Marketing experience

Konrad Kiedrzyński: How does the market for less conventional marketing techniques look in Poland these days?

Julian Kozankiewicz: We can see that traditional media such as TV are searching for formats that are more engaging and more real. They are keen to experiment with various forms of the reality show and are looking for pro-social and interactive solutions in their marketing strategies. More and more of our important clients are media houses which come to us saying that the client wants something more, and something new.

This branch of the advertising market is quite fragmented - do you expect to see any consolidation?

This is already happening and we are taking part in the process. There are many small agencies that consist of two people and a laptop. But as the market grows and becomes more professional, the situation is changing.

Smaller companies need capital and know-how, and to get it they need to search for stronger partners. I think that the market will follow the same path as the pharmaceutical market did several years ago, at which time the number of players reached up to 50,000.

There are some companies that have been active on the market for 15-16 years which may be reluctant to join the consolidation process because, for example, their owners are ambitious. Many of these companies have reached a certain point in their development where they remain the same size for several years.

The bourse seems to be working to your advantage in planning takeovers. Is this the case?

This is true. Over the last two or three months, the expectations of a number of entrepreneurs we negotiated with have been disproportionately high compared to the actual value of their companies. Now, as the market has become less stable, these expectations are more rational. The situation is good for those players who have money, including our firm, which managed to collect funds from our IPO.

Is there room for large international players in the field of experiential marketing?

No international network has succeeded in this area in Poland and I have witnessed a number of large companies fail to break through. Experiential marketing is an activity based on contact and trust, and the companies who do not know the local context well simply fail at that. Our work is based heavily on local context and culture, things that are specific for every market. This concerns the cultural aspect on various levels, and this even extends to the way payments are made with the clients.

Are there any sectors in Poland that are more willing than others to use unconventional marketing techniques?

I tried once to list the industries that use our services, but that turned out to be impossible. Our portfolio includes many areas, ranging from FMCG to media.

Will the recent global crisis have any impact on your activities?

It is difficult to say when the bottom of the crisis will occur or to make any projections. I don't see any threats at the moment, but we'll wait a month or two before making any assessments. To sum up, we are not worried, but we are watching the situation carefully. I also expect a number of firms will try to use their marketing funds more carefully and will opt for unconventional solutions, which may be more effective than traditional ones. This may work to our advantage.