Communications Sector in Serbia 2015

S P E C I A L

2015

E D I T I O N

COMMUNICATIONS SECTOR IN SERBIA

FOREWORD

The Public Should Receive Accurate Information The trend of PR professionals exerting pressure on the media to publish information from their press releases, as well as the media’s insistence on receiving payment for releases not considered advertising, have contributed to the further collapse of the social standing of both professions

Professor GALJINA OGNJANOV Ph.D.

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he communications sector is an integral part of our national economy and it is important because it provides infrastructural resources for the transfer of information. It also contributes to social development and the preservation of national security. According to the current classification of business activities in Serbia (KD 2010) that comply to the relevant international classification (NACE rev. 2), this sector comprises the production and distribution of information and cultural content, including publishing (books, newspapers, magazines), activities regarding the transfer

communications (advertising). In that respect, and in regard to the current social status of public communications in Serbia, here we are going to focus on two segments: 1) the situation in the media (print and electronic) and; 2) the situation in PR and marketing communications professions, which have the mission of informing the public, via the media, regarding the activities of certain institutions, profit or non-profit organisations, and public figures.

The current situation in the Serbian media has never been this difficult.

There are many reasons for this, but one of them relates to changes in the way

COMPANIES, INSTITUTIONS AND INDIVIDUALS WHO ENGAGE PR PROFESSIONALS NEED TO REVERT BACK TO LONG-ESTABLISHED POSTULATES OF THE PROFESSION, WHICH CALL FOR THE DELIVERY OF MEDIA INFORMATION TO BE OPEN, HONEST AND TIMELY and distribution of communications (production and broadcasting of radio and television programmes), as well as telecommunications services and other IT activities. In terms of public information, the sector is closely tied to another important economic segment managing consulting services in PR and marketing

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people consume media products. The modern consumer does not rely solely on one medium alone to get information, but rather on a mix of different media.

A large number of different media and their simultaneous consumption, which are influenced by the additional factors of time and the attention span of indi-

viduals, have resulted in information not only being shortened, but also becoming more creative. The basic need of an individual to be entertained through communicating takes precedence over the basic need for information. Under this pressure, the media have abandoned their main role as a means to provide information and are more frequently becoming a means for providing entertainment. In response to such market challenges, the media in Serbia have started to take on the tabloid form. Media tabloidization also suits many political figures and the governing elite, because it diverts attention away from important social issues and onto marginal issues aimed at providing entertainment for the reader in the shortest possible time.

This trend contributes to the further collapse of the media status and the role they should play in social development.

Thanks to the development of information technologies, the information process has become a two-way street and is now interactive, which in turn leads to altering the initiative from post hoc reactions to a certain media release to an ad hoc influence on forming public opinion. Readers are now journalists; they release news, bring issues to light

and comment publicly. So-called civic journalism is created, which carries with it great risks. As a rule, active individuals are now highlighting and advocating issues based on their subjective points of view, or they are encouraged to do so by the organisations and individuals they work for.

Active public also brings into question the importance of journalism and the role journalists play as objective observers of reality. The existence of an active public also discredits the reputable profession of journalism and undermines the importance of this segment of the communication sector in Serbia.

On the other hand, technological and social changes, coupled with the economic crisis, have all brought about changes to the roles, modus operandi and social status of PR and marketing communication professions. The need to rationalise operations which, by default, means cutting marketing and media advertising costs, did benefit the PR profession for a little while. However, in Serbia there was too much explicit empha-

sis on equating PR with free publicity.

The measure called advertising value equivalency has often been cited as the main efficiency tool in this format of communication, and proof of the advantage it has over regular advertising in practice. This measure is based on calculating the price of media space for advertising. Insisting on being given a chunk of media space for free, through PR, coupled with the bad economic situation media outlets

find themselves in, has led to the media now offering so-called PR articles, with paid advertising or charged at a certain rate (usually lower than the current advertising rate) for using media space.

The trend of PR professionals ex-

munications platforms, primarily the internet and social media, has been mentioned as a solution. However, reality shows that instead of replacing the old media with new ones, what is happening now is that the communication process is becoming more complex and, during this complex process, information is being simultaneously transferred via different channels, which doesn’t actually reduce the communication costs for companies and institutions, but rather requires them to provide additional funds, now more than ever.

The future of communication and public information in Serbia will depend on the willingness of company leaders and institutions to grasp the important role that this profession plays in society and their readiness to

THE FUTURE OF COMMUNICATION AND PUBLIC INFORMATION IN SERBIA WILL DEPEND ON THE WILLINGNESS OF COMPANY LEADERS AND INSTITUTIONS TO GRASP THE IMPORTANT ROLE THAT THIS PROFESSION PLAYS IN SOCIETY, AND THEIR READINESS TO SPEND SUBSTANTIAL FINANCIAL RESOURCES ON ITS DEVELOPMENT AND IMPLEMENTATION

erting pressure on the media to publish the information from their press releases, as well as the media’s insistence on receiving money for releases not considered advertising, have contributed to the further collapse of the social standing of both professions.

PR professionals are under pressure to do their job in the most efficient way, which entails being the most effective with the least invested resources. Utilisation of new com-

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spend substantial financial resources on its development and implementation. The key prerequisites for this are education and adhering to high ethical standards, which are inherent to journalism and public relations. Companies, institutions and individuals who engage PR professionals need to revert back to long-established postulates of the profession embodied in the Declaration of Principles, created by Ivy Ledbetter Lee, one of the fathers of modern public relations, at the beginning of the last century.

This declaration states that delivery of media information should be open, honest and timely.

The ascent and advancement of the social standing of these two professions in Serbia correlates directly to the acceptance of their basic postulates and a willingness to invest in both the further training of professional staff and in communication technologies. ■

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INTERVIEW

Companies Understand the Importance of Communication In order for the communications sector to be recognised as a factor of development, it is important to establish cooperation with the relevant ministries and work together with them on the preparation and adoption of high quality laws

IVANA PARČETIĆ MITIĆ

founder and editor of the Marketing mreža portal

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ZAZOV (CHALLENGE) 2015 is an interactive B2B event and the first of its kind in the region. To be held on 25th and 26th February at Belgrade’s newly opened Radisson Blu Old Mill Hotel, the event will provide an opportunity for marketing, public relations and digital communications professionals from companies and agencies to discuss trends in integrated communications, the shortcomings of the region’s marketing communica-

of development, nor does it enjoy the social status it deserves. In your opinion, what should be done to change this?

- Compared to the period of a decade ago, the communications sector has made significant progress. It does not yet have the status it deserves, but the situation is changing from year to year to the benefit of all of us. Of course, in order for communications to receive the position it deserves

WE HAVE EXCEPTIONAL COMMUNICATORS AND CREATIVE PEOPLE, AND THIS CLAIM IS SUPPORTED BY THE AWARDS WON BY OUR PEOPLE AT FESTIVALS IN EUROPE AND THE REGION tions market, and other topical issues relevant to this profession, which is changing rapidly in parallel with the crisis and technological changes.

• The communications sector in Serbia is not sufficiently acknowledged and recognised as one of the pillars

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it is important to establish cooperation with relevant ministries and to work with them on the preparation and adoption of high quality laws. In addition to this, self-regulation can contribute greatly to the profession gaining the position it deserves. This would mean that it is essential for us

to adopt ethical codes that will govern the key themes from the profession.

• Are we awaited in the future by the full integration of all communication tools, which has been a trend of recent years?

- Integration has represented a trend for several years and is actually already our present. Companies have recognised the importance of communications in general and respect it increasingly, seeking to maximise their use of all communication channels available to them. The development of social media contributed in particular to this situation, as well as the fact that for the first time we have space for feedback from users of services or products. I have no doubt that this trend will be even more pronounced in the years ahead.

• In which direction is the communications market in Serbia developing?

Where are we in relation to the rest

of the region, and where are we compared to world trends?

- The communications market in Serbia is developing excellently, and a number of different factors have contributed to this. First of all, the market is small and there are a lot of participants. This situation contributes to strong competition existing, which is constantly competing to attract the attention of the groups they target. We should not mention that budgets are increasingly modest, which in turn adds to the “mental gymnastics” that must be performed by those develop campaigns. All of this probably contributed to ensuring we are not lagging behind the rest of the region or even Europe. We have exceptional communicators and creative people, and this claim is supported by the awards won by our people at festivals in Europe and the region.

trends, I cannot help but repeat what our colleagues from abroad mentioned as trends at the PRilika 2014 conference. First of all, this is the mass use of smartphones in addressing everyday problems and needs.

Moreover, messages are increasingly shorter and more concise, as the attention of consumers is overburdened by mass messages that bombard them from all sides. It is necessary to grab their attention and put those few seconds to good use, and for that we need high quality content. This directs us towards transparent communication, which will also be one of the trends that will dominate in 2015.

• How prepared are companies in Serbia to invest in the education of their employees responsible for communication, or do they pay for the services of experts in this profession?

THE CHALLENGE 2015 FORUM WILL SEE THE PRESENTING OF THE LATEST RESEARCH ON THE STATE OF THE PROFESSION IN THE REGION, WHICH WAS LAUNCHED JOINTLY BY THE MARKETING MREŽA PORTAL AND RESEARCH AGENCY MASMI - The leading people in the biggest companies in Serbia have long known how important it is to have a good communications sector, as well as good external collaborators who will contribute to the company being adequately represented among target audiences. When it comes to fees for the services of professionals in this field, the general impression is that fees for the engagement of agencies are reducing year on year. However, the conclusion is that companies are willing to pay for a good idea, provided it is resented to them well, reflects the brand values and brings the kinds of benefits that are expected.

• What will be the key trends of the communications sector in 2015?

- When it comes to communication

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• The Marketing mreža (network) is organising the first regional forum of communication leaders on 25th and 26th February – IZAZOV (CHALLENGE) 2015. What is the purpose of this forum; who is it intended for and what topics will be addressed?

- CHALLENGE 2015 is an interactive B2B event, the first of its kind in the region, intended exclusively for professionals in the fields of marketing, public relations and digital communications from companies and agencies. The topics will focus on trends in integrated communications, as well as the state of the region’s marketing communications market, tenders for the engagement of agencies, budgets and expectations of clients from the agency for the money invested. A special segment will be dedicated to fostering dialogue

between agencies and companies, during which company representatives will answer the expert questions of agencies’ representatives.

The Forum will be held in Belgrade’s newly opened Radisson Blu Old Mill Hotel, which is a friend of the event and will participate actively through interactive company workshops. In addition to Radisson Blu, case studies will also be presented to agencies by the companies Toyota, Henkel Serbia, Microsoft, Knjaz Miloš, Telenor, UniCredit Bank, Confluence Property Management (Ušće Shopping Centre), Bambi, Eurobank and the National Register of Internet Domain Names of Serbia. The CHALLENGE 2015 forum will also see the presenting of the latest research on the state of the profession in the region, which was launched jointly by the Marketing mreža network and Research Agency MASMI. • The Marketing mreža network celebrated its third birthday recently.

How difficult was it to build the reputation it has today and what plans are there for further development?

- The Marketing mreža network (www. marketingmreza.rs) was launched three years ago as a specialised and interactive portal that aims to encourage networking and business links among all participants on the marketing communications market.

The idea of the portal was to ensure advertisers have insight at all times into the quality of future business partners, while agencies can find potential clients, designers and creative people can receive interesting and innovative ideas, and the media can establish the best possible communication and cooperation with advertisers and agencies, with the aim of improving sales of media space.

All these ideas have been implemented consistently over the past three years and have certainly contributed to building the reputation of the portal. And in the future period all of our activities will be directed towards improving the profession, with the aim of encouraging all participants in the marketing communications market. ■

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INTERVIEW

Continuous Change Imperative

Implementation of the digital way of thinking at all levels requires that agencies keep improving and continue seeking new solutions for communicating with consumers IVAN STANKOVIĆ CEO, Communis DDB

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ny agency that wants to survive on the market has to change constantly, keep adapting to new trends and seek new people who grasp the new world of digital thinking. “There will be more work, new and different solutions will be provided and deadlines will become shorter,” says Ivan Stanković, CEO of agency Communis DDB. • As in other industrial branches and sectors, the economic crisis and huge technological advancements have resulted in great change in the way media and PR agencies work. What challenges lie ahead for PR agencies in light of these changes?

- We are not a PR agency, but rather an agency for integrated communication.

As such, in our case the challenges are even greater. Everything we have known to date needs to change. Those who don't change will not survive. This is the hard truth that we are very aware of and why we’ve been working on changing the

needs to be done to change this?

- The communications sector belongs to what is referred to in the modern world as the creative industries. It carries huge development potential for Serbia, since it comprises the entire entertainment industry – media, music, filmmaking – and many other aspects in which we are quite competent. The time has come for the old cultural concept, which entailed giving, to be transformed into the creative industries' concept that involves creating surplus value. This is a great opportunity for us.

• Do you think complete integration of all communication tools awaits us in the future, as a continuation of the trend of the last few years? How difficult is to attract consumer attention, become recognisable and preserve one’s reputation?

- The battle for consumer attention is great. The most difficult thing today is to attract attention. Consum-

OUR BUSINESS PHILOSOPHY IS TO DO OUR JOB WELL AND DIFFERENTLY, IN ORDER FOR OUR SOLUTIONS TO BE NOTICED AND REMEMBERED agency's concept completely. The first thing to do is to implement the digital way of thinking at all levels.

• The communications sector is not sufficiently recognised and2012 acknowl4 | INTERNATIONAL GERMANY edged as one of the driving forces behind development in Serbia. What

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ers have changed; they have become spoiled, stubborn and disloyal. What is now required is two-way communication instead of one-way informing.

It is difficult to reach consumers, and new generations use traditional media in a completely different way. To quote Nikola Pašić: “There is no salva-

tion, but we won't perish”.

• Are companies in Serbia willing to invest in education of their communication staff, or are they more willing to outsource communication professionals?

- They have come to realise more and more how important professionalism is for communication. Earlier we had to fight tooth and nail to convince them that they need professionals, but now they see that for themselves. The problem is that this area changes so rapidly that it is virtually impossible to have a traditional or systematic education and training system. Hence, a lot depends on individuals alone, who are expected to train themselves.

• In which way do your activities differ from your competition?

- We have been trying to ensure our activities coincide with our business philosophy, which is to do our job well and differently. By “well” we mean that our work is professional and fulfils all requirements of our craft, and by “differently” we mean that our work is noticed and remembered because we do it differently. It is not easy, but we are moving.

• What are your future plans?

- To work more on ourselves and to implement internal changes, in order to become better and more efficient. That's really not easy, but we have no other choice, since we certainly don't intend to perish. What about you? ■

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INTERVIEW

Quality Has No Geographic Boundaries The Serbian branch of Chapter 4 has been recording steady growth over the past five years, according to all parameters. The agency plans to continue this trend, relying on the implementation of advanced technologies and improving relations with partners TAMARA BEKČIĆ

Director and Co-Founder of PR agency Chapter 4, President and Chair of the Management Board of the Serbian Public Relations Association

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any domestic companies, are aware of the strategic importance of communication for building reputations and achieving success in business, and our PR agencies are up to that task.

• As in other industrial branches and sectors, the economic crisis and huge technological advancements have resulted in great changes in the way media and PR agencies work. What challenges lie ahead for PR agencies in light of these changes?

- The common denominator of these changes, which have had an essential impact on the work done by the media and PR agencies, is crisis and the internet. Although the former has had a destructive influence on economies around the world, it has brought something

our daily activities – from gathering information and doing business to shopping and being entertained – the internet has become a communications component of significant importance.

PR agencies are aware of these changes and they know that they need to be dedicated and to have a constant influx of innovative ideas and reasonably big budgets to succeed.

• Do you think the Serbian communications sector is recognised and acknowledged enough as one of the driving forces behind development and does it have the social status it deserves?

- The communication market mirrors society as a whole. Still, working in a PR agency I have come to realise that, apart from internationals, there are also many domestic

THE RECENT DSOJ CONFERENCE, WHICH BROUGHT TOGETHER AROUND 250 REPRESENTATIVES, INCLUDING WORLD CLASS PR EXPERTS AND LECTURERS, TO DISCUSS REGIONAL AND DOMESTIC GOOD PRACTICES, DEMONSTRATES THE QUALITY AND DEVOTION OF DOMESTIC PR TO THE LATEST CHALLENGES CONFRONTING THE PROFESSION new and different to the world of communications: it taught us how to achieve more with less, courtesy of drastic budget cuts.

The internet is the second common denominator of the changes and this applies to all segments of modern business. As a platform that we use to perform most of 4 | INTERNATIONAL GERMANY 2012

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companies, both small and medium-sized, that recognise the strategic importance of communication for building reputations and achieving success in business.

• In which direction is the communications market in Serbia developing? Where do we

stand relative to the region and the rest of the world?

- I don't think that quality has anything to do with geography. I have been exchanging experiences with my co-workers from Chapter 4 Group and have been regularly attending professional gatherings all over Europe, so I can see that, apart from the size of budgets, we don't differ that much. Many Serbian PR agencies and projects have received awards internationally. We, at the Serbian branch of Chapter 4, have proved successful in the most renowned competitions in Europe, where we managed to win awards or rank among the finalists, despite very stiff competition.

• What are your future plans?

- Chapter 4 in Serbia has been recording steady growth over the past five years, according to all parameters. Along with developing our group's brand in Southeast Europe, we are planning to continue perpetuating the positive trend and will concentrate on two segments: the innovative/technological segment, which encompasses coming up with original ideas, following global communication trends and implementing advanced technology; and the social segment, which entails developing relations with our partners, the media, the local community and clients.

As President of the Serbian Public Relations Association, along with other members of the Association's Managing Board, I will be working on advancing the PR profession, while implementing professional and ethical standards. ■

INTERVIEW

Thinking Out of the Box The true challenge is to develop a brand out of the content, which is a major turnaround in comparison to previous years, when the main approach was to create content out of the brand NEVENA KURTOVIĆ

Managing Director, Direct Media PR

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R professionals and their clients shouldn‘t be afraid to dream a little bit bigger. “With a good idea we should all be a bit bolder and take a step outside of our safe zone in order to achieve stronger results,” says Nevena Kurtović, Managing Director of Direct Media PR

• As in other industrial branches and sectors, the economic crisis and huge technological advancements have resulted in great changes in the way media and PR agencies work. What challenges lie ahead for PR agencies in light of these changes?

- As the economy is the decisive factor, all other businesses follow. Therefore, implementation of newly developed modern technologies is related directly to the financial aspect. Unfortunately, the crisis brought us a situation whereby a significant number of media companies are struggling in their operations. PR agencies will have to exert greater efforts and change their habits of creating visibility in all media. I think the shift will be not just in having a good brand and creating content around that brand, but also about creating brands from content. Society is moving forward with the trends and we have to treat every individual as a possible “journalist”, given that in our hands, mainly through the use of smart phones and tablets, we all hold our own media outlets. As such, direct communication is becoming more sensitive. Most ANY 2012 communication happens in real time and agencies must consider all of these factors, otherwise communications will not be as efficient.

• The communications sector is not sufficiently recognised and acknowledged as one of the driving forces behind development in Serbia. It also doesn't have the social status it deserves. What needs to be done to change this?

- To be fair, I have personally witnessed the growth of our industry in Serbia over the last 12 years and we have all made a great leap forward, not too far behind the rest of the world. I believe this tempo will continue. However, PR is a process, it takes time and results usually do not happen instantly or overnight, as some would like it to be, and the value of PR will grow when we all have a realisation of this.

• Which direction will marketing and PR budgets take in 2015, in terms of the markets you operate on?

online marketing and PR should be directed more towards the development of good, interesting content, rather than towards distribution.

Do you think complete integration of all communication tools awaits us in the future, as a continuation of the trend of the last few years? How difficult is to attract consumer attention, become recognisable and preserve one’s reputation?

- Absolutely! We are already witnessing

BUDGET ALLOCATIONS FOR ONLINE MARKETING AND PR SHOULD BE DIRECTED MORE TOWARDS THE DEVELOPMENT OF GOOD, INTERESTING CONTENT, RATHER THAN TOWARDS DISTRIBUTION - I believe strongly that budgets will remain at the same level as 2014. The proportion could change in favour of digital media, as that market is still growing and becoming stronger. The reason lies in the fact that people, formerly known as the audience, are becoming an ever more trusted source of information. Each person online is a sort of medium and companies pay special attention to them. The tricky part for everybody will be to find a balance between respecting the private area of online users and ensuring brand visibility. As such, budget allocations for

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the integration of marketing services and it seems that the lines between advertising, digital, media, PR and BTL campaigns are slowly disappearing. Depending on the type of message required, one or more elements are left out during a certain phase of a campaign. However, at some point they are added, to a greater or lesser extent. In the very near future we will face the challenge of developing campaigns that will integrate all communications channels. However, communication through each channel will have to retain its basic characteristics. ■

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INTERVIEW

Integrated Approach Key It is necessary to enable an integrated, strategic approach to communications and create a synergy between PR, advertising and digital communications DARKO MATIJAŠEVIĆ

Managing Director, Executive Group Belgrade

orking in the communications industry means evolving ahead of market trends. In this respect, despite the challenges, Serbian industry professionals do their best to live up to the constant changes in their field, says Darko Matijašević, Managing Director of Executive group.

developed, due to their relative sizes and the length of successful development of digital marketing communications penetration.

That has created a high quality eco-system of workers, options and innovative solutions that match even those on more developed markets of Western Europe and Russia. Together with Fabrika World, our specialised online production company, we are making digital technology a huge equaliser enabling us to participate on the global scene, bringing us neck and neck with our peers from far more developed economies.

• The communications sector is not sufficiently recognised and acknowledged as one of the driving forces behind development in Serbia. It also doesn't have the social status it deserves. What needs to be done to change this?

- As a profession in its infancy, at just 15

• Do you think complete integration of all communication tools awaits us in the future, as a continuation of the trend of the last few years? How difficult is to attract consumer attention, become recognisable and preserve one’s reputation?

- The evolution of communications has led to

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FROM BEING AN OUTSTANDING PR COMPANY, EXECUTIVE GROUP GREW INTO A LEADING INTEGRATED COMMUNICATIONS AGENCY, PROVIDING A ONE-STOP-SHOP MODEL FOR ALL OUR CLIENTS years old, we are seeing its transformation and growth year by year. A united initiative of communications professionals is a precondition for achieving an important role in the economic environment of our country.

• In which direction is the communications market in Serbia developing? Where do we stand relative to the region and the rest of the 4 |world?

INTERNATIONAL GERMANY 2012 - Clients should let go of old models and embrace the choices given by the development of digital communications. In this region the markets of Serbia and Croatia are the most

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almost a complete removal of borders between communications channels. However, in Serbia there is still a battle between PR, digital and advertising, even though the essence lies in the results, not in any of those channels separately. It is necessary to enable an integrated, strategic approach to communications and create a synergy between PR, advertising and digital communications.

• Are companies in Serbia willing to invest in education of their communication staff, or are they more willing to outsource communication professionals?

- Those who understand the importance of the communications sector are ready to invest in it. On the other hand, those who work in this sector, in-house or in an agency, should act as entrepreneurs and think of additional activities that will expand the scope of their company’s work. If this is done well, the PR sector will be seen as one of the main contributors to the overall value of a company, thereby making the company’s decision makers even more ready to invest in its development.

• You have been present on the market for 13 years already, operating successfully in the field of integrated communications.

How difficult was it to build the reputation you enjoy today?

- We have to work constantly on improving the way we do business, and that we should always be two steps ahead of the rest. Executive Group’s team, now numbering almost 80 employees, works hard and is dedicated to the development and advancement of its integrated communications services, with a focus on creative solutions and digital communication and production. The numerous national and regional awards we received just last year prove the quality and reputation behind the Executive Group brand.

• In which direction do you expect marketing and communications budgets to head in 2015, both in Serbia and in the region?

- Due to budget cuts, most managers will definitely decide to spend more money on non-traditional media as opposed traditional media requiring heftier budgets. For example, the UK will be one of the first countries in 2015 to spend more than a half of its advertising budgets in digital. We are hoping for this trend to arrive in our region. ■

www.eg.rs

Successful journey 2014.

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INTERVIEW

Communication is Investment The communications sector in Serbia is developing and is still not viewed as an important driving force behind the country's economic development TIJANA ŠKORIĆ TOMIĆ

Executive Director, I&F McCann Grupa

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he communications sector, which is essentially a service sector, needs to be better organised professionally, in terms of implementing business standards and raising awareness about what we actually do and how we contribute to our clients' success; and this should be done in a very transparent, responsible and relevant way.

• The communications sector is not recognised and acknowledged enough in Serbia as one of the driving forces behind development. It

riddled with challenges and instability. According to AGB Nielsen Media Research, investments in the Serbian media market in 2008 amounted to €206 mil, only to drop to €155 mil in 2013. We still don't know anything about the 2014 data, but most indicators show that this trend of reduced investment endures. Furthermore, the communications industry in Serbia is young and is still not viewed as an important driving force behind the country's economic development.

Accepting this sector as a relevant factor that contributes to economic development can be done through implementing and improving two important factors. The first, and probably the most important is to have a more innovative approach to clients and

MARKETING AND COMMUNICATIONS SERVICES SHOULD BECOME AN INSEPARABLE PART OF EVERY SERIOUS COMPANY also doesn't have the social status it deserves. What needs to be done to change this?

- The communications sector has been hit heavily by the economic situation in Serbia and other countries in the region which, prior to the onset of the global economic crisis, was 4 | INTERNATIONAL GERMANY 2012

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services, which I believe can result in complete collaboration between businesses and our services. Marketing and communications services should become an integral part of the operations of any company that considers itself a major player. The second factor is that the communications sector

needs to be better organised professionally, in terms of implementing business standards and raising awareness about what we actually do and how we contribute to our clients' success; and this should be done in a very transparent, responsible and relevant way. All through more intensive engagement with professional associations, the adoption of a professional Code and relevant rules, and of course monitoring whether they’re being respected.

• Which path will marketing budgets take in 2015 on the markets where you operate?

- As always, the answer to this question depends on the annual strategies and plans that our clients are in process of adopting. In the best case scenario, the advertising budgets will be at last year's level. I don't think the communications sector will be viewed as an investment in growth and development in 2015, considering that companies in our country still treat it as an overhead. I think this trend will dominate throughout the entire region, not only in Serbia.

• In which direction is the communications market in Serbia developing? Where do we stand relative to the region and the rest of the world?

- Confucius almost predicted the future of the communications world when he said: "Tell me and I'll forget. Show me and I'll remember. Involve me and I'll understand." This almost describes the core of our industry. Today we can see that traditional TV is slowly being replaced by smart TV. On the other hand, the latest global surveys show that TV advertising costs have been reduced and yet they still make 37% of the total spending on advertising (in Serbia this stands at 55 percent which is still considered significant). There were also predictions that print will disappear all together, but there is still substantial demand for this communication channel. The same goes for radio. Outdoor advertising is going through a ”renaissance” thanks to interactive technology used in accordance with consumer needs. It is quite evident that everything we see around is going digital, but not as fast as was initially thought. The communications sector in the region closely follows this development trend, but is somewhat slower compared to the rest of the world in terms of adopting the know-how for new technologies and their implementation. I think Ser-

at any given moment and everywhere.

Shopping experiences will continue to evolve and enable the consumer to make shopping decisions beyond retail objects. The prediction is that by 2020 smart phones will be so widely used that they are going to become the No. 1 marketing instrument for shopping and entertainment.

In order for companies to continue to succeed in the market and follow new trends in this new marketing era, their brands need to become bold, strategic, understandable and, above all, creative. Without a doubt, creating a relevant message that is compatible with consumers will continue to be important from a communications

TIME IS MONEY AND TO HAVE THE OPPORTUNITY TO EVOLVE TOGETHER WITH YOUR CLIENTS OR CONSUMERS IN A FAST AND EFFICIENT WAY WILL DETERMINE WHETHER YOU WILL BE PROFITABLE OR GO BANKRUP bia and Croatia have been at the forefront in this area.

• Do you think that complete integration of all communication tools awaits us in the future - as a continuation of the trend of the last few years? How difficult is to attract consumer attention, become recognisable and preserve a reputation?

- In the years ahead there will be a definite need for the integration of tools.

Advertising, as such, will be predominantly guided by digital and mobile communications. Different types and sizes of screens – from billboards to cell phones – will enable targeting of the desired demographic in real time,

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perspective. Still, the key thing for the communications sector is to embrace technology in order to continue shaping brand perception, establish loyalty and predict consumer behaviour. Follow, listen, measure, improve! Communications will enable brands to remain strong, fresh and recognisable, while companies will be able to avoid possible failures.

The world economy won’t experience a speedy recovery and management and control of budgets dedicated to communications continue to be very controlled in terms of cost. Time is money and to have the opportunity to evolve together with your clients or consumers in a fast and efficient

way will determine whether you will be profitable or go bankrupt. To make this possible, agencies, or advertisers, rather, will have to implement tools for monitoring and listening to their customers.

• How willing are companies in Serbia to invest in training their staff who are responsible for communications; are they more willing to outsource communications professionals?

- I can tell you from our experience that serious companies in Serbia are wiling to invest in their employees.

However, due to the different level of expertise and know-how, as well as as their work volume, I think our professional services are still needed. At our company education is treated as part of our corporate standard, where every single employee who wants to grow and advance needs to perfect his or her knowledge and skills. Constant learning is part of the work evaluation of every employee. Training sessions take place locally or at our offices in London and New York.

• Considering you're company has been operational for almost 17 years and that you operate successfully in eight countries across the region, how difficult would you say it was to earn the reputation you have today?

- In the long run, the best and the most efficient tool for building one's reputation is knowledge, professionalism and client satisfaction. There are clients in our portfolio that have been with us for over 10 years. Equally important is an awareness among our employees that we are in this together, not just as individuals but all together, are part of the community and country in which we live in. Therefore, socially responsible behaviour is part of our corporate culture. In time, we have applied the same standards to the companies in all the regions in which we operate.

Working in I&F McCann Grupa I have realised that communcations and advertising is the passion that drives me, even though reason rule. ■ www.ifmccann.com

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INTERVIEW

Build a Responsible Brand Today every mistake costs more than it did yesterday, and those who want to survive know that there is no room for amateurism LJILJANA BOLJANOVIĆ

Managing Director and Partner, Olaf & McAteer

O

nly serious agencies with experienced teams who offer a quality service will survive, says Ljiljana Boljanović, Managing Director and Partner at Olaf & McAteer.

• As in other industrial branches and sectors, the economic crisis and huge technological advancements have resulted in great changes in the way media and PR agencies work. What challenges lie ahead for PR agencies in light of these changes?

- Change is the only constant! This saying has never been truer. And constant change requires dedication, expertise, continuous professional development, speed, new ideas, new creativity and new approaches; in other words, “constant training”.

Now more than ever, clients care about not just getting a “sound agency name” for their

done to change this?

- I cannot fully agree with that statement.

This is proven by our clients who, I can proudly say, are leading local and foreign companies that fully understand the need for strategic communications and our role as consultants in managing this important process, which has a direct impact on their development and profit margins. Certainly clients sometimes receive bad advice from semiskilled consultants, and thus the role of our profession's association in regulating this field is extremely important.

• In which direction has the communications market in Serbia been developing?

Where do we stand relative to the region and the rest of the world?

- Olaf&McAteer is part of the Ketchum international network and we are testimony to the fact that Serbian agencies can compete with colleagues anywhere in the world. Due to local challenges, we often introduce new trends even before agencies operating in predictable business environments. Global clients demand a high quality service and we are flattered

DUE TO LOCAL CHALLENGES, WE OFTEN INTRODUCE NEW TRENDS EVEN BEFORE AGENCIES OPERATING IN PREDICTABLE BUSINESS ENVIRONMENTS money, but a responsible, committed partner, who knows its business very well.

• The sector is not suf4 | communications INTERNATIONAL GERMANY 2012 ficiently recognised and acknowledged as one of the driving forces behind development in Serbia. It also doesn't have the social status it deserves. What needs to be

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that, when it comes to measuring success by results, our global clients always give us top ratings.

• Do you think complete integration of all communication tools awaits us in the future, as a continuation of the trend of the last few years? How difficult is to attract

consumer attention, become recognisable and preserve one’s reputation?

- Modern people are faced with more and more choices, and they want better quality for their money. That is why we advise our clients to build a “responsible” brand – to respect those their business depends on, and to invest in their relationship with them. Integrated communications, and close cooperation among communications sectors, allows them to do so.

• To what extent are companies in Serbia willing to invest in education of their communication staff, or are they more willing to outsource communication professionals?

- Increasingly more! Today every mistake costs more than it did yesterday, and those who want to survive know that there is no room for amateurism. And this is perhaps most important in communications, because mistakes are slow and difficult to correct.

• How do your activities differ from those of the competition?

- We are proud that many of our clients have been with us for over five years, and some even 10, and that most of our new accounts came to us by way of recommendation. It feels good to know that the adjective used most often to describe us is “very serious”.

• What are your future development plans?

- Ambitious! The previous year was marked by an increased clients' need for trainings, primarily in the field of crisis management.

We kicked off this year by moving to a new and larger space, which will enable us to launch new projects and introduce new services. We look forward to announcing some of them soon! ■

Since 2002 www.olafmcateer.rs

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CORPORATE

Evolve, but do so With Revolutionary Speed!

In the space of just a decade, digital went from an exotic optional extra to the crucial part of integrated communications on the Serbian market. In 2015 integrity is no longer a trend, but a required communication norm

T

he only true technological revolution that humankind achieved in the last quarter of a century was the communication revolution. Indeed, nothing is the same as it used to be when it comes to the way and speed at which information is transmitted. These changes inevitably marked the period of greatest challenge for the advertising industry since the advent of television.

As global phenomena, the internet and social networks swiftly ascended the ladder known as media relevance, while market communications gained a very special channel for which advertising agencies need to find the right place in an overall campaign. In the space of just a decade, digital went from an exotic optional possibility to the crucial part of integrated communication on the Serbian market. In 2015 integrity is no longer a trend, but a required communication norm.

"WHEN YOU'RE THROUGH CHANGING, YOU'RE THROUGH." BRUCE BARTON, BBDO co-founder

I DEAS SO BIG THEY CAN BE DEFINED AS TWEETS The modern world requires simple, yet emotionally and contextually founded, approaches. Comprehending creativity 'the BBDO way' is closely tied to understanding modern reality, where great ideas can always be formulated in a short sentence – or rather a “tweet”. It is no secret that the digital world has

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changed the way in which brands and consumers communicate completely.

This is the reason why agencies’ planning processes take into account digital content from the very beginning of developing creative concepts, in addition to paying equal attention to a great idea and the creative content that stems from it. The digital segment of creative solutions is an integral element of a concept, not its derivative.

UILDING ON BEHAVIOURAL B OBSERVATIONS AND INSIGHTS At BBDO we are focusing on changing the way consumers behave.

Observing human behaviour is a prime source of our insight; the core from which we derive our strongest strategies. With advancements in experimental psychology and development of the so-called behavioral economics, we have grown very aware of the importance of the subconscious, which is an emotional apparatus of every consumer. All of these achievements point to the unequivocal conclusion that the emotional, as opposed to rational, segment of the psychological apparatus is dominant and commercially relevant.

When people don’t feel, they don’t act, and when they feel more, they buy more.

Our industry is slowly becoming aware of the need to replace overemphasised and rationally based marketing approaches and market research formats with approaches based on human emotions and research models which read between the lines and, thus, successfully locate

points of human motivation. At BBDO we have accepted the fact that most decisions made by consumers are hasty and based on emotion, and that the consumer is guided by intuitive parts of the brain and not the kind of slow and deliberate action that stems from rational structures. People make decisions by simplifying perceptive reality with so-called “framing”; people copy other people and are guided by feelings. And this is not irrational or stupid. It's human. Hence, modern advertising is not based so much on persuasion as it is based on seduction.

There is no such thing as hommo economicus. Man is hommo emoticus.

ONSTANTLY MEASURED, C REFINED AND OPTIMISED Agencies’ activities should not be based on arbitrariness and, as such, it is fundamentally important to constantly ask the following questions: What are the client’s business goals; What are their main income sources and; What do they stand to gain from development?

We are well aware of competitiveness in the creative industries and have come to terms with the need to constantly adapt to new business or social realities. In one of his recent interviews, BBDO Worldwide CEO Andrew Robertson commented on the advertising landscape and called the advertising world “Darwinian”. Only the fittest survive, and to be the fittest means to recognise, adopt and implement changes faster than anybody else on the market. ■

INTERVIEW

New Era of Creativity

The era of traditional marketing is nearly at an end, because modern consumers have greater expectations, requiring the devising of new, different and original approaches, on limited budgets DANIJELA POPOVIĆ JURIĆ

General Manager and owner, Red Communication

I

f agencies want to survive on the market, they need to offer comprehensive and integrated communication to companies or their brands – says Danijela Popović Jurić, General Manager of Red Communication.

• As in other industrial branches and sectors, the economic crisis and huge technological advancements have resulted in great changes in the way media and PR agencies work. What challenges lie ahead for PR agencies in light of these changes?

- The time has come to finally admit that crisis has become permanent and our profession is forced to adapt to new rules. The backbone of creativity in communications is the approach and a good idea, with an implementation that doesn't require huge investments having become an imperative.

• The communications sector is not sufficiently recognised and acknowledged as one of the driving forces behind development in Serbia. It also doesn't have the social status it deserves. needs to be done to change this? | INTERNATIONAL 4What GERMANY 2012 - I don't agree. A lot has changed in the last five years. People from our profession have been working on this, both consciously and unconsciously. I am proud of the fact that my team and I have con-

tributed to changing the image of PR in Serbia. The media have been our biggest helpers in this battle. They have been attacking us, supporting us, and, in the end, they understood the severity and importance of our work. Company executives have also become aware and now you virtually cannot find a serious company in Serbia that doesn't have a PR officer.

• Which direction will PR and marketing budgets take in 2015 on the markets where you operate?

- It will be yet another Clash of the Titans.

• In which direction has the communications market in Serbia been developing? Where do we stand relative to the region and the rest of the world?

- We are on a good road. When large companies decide to go with your campaign, considering that you come from a tiny Balkan country, and run this cam-

one’s reputation?

- Digital communication is becoming increasingly important as a segment that has recorded the fastest growth, both in the world and in our country. Development of social networks has certainly influenced this growth to a great extent.

Hence, we expect companies to rely even more on online channels, which are much more accessible due to the fact that communication with consumers is happening in real time and we have established direct contact with them. However, without the support and know-how of old school marketing, which is still resistant, campaigns cannot be called successful. For now the synergy of the two yields the best results.

• Serbian market is dynamic and, above all demanding, which requires agencies to constantly educate themselves, follow trends and have unbelievable crea-

THE COMBINATION OF UP AND COMING GENERATIONS, WHO HAVE NEW AND FRESH IDEAS, AND US, WITH OUR EXPERIENCE, GUARANTEES THAT OUR PROFESSION WILL HAVE A CREATIVE FUTURE. THAT IS MY RECIPE FOR SUCCESS paign on their well-developed markets, while also presenting them as the best case studies, then you know you’ve done something good.

• Do you think complete integration of all communication tools awaits us in the future, as a continuation of the trend of the last few years? How difficult is to attract consumer attention, become recognisable and preserve

4 | INTERNATIONAL GERMANY 2012

tivity. Are companies in Serbia willing to invest in education of their communication staff, or are they more willing to outsource communication professionals?

- Truth be told, they are not ready. I can tell you from my experience that company owners are more prone to sticking to the old motto “people come and go” than to invest in people, which should be one of the most important segments of serious business plans. ■

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INTERVIEW

Crisis Creates Opportunity The rather modest share of the communications sector in the country's GDP is a realistic indicator of its power. It is up to communications specialists to fight for a bigger 'slice' of the future, through efficient, creative and innovative development projects MIRKO MANDIĆ

Managing Director, SVA Advertising Agency

I

n 2015, marketing and PR agencies will again have to deal with campaign budgets which reflect the falling living standard in Serbia and, in this framework, they will have to seek out new solutions in order to attract consumer attention – says Mirko Mandić, Managing Director of SVA Advertising Agency.

• As in other industrial branches and sectors, the economic crisis and huge technological advancements have resulted in great changes in the way media and PR agencies work. What challenges lie ahead for PR agencies in light of these changes?

- It's not about the crisis, or changes; it is about the opportunities created by crises

create. There won't be anything radically new, but the trend will be that the consumers will be removing the barriers that stand between them and quality, and the barriers that prevent them from maximising their benefits.

• The communications sector is not sufficiently recognised and acknowledged as one of the driving forces behind development in Serbia. It also doesn't have the social status it deserves. What needs to be done to change this?

- I would disagree with you. The communications sector is recognised proportionate to the extent it contributes to, or hinders, social and economic development, and its rather modest share in the national GDP is a realistic indicator of its power. It is up to

MASS ABUNDANCE AND THE OMNIPRESENCE OF DIGITAL DEVICES WILL CONTINUE IN 2015, BUT CONSUMERS WILL BE LESS CONCERNED WITH WHAT THEY CAN BUY AND MORE WITH WHAT THEY CAN DO OR CREATE and change. I would say that we are going to face continuity of general changes. We have the internet, the number of smartphones is growing and certain parts of the world will recover economically, while others will face stagnation and recession. The living standard in Serbia will continue to fall.

Mass abundance and omnipresence of digital devices will continue in 2015, but consumers be less concernedGERMANY with what they 4 | will INTERNATIONAL 2012 can buy and more with what they can do or

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us, the communications specialists, to fight for a bigger 'slice' of the future, through efficient, creative and innovative development projects. This is our job, our role in the society. This sector is very conservative and selfdestructive, with a dumping option as its key modus operandi.

• Which direction will marketing and PR budgets take in 2015, in terms of the markets where you operate?

- They will follow in the footsteps of pensions.

• In which direction has the communications market in Serbia been developing? Where do we stand relative to the region and the rest of the world?

- There’s nothing new here either. We are lagging behind between five to ten years although, only ostensibly, we are at the same level as the rest of the developed world. I guess that’s an integral part of this profession – to make things appear better than they actually are.

• Do you think complete integration of all communication tools awaits us in the future, as a continuation of the trend of the last few years? How difficult is to attract consumer attention, become recognisable and preserve one’s reputation?

- Communication tools will never be fully integrated. When consumers are surrounded with masses of branded content, then constantly conquering neutral territories equals slow oblivion. Consumers expect brands to expand their approach and opinions on relevant issues, and to encourage people to engage in relevant challenges.

• Are companies in Serbia willing to invest in education of their communication staff, or are they more willing to outsource communication professionals?

- Only as much as they have to, or as much as they can feel they'll get back. Not a penny more. And that is quite normal. ■

INTERVIEW

Innovation and Commitment Those companies that want to remain recognised need to invest efforts constantly in monitoring global trends, being innovative and investing in their employees

ALEKSANDRA KOŽUL

PR and Communication Manager, Confluence Property Management

E

verything that happens in the areas of new technologies, communication channels, the financial situation within companies and the media, leads to change in the PR sector and, in turn, change in the PR profession on a daily basis.

• As in other industrial branches and sectors, the economic crisis and huge technological advancements have resulted in great changes in the way media and PR agencies work.

What challenges lie ahead for PR agencies in light of these changes?

- The biggest challenge lies in trying to constantly adapt to consumer habits and innovations on the market. What is really required here is a swift reaction and for us to learn and improve constantly.

• The communications sector is generally not recognised and acknowledged enough in Serbia as one of the driving forces behind development. It also doesn't have the social status it deserves. What needs to be done to change this?

- I think the situation has changed a lot lately and that, regardless of the prejudices people have held about the PR profession, the significance of well-designed and properly developed public relations is being recognised more and more.

• In which way are corporate communications used to build a company's reputation?

- This is a very complex process that has ERMANY 2012 clearly defined steps. This is also a dynamic process, just like the market itself. We, at Confluence Property Management, have experienced professionals who are in regular

contact with employees, partners and clients.

We manage the following shopping centres – UŠĆE Shopping Centre, Immo Outlet Centar, Belgrade Department Stores, Mercator-S and Alta Shopping Centre in Sarajevo. We carefully plan our next steps in accordance with the needs of the appropriate target groups. We also monitor market changes and global trends closely, with our projects devised and implemented in line with the results and client/consumer preferences.

- The integration of communication tools is already happening and this trend will continue and become even more regular in the future.

The traditional media are slowly but surely backing up in favour of social networks and companies find it even more challenging to remain recognisable which requires being constantly creative and committed, closey following the competition and global trends and constantly investing in employees.

• In which direction has the communications market been developing in Serbia? Where do we stand relative to the region and the rest of the world?

• How willing are companies in Serbia to invest in communications training for their employees, or are they more prepared to outsource communications professionals?

WITH AN INCREASE IN THE NUMBER OF GOOD PRACTICE CASES, AWARENESS OF THE IMPORTANCE OF THE CORPORATE COMMUNICATIONS SECTOR WILL GROW, RESULTING IN COMMUNICATIONS SPECIALISTS BEING ENTRUSTED WITH PROMINENT POSITIONS WITHIN COMPANIES - We are much faster in adopting new things in our profession. The Serbian communications market has been developing continuously and certain prejudices about this profession are being eliminated. The cooperation between companies and consumers, and companies and the media, has become more intense and more intimate, which is crucial to this line of work.

• Do you think the complete integration of all communications tools, a trend for the last few years, awaits us in the future? How difficult is to attract consumer attention, become recognisable and maintain a reputation?

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- We are very mindful of the fact that we need to train and perfect the skills of our employees. I think this is very important, not only for these individuals and their advancement in life, but also from the aspect that such investments clearly reflect any company's success.

• Which type of promotions is your company going to be spending most of the 2015 budget on?

- January is the month of budget redistribution, but what we already know is that a significant portion will be allocated to digital communications, since this is a very important promotion and communication channel. ■

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