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5 minutes with... in association withAdobe Firefly
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5 Minutes with… Alex Shifrin

27/08/2014
Advertising Agency
Moscow, Russia
432
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Saatchi & Saatchi Russia CEO on Ukraine, Sochi 2014 and uncertain times

Russia, putting it diplomatically, is going through something of an interesting time at the moment. Political turmoil with Ukraine and economic sanctions have sent the former BRIC miracle into a state of uncertainty. And despite all of the other geo-political crises to unfold in 2014, it’s the escalating tension between the West and Russia that WPP’s Sir Martin Sorrell named as the most worrying. For Belarus-born Canadian Alex Shifrin, CEO of Saatchi & Saatchi Moscow, who is also a board member of the Canadian Eurasian Russian Business Association, the current crisis feels qualitatively different from other financial troubles in Russia’s recent history. Plus with the Russian government’s recent attempt at banning TV ads on paid cable channels it’s certainly been an eventful year for the country’s advertising and media industry. LBB’s Laura Swinton caught up with Alex to pick his brains about Russian advertising, the country’s digital boom and more.


LBB> What’s so unique about Saatchi & Saatchi Moscow?

AS> Saatchi works to an ethos, which is to turn brands into Lovemarks.  Lovemarks speak to consumers on the basis of values rather than simply rational benefits.  Starbucks, Apple, Harley Davidson, those are all Lovemarks that connect on a level above what a typical brand communicates.  It’s something we truly believe, something we’ve all embraced and what we aim to achieve.  We don’t want to make just another ad.  That’s easy.


LBB> Which recent projects have particularly resonated with you?

AS> We’ve done some pretty amazing work with the Department of Transport working on the Troika card and ticketing system.  In addition, our work with redesigning Moscow’s public libraries as well as the print creative for the Schusev Museum of Architecture.  It’s all work that has an impact on the lives of Muscovites and feels really rewarding for the entire team.


LBB> What are the big challenges facing the advertising industry in Russia at the moment?

AS> The biggest challenges are probably aligned with the current political situation.  The uncertainty is stagnating investment and Russia is going from a growth market model to a share of business model.  That’ll change a lot of how agencies operate.


LBB> And what are the most exciting developments and trends happening right now?

AS> The most exciting things that have been happening is a change in the market’s self-confidence.  There are a lot more independent shops and creative hubs as well as a lot more presence on the international festivals.  The rise in local gravitas means that the market is looking inward for solutions and that fuels even better local work.


LBB> We’ve just seen the 2014 World Cup wrap up – only four years until Russia becomes the central focus of the world’s soccer fans. This year’s competition really provided a platform for Brazilian creativity – is the Russian industry ready to take the spotlight? What do you think we should expect to see from the local advertising industry as the competition draws near?

AS> I can’t say that Sochi 2014 sparked a renaissance of creative so I’m not sure what to expect from FIFA 2018.  Beer will make a showing so we’ll probably see a spike in production budgets from that category.  Brazil has always been a global creative hub and the 2014 World Cup was a good way to focus more attention on it.  I think if the right minds and the right agencies are given their chance in 2018 then it can be a platform to demonstrate some of this amazing local talent.   


LBB> I’ve been interested to read about the massive growth of digital/mobile advertising in Russia – how is the local industry adapting to such rapid growth and change?

AS> There’s a debate out there about what is digital.  Digital is both a channel and by way of the technology, a means to make communication multi-directional rather than the rolling freight train that used to be ATL.  Once that part is clear, it’s all about the ability to connect with the consumer, which is all about good creative.  The industry is changing by injecting the understanding of new technology, but it’s consistent in the drive for good ideas.  That’ll always be at the heart of advertising. 


LBB> From the outside at least it looks like there’s opportunity in Russia both for local entrepreneurs/creatives and foreign brands, but also a lot of challenges. I know you’re involved in the Canadian Eurasian Russian Business Association - what advice would you give foreign brands hoping to get a piece of the action?

AS> I’d argue that right now it probably looks like there’s little opportunity given what’s happening in Ukraine and the growing rift between the West and East.  This is now my third crisis.  I was here in 1998 when the markets collapsed.  I was here in 2008 when there wasn’t so much a crisis as there was an adjustment.  This one feels different because the financial effects are the result of a political situation.  In an economic downturn there are strategies you can take in order to protect or grow your business.  This is tough because what we’re seeing depends a lot on the subjective reaction of a handful of global leaders.  What I hope will happen, as it did after 1998, is once this all goes away, there will be a vacuum of opportunity.  We’re seeing many players pull out.  Once things ease and there’s an increase in demand, being here and taking advantage of that opportunity has the possibility of being quite lucrative for some brands. However, given that there are foreign sanctions and real restrictions to entry for foreign business in play right now, I don’t know how that can be fostered until there’s an easing.


LBB> You co-founded a fast food soup brand - how did you get involved in that and what have you learned from building your own brand? Has it given you a different perspective on your work in advertising? 

AS> I learned a lot from that experience.  The first thing I learned is to trust people who know their business better than you.  Surround yourself with those people.  Don’t try to figure out how to do it yourself unless you have deep pockets.  The second thing I learned is the acute difficulty of dealing in the fast-food game.  It’s a tough business and I have nothing but respect for companies like Shokoladnitsa.  As for advertising, I certainly appreciate a business owner’s agitated need to drive immediate sales, however I also see how short-term tactical compromise can seem like the way forward but ultimately, it harms the long-term health of a business.  And finally, I learned that attention to detail in everything from product, to process to communications is the only way to make a business like that work.  I can’t stress that enough.


LBB> And what about creative studios, production companies, post houses etc.? Who would like to work more with Russian advertising agencies – what’s the key to getting your foot in the door?

AS> Yeah, that’s a tough one.  I get emails and phone calls all the time from production houses and channel partners who would like to work with us.  At first I used to make it a point to reply to all of them, but eventually I found it difficult to keep up so I apologise to anyone who’s reading this and didn’t get a reply from me.  My only advice is find a way to get in front of people making decisions in an agency and start a dialogue.


LBB> Russian advertising had a bit of a funny moment this summer when the government banned commercials on paid cable/satellite TV stations and then repealed the ban… To your knowledge, what’s the current state of play with the law and how did the ad industry react?

AS> This doesn’t really affect the advertising industry much.  This will affect the channels and will drive some out of business.  However, brands will still have the same budgets and that media will get spent and the creative will get made.  Some restricted categories such as hard liquor may see their comms channels restricted, but they’ll find a way to get the message out.


LBB> The Saatchi New Directors’ Showcase screening in Moscow featured a panel of top Russian film and advertising directors – what were some of the hot topics that came up?

AS> There are a few topics that come up every time an ad guy has a few drinks with a director.  The director complains that agencies drive compromised work from a need to appease clients and make money.  Agencies will complain that directors are driven by an agenda to promote themselves rather than the product or service that they’re being asked to work on.  And it goes back and forth until we all agree that the client is to blame.  You can always expect a lot of that during a panel discussion.


LBB> The screening will be like bringing a little taste of Cannes to Moscow – what did the audience get to enjoy?

AS> There’s some really good creative work on that reel.  It’s good because it’s unfiltered creative driven only by the agenda of demonstrating the craft of filmmaking.  


LBB> In terms of commercials/content, are there any Russian directors who are particularly exciting the local industry right now that we should keep an eye out for?

AS> Everyone on our discussion panel (directors Vitaliy Shepelev, Roman Girnikh, Dmitriy Vennikov, Tigran Bejanov, Mikhail Dovgenko) is worth checking out.  There were some veterans and there were some opinionated mavericks.  Seriously.  Check all of them out.


Little Black Book is proud media partner to the Saatchi & Saatchi New Directors' Showcase, which is set for global screenings. 


For more coverage, screening dates and ticket details, please click here.

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