This refers to Vanita Kohli-Khandekar’s ‘Should media companies get into events’, August 11. I agree that every media company, whether it works on above-the-line (ATL) or below-the-line (BTL) campaigns, is strategising to remain relevant to the marketer’s need. However, other factors are also contributing to the erosion of margins of traditional event companies. One, there is a growing number of people from agency backgrounds joining the rank and file of communication-savvy companies. Two, clients have become smarter and more educated about below-the-line activities and most of the times they really know what they want.
We are now seen as mere execution experts. Three, with the exception of a few buyouts (Encompass by WPP through JWT), the BTL industry is highly prone to fragmentation, and consolidation is a remote idea even for the established standalone event companies. In my view, traditional event companies will have to come up with even more innovative ideas and research-based BTL solutions. ATL media companies should realise that while the clients do want 360° communication, they may be comfortable with the fact that each plank of the communication is taken care of by respective subject experts.
Kaushal P Mahaseth, on email
