The marketing communication landscape will see significant change arising from two major U.S. events in the near future. Agora's president Don Schultz pre-empts us of what's to come and how it will affect Asia.
Marketing communication is on the edge of a major revolution. Everyone knows that. But, two dates will signal change that will rival the introduction of commercial television some 70 years ago and the internet of the middle 1990s. Two dates are critical.
On 24 January, 2008, the Federal Communications Commission will auction off the last remaining U.S. bandwidth spectrum. Whoever acquires this bandwidth will have a major impact on electronic communication development around the world.
The other date, 19 February, 2009, is the scheduled time for all analogue television in the United States to be turned off. Digital thus becomes the primary technology for television broadcasting, requiring both broadcasters and consumers to change equipment.
These are U.S. changes. Why are they important to Asian marketers, agencies and media? Is this simply more American hype and self-centred-ness? Giving a couple of national events more global importance than they deserve? For example, other countries, Luxembourg and the Netherlands, both made the digital TV switch in 2006. Why then, is the U.S. change so important?
Most will agree that the U.S. "invented" the modern advertising system…mass media, mass advertising, global agencies, media conglomerates and the like along with the attendant structures such as brand management, media measurement and so on. Other countries have either adapted, adopted or refined these American initiatives. So, with the demise of analogue television -- the most dominant form of advertising around the world -- what does that mean for traditional marketing communication in Asia and elsewhere? Does this mean the dominant U.S.-centric marketing and communication structures become passé? Will other more relevant forms of communication, not based simply on outbound, tonnage-driven, push models emerge from Asian marketers who already lead in 3G, wireless and mobile? Will SMS, texting, social RSS via networks and other interactive forms emerge globally to fill the void created by the demise of traditional mass communication?
Of particular interest is the spectrum auction. If the available slots are purchased by U.S.-based telephone companies, the U.S. will likely continue to be a third-world mobile and wireless arena, where simply getting a cell phone signal is a major accomplishment. If that's the case, some of the dominant Asian players such as China Mobile, Do-Co-Mo, SK Telecom and others will likely leap forward to fill the gap. Conceivably, they could change the rules of the marketing communication in other parts of the world….Africa, South America, Eastern Europe, etc.
If, however, others such as Google acquire the spectrum, that will change the game as well. Whoever wins the spectrum bid likely means greater opportunities for Asian firms from China, Korea and Japan to participate in what has essentially been a closed U.S. market.
So, the two dates are critical. They truly signal the end of traditional U.S.-dominated marketing communication as we have known it. With these changes, will Asian marketing, communication and media companies move to the head of the class, based simply on their experience, knowledge and understanding of the new media forms? Those are really going to be the most interesting marketing communication questions during the coming Year of the Rat.
Don E. Schultz is president of Agora, Inc. and professor Emeritus-in-Service of integrated marketing communications at the Medill School of Journalism, Northwestern University. Read full bio.
