVIĆ Advertising manager RUŽA RISTANOVIĆ Magazine director
ROBERT ČOBAN Director Translation SNEŽANA BJELOTOMIĆ
Print ZLATNA KNJIGA Jagodina, Bagrdanski put bb
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CHALLENGING INDUSTRY REQUIRES MORE CREATIVITY It’s a challenge to understand trends, to work constantly on personal improvement and team development, and to use the experience and apply it in accordance with available contemporary methods
here is a noticeable overlapping in the market, perhaps even the merging of the communications and marketing branch, along with programming, which creates a new communication environment in which younger generations are successfully finding their way. This new creation imposes the need for industries to re-examine themselves and for the existing business models to change extensively. It looks like the change is coming "from below" as a result of the change in communication habits.
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What is your share in the growth of creative industries in Serbia? — Considering the big overlapping among the communications industry disciplines, it is difficult to specify the revenues that public relations generate, but based on this year's Agency Report, compiled by Marketing Network (Marketing Mreža) in Serbia, we can say
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J E L E NA GAV R I L OV I Ć ŠA R E NAC President of the Board of Directors, Serbian Public Relations Association (DSOJ)
Compared to the tools and channels we had available before the digital era, today we can communicate with the target public in a variety of ways
that the business revenues of 37 PR agencies, registered in Serbia, increased by more than 6% compared to the previous year. The Holmes Report talks about the global growth of more than 5%, wiht the total revenues amounting to about $11.7 billion. In short, the need for communication services is growing year-on-year, as does the importance of creative industry.
In which way does digitization affect your sector? Where do you see the benefits and where challenges for your members? How much is your industry exposed to global trends? How many domestic agencies are able to follow these trends, or impose their own solutions? — Digitization came as a surprise to all industries, including communications – from finances and energy to healthcare and agriculture, with all processes going through digital
transformation. Thanks to digitization, we have now a situation where the largest taxi company in the world does not own any of its vehicles, the largest tourist site does not own the facilities it rents, and the largest vendor of consumer goods does not have a warehouse. Digitization has not only changed the economic order, but it has also changed consumer habits. The fact that Amazon is the most visited website in America speaks in favour of the fact that nowadays fewer people are shopping in the traditional way. All this has happened in the last ten years or so, and every change in society is inevitably reflected on communications. The word „communication“ is derived from the Latin word „communicare“ which, in translation, means „sharing“, that is exchanging information through speech, written language or digital communication channels, like today. New trends and trans-
formations are creating new challenges for all of us who are involved in communications. Just like the Chinese sign for the crisis consists of a symbol for problem and opportunity, so the digitization trend is both a challenge for us, as it also creates a lot of new possibilities. Compared to the tools and channels we had available before the digital era, today we can communicate with the target public in a variety of ways, and we can create a fuller, more intimate and better quality relationship with them. Thanks to digitization, today we can also direct messages to the right recipients with a far greater precision and with almost 100 percent success, and we can optimize resources and budgets. Nowadays, we have plenty of choices but there remains a challenge in terms of selecting the right approach and the way of using it. Domestic agencies are very successful in following everything that happens on the global stage and they are able to offer excellent digital analysis, while new services are created in existing agencies because there is a need for data analysis (so-called data science analytics), where ETF experts or IT developers have the decided advantage. Our agencies have a great success in combining creativity and originality, for which they are recognized and rewarded, and in conquering new channels and target groups through digital communication. An integrated concept, that links strategy design, creating content for social media in the service of communication and marketing on digital channels, has proven to be very successful. I am sure that there is great potential in this area, because we have excellent IT professionals and also very creative agencies, with well-designed communication strategies. This is, by all means, a winning combination for the future.
Some researchers claim that each of us are, consciously and unconsciously, exposed to about 1,500 brands on a daily basis
lished forms of corporate communications? — Continuing from your previous question, we can easily deduce that there are many channels / links to end users – from traditional media and direct contact in real world to online media, social networks, applications and virtual reality. This abundance of „receivers“ has resulted in the fact that today an ordinary person receives information that is equivalent to 174 newspapers which is five times more than in the 1980s. Some researchers claim that each of us are, consciously and unconsciously, exposed to about 1,500 brands on a daily basis (namely, the signs on the shops, the billboards we pass by every day, and even the logos that our brain registers on clothing, in magazines or on cups of coffee). These are impressive figures that tell us about how important the role of communication is in today's society but at the same time, they give us a difficult task of fighting for audience attention to hear the messages of our companies. Generation Z has already paved the way for corporate brands, and
this way leads through the experience that engages us, and the added value that the brand gives its consumers. Prior to digitization, consumers were able to express their dissatisfaction with the brand only by refusing to buy it. Today, the consumer's voice can be heard far, and sometimes even louder than the voice of the brand itself. This is the fact that has determined the direction of corporate communications toward developing their own media channels and the need to create their own, authentic story (popularly called storytelling).
What other important market trends can you tell us about? — If we are already talking about the multitude of communication channels, we must mention the fact that the availability of digital channels turns each individual into a more or less powerful individual medium. This phenomenon was created by a large number of influencers, vloggers, bloggers, Instagrammers, and people who use personal communication channels and sometimes manage to gather an extremely large
How much do changes in the digital sphere affect the estab-
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numbers of followers. A special phenomenon is the influence on children and young people as a result of the strong emotional connection with the mentioned group. Influencers easily occupy a position of supreme authority among young people and are far more influential than their parents or school. This communication channel is recognized as a growing opportunity for placing messages with high potential. Also, digital channels increase the possibility of placing false news, as we have often had cases of so-called fake news in the past. Over the past few years, domestic and foreign markets have seen many communication crises that have emerged from completely inaccurate and unverified information. Sometimes even the highest state officials have used them, without checking whether they are true thus contributing to general delusions, as was the case with Donald Trump. Our profession is currently looking for an effective solution to this growing occurence. We are going to deal with this and many other topics related to global trends at the upcoming communication conference, PRilika that will take place in Bel-
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grade on 22nd November and is organized by the Serbian Public Relations Association.
The Code’s content refers to good business practices in regard to the preservation of confidential information, and preventing dissemination of fake news and information
How do these changes affect the need for education and what can you offer to your members in this respect? — Digital transformation is happening very quickly, and everyone is expected to work on personal improvement and be constantly educated. Whether it's technological possibilities, legislation or consumer habits, our profession testifies to the great changes that require continuous improvement. In addition to the annual professional conference, the Serbian Public Relations Association organizes free lectures and workshops under the auspices of our How2PR programme that covers various current topics and issues in our industry. You have recently adopted the new Code, which, among other things, has a segment related to digital communications. What novelties does the Code contain and what obligations does it create for members? How often does the Court of Honour have the opportunity to discuss the violations of the Code?
— The aim of the Serbian Public Relations Association’s Professional Ethics Code is getting its members to adhere to the basic principles of morally justified and ethical behaviour. Since the nature of our work is related to public and general social interests, the Code implies that everybody who abides by it has to have personal responsibility to act in accordance with the highest ethical standards. The Code’s content refers to good business practices in regard to the preservation of confidential information, and preventing dissemination of fake news and information. In the era of digital communication channels, the Court of Honour, as a working body within the DSOJ, has expanded the Code to include the most frequent example of breach of good practice - a popular phenomenon called 'fake news' . Given that we have the Code that regulates the field of communication in this way, as an association, we are working on informing and educating PR professionals about the necessity of adhering to it and the need to report to the Court of Honour each of its violations by DSOJ members. This body receives two to three reports on violations of ethics every year.
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TOGETHER FOR BETTER SOLUTIONS FOR ENTIRE PROFESSION Only if we work together on the development of our profession, we can expect to benefit each individual
he IAA mission is to represent the interests of the profession and promote the role and contribution of regulation and self-regulation. For years, we have been dedicated to drafting documents in the field of self-regulation, such as the Marketing Communications Code and the Creative Pitch Guide. We are currently working on the Media Pitch Guide and I believe that we will have finished the text of this IAA document by the year-end. It is important for us that all these initiatives have an educational purpose, because we believe that in this way, we can best implement international standards. The IAA is an international association and education is one of the most important prerequisites for market development. AcademIAA and the Effie Awards Festival are certainly two of the biggest and most important projects of IAA Serbia.
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The third consecutive IAA academy started in September. How satisfied are you with the succeses that AcademIAA has accomplished both in Serbia and the region so far? — The third AcademIAA validates the fact that we have a programme that brings together more and more diligent and talented students. Selecting candidates for the academy is getting increasingly challenging for us year-onyear. This year, 36 young people enrolled in AcademIAA and every day, they are proving to us that we have made a good choice. I have deliberately mentioned the students first because we are counting on our professors and their expertise anyway. In Serbia, there are many top-notch professionals who want to share their knowledge with young people and are always happy to respond to our call to teach. Both sides have shown a great
PROGRAMME
enthusiam, so all that we, the organizers, have to do is to give due attention to the rules and insist on the standards that we had set. AcademIAA is successful because it has achieved a good balance between learning, socializing, individual and team work, and young people and somewhat older ones. In terms of our educational concept, we are still unique in this part of Europe. I am very happy to have foreign lecturers come here and them commending us for „daring“ first to create such an ambitious project and then successfully implement it.
The third AcademIAA validates the fact that we have a programme that brings together more and more diligent and talented students.
How important is to educate marketing people and how does the work done by AcademIAA measure up in this respect? — We clearly defined the position of this project from the very beginning. The IAA is an international association and education is one of
J E L E NA I VA N OV I Ć Executive Director IAA Serbian Chapter
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the most important prerequisites for market development. Since we gather domestic communications experts, who are our members, it was only logical to invite them to be lecturers. The focus should be on practice, and not theoretical knowledge which is something that universities are unparalled in. AcademIAA's Organizing Committee has created a module programme that lists the topics which the lectures must cover, that is, the knowledge and skills that students have to acquire during these three and a half months. We realized immediately that AcademIAA should not be a static, ex catedra concept, but that it must follow the tendencies and the needs of the industry. That's why, this year, we have added the Innovation module to the existing modules (Business Research, Creatives, Media, Digital and All Stars), which deals with the impact that technology has on our industry. The careers of our students will be a sufficient indicator of how successful AcademIAA has been. I can already picture most of them as future leaders.
What do you consider the IAA's most successful and ambitious projects lately? — AcademIAA and the Effie Awards Festival are certainly two of the biggest and most important projects of IAA Serbia. Although, it seems to me that everything that has been happening in-between and parallel with them has contributed to the Serbian branch of the IAA being recognized as an important association both by the professionals here and by the IAA's global network. In early October, IAA Global Meeting was held in Bucharest where, in addition to the appointment the new global president (Srinivasan Swamy), we were able to see a cross-section of the activities of all the chapters in the last two years. I can confidently say that we are in no way lagging behind other associations which
operate in much more developed markets. Furthermore, IAA Serbia is among the chapters that have the biggest membership and are the most stable. The strength of a professional association is reflected in its membership; namely, in the fact that quality persons/professionals contribute to the development of the profession through this mechanism.
The IAA has a very clearly defined mission in this segment advocating the profession's interests
How important is the Letter of Intent, that was signed by market communication associations in September in Rovinj, for your industry? — If we are talking about the ex-Yugoslav region, a cultural framework is our common denominator and we are more alike than we are different. Considering that IAA Serbia is a part of a global network, I believe that we know what team work means and that we are more than aware of the advantages that such way of operating brings. There have been many instances when experiences from other countries expedited and facilitated overcoming of various challenges. Simply put, if someone has already experienced what you are going through, they can advise you, tell you what to pay attention to, and what proved to be good and efficient and what not. The Letter of Intent that IAA Serbia signed
together with the UEPS (Serbia), HURA (Croatia), SOZ (Slovenia) and MAAm (Macedonia) in a way summarized the topics of common interest - Business Standards - development and promotion of high business standards in all countries in the region, especially given the fact that an increasing number of advertisers has regional presence; Pitch Process - advocating equal standards in organizing pitch(es) based on the best international practices; Ethical Standards - development, promotion and implementation of ethical standards in industry at the regional level, respecting possible cultural and sociological differences; Regulation and Self-regulation working on improving and unifying the self-regulatory business framework, creating a common platform for action, as well as exchanging guidelines on legal, regulatory and self-regulatory issues and the protection of intellectual property; Cooperation - providing additional value to members of professional associations, promoting existing events organized by the associations, as well as exchange of public documents and guidelines relating to different fields; and Promotion - affirmation of the fundamental values of the communication industry and joint activities of
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national associations in their respective environments, working on boosting the industry's reputation.
How satisfied are you with the legislative and self-regulatory framework that regulates relations in this market segment and what do you expect from a new media strategy? — The IAA has a very clearly defined mission in this segment - advocating the profession's interests; protecting and developing commercial speech, on one side, and free choice of consumers on the other; promoting the role and contribution of communications as the main driving force behind healthy economies, the development of diverse and independent media in an open society; and regulation and self-regulation, i.e. initiating and providing strong support to the process of defining and implementing self-regulation in the field of communication. Through its activities, IAA Serbia is trying to contribute to the creation of a regulatory framework (our members were also the members of the Working Group that drafted the Advertising Law), and for years, we have been dedicated to drafting documents in the field of self-regulation, such as the Marketing Communications Code, and the Creative Pitch Guide. We are currently working on the Media Pitch Guide and I believe that we will have finished the text of this IAA document by the year-end. It is important for us that all these initiatives have an educational purpose, because we believe that in this way, we can best implement international standards. The fact remains that there is still a lot of work to be done in this segment but I also believe that certain progress has been made. The Effie Awards Festival was held in Serbia this year too. What does this mean for the industry and your profession in our country and how important are these awards? — Effie is an international festival
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main advantages over other festivals. Forty-nine papers submitted at this year's competition send a clear message that the profession has wholeheartedly accepted the Effie Awards. We're getting ready for the third Effie season. I expect that the competition will be even stronger and more exciting.
IAA Worldwide has awarded our Young Professionals for their excellence and contribution to the YP section
with a decades-long tradition and has a huge impact on the industry on almost all the continents of the world. IAA Serbia has been the license holder for Serbia since 2017 and with two successfully realized competitions, I believe that, as a market, we have proven that we need this kind of competition. Effie awards ideas that have successfully accomplished their tasks and takes into account every form of market communication that has contributed to the success of a brand. The Festival focuses on communication that accomplishes measurable results in achieving and even exceeding marketing goals, which is actually the basis of this industry. The competition is quite important for Serbia because the marketing profession here stands shoulder-to-shoulder with the rest of the world. The communication results are measured in an identical way, which means that those who win the award have proven that they had done their job well and efficiently. Effie's international standard and result measurement are its
The IAA also has the Young Professionals section. Could you tell us about the successes of this section and how interested are young people in it? — The Young Professionals section was formed in 2011 with the intention of the Association devoting special attention to the development of young people in the industry, which, in a way, is the duty of all of us - to think about the future. I believe this is IAA Serbia's long-term goal but also one of the most important. Moreover, through the Association, we are trying to convey to them a timely message that if we work together on the development of our profession, we can expect to benefit each individual. Our Young Professionals bring together talented, smart and valuable young people who have important jobs in their respective companies / agencies, and additionally, are very involved in the IAA projects such as AcademIAA, the Effie Awards, IntegracIAA (YP Annual Conference), mentoring, development of different applications, etc. We should note that joining the YP Section is regulated by the IAA Worldwide and that it entails having references from other Section members, meaning that not everyone can join in. IAA Worldwide has awarded our Young Professionals for their excellence and contribution to the YP section. We are about to embark on a project that will be implemented by a YP section in Europe for the first time ever. It gives me a great satisfaction to work with young people who are willing to take on a challenge and are very enthusiastic about their work.
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58 YEARS OF IMPROVING PROFESSIONAL REPUTATION Our basic tasks are affirmation and development of Market Communications that are all present in different segments of Economy and Society EPS was first founded in 1960 under the name Association of Economic Propagandists of Serbia. It is a tripartite association, consisting of the most successful Marketing Agencies, the biggest advertisers and big media companies.
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Remarcable step forward: Improvement and development of regional Marketing Communications In this year, UEPS, with the 2016 initiative about closer connections and cooperation amongst professional associations, attended the third regional Association meeting in Ljubljana where the idea conceived in Belgrade three years ago, was verified by the Letter of intent. Colleagues from Slovenia (SOZ), Croatia (HURA), Macedonia (MAAM), and from Serbia (UEPS and IAA) took part. Ekrem Dupanović, the founder of Media Marketing portal was present on behalf of Bosnia and Herzegovina, as a guest participant. Highlights, of the Letter of intent about mutual cooperation of regional Associations, that was verified and promoted in Rovinj, were: 1. Business performances standards - development and affirmation of high standards in order to provide better business performances 2. Competitive Practice - standing up for equal Market Competition Standards, based on the best international good practice examples. 3. Ethical standards - the development, promotion and implementation of Ethical Standards into Communication industry given the
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UEPS award consistently supports the main goal professional reputation strengthening and lifting
cultural and social diversities, as well as honesty in business practice 4. Regulation and Self-regulation - improvement and equalization of Self - regulatory framework of business performances to make a common platform for action, along with the exchange of guidance on legal, regulatory and self-regulatory issues as well as intellectual property protection 5. Cooperation - providing added value offers for all the members of professional associations, promotion of the ongoing events organised by the Association, the exchange of public documents and guidance of good practice. 6. Promotion - affirmation of basic Communication Industry values and National Associations joint activities within their cultural and social environments; working for the protection of professional reputation. “We recognized the importance of regional cooperation. Despite the possible specificities and differences in both the Market size and strength and professionalization level, all associations encounter the same or similar problems and reach to the same goals, given the specific circumstances and challenges that affect their
business environment. The main conclusion is that we need to produce and sign the document, as soon as possible. The Letter of intent is supposed to online basic, overarching goals of future cooperation of Regional Professional Associations. These are the common goals mentioned: Ethical standards, Regulation and self-regulation, Professional promotion, Education”, said Vanda Kučera, UEPS Vice-president, IAA Serbia member and VP of I&F McCann Grupa. The annual and lifetime achievement awards This year award nominees were evaluated against UEPS innovated criteria. The award has been handed over since 1990. This award is the most significant accomplishment of a successful career in the world of Serbian Marketing communications. From this year on, this award will be biennial. The most successful professionals are nominated by colleagues. In addition, there is a traditional annual contest for annual awards ongoing. The best projects, agencies and advertisers come together. Winner announcement ceremony is traditionally held in December.
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HOW TO REGULATE PROFESSIONAL STANDARDS
We asked members of the Managing Board of the Serbian Public Relations Assocation (DSOJ) about the importance of self-regulation and the things that DSOJ advocates in their respective industry, namely from how to regulate professional standards to what changes await us in the communications segment. In regard to the Professional Ethics Code, how important is it to set standards for communication professionals? Everyone is working on the same mission, that is promoting the profession. What has changed when communication channels changed, and what does the technological revolution bring in terms of your profession?
Photo: MiloĹĄ LuĹžanin for Bazar
TRUTH IS MOST IMPORTANT
MILICA DJOKIĆ Member of DSOJ's Managing Board
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DSOJ's Professional Ethics Code is a sort of reminder for all PR theorists and practitioners. Its goal is to develop and strengthen personal responsibility of all stakeholders involved in creating public opinion and the impact that our profession has on it. Since we are aware of the fact that each individual has become a medium unto themselves and that we are living in a time when everybody can disseminate their messages and opinions on social media easily or much easier than beofre, we insist that laws should be adhered to, that the messages we transmit should not offend nobody and that competition is respected. It is important to point out, and this is something that is often forgotten in practice, that PR managers, before transmitting information about their client or employer, have to check the accuracy of that message because truth is most important in our work. Once you break the trust, it is not easy and even downright impossible to restore it. The most important thing is to preserve the credibility of the profession and to point out that each member is responsible for the reputation of the profession.
My profession is a part of me and communication and interpesonal relations are my stronghold. I do my best to promote my profession through my behaviour and projects on a daily basis. The DSOJ website has all the important news from the field of communications and has become a relevant source of information for all interested stakeholders. The development of technology has led to PR, marketing and advertising consolidating in communications where these business segments cannot be viewed separately. Today, we communicate through more channels than 3 years ago, and this number is likely to continue to grow. This gives us more opportunity for quality campaigns and achieving customer satisfaction, but it also opens more potentially crisis situations. The times when a company or a client found out first about the crisis are long gone. Now, they don't have a time to get all the relevant answers and hold a press conference to explain to the stakeholders and the general public what actually happened. Everything happens in real time; immediately and permanently. One of the characteristics of our business is to react in a timely manner, so it is not surprising to see that the best professionals in our environment have re-surfaced and that only the best and the most resourceful will survive.
QUALITY MATTER
G O R DA NA B E KČ I Ć PJEŠČIĆ Member of DSOJ's Managing Board
It is more important now then ever before. Generally speaking, I am afraid to say that the quality of knowledge, skills and opinions is declining in all segments - from political to cultural. And this is a global trend! In most sectors, communication is often taken for granted very easily, and many people start working in this field without a clear idea of what are all the potential challenges. If we want to be a reputable profession, the Association, as a national professional association, has to promote quality and point out to the examples of unprofessional behaviour. Only by doing so can we clearly and publicly define which practices are destroying our profession's and our individual reputation since our profession is a source of our income.
What is different is the situation where public relations do not exist in a form that they existed in the past. Actually, we are talking about a trend here, not a situation. We are talking about a new reality. Technology dictates constant changes, new solutions and tools, which, in my understanding of things, can be dealt with only through integrated and continuous teamwork, in order to ensure quality and professional performance. Particular consideration should be given to intergenerational cooperation in the field of communication. The digital sphere of this business is certainly a good terrain for young colleagues from the Generation 4.0, but managing crisis and reputation requires experience and a broader perspective. This should be taken into account now, when online reality is the dominant form of presentation of both people and companies.
ADAPTING TO MARKET GROWTH
M I L A Z AVO D JA Member of DSOJ's Managing Board
For years, the Serbian Public Relations Associations has been succeeding in gathering and motivating individuals to invest additional effort toward jointly advancing their profession. Changes are happening fast, and our profession has had a lot of novelties that had to be accepted. One of the things that is a constant and without which our profession could not survive is respecting the rules of conduct contained in the Professional Ethics Code. We are here to fight against everything that violates the rules of the profession, but also to support all positive examples that elevate our profession. The responsibility of all of us, as professionals, is to be more active in the promotion of the profession and to support those colleagues who 'push the envelope'. Only in this way we will be able to distance ourselves from those who are damaging our profession's reputation with their behaviour.
For a number of years, PR professionals have wanted their profession to become highly specialized and clearly delineated from other, similar areas. Now, these borders have completely disappeared. There is no clear delineation anymore and all of us are responsible for acquiring new skills on a regular basis so that we can fulfill our clients' requirements. There has been a huge U-turn in the way how we create and promote content – i.e. having personalized content when I want it and where I expect it to be in the future. It is up to us to fully understand this and adapt our work to market demands. I am confident that many of my colleagues in Serbia are already implementing these trends in their work.
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MARKETING COMMUNNICATION MARKET IN SERBIA RECORDS GROWTH IN 2017 In the last few months, Marketing Mreža (Marketing Network) has conducted a comprehensive and deep analysis of marketing communication agencies in Serbia, contained in the document called Agency Report he aim of this research was to carry out an analysis of the market in 2017, i.e. obtaining an insight into the current situation in the industry, collecting transparent data and ranking agencies according to different criteria. This is a unique research and reporting platform that has multiple purpose and far-reaching effects on the market of marketing communication in Serbia. The study, which official hashtag is #AgencyReport18, showed that as many as 136 new agencies were opened in the period from 2012 to 2017, of which the most are marketing communication agencies (60), followed by digital communication agencies (30) and public relations and communication agencies (26). Currently, in Serbia, there are as many as 288 business entities (small business owners excluded) in the mar-
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keting and marketing communication segment. Most of the agencies (30%), that were covered by the analysis, have been in the business between 6 and 10 years, while 24% of them have been in the business from 0 to 5 and 11 to 15 years, respectively. In 2017, the total industry’s revenue amounted to 45.2 billion dinars, which is a 2.23% increase relative to 2016. The total net profit of this industry in Serbia stood at 2.5 billion dinars last year which is a 6.09% hike compared to 2016. In terms of business revenues in 2017, media buying and advertising planning agencies had the biggest market share of 45.04%. This group of agencies generated business revenues in the amount of close to 20.3 billion dinars, with the net profit of over 700 million dinars. Last year, marketing communication agencies had a market
I VA NA PA RČ E T I Ć MITIĆ Founder and CEO, Marketing mreža
Digital marketing agencies are by far the most stable and the fastest growing agency group
share of 26.3% and the revenue of almost 12 billion dinars (cumulatively generated by 112 agencies). Their net profit in 2017 stood at around 698 million dinars. A drop in net profit, at the industry level, was recorded in PR and communications agencies (-12%), media buying and advertising planning agencies (-19.75%) and agencies that organize trade fairs and other events (-26.76%). A drop in business revenue, at the industry level, was recorded in marketing communication agencies (-0-91%) and agencies that organize trade fairs and other events (-2.52%). Digital marketing agencies are by far the most stable and the fastest growing agency group in the marketing communication market in Serbia. They recorded a 26.92% increase in business revenue and a 94.07% increase in
net profit which just validates the fact that clients are spending more and more on digital communications which, according to all available indicators, will be a big trend in the following few years. The only group that has recorded unfavourable business results last year, at the industry level, was agencies that organize trade fairs and other events – they had a 2.52% drop in business revenue and a decline in net profit of 26.76%. If these agencies fail to implement novelties in their line of business and if the trend of clients spending less on their services continues, they could experience a huge crisis in the years to come. The group that consists of marketing and social research agencies was stagnating last year, with the big changes and re-rankings expected as of next year. One of the reasons for this is that, in early August, IPSOS announced that it had reached an agreement at the global level with their competitor, GfK about taking over four key operative segments – customer satisfaction, healthcare, innovation research and public affairs. One of the conditions of this acquisition was also hiring 1,000
Clippings and media analysis agencies
5 3 23 26
Outdoor agencies 16
Digital marketing agencies Organizing trade fairs and other events
12
Marketing ad social research agencies
11 15
Marketing communication agencies
In 2017, the total industry’s revenue amounted to 45.2 billion dinars, which is a 2.23% increase relative to 2016
18 18 22
Media buying and advertising planning agencies PR agencies
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GfK specialists, researchers and employees working in 25 countries that GfK was doing business in the aforementioned segments, including Serbia. It is interesting to note that over 50% of communication and PR agencies also recorded a drop in business revenue relative to 2016. Also, 27 out of 37 ranked agencies had no new employees last year. In terms of the number of people working in this industry, agencies in Serbia have over 3,700 employees. Most of them are working for marketing communication agencies (1,411), although, in 2017, they hired the least number of new people – 1.73% - compared to 2016. Outdoor advertising agen-
37 24 52
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cies have a total of 558 employees while digital marketing agencies have 443. The salaries in marketing communication segment top the average salary in Serbia. The average net salary in media buying and advertising planning agencies was the highest in the entire industry, and amounted to around 700 euro last year. The average wage in the marketing communication agencies and market research / social research agencies was close to 600 euro. The lowest average salary was recorded in press clipping and media analysis agencies - around 250 euro, and in the agencies that organize trade fairs and other events – close to 320 euro. The #AgencyReport18 analysis has also shown that market communication agencies in Serbia recorded a slight growth in all financial parameters, and that there is a noticeable and a rather high percentage of newly founded companies in this industry. If this trend continues, the market could become oversaturated due to a large number of agencies ‘fighting’ for a small slice of the market. The Agency Report is Marketing Mreža’s long-term project that will be implemented every year. The project is realized entirely in accordance with the vision and mission of Marketing Mreža in terms of transparency, development and harmonization of the Serbian market with the markets in developed states worldwide.
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Photo credit: Web Summit
WEB SUMMIT PLACE WHERE FUTURE IS BORN
The article was written especially for Dipomacy&Commerce magazine by directors and co-owners of the PR agency Chapter 4 Communications Consulting, Tamara Bekčić and Milena Avramović-Bjelica who attended the Web Summit in Lisbon hat can we say about the biggest technology gathering in Europe and the biggest gathering of entrepreneurs in the world? The Web Summit is like being on a roller coaster; the excitement does not stop, it's an exhibition of innovation, the essence of management and business, a lesson in organization and persistence, and a vision of the future and a better world we are worthy of, but for which we need to make a little more effort. „All of this sounds quite grandiose, but it's actually even bigger than that. The phenomenon known as the Web Summit is in the focus of many, and it's no wonder that this relatively young conference grew very quickly from just "another tech conference" into the largest and most important conference of this kind in the world," said Milena Avramović - Bjelica, executive director of the agency Chapter 4 PR. According to the conference's founder, Paddy Cosgrave, the Web Summit, which did not even exist 10 years ago, gathered almost 70,000 visitors from 159 countries, out of which 35,000 were women entrepreneurs, more than
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FORMULA
IDEAS Ideas are always on trend, especially those that are brave. We have the privilege of living in the time of great opportunities.
1,200 speakers, and had 24 stages, thousands of volunteers from 60 countries, 6 expo halls, over 2,600 journalists and 1,500 technological innovators this year. „In times of great uncertainty and changes that are taking place that are parallel in importance to an industrial revolution, the significance of this summit is that it assembles different interest groups and enables dialogue. The founders and directors of the world's most successful companies talk to innovators, legislators, top government officials, NGOs and start-ups. And they all try to answer one question: what to do next? That is why, in our opinion, the Web Summit is the largest and most important international communications gathering," Tamara Bekčić, director of the agency Chapter 4 PR, added. There were plenty of great impressions from this year's Web Summit, but we have singled out those which, from the perspective of our profession and communications, seemed the most important. FASTEN YOUR BELTS, WE ARE TAKING OFF! Web Summit is an event that lasts 24 hours a day, for four days.
You get the strong feeling that you are a part of something big and significant from the moment you install the Web Summit application, through to registration at the airport and upon entering Lisbon. We listened to the excellent speeches of the Web creator, a whistle blower in the Cambridge Analytica case, the UN Secretary General, the President of Samsung, the Prime Minister of Portugal, the Vice President of Google, the globally famous fashion designer Alexander Wang, Evan Williams, who founded Twitter, Blogger and Medium, the European Commissioner for Competitiveness, and many other executives from global companies and agencies. Lectures lasted all day and they tooke place in different locations, while evening sessions were much more relaxed and resembled a party. We also witnessed the distribution of $125 million worth of crypto Stellar currency to the participants, as well as chatted with the famous robot Sophia, and attended the premiere presentation of her brother Han. The programme content was extremely versatile, the stage and the halls followed different direc-
tions, and the thematic parts that stood out were (1) technology, (2) start-ups – meeting of ideas and investments, (3) marketing and communication, and (4) responsibility, mostly reflected in corporate contribution to sustainability. Case studies were frequent and changed rapidly and they left a strong impression. Speakers were perfectly prepared and each one came with a clear message, regardless which company they represented - Netflix, Carlsberg, Apple or Danone. In one exhibition section, we saw the most incredible start-ups of today and those with the highest potential (1,800 of them), while in other section, we got to know companies that had successfully realized their campaigns. For example, through various entertaining and educational activities, Booking. com presented to the visitors the concrete measures to fight gender discrimination, that is, the inclusion of women, and a mentoring programme for women in the IT industry. Several large auto-industry companies were looking for employees for different positions. They also had rather unusual interactive sessions at their booths, and even product launches. It was impossible to remain indifferent to such a large number of innovations and that amount of positive energy. Exhibition booths were diverse, very creative, with numerous opportunities for visitors to actively participate in their activities. Proactivity was the common denominator of all participants and all presentations. It was reflected in innovation, communicativeness, connection, vision, responsibility and joint efforts on recognizing and eliminating the flaws of today's world.
Organizationand communicationwise, Web Summit is an enormous machine that works seemlessly, at the joy and even the surprise of the participants.
You need a lot of energy to participate, and we felt that on our skin. Multiply the required energy by 1,000 if you are an exhibitor or a lecturer, and by a million if you are in the organizational team. In short, they thought of everything and they considered the bigger picture, while, at the same time, paying attention to the minutest of details. Because of that the organizers have earned our deepest respect. Lisbon was heavily branded with the event's logo, with signs everywhere, especially in the city transport hubs, with well-trained volunteers everywhere. Lisbon is proud to carry the colours (and branding) of the Web Summit, and the summit is proud of the fact that it singificantly boosting the local economy by selecting Lisbon as its location for several years now and for the next 10 too, as we have learned. The guests will definitely feel wonderful here because Lisbon is a magical city that cannot leave you indifferent. Its beauty and hospitality are a cherry on the cake that is quality programme and surely a reason more to repeat this experience. There are more impressive
numbers to mention – the summit visitors covered a total of around a million kilometres on foot during the summit, drank over 360,000 cups of coffee, and about 800,000 business meetings took place. From our experience, we can say that a day did not go by without us talking to the representatives of at least 20 different start-ups, colleagues or delegates. WHAT'S ON TREND? 1) Sustainability and responsibility towards the community and the world in which we live. This trend is very much present in our country too, but sustainability has not reached such level to permeate virtually every element of business. 2) Education: permanent and dynamic, formal and informal. We personally highly appreciate it and have been underlining it at Chapter 4 for years. 3) Ideas are always on trend, especially those that are brave. We have the privilege of living in the time of great opportunities. Apart from ideas, we need a strategically planned communication, and you can always contact the Chapter 4 PR team for professional support.
OUR DEEP RESPECT FOR ORGANIZERS Organization- and communication-wise, Web Summit is an enormous machine that works seemlessly, at the joy and even the surprise of the participants.
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WE TRANSFORM THE PROCESS OF CREATING CAMPAIGNS
Our focus is on innovative thinking, fresh perspective and creative expanse which are much needed in this new age marketing
here are many practical examples from the cooperation with our clients that demonstrate that ROI is still in focus and that we cannot blindly follow a trend, but rather find the most efficient way for investment return for every client and every brand.
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Could you tell us somethinig about developments on the regional market? What does your data show about economic recovery and consumer living standard? — After a period of continuous but rather mild growth in the overall advertising market in the region that was recorded in the past few years, we can say that the forecast for 2018 is somewhat predictable, with the expected continued
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growth trend. Viewed individually, the biggest drop was recorded in the Montenegrin market with a 20% decline in investments, followed by the markets of Croatia and Albania where advertising decreased by about 2%. The largest increase in the advertising investments was in Macedonia, at around 9%, and Slovenia at 8%, while the Serbian market grew by about 3.5%. Croatia recorded the biggest share in total advertising in the region despite the decline, while Slovenia still has the largest gross domestic product per capita.
How fast is the structure of communication channels changing in our market, between traditional and digital? Why is TV still considered 'the king', even though it
JA S NA D U GA L I Ć Deputy Managing Director, Direct Media
We find an adequate channel to send out a message and act in a timely manner
seems that we are constantly on social media? — Despite the fact that investments in digital are growing, the reality is that the share of television in media budgets at the regional level is still high - around 56%. The consumption of this media content has not decreased and most of the population in the Adriatic region watches television over 4 hours a day on average. Albania and Bosnia and Herzegovina are leading with about 5 hours per day, with Serbia in the third place, while television is the least watched in Slovenia and Montenegro. In terms of digital growth, in contrast to the more developed markets where investments are extremely high - at the level of the European average of around 39%
- here they remain at a low level. However, we must bear in mind that, on average, 14% of the total media budget of the region was spent on digital last year, which is a change compared to four or five years ago when that budget was almost non-existent. The growth of European markets is now in single digits, while our market has grown by 25%, which shows that digital will continue to grow here.
Estimates have shown that an average Internet user sees over 4,000 ads a day. What do you do to make sure that your client's message is seen by its target consumers? — We find an adequate channel to send out a message and act in a timely manner, in accordance with the type of campaign, the habits of media consumption and with the available platform data. Selection of channels and formats is crucial in the digital campaign, but also for overall content strategies. Our Digital Sector comprises of professionals who have brought Programmatic advertising to the market. In addition to managing digital campaigns for some of the biggest domestic and international clients, they have been selected by IAB Serbia and IAA Serbian chapter to teach digital marketing. Through additional education they are also improving their own knowledge. This speaks volumes about the level of expertise they possess, as do the awards that we have received thanks to the achievements in the field of digital advertising. How much does the Super Serbia project, aimed at facilitating entrepreneurship, fit these trends? — Stories about ordinary people who dare to embark on an adventure that is entrepreneurship have been warming the hearts of viewers and consumers in Slovenia for three years now thanks to the project Štartaj Slovenija, and, as of this year, in Serbia too, owing to the project Super Srbija. The project,
which has national importance in Slovenia, has accomplished excellent results in facilitating entrepreneurship by successfully linking several partners on one project and is an excellent example of the innovative brand communication in the altered media landscape. In partnership with the Formitas Agency, our office in Ljubljana is participating in a unique project together with POP TV and SPAR, that is in its third year running in Slovenia. The project entails using TV as a chosen medium for presenting entrepreneurial stories through a new TV format, as well as a strong communication on social media and at points of sale too. The idea is to introduce small entrepreneurs in a big market and give them an opportunity to become permanent suppliers of this big market. Consumers are also included in this story since they pick their favourite products when shopping thus ensuring their continuous placement in shops. All of the project partners have invested a lot of effort and their strongest resources and demonstrated that the exceptional level of trust that exists between agencies, clients and the media can yield excellent results in target groups. We expect the project to achieve the same success in Serbia too.
FORMULA
CONCEPT "To make value from data" will be the slogan of our data specialists whose work will certainly be based on the previous Science and Art concept.
Statistics and Mathematics are incorporated into your work from the very beginning. You have recently founded the Data Science Department. What added value are your new colleagues going to generate? — We believe that our Data Science Department will be the first step towards transforming the way we create campaigns and strategies in our system. At a time when the need for using and interpreting a large amount of data is growing, we want to bring to our customers a new value through analyzing advertising data, creating new services related to data analysis and creating new platforms for understanding and communicating with
the consumer. The media ROI is what makes Direct Media recognizable, in addition to efficiency and precision. "To make value from data" will be the slogan of these data specialists whose work will certainly be based on the previous Science and Art concept, which implies a combination of mathematically precise but also creative use of media and data. This pioneering venture will have a foothold in our system's mission which stipulates that we need to constantly keep finding optimal solutions for the growth of our clients' business, as well as the entire industry in a dynamic communication environment. We hope that this move will provide guidelines for other agencies in understanding the importance of data.
How important is education for monitoring change in your sector? What role does the DM Academy play in continuous improvement? — We believe that the industry needs new people who are aware that they have to possess a wide spectrum of marketing knowledge which is not only based on the traditional approach but also on self-growth which is, after all, one of the values of our system. Last year, we had the ninth Direct Media Academy which opened its doors to everybody who showed interest. Our employees, who are also teaching the modules, are preparing for this educational programme all year around by upgrading their knowledge. I am proud to say that the DM Academy sets high standards when it comes to the profession, while focusing on innovative thinking, fresh perspective and creative expanse which are much needed in this new age marketing. No matter how much we wanted or needed to predict the future in this business, we will never be able to do that, but we must be ready when the future comes by continuing to work on ourselves through education.
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A MIX THAT MAKES A DIFFERENCE
Brands fight for visibility in the user's news feed, and those companies that place relevant and quality content tailored to each individual social network are the ones who win
he average level of attention of an adult while looking at a certain content in 2000 was 12 seconds, while today it is 8, and some studies suggest only 6 seconds (Wave Research Agency UM). And in those few s e co n d s , i t i s n e ce s s a r y t o "capture" the consumer's attention and transfer the message. Television ratings are fragmented into multiple channels, the viewers’ attention is not held by long contents, we switch channels, we look at our phones, and we check our Facebook or Instagram profiles. These are the reasons which led to big changes in the advertising sphere. An Ad itself is no longer sufficient to promote brands and transfer their message - especially in digital format. The digital age determines a different form of expression, and rare are those who resist Internet dictatorship. Social networks have changed the way users consume content, as well as their brand expectations. It's important to be where consumers are, track their movements and behaviors and offer them the right content, merge real-world shop-
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D RAGA NA M A R KOV I Ć Deputy Director Drive Agency
FORMULA
CAMPAIGN When a super creative idea matches the client’s brief, users will recognize the value of that campaign and the results will come by themselves.
ping with their online experience. We are living in a time where brands are under a big challenge to gain user’s attention, which is shorter, and therefore advertisers have limited time to catch it. Nowadays it is more and more important to communicate with the user with content that is relevant to him. Even that might be insufficient. A mix of relevant content is necessary, on the right channel in the right time. It's a mix that makes a difference today. The classic advertising is mostly used to increase brand awareness, successfully. In digital media, brands can adjust their advertising message to the media, the user, the time and the device, and the digital media themselves have become more interactive thus brands have more opportunities to become part of the user's life. Social networks are a very complex communication channel, and therefore channel management for the brand is much more dynamic than ever. Brands fight for their place in the user's news feed. Those that deliver relevant and quality content tailored to each individual social network are the ones
who win. Bloggers are interesting as brand promoters. Users believe in the recommendations of friends and their experiences have a very important role in the user's decision making process when buying. Bloggers approach brands in a different way, whereby brands get an opportunity to present themselves and approach the end user in a different way. Algorithms used to target consumers through programmatic ads are getting more and more sophisticated enabling them to find the right user wherever he is, regardless of the context of the media on which it is currently located. The most important thing is to have quality data, analyze them in depth, and then with the help of tools find the best way to reach your brand's user. Like we always say, content is king in the marketing world, we could add that relevancy, excellent timing and a good ad position can change the end result – if the client's campaigns will be spotted and lead to the desired results - because the above mentioned research says that the number of impressions is no longer a valid campaign target.
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NEED FOR COMMUNICATION IS A CONSTANT
I find this very exciting, the challenge is real, it pushes us to make a change in our mind set and to push boundaries
e operate regionally and that is a direction we took on a few years ago, so we will for sure continue expanding. All trends come to Serbia some sooner, some later, in any case, talking to industry colleagues from around the world, my opinion is that we are not far from bigger markets. We have new generations of communicators that are completely in line with their peers from around the world.
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What is characteristic for the sector of communications today, in the time of fast development of new technologies and fast consupmtion? — The need for communication is a constant. The other constant we can always be sure of is change. We always have to communicate our messages, the voice of our brand, company, organisation...needs to be heard. The way people respond is a big change that our sector has undergone and is a challenge. New technologies have opened a two way communication, better and faster interaction, it had opened the possibility of so many new channels...I find this very exciting, the challenge is real, it pushes us to make a change in our mind set and to push boundaries.
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What are the most important trends in the market in the region and what are in Serbia? Does Serbia keep up with developed countries when it comes to the communications industry? — I find it hard to talk about trends as they are constantly also changing, and depends on which industry they can be applied to. Something that was a trend in September is now likely to have already passed. I think following trends just for the sake of it is staregically wrong. For me it is a bigger challenge to anticapate or even try to set trends. So, there we go – try to be the first in something could possibly one of the, not so, new trends. All trends come to Serbia some sooner, some later, in any case, talking to industry colleagues from around the world, my opinion is that we are not far from bigger markets. We have new generations of communicators that are completely inline with their peers from around the world. What are the plans of your agency for further expansion and acquisition of new clients? — We operate regionally and that is a direction we took on a few years ago, so we will for sure continue expanding. Constant learning, ed-
N E V E NA KU RTOV I Ć Managing Director Fusion Communications
FORMULA
FAMILY Our team is like a family and Fusion is home away from home. For me, that is more than enough.
cuation and new experiences are what we invest in to be able to continue providing the best possible solutions and service to our clients.
How much can your industry contribute to economic development and what can be improved in that respect? — It is complementary in a way. Communicatons are a vital part of almost all business be it internal, corporate, external. In order to sell, for your brand to be heard, for your company business to be known, one must use communication in it's many forms, therefore I can say that it does participate and is part of the growth of businisses. I believe our sector can be very powerful think tank that can in many ways generate ideas and solutions to help and participate in the economy of any country. What are 'the secret communication formulas' of Fusion communications agency? — If I told you, it would not be a secret We have long term partnerships with our clients, most of them last for many years that often turn into friendships. Our team is like a family and Fusion is home away from home. For me, that is more than enough.
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SPACE FOR FINE COMMUNICATION 25% of Vojvodina’s population gets their information from the media run by minorities. The communication that is disseminated by these media can be viewed as a high quality innovation that sends out a message that we should not be afraid of ‘small numbers’.
the operational goals envisaged for 2018, namely "promoting Novi Sad and Vojvodina as cultural destinations using the potentias of their original multicultural environment" and supporting active cooperation with minority media, both in Serbia and Europe.
Which events / conferences from this year would you like to single out and with which project are you wrapping this year up? — I would like to single out two annual events, with one of them being the upcoming Second European Conference dedicated to minority and local media that will take place from 15th to 17th November, 2018 in Novi Sad.
How important is to implement projects that focus on improving the position and the treatment of children, minorities and women? — One of such projects is a summer event called “Under Tree Tops on Štrand”, which focuses on communicating with minority communities and teaching the children ages 5 to 12 about the importance of mutual understanding through learning minority languages. Since 2017, Heror Media Pont has been working on improving the position of deaf and hard-of-hearing people, and in keeping with this, we also taught sign language at the aforementioned event. Our initiative is that sign language should be recognized as a minority language and integrated into the education system.
The Second European conference dedicated to minority and local media, which is taking place under the slogan “Are minority media a cultural heritage?", is questioning the position of minority media as active stakeholders in the development of European societies. — The European character of this conference provides insight into the production and a degree of influence that the minority media have on societies in Europe in which they create their content. Considering the fact that the event is integrated into the Plus Platform of the Novi Sad – the 2021 European Capital of Culture project, we will focus on one of
How and in what way do you cooperate with international institutions? Which projects would you like to mention when it comes to cooperation with European organizations? — We have established a great cooperation with The European As-
Photo: Vladimir Zubac
The Heror Media Pont’s decision to operate in a niche comprised of the media in the minority languages has grown into a space for innovation and fine communication in the last five years
NATA ŠA H E RO R CEO of Heror Media Pont
FORMULA
RESPONSIBILITY I think that all communications stakeholders have a great responsibility in how we paint our reality and what matters to us.
sociation of Daily Newspapers in Minority and Regional Languages (MIDAS) and developed our first joint project that promotes cities - the European capitals of culture in minority communities in Europe.
What recommendations can you give us and what advice do you have when it comes to communicating in minority languages? — I would like to use this opportunity to petition companies to include minority language media in their communication channels. 25% of Vojvodina’s population gets their information from the media run by minorities. The communication that is disseminated by these media can be viewed as a high quality innovation that sends out a message that we should not be afraid of ‘small numbers’. I think that all communications stakeholders have a great responsibility in how we paint our reality and what matters to us. It is important that our society becomes a better place to live and work in. www.mediapont.org
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SELF-REGULATION – LET’S CLEAN UP OUR OWN YARD! Self-regulation rests on the need and aspirations of the industry, in this case the industry that is primarily engaged in market communications, to independently, without involving state institutions, laws and legislators, edit, educate, improve in a qualitative sense, or in terms of establishing ethical criteria, its operations and its business environment
s it right for children, and especially babies, to be shown in ads for products or services not intended for them? Is it okay that a photograph of a woman's naked body, accompanied by a message 'sticks to all surfaces', promotes any kind of product? Is it right to communicate a woman’s need for using a laptop as if it is a fashion accessory, where colour is the key factor of choice? Is it correct if an advertisement claims that a product has medicinal properties without a scientific study to prove it? These and similar questions are often an integral part of everyday work in the world of communications and advertising. Since we are often too critical of ourselves we think that these kinds of things happen only in our country, and that everything is complete-
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VA N DA KU Č E RA Vice President of I&F McCann Grupa
FORMULA
CODE Everything starts with the Code, a document that represents a set of house rules, so to speak, a guild order, a book of good manners that tells us how to communicate in a correct, good and quality manner.
ly different in other markets. It is not! The same things happen in far larger and more developed markets, as well as in the communications of companies or brands that are the leaders in the global advertising game. The law or laws regulating advertising or the media provide answers to some of the aforementioned questions, as do laws which, at first glance, do not deal with the said topics, but with the topics related to advertising to a certain degree such as the Consumer Protection Law, the Law on Medications and Medical Products, the Law on Road Traffic Safety, the Law on Protection of Financial Services Users, etc. Should laws, drafted by the state, take care of everything since our profession sometimes can have and sometimes does not
have to have a say in what goes into a law or does not have to be involved in their drafting? Actually no! Today, our industry says that that is not necessarily the only or the best way in regulating a huge and diverse field such as advertising. The law(s) should provide a quality framework; a frame that will fit and match self-regulation. This is the answer to most of the above asked questions. In fact, it is self-regulation that should react to and explain these topics or the Ethical Advertising Code which is for us, in this industry, even more important and fitting. Therefore, our profession should, in such cases, have the main word and be the basic filter. Self-regulation rests on the need and aspirations of the industry, in this case the industry that is primarily engaged in
market communications, to independently, without involving state institutions, laws and legislators, edit, educate, improve in a qualitative sense, or in terms of establishing ethical criteria, its operations and its business environment. Simply put, self-regulation should “clean our own yard that we use”. We spend our precious time, work and create in this yard, as well as make occasional mess and clean it up. By doing so, our profession demonstrates maturity, social and business responsibility, modernity and, after all, democracy. Everybody’s a winner in this process, including agencies that create messages and advertisers for which they are working, as well as the media that bear responsibility for broadcasting these messages, and especially the consumers to whom they are directed to. In the end, the result is better advertising! Everything starts with the Code, a document that represents a set of house rules, so to speak, a guild order, a book of good manners that tells us how to communicate in a correct, good and quality manner, as well as how not to
Everybody’s a winner in this process, including agencies that create messages and advertisers for which they are working, as well as the media that bear responsibility for broadcasting these messages
offend anyone in this process or lead them to a wrong conclusion. Every Code that is accepted and approved at the international level begins with the following words: "Marketing or market communications and advertising should be lawful, true, honest and decent. It should be responsible both toward consumers and service users, as well as toward society in general. They should be used with respect to the principles of fair business and fair competition. " We, as a profession, have drafted and adopted this document – the Code. What comes next is to adapt it to new laws that regulate advertising, including the directives that pertain to communication on digital platforms. The next step in establishing the self-regulatory activity in each market, including our own, is to set up a self-regulatory body (SRB) which will monitor how and to what agree the Code is adhered to. We have looked outside the borders of our country for inspiration to take this step, which we are about to do. In addition to the fact that we have the full support from the EASA (the European Advertis-
ing Standards Alliance), we are also looking toward Spain. Self-regulation reigns in that country. They started cautiously and with a certain degree of doubt that they would be able to regulate significantly, which was typical for the Mediterranean mentality. Some 20 years ago, they were looking for someone to explain to them why should they self-regulate, as they readily admit. In the meantime, agencies and advertisers reached an agreement, with TV stations and other media joining the initiative. Today, TV stations in Spain are the largest users of the SRB services. They have succeeded, and are, by far, the best example among all the EASA members. Now, both the state and the regulator determine what is acceptable and what is not. Doesn’t this count as a victory for our profession?! I sincerely believe that we will have the Code in our hands soon, and hear the news that a National Self-Regulation Authority has been established. And then, after we finish “preparing the terrain”, we need to actively and continuously engage in “cleaning the yard”.
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EMPLOYER BRANDING IN ITS ENTIRETY AND COMPLEXITY Every employer can find a fitting mix for themselves. Although the term itself indicates a connection to marketing, it is important to point out that employer branding is not marketing, although marketing plays an important role in the process; only at its end, though
e are witnessing the fastest and the most challenging changes in the labour market in the last 15 years. Employment is increasing with many work-able people leaving Serbia. The appeal of some professions has been growing while the appeal of others has been declining. The business environment is changing while the behaviour and expectations of the (un)employed are evolving. So, how can we, in these changed conditions, respond to the main challenge, namely keeping and attracting quality people to our teams, without whom there is no further growth, progress and accomplishing strategic goals? Although, there has been a lot of talk in Serbia about employer branding as a response to this challenge, it is only now that it has really become
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necessary that we deal with it strategically and systematically at all levels and in all areas of employment and work. Hence, this year, Poslovi Infostud assembled close to a hundred HR specialists at its first conference HR Experience, the Vivaldi HR Forum and many other HR meetups, at which we talked about topics that shed more light on employer branding. We engaged in an excellent three-day long discussion and below are the guidelines and topics that we talked about. In the last few years, there has been a real deficit in certain labour segments, and now this deficit has become present everywhere we go. This is the reason why an increasing number of companies want to have an employer branding function which entails proper understanding of and sys-
S O N JA Ć E T KOV I Ć Director of Poslovi.Infostud
FORMULA
IMPLICATIONS If we define employer branding as a development strategy, we must be aware that it has much wider implications than the growing interest of the best suited job candidates in the company.
temic cooperation between HR, marketing and PR. Its main task is to involve the entire company in the challenge that is employer branding. Why should the entire company be involed? What is exactly employer branding and what constitutes and determines it? A well-thought out, designed and implemented marketing campaign that attracts job candidates and communicate that we are great in what we do? PR that a company uses to promote itself? A system of benefits? Satisfied employees? Pleasant working conditions, culture, and good company atmosphere? Challenging work? The picture of the company that a job candidate creates at job interview, after meeting the HR? Every employer can find a fitting mix for themselves.
Although the term itself indicates a connection to marketing, it is important to point out that employer branding is not marketing, although marketing plays an important role in the process; only at its end, though. The gist of employer branding lies in how our employees feel. The gist is in the company, its pulse, diagnosis and in improving its 'health', as well as the company's image that employees have in their minds since they relay that realistic image to the world. We can say that employer branding lives in the company. All other strategies, and especially those that try to portray a picture that does not correspond to reality,
Poslovi Infostud assembled close to a hundred HR specialists at its first conference HR Experience, the Vivaldi HR Forum and many other HR meet-ups
will have a short-term effect, and will result in disappointing expectations and a loss of confidence in the company. Therefore, an effective approach to improving employer branding must start in the company itself - 1) the company needs to analyze the internal situation - how the employees feel and what matters to them, whether they are satisfied, committed and engaged, and 2) research how the market perceives the company as an employer. These two surveys represent two basic pillars of an effective employer branding strategy. They give us the answers about our strengths and weaknesses, as well as how
prospective employees perceive us, as an employer, and how much this picture corresponds to reality. Once we do that, we can define which tactical steps to make in the segment: 1) for employees (improving the work culture, communication, financial and non-financial working conditions, benefits...) 2) for job candidates (improving a "job candidate experience", namely job advertisements, simplicity of the selection process, transparency of the selection process, professionalism of the recruiters, information on the course of the candidate selection and the outcome of the selection process, the onboarding process...) After this, we can create communication messages to suit each target group and select the most efficient promotion channels. If we define employer branding as a development strategy, we must be aware that it has much wider implications than the growing interest of the best suited job candidates in the company. It has a strong impact on the whole company - both on the benefits for the employees, through the improvement of processes and systems, communication, engagement, and work satisfaction, and consequently, on the results and market success of the company. So, let's start today!
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THE SECRET
Formula of Communication
THE AGE OF 'CULTURAL REVOLUTION' Culture provides us with a context and can often be a source of inspiration for discovering new opportunities here is much talk lately about anticipating the future -in the political, economical, technological, and even psychological context. This is a whole area now, that has its own name and its representatives (futurists): modern philosophers who, thanks to the interdisciplinary science and systems, have the power to predict future trends! They should advise private and public organizations about different global trends, possible events or some new market opportunities and how to manage risks. Such predictions have tremendous value today for our industry as well, especially because the backbone of modern marketing is precisely the analysis of consumer behavior and their psychology. It has been proven that such an approach yields results. However, this approach gives only one part of the complete picture, leaving out the whole 'cultural context', which greatly affects today and sometimes changes the behavior of consumers. If we pay attention to the mentioned 'cultural factors', we have the ability to create messages that predict (the unpredictable) behavior of people. This is why the power of predicting future behavior is a serious advantage in the preoccupied market. When I say 'culture', I mean all social movements, macroeconomic changes, local pop culture, national characteristics, local customs ... in
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KATA R I NA PRIBIĆEVIĆ Startegic Planning Director McCann Beograd
FORMULA
CONCLUSION Brands do not need new segmentations and discoveries of new demographic subgroups, but the understanding of the whole context (culture) of people we want to connect with.
a word, everything that determines the behavior and system of values! It is at the same time all that allows us to create a difference in relation to others. Culture is not a stable factor. It is constantly changing and therefore modern marketing must have a strong focus on monitoring these changes. The impression is that in the world, and partly in our country, the whole 'cultural revolution' is happening that puts companies and brands into the center of cultural change, where they no longer survive by creating a simple response to consumer needs, but become leaders and transformers! The now-well-known and tremendously successful McCann New York’s campaign 'Fearless Girl' owes its global echo, among other things, to the new global culture that puts gender equality in the center of the dialogue. Equally strong message was sent by P&G and their campaign for Ariel in India, using nothing but the truth about their product and strong cultural truth by simply asking the question 'Why is washing mostly a woman's job?'. This was a powerful, global truth that could be applied anywhere on the planet and cause reaction. Another phenomenal example of globally relevant truth was the campaign for PEDIGREE (pet food), the 'Pedigree Child replacement program', that simultaneously increased sales and also the number of adopted dogs. The campaign
targeted the parents of children who left the parental home in New Zealand. The universal truth here is the 'phenomenon of the empty nest', but what is a globally recognizable (cultural) trend is to care for abandoned pets and their adoption. The values of the so-called cultural marketing can be learned from the film industry. Disney is a great example of the claim that 'culture sells'! The success of the film "Black Panther" lies in the story of African tradition and history, but with the strong influence of technological trends, through the fictional world-country (Wakanda) that possesses the most modern technology of all times. By creating a vision of futuristic Africa, which breaks down all stereotypes, the Black Panther achieves incredible success both in the European and the African market, taking an important place on the map of contemporary culture. But the answer is not marketing for 'different cultures', but marketing for the 'multicultural world'. Brands do not need new segmentations and discoveries of new demographic subgroups, but the understanding of the whole context (culture). Responding to their current needs is not enough. Brands have to deal with predicting future needs and their dynamics, because that is the only opportunity to be among those who create culture and lead changes.
THE SECRET
Formula of Communication
ALWAYS ON THE MOVE One post can change the flow of the campaign and take it in another direction. That's why it's very important to be always alert and follow the development and the flow of the campaign
here are many changes in the trends, but the essence is to turn trends into functionality so they become part of our activities, not just to monitor and analyze them, without implementation.
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What are the changes that have occurred in the communication sector recently, and what has been brought in by technological evolution? — Firstly, we have changed, the people, or if we look through the prism of the industry - consumers have changed. Communications only follow these changes and adapt. Take a look at how we are informed today, how we communicate and how many different channels and features there are. Each of us today is a small media because everyone has the opportunity to share their opinion, experience, recommendation or dissatisfaction and only today are we really talking about two-way communication. This has fundamentally changed our business, and it has also made companies more responsible, at least those who really care about doing good things in a good way.
A L E K SA N D RA RA D U J KO Managing Director, New Media Team
FORMULA
PASSION Passion and love for work. The fact that we enjoy in what we are doing, that we come with a big smile to work, that our clients are great.
What is the most dominant trend in your industry this year? — One of the most important skills on the global level is writing. Communications are based on the gift of being able to write well and that the ideas that pervade all the written materials make a difference. On the other hand, the video takes a great primacy as a communication tool for a long time already. That's why we, as an agency, have been developing video productions and this year we have launched a health show "In the First Place" on TV Prva, whose author and leader is our colleague Drago Jovanovic. By doing this, we are transferring the content that we process as an agency to the national media, which is a great step forward and a serious success. Now we continue this way and we already have new projects that will be presented in the first months of the next year. You have great experience in the field of public relations and media. How much does this contribute to the development of new services and solutions? — Essentially I have a good team and we all achieve success together. The development of every idea (and every new service and solution was once just a notion) is dynamic in our agency. Let's start from one dash that we upgrade, change, challenge, and criticize to see if there are weaknesses and then when we realize that this
is it - we move forward shaping. The idea has to be implemented through all communication channels that the client uses and must undergo adaptation in each one of them, and our strategists work very carefully as well as creators work on creating solutions. Only after that, accounts implement and monitor all phases because the factors that influence the realization are unpredictable. One post can change the flow of the campaign, the one that initiates a discussion and lead the campaign in another direction. That's why it's very important to be alert, follow the development and flow of the campaign.
Where are the ethical boundaries of PR and how far-reaching can be a good PR for clients? — In us. Ethics are a matter of personal traits. PR is an image other people have about you, illusions, emotions, information - in bits and pieces. If this matters to you and you devote yourself to communications - it's always a value. What are 'the secret communication formulas' of New Media team? —Passion and love for work. The fact that we enjoy in what we are doing, that we come with a big smile to work, that our clients are the brands and companies that are prestigious and inspiring in every sense. And we know that every day is a new opportunity to do great and beautiful things and be proud of what we are.
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THE SECRET
Formula of Communication
WE HAVE NOT LOST OUR INITIAL ENTHUSIASM
We would 'die' for our clients and we are developing strategic partnerships through mutual trust, professional approach, expert know-how and market knowledge
ova Communications has been operating for more than 20 years and is one of the leading integrated communications agencies in Serbia. A communications and media specialists with a wealth of experience, Jasmina Stojanov is at the helm of the agency. Today, Jasmina successfully leads New Communications, a fast-growing agency that, she says, has not lost its initial enthusiasm. We are talking to Jasmina about the direction that the communications industry is taking today, what is important to recognize when it comes to client requirements, but also about the importance of looking at the context and all the circumstances that can affect clients.
you are managing a fast growing agency. From your perspective, what is the most important thing in your job? — Yes, I have a wealth of experience because I had worked as a journalist, first on radio and later in news agencies, for many years. During the 1990, I was a war reporter from Croatia, Bosnia and Kosovo. In 2012, I started working as the press secretary for the then President of Serbia. So, continuing in PR or marketing business was the next logical step to take. The most important thing in this job is having experience. You can learn just about anything, but no knowledge can replace experience, that is working for different clients in different situations.
You have a huge experience in the communications sector, and today,
What would you single out about Nova Communications as impor-
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JA S M I NA STO JA N OV Director General of media buying agency Nova Communications
tant to mention in the year when you are celebrating the company's 20th anniversary? — Our agency has had a long market presence, but has not lost its initial enthusiasm – we still die for our clients and are developing strategic partnerships through mutual trust, professional approach, expert know-how and market knowledge.
FORMULA
NO SECRETS 'The secret communication formula' of Nova Communications is that we have no secrets – we have the experience and the know-how and we give ourselves totally.
What are the most important market trends in Serbia and the region, and what kind of challenges you have to deal with in today's market? — After years of a rather shaky period, the market in Serbia is becoming more stable and clients are thinking more long-term and are strategically more wiser. They need an agency that recognizes their acute needs and that is ahead of its time while offering solutions
that reflect the nature of their brand, as well as consumer needs and desires. I think that we are on a good way to transition from the so-called partisan marketing, something that we were forced to do in the past, to the peacekeeping marketing, which ensures longterm planning and a more suitable creative work.
What are your plans in terms of expansion and acquiring new clients? — We are an agency that fights for itself in the market and that participates in tenders while trying to present itself in a good and realistic light to its potential clients. Our pitch is as good as our everyday work. We do not disappoint our clients, and we really do put in the effort. What should clients rigthfully expect from their agencies? — There are more seasoned clients who know exactly what the agency should do for them. There are also those with a somewhat lower 'mileage'. Nova is special in a way that it understands clients and their product in relation to concrete market conditions, i.e. in relation to consumers, distribution channels, competition's activities,
the society's economic potential and such. So, what we do is look at the context and all the circumstances that can affect our client. The strategy we propose involves all of the mentioned parameters.
You can learn just about anything, but no knowledge can replace experience, that is working for different clients in different situations
How important is for the client to give 'free reign' to their agency in devising a strategy? Do you think that the client and the agency need to come up with ideas together? How important is mutual trust? — It is a good thing that there is a certain level of 'conflict' between what the client knows are their needs and what the agency offers as a solution. If the client knew everything they actually needed, they would not need the agency. On the other hand, the agency has to understand that every client lives with their brand 24/7 and that the client has gut feeling about opportunity and danger. It is also important that you, as the agency, respect that. It is good to have a positive tension between the client and the agency. The agency has to constantly keep surprising the client, offering them solutions that otherwise they could have not conjured up by themselves; namely, the solutions that they subsequently realize were
the right ones.
How much can your industry contribute to economic development and what can be improved in that respect? What are 'the secret communication formulas' of Nova Communications? — Judging by all indicators, creative industries are becoming an increasingly more important part of the total economic 'pie'. But, in the mind of people, creative industry still needs to become legitimate and find its 'place under the sun'. There are seasoned marketing gurus who are trailblazers for all of their younger colleagues, and there is also this pejorative attitude in the public towards marketing which is often branded as something superficial and fake. Marketing is anything BUT lies and superficiality. It is a manufacture of ideas and providing expert knowledge that can measure up to, let's say, production of tractors or steel caps, in terms of tangible results. Marketing is an economic branch just like any other. In that respect, 'the secret communication formula' of Nova Communications is that we have no secrets – we have the experience and the know-how and we give ourselves totally.
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THE SECRET
Formula of Communication
THE RIGHT MEASURE OF COMMUNICATION The point is to create and maintain the reputation of a retail park as a place for unique shopping and good entertainment. The key thing is to find the right measure of communication that will satisfy all three sides n the case of retail parks, communication must be such as to satisfy three sides leases, consumers and the retail park as a brand. The focus is on all the brands that are sold in a retail park and their benefits, as well as on the interests, needs and wishes of shoppers, but in such a way that it actually shows the retail park as a unique brand.
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In which way does the marketing approach used by retail parks in Serbia differ to the one used abroad? — When we compare retail parks abroad to those in our country, the main difference is in the status that the park has which corresponds to how much they invest in marketing. In other countries, retail parks are organized in such a way that they are used solely for shopping. Oftentimes, they have one supermarket and several shops with famous brands, prices are more affordable, and the comfort level is higher in terms of parking and open spaces. Shoppers have only one goal, which is to shop quickly,
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A L E K SA N D RA KOŽ U L PR & Digital Director, Novaston Marketing Consultancy
FORMULA
CHANGING Our company is known for substantially changing the aforementioned concept of retail parks to suit the needs of the domestic market.
practically and at affordable prices and this is known abroad as "stop and shop". Accordingly, investments in marketing are very low or almost non-existent. In case they do use marketing services, this usually boils down to several big campaigns like the Christmas campaign or campaigns on promoting new shopping season. However, the “stop and shop” concept is still not developed in our country in the right way because shoppers here want also to have additional entertainment, indulge in interesting content, have frequent sales and enjoy in the performances by celebrities. Our company, Novaston Asset Management was founded as an independent real estate platform, with Novaston Marketing Consultancy being one of its subsidiaries. Our company is known for substantially changing the aforementioned concept of retail parks to suit the needs of the domestic market. Our guiding idea was that shoppers actually want a place where they can spend quality time while engaging in good, affordable shopping.
In order to achieve this, and in addition to standard campaigns, we have also introduced additional activities like celebrating the birthdays of retail parks and various holidays, the summer season and periodical shopping days and weekends. Today, retail parks in Serbia differ from shopping malls only in terms of the size of open spaces, because they have a roof. In many cities, retail parks are the only, serious shopping malls and the places where people gather.
How different is the approach that retail parks have to communication in relation to how certain brands in them communicate, and what are their target groups? — In the case of retail parks, communication must be such as to satisfy three sides - leases, consumers and the retail park as a brand. The focus is on all the brands that are sold in a retail park and their benefits, as well as on the interests, needs and wishes of shoppers, but in such a way that it actually shows the retail park
as a unique brand. The point is to create and maintain the reputation of a retail park as a place for unique shopping and good entertainment. The key thing is to find the right measure of communication that will satisfy all three sides.
How much does the location, a type of retail park, its size and other features affect the message you have for your shoppers? — Every retail park is a story in it itself and a channel that communicates for itself. The way a retail park communicates depends on the location and the type of the park. There is a difference if a retail park is located in a larger city where the competition is tough, so a stronger brand campaign is needed, or when it is located in a smaller city, far from the town's centre, which implies having activities that will attract shoppers and change their habit of only shopping in stores that are near them. In fact, we can say that there is no universal solution, but projects must be designed and shaped according to the requirements of the micro-market in which a retail park is located, as
Novaston Marketing Consultancy team
Our guiding idea was that shoppers actually want a place where they can spend quality time while engaging in good, affordable shopping
well as the target group. Each retail park needs to create special, customized content and communication should be such to match the needs and desires of both shoppers and leasees. It is this kind of special approach to each client and project, as well as conducting unique analyses and making custom-made proposals, that set our company apart.
How much have the consumer expectations changed since the time of the first retail parks and today when they are quite a few of them around? Consequentially, how did the messages they sent out change too? — The consumer expectations are essentially the same – they want good brands, quality, and affordable prices, additional value in the form of discounts, sales, and vouchers, as well as having fun while shopping, learning more, meeting interesting people and finding out something new. They do not distinguish between shopping malls and retail parks since they view them as places where they shop and have fun. If one of
these segments is not sufficiently developed, the number of shoppers can be compromised. It is therefore important that both aspects shopping and entertainment - are well-balanced and communicated to the public in the right way.
What future trends can we expect? — Personalization is a trend that has been dominant for quite some time now. In all likelihood, it will continue to dominate, especially considering that our country has started to implement Industry 4.0. New technologies allow direct involvement of the customer in the production process today. They are at the centre of everything as someone who builds the product, gives their opinion, decides and influences the campaign. Many brands go a step further, enabling their consumers to fully create the product in the way they want, i.e. to personalize it. Each of us would like to create, for example, a pair of trainers or a purse according to our taste and wear them as something original. On the other hand, the trend of growing investments in social media, which have long been taking the lead in digital marketing, will continue, and today they are a key part of marketing strategies. Some of the brands today have over half a million followers on Facebook in Serbia alone, such as, for example, Enci Menci – Sve za Bebe (520,000) and Telenor (530,000). Blogging plays an increasingly important role, as consumers like to hear first-hand recommendations. For this reason, more and more seriously minded companies are using blogs on their websites to attract visitors and turn them into customers. Today, everything is about content marketing, and blogging is the most famous example of it. It is important for companies to recognize the right micro-influencers who can transfer their key messages to their audience, which is a change in communication compared to the usual PR channels that are used to bring in new consumers.
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THE SECRET
Formula of Communication
IT’S IMPORTANT TO BE DEDICATED
Smart Agency is where it is today because our team consists of quality individuals, masters of their profession, who are totally dedicated to client’s goals and tasks mart Agency operates and grows for 10 years now. It's not just a phrase, but every client and every project that they do, leaves a trail - in terms of new experiences, knowledge, ideas, innovations... That's why, among other things, work in the agency is always challenging, never monotonous.
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What does it look like to work with world famous brands and what challenges it brings? JZP: It's very similar to when you work with national brands in terms of goals and campaigns. The difference is that large companies and international brands are more demanding - there are clear procedures that must be respected, and the decision-making process sometimes takes a little longer. Also, part of the concepts and visuals naturally depend on the headquarters, which are located in different countries. Challenges are also found in the fact that we often implement parts of campaigns in different markets, and even if they are in the "neighbouring " countries - rules, habits, expectations - they still differ. The level of commitment however must be the same and it is the same. Your agency celebrated a significant jubilee this year. What projects are you especially proud of ? IJ: Among our long-standing clients, I would like to mention the French brand BIC, that we have been working for on all creative,
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communications and media performances in the region for seven years. Skechers, which we also follow on the regional level, also our most “delicate” isclient Kosili, Euro Petrol, Dobra ovsena kaša (Instant oatmeal brand), Winery Zvonko Bogdan... We are proud of every single project that moves both our and our client's boundaries, whether it's a social networking or TV commercial production. Each time we take a step forward towards a better design, a better message, discovering a more effective medium for communication, we successfully complete a TV campaign with good results... we are satisfied. Thanks to our smart and demanding clients, we raise the professional ladder to each other.
What are the plans for 2019 and what new trends in communication can we expect? JZP: In 2019, some of our clients will enter new areas of their business, some will celebrate great jubilees, some will change product portfolio - we are here to help them realize these projects as successfully as possible. When it comes to communication trends, most of the news "spins" are around digital marketing, but also around the intense struggle of television to remain the dominant "player". What is definitely a trend and whose peak is yet to be expected is content - without good content, all methods of advertising and communication become futile. We are
J E L E NA ZVEKIĆ P E T ROV I Ć ,
Director and partner
I VA NA J OVA N OV I Ć
Creative director and partner
DA N I E L A BUCALO
Art director and partner Smart Agency
FORMULA
BE SPECIAL In our business to be SMART means, among other things, to be special.
happy to have very creative people in the team who are devising original and different contents! One trend still remains. In the planning of the marketing process, decision-making and monitoring of results, only precise analytics is being relied on and that only communication platforms that can provide reliable analytics have a future in advertising. Subjective expert’s evaluation, regardless of their experience, are reliable only if supported by the appropriate analytics.
What are the secrets of the Smart Agency formula? DB: Two things are necessary to succeed in every business. One is public, the other is secret. Under public we can list expertise, dedication, committed work, availability to clients at all times, good organization of work. That's the base. Those who don’t have the base or cannot offer it don’t go into business. Or won’t last long . As a small agency we have the advantage of establishing a close relationship with the client, teaming up with each one of them, to put it in slang we "cuddle " and take care of the client with much attention, not just leaving him to an account. The "Secret ingredient" is what makes the difference. The secret ingredients are smart solutions, new ideas, creativity, innovation, lucidity. And who has it all if not people. In our business to be SMART means, among other things, to be special.
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THE SECRET
Formula of Communication
THE IDEA IS THE KEY TO SUCCESS It's the idea that can transform an anonymous agency to a very good and reliable one overnight
verything that is being done in PR and marketing lately is under the unwritten rule that, at all times, you have to be absolutely ready at all. Compared to the previous years, it's almost fascinating that you can not miss out on any new data, nor superficially observe any new trend if you are planning to stay in the race with your customers.
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The emergence of new channels of communication together with the technological revolution have led to changes in the way of communication. What challenges do you have to face when dealing with client-agency relationships? — Clients are being more educated in PR and marketing terms, and the demands are great, but no matter how hard it is from time to time, it is good that the agencies are continuously being challenged to be
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fresh and innovative. Nobody tolerates laziness, nor sluggishness in creation and realization. This is good primarily because smaller agencies that do not wear a famous name, or years of experience , can come to the fore. Large companies are no more inclined to "buy" a friendly recommendation or hire a huge agency for their important projects, unless they have a good idea. It's the idea that can transform an anonymous agency to a very good and reliable one overnight. I am of the opinion that, nowadays, work, effort and primarily commitment towards the client is more and more valued. And yes, the fact that the client can reach the leading people of the agency for any consultation, instead of dealing with an inexperienced account, is not less important.
M I RJA NA VIŠNJIĆ General Manager , We media agency d.o.o.
FORMULA
PEOPLE I believe that people are the strength of every successful business, so our secret is in people.
We nourish the belief that we should not wait for the client to ask us for a new proposal - we will propose it ourselves, we will also not give only one, but at least three, and when it rings 17h, we will continue to behave as if it were regular working hours. Time is money, so we are guided by the fact that we always have a quick and proper reaction. We are the reflection of our client's image. And yes, we love to work.
The huge experience that you have in the media and the agency, as well as work with big brands, are important in the sector you operate. What is, from your perspective, important for an agency to have nowadays? — Apart from the absolute dedication, that can sometimes be compared with the relationship of a great nanny to a child, the agency
must have people who want to work and progress regardless of whether the boss is asking for it. It’s the people, because people create content. More specifically, many years of experience I gained in the media brought me only good in agency work. It taught me what kind of content I should never send to my colleagues in the media, and on the other hand, to be able to suggest to the client how to get as much media space as possible and gain greater benefits. It is true that in the media today everything can be paid for, but it is up to an agency whether the client will get a bad position on a completely irrelevant newspaper page, for example, or make an effort to make the client’s content interesting to the editorial office so that it will gain as much space as possible. The same applies to the organization of the events or the creation of a marketing strategies. Spontaneously or not, the time has come that everything became transparent, and I have to admit
that it gives me immense pleasure because unfortunately, I suffer from an incurable disease that many people from the world of the media have - I can not close my eye to ugly, stupid or counterproductive ideas. All of this brings us to the only correct answer to your question - the agency today needs to be honest towards the client and to work, work, work!
Time is money, so we are guided by the fact that we always have a quick and proper reaction. We are the reflection of our client's image
2019 is near, what are the plans when it comes to further development of your agency and the services you offer? — We have invested a lot of effort to operate as a full service agency. That being said, we only need to know the area of business of our client so he doesn’t need to contact anyone else not event for the smallest detail. No matter how unrealistic it might sound, we choose who we are working with. Above all, we like to work with clients who have a healthy and great ambition, even though
that means much more work for us. However, at the end of the day it means more satisfaction. Our intention for further development is to be more professional, more detailed, more creative, but also selective.
How much, the industry you operate in should contribute to the development of the economy, and what can be improved? — We can be proud of our portfolio, which greatly contributes to the economy. Basically we have nothing to ad as these are companies that, in their segments, improve our country on a daily basis. What are the secrets of the We Media Communications formula? — I believe that people are the strength of every successful business, so our secret is in people. It’s utopian is to believe that we come to work to socialize, but the fact is that closeness among colleagues gives rise to the best ideas. We will do our best to stay so!
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IN MEMORIAM
MARKETING IN SERBIA - STILL IN ITS INFANCY iroslav Šutić was Opinion and Market Research Expert, founder of the first Opinion and Market Agency of the 1990s, World Bank’s Project Management Expert (2000-2003), regional representative of ESOMAR (1998-2006), President of Association of Professional Market Researchers (1992-2007), as well as the author of numerous feature stories and analysis published by regional and international news agencies. Miroslav Šutić started writing for Diplomacy&Commerce, since the magazine’s first launch. He wrote many analysis, commentaries and texts about Marketing Segmentation in Serbia and worldwide. He certainly left indelible trace in our professional and intellectual milieu. We will not let his work and ideas to fall in oblivion. In honour of our long-time columnist, we present his last text as a whole.
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For the past three decades that I have been actively engaged in Marketing Researches, I have been concerned with unbelievable Marketing development trajectories in this region. The transformation from amateurism into professionalism. In principle, we should be satisfied for many reasons. But the devil is in the details. S o m e of t h e m p re t t y m u c h hurting. Marketing has been considered the empirical discipline. Everything we know about marketing has been acquired through self-education and trial and error method. For all the practical takeaways of marketers, but theoretical contribution stays behind the one that supports more developed markets. One of these times it will change, perhaps, but now the difference is obvious. So, what would be the professional status of our marketers: expert, consultant, manager? In my opinion - it is: the master of my craft. And precisely because the expertise is obtained through self-education and practice, every Master marketer adds its unique touch to this discipline. That is why Master concepts differ from one to another. But sometimes the differences are drastic. And the only way for marketers to objectify their status to some extent is to regulate it, to be more specific - to
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self-regulate it. We all failed this test. The cooperation within the field is insufficient, common attitudes do not exist thus having no effect on own industry, clients and business environment. That makes us weak, but for now it seems there is no way out.
MARKETING IMPACT ON BUSINESS PROCESSES
Whereas the overall process (a n a l y t i c s , co m m u n i c a t i o n , control) is undeveloped, because of the client’s state of mind on comprehensive demand generation activities, all attention is focused to what is obvious to
the naked eye - communication. The agencies involved in marketing communication, became far more prosperous segment of domestic marketing. Thanks to some successful foreign agencies and some very demanding foreign companies that entered our market, we are not a long way behind. On the other side, as for analytics (market research and analysis, strategic thinking and development of contemporary model management) and control (efficiency analysis and profitability of investments - ROI), they are less than sufficient. Without impact on behaviour marketing strategies and results measuring, marketing and marketers hardly affect overall business processes. Only the analytics and control researches, in the narrow sense, are at a satisfactory level which is efficient data collecting about consumer attitudes and behaviour. The question is: Who is in charge of research strategies that support supply and demand analysis, consumer potential analysis, analysis of all forms of client-environment interactions, along with optimal impact of interaction and its multiple aspects. Who is in charge of formulating research hypothesis and Marketing goals. The most sensitive and the most sophisticated stages of the marketing cycle are the most
demanding ones and most prominent and experienced specialists should take care of them. Market researches goals are set by an inexperienced client who is not a Marketing specialist. So that researcher’s basic activity is to execute the process of data collection and evaluation, related to the goals. This is not a relevant interpretative instrument that can reach strategic recommendations, tangible solutions to real problems, recommendations for making business decisions. As the result, researchers are consigned to an inferior position, without authority and strategic impact on client’s business decisions. Most of the marketing budget goes into the process of operational communication without analytical contribution, revealing haphazard approach to ROI which makes ROI uncertain. Responsibility for investment efficiency of communication is up to the client who has consequently an active impact in creating business performances. This leads to professionalism and the consequential effects in communication being distorted by amateurism and incompetence of the client. This makes any further total effects control senseless. And the one that is truly responsible for marketing-investment decisions and their effects is not very delighted to see that business performance efficiency is exactingly measured. Now we have a coil of amateurism and improvisation spreading through the overall business performance. As this is the way the things stand, and they’ stand this way indeed’, it is clear that there is no need for professional strategic marketing creation (Analytic and strategy) or professional evaluation (investment controlling) as being a corrective of future investments and it does not encourage the development of analytic services nor highly-qualified personnel for research and analytic jobs. This marketing aspect is a weak
point as for the present state of matter in Serbia.
WHEN, OR EVEN BETTER, IF IS IT GOING TO BE BETTER?
The current state of Marketing as being a ‘hospitality’ industry is a direct reflection of the client’s state. If there is no awareness of how important Marketing knowledge and intervention policy are, such activity cannot be improved. So, the problem is that Marketing is not a fully-fledged business function. And this is where the circle ends and focus resets to the importance of businessmen and entrepreneurs training. Business entities, in the first place those that depend on the market, CANNOT consider their business activities to be trial and error method based. In twenty years, each company will feel the hurting effects of underestimating common sense, economic analytics and communication skills. Alas, they will not survive to implement the acquired knowledge. The economy is to master the market using relevant skills or disappear. It should be realized, especially by
economic science, which is hugely responsible for market performance within economic growth. The concept of market economy must be demystified. Old habits, customs and opinions must be unmasked and abolished and finally replaced by new vision of economy and new skills for managing business enterprises. It must, but will it be? Well, let it be. Axiom that emphasizes the fact that a new concept of economic development requires new approach and rational behavior in the first place, has been proved by new generation investors. They are relatively young people who studied abroad with relatively strong starting positions in terms of start-up capital. Although it is about the capital accumulated by the previous generation, this new generation investor is liable for the capital investment (there are exceptions, of course). This investor chooses to conduct preliminary analysis as the first step, because he /she wants to test and validate framework ideas, to do a competitive analysis and to comprehend Market challenges he/she is going to meet. After that he/she starts dealing with target market analysis so that he/ she can create business and marketing operations plans. Finally, he/she wants to estimate capital flow and calculate ROI for a period of time, making the investment self-sustainable. All of this is to be considered BEFORE specific investing decision. So, it is possible. It is all about business (IL)literacy and (IR)responsibility of entrepreneurs for management of working capital. And this is exactly what should be changed by better education and business climate change. MIROSLAV ŠUTIĆ Partner Research Solutions Belgrade, September 2017
*Narcis Selimić (PARTNER Research Solutions): This text is somehow a testament, epistle by Miroslav Šutić for the colleagues in Marketing field. It is published in the book: “Testimony…...of a time”, by Svet marketing doo. The book was launched just before his sudden death.
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THE SECRET
Formula of Communication
ANYONE, ANYWHERE, ANYTIME The 21st Millennium Stands for Communication
elcome to the 21st century, a generation of technology, innovation, and indeed communications. As a young member of the present millennium, I believe I live in the peak of web development and online human interaction. My home for the past 2 years has been London, the city where media trends launch their rockets into the rest of the world. It is a place where the freedom of speech is welcome and communication methods are rising like never before. But what are communications? Can we specifically define such a broad meaning, which to an extent is growing on a daily basis? We communicate with our friends and family, we are communicated at by advertisements and the media, we communicate in pairs and groups, but most importantly we communicate as individuals within our communities. As we enter an important age of job seeking and working on fitting into the adult society, we begin to acknowledge the importance of communicating skills. I believe being able to hold a good conversation plays a significant
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factor in core competences of leadership and management, builds on relationships, and is an effective way of interaction as a whole. Now let’s move on to online communication, a topic more relatable to most of us. It is hard to picture life without a Facebook profile, or an Instagram feed? Our generation came to a point where we use social media for communicating to friends, family, customers, and other business, all on a daily basis. Online platforms have been a game changing phenomenon within communications. Today, people and organizations remain connected and updated through various forms of social media networks, using it as a way of interaction. Companies of all means and sizes have now jumped on board, eager to keep up and be ahead with their competition. Facebook and other platforms can be used quite effectively to establish bonds between employees as well as customers, creating a more personal connection if unfortunately, faceto-face meetings, are not possible. At the end of the day, we use the media as a tool, knowing that
M I NA V U Č I Ć Student, University of Westminster in London
We use the media as a tool, knowing that we can reach anyone, anywhere, at anytime
we can reach anyone, anywhere, at anytime. While a lot of attention is received by new methods of effective communication through online platforms, I still think the value along with the relevance of the traditional methods of communication still exists. The ability to speak and most importantly listen tends to create more effective communication skills. In face-to-face interaction we can easily judge how the person is perceiving the information we are giving out, get immediate feedback, as well as respond to questions. When we talk faceto-face not only is this an exchange of words, but also the opportunity to see the hidden side of nonverbal communication. I believe many of us heard the age-old aphorism“it’s not what you say, but the way you say it.” It is the eye contact, the words we pick, the expressions we make, and the body language we use, to form what is known as an effective and memorable conversation. After all, “If you just communicate, you can get by, but if you communicate skilfully, you can work miracles” (Jim Rohn).