A new year doesn’t necessarily mean an immediate change in fortunes for a business or an industry.
“There has never been a greater opaqueness about how this New Year will likely be. The biggest problem advertisers are facing is not addressing changes in the business model,” said our Group CEO, Avi Bhojani, in a recent interview with Mr. Manoj Nair for Gulf News.
Last year was an exceptionally difficult year for the local advertising industry, in much of the same way that it was for the media and publishing sectors.
“In today’s context, client-agency relationships are more contractual. You get lucky if you have one for more than one year. There are very few situations where they extend to three years, such as the one BPG Maxus has with Global Village.”
Despite the tough market environment, BPG’s operating margins still held up, according to our Group CEO. “In fact, they were better than what we had in 2013 and 2014, which were our lowest margin years.”
“At the end of the year, numbers tell the story,” he said. “If you do the numbers, everybody believes you know your business. And if you don’t, everybody thinks they know your business better than you do.”
To read more of what our Group CEO, Avi Bhojani, said click here.