MediaWeek UK: Is media buying Bombay-bound?

Maybe the job's
not worth following

MediaWeek UK examined the trend, started by the invasion of the multi-bid procurement method of placing ad accounts, of agencies moving to cheaper accommodations. It's not talking about the distance between Fleet Street and Paddington, either; the publication examined the prospect of exporting ad buyer jobs to Bombay.

Media has always seen itself as a cut above your average business because of its links to creativity, and this has led it to desperately lag behind other sectors in addressing the overheads that add to its profit and loss situation.

Salary surveying showed that the average U.K. media buyer/planner with a couple year's experience earned about £22,000. In comparison, the average Indian person working for a U.K. firm in a call center earned £3,000. Almost as much savings comes from overhead expenses, with London costing £14,000 per seat and Bombay £2,800.

John Perris, outgoing worldwide chief executive at ZenithOptimedia, told MediaWeek, "It’s a lunacy that administrative people are all sat in the West End dealing with billing and paying of clients, for whatever it costs us a square foot."

Most executives interviewed seemed to indicate the back office functions of payroll and billing were likely to be the first to go, with debate as to whether or not media buying functions were portable.

Ultimately it may come down to a question asked demanding clients who may push to split out some agency hires between the home location and an offshore facility: would you rather have a third of this extra executive here, or three full-time employees servicing you from far away?