Asian Media Planning and Buying

In Media Planning 101, students learn about Rating, GRP, CPM, CPP and so. They plan base on MRI and Nielsen data. While these techniques are useful, it does work for Asian media planning. Why? Because we don't have syndicated research data like MRI and Nielsen and that only a few Asian American publications are ABC audited.

Adding to the fact that the market is very diversified, Asian media planning is indeed extremely challenging. It is very difficult for general market media agencies (who are from the traditional schools) to manage. To deal with Asian media portion, they have three options:

• Put together a very basic plan and buy for some level of awareness. There are few major media in each market/segment. Just buy some full-page ads or 60-second spots on premium position/time would not be too wrong.


• Outsource it. Pretend you have the capabilities in-house but actually let your affiliates do it. Form a different agency with the affiliate in case the affiliate has existing client(s) that have conflict of interest.


• Let go. Admit you are not ready and ask client's Asian agency to do it.

Most of my clients have their general market media agencies handle all diversity media plan and buy, except Asian. But it is not easy for them to let go and keep letting go. I believe it is the nature of business –- people try to have it all.

Before you decide which option you or your agency should take, see my other Asian Marketing blog entries on my experience working with general market agencies when I worked for an Asian publication.

• IBM -- Traditional vs Simplified Chinese
• McDonald's -- Language Difference
• IKEA -- English Ad On Chinese Newspaper

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Asian Media CPM

I was in a new business pitch last week. The media director of the prospect company asked me why the CPM of the Asian media was ridiculously high and how it justified. While he was the only one I met so far raised the question, I bet many other general market media professionals share the same thought.

I must admit Asian media CPM is relatively higher than general market, range from 1.5 to 10 times more depending on the market segment and media type. Why does it still make sense? Here is my defense.

1. Asian media are very targeted. The more narrow targeted a medium is, the higher its CPM is. That is the nature of the business. Higher CPM but less waste, money well spent.


2. The attentiveness of Asian media are much higher than average. Audience is very involved with the media/programs/contents. You’d rather pay higher CPM on one designated medium than to pay lower but share audience’s attention with other media at the same time (eg. TV & Internet).


3. Response rate of some major Asian media are enormously high. Since the audience is very involved, they pay attention and take action accordingly. Place a small announcement in an Asian pager for a cultural activity, you will easily find full house the next day.

For the above reasons, Asian media demand higher CPM. But come on, give me a break. Our media budget has been – still – just a drop of bucket. Asian marketing tend to overdeliver.

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Media Pricing

Met with Donald Post, an experienced media and agency guy, today. He told me how easy magazine buy used to be more than a decade ago. Ever since there have been print sales professionals who help advertisers negotiating the best price, position and added value; the rate card numbers became reference numbers. While the middle person helped selling the media, it hurt the pricing infrastructure.

Don was surprised when I told him there are many ethnic media mean to have rate card for reference only and actual rate could go as low as 10% of the open rate. There is no standard. It all depends on what is the brand, who you are and whom you talk to. Today AE John gave me the rate $1,200 and claimed it was the best rate ever ($3,000 open rate, $1,700 after all frequency discount). After I submitted the plan, client could call me tomorrow and asked me to send IO to AE Mary of the same publication at the rate of $1,000 for 9 insertions.

Yes, it is that bad. It is so embarrassing. Of course, we complained, so as the other Asian agencies. But it is an industry problem. Luckily, not all Asian media are like that. Only very small number of them in some particular segment and media type still do that. It is definitely an ethical issue.

In advertising, agency and media are partners. We work together to grow the business. Asian marketing is still just a drop of the bucket in terms of overall advertising spending in the US. No matter how big the buying power Asian have, how good the Asian agencies are, the needle won’t turn until the Asian media get more disciplined and organized. So, wake up, people!

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New Business Pitch

For those who also work for advertising agencies, how many of you like new business pitch? To some extent, it is free market consultation and creative giveaway to the prospects -- all at the expense of the agencies.

I work for a small agency. I must admit all the pitches we have recently have been taking a good portion of my time from existing clients who are no less valuable. Yet, who can afford not to pitch?

I should be happy that there are so many multicultural pitches going on. It means marketers understand the importance of multicultural marketing and they demand specialty boutiques to deliver.

In some pitches, prospects review agencies of different ethnicity separately -– which most of the time include African American, Hispanic and Asian marketing agencies. Some others would ask the agencies to group together to present and award the business to the winning team.

Marketers (mostly government services) prefer the latter approach may be because they are too busy and have no time to review dozens agencies and presentations (three to four from each segment). They may also want to make sure the selected agencies can work together as one team. I personally do not like the team pitch at all. Most of time, it limits our creativities (since we are not the leading agency).

It's your call: Easier review or deeper understand of the agencies?

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We Are Hiring

Asian marketing agencies are constantly hiring, not because they are expanding like the dot-com in the 1990's, not because we have an abnormal turnover rate. It is because it takes us long to find the right candidates.

In general, we prefer someone bilingual (English plus one of the Asian languages). But it is okay if you don't speak the language well as long as you understand the culture.

For senior and intermediate positions, related experience is highly desirable. Since there are not many Asian advertising agencies, most candidates would either have worked for general market agencies or agencies in Asia.

Knowledge of the market usually is very important for most other industries. But we don't take it for granted. We know we have to either train someone or steal from other agencies.

One may think training should not be difficult if you speak the language and understand the culture. Wrong! You may speak Korean and understand the Far East culture, how about South Asians and Asian Indians? Don't forget each subgroup has its own unique demographic, geographic and psychographic profile. Each has its own media channels. Each concentrates in different part of the country.

Just when the trainees turn to pros after several years of training, many of them turn to the client side for better pay and better hours. That's the reality.

That is why it takes two years in average to get a qualified Asian Media Supervisor, four years for Account Director and even longer for Media Director. I am not talking about training time; I am referring to the hunting time. And yes, in that case, we may as well train our own.

But I am not giving up, please email me if you know anyone interested and qualified. Though not all positions are open now, we always prepare ourselves just in case.

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Why Taco Bell is Getting Multicultural Marketing Wrong

In one of his recent blog posts, Rohit Behargava, Vice President for Interactive Marketing with Ogilvy Public Relations Worldwide, asked why Taco Bell put their all multicultural marketing effort on Hispanic and African American while ignoring Asian Indian. He pointed out that Asian Indian preferred Taco Bell than other fast food chains, perhaps for its option of spicy and extra hot sauce. "Wouldn't it make more sense for Taco Bell to focus some of their multicultural ad dollars on the Indians and other niche markets like us [who already like its food]?"

Behargava argued marketers should not just look at the population numbers and dive in the two largest minorities (African American and Hispanic). They should "think more broadly" and understand where their niches are. I too believe many multicultural marketers forget to study the profile of each ethnicity group, and more importantly their current customer base as well as each segment’s perception of their product.

Asian Indian may be represent less than 1% of the population. But may be it is this 1% that can turn your needle. "Are you targeting your multicultural consumer right - or are you unintentionally ignoring some of your best customers?" Behargava asked, so do many Asian marketing professionals.

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