Media mogul

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Joseph Ghossoub, President and Chief Executive Officer, The Holding Group.

How has the media industry evolved in the region over the last 10 years?

It's a completely different place now than it was even five years ago, never mind 10 - with the strength in numbers; the quality; the presence of international communications firms; the breadth of offerings from the traditional to the futuristic; and the understanding in the business community that media presence is no longer a nice-to-have, it's a must-have.

Do you think media in the GCC in general is raising standards and comparable to those, for example, in Europe?

Agencies are doing industry-defining work every day, and they are the ones raising standards across the region. The question is how long that takes to trickle down to the rest of the crowd. We have become better at sharing the knowledge and developing talent in recent years, but we still have some way to go.

In many ways, we are exceeding the work being done in Europe, but it's not the right comparison to make. Our market offers a unique set of challenges and opportunities that only we are equipped to handle.

How competitive is the pitch process and what is your secret to securing and retaining your clients?

The secret is in great relationships. That holds true across the marketing disciplines - whether it's advertising, direct, interactive or public relations. Knowing our clients' business as well as or better than we know ours; taking responsibility for it; working with them every step of the way, all day every day; caring for their brand; bringing the best of our talents and skills to work for them - that's what earns us a seat at the table.

Many of the major media companies in the region are foreign firms. Are they reaching and penetrating local Arabic-speaking markets or is this an area for development?

Foreign firms are making a beeline for the region's wealth and untapped demographics. Europe, for example, is greying, while we have one of the largest youth markets in the world.

But the most successful foreign firms entering the market are those doing so with established, credible local partners. These partnerships will combine the reach and best practices of global companies with the local knowledge and capacity of homegrown firms - a winning combination for clients and agencies. No one can go it alone.

What impact do you see the economic situation having on budgets? Have you seen a shift in client preferences from traditional media to areas like digital?   

In times of crisis, untested businesses react by cutting advertising and marketing budgets first. That is a proven mistake. Any brand that wants to remain standing needs to continue to be out there, facing its consumers. A failure to do that would be disastrous in the long-term.

How will the economic crisis affect what was a steadily-growing regional advertising industry?

I've worked in the advertising industry in the Gulf and Middle East for more than 30 years, so believe me when I tell you, ‘We've been here before'. We have survived and thrived through crises worse than this, including the first Gulf war, the second Gulf war, the third Gulf war, and the market crashes of the 70s, 80s and 90s.

Our industry will keep on charging ahead. One thing that is critically important for all of us, across industries, is to avoid pessimism - too much pessimism breeds paralysis, and what the market needs right now is activity, innovation and differentiation.

We can't wait for things to happen; all of us need to go out and make them happen.

Real estate and finance - two of the largest contributors to the industry - are dropping. How worried are you?

The truth is, the top spend categories change constantly. Yes, real estate was one of the most visible contributors to the advertising community in recent years, but when I first started out in the industry, it was film rolls, video tapes, VCRs and chocolate.

Instead of looking at what is, or what was, we should look to the future. It's true that 2009 will be a tough year for us all, but it will not be dramatic. For the last decade, we've seen average growth rates of 30% in our industry; unheard of anywhere else in the world.

Shifting from that ‘very fast' growth mode to ‘fast' may be a very good thing. Change keeps us sharp and lean.

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