INDEPENDENT INDUSTRY INTELLIGENCE
www.themediaonline.co.za
ISSUE 191 JUNE 2022
ZIBUSISO MKHWANAZI & CHRIS BOTHA LEVEL THE PLAYING FIELD KGAUGELO MAPHAI ON AFRICA’S NEW GOLD MATHE OKABA GOES BEYOND THE RACIAL LENS
AGE OF THE AGENCY Changing, transforming and disrupting
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FROM THE EDITOR
INDEPENDENT INDUSTRY INTELLIGENCE
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PUBLISHED BY Arena Holdings (Pty) Ltd Hill on Empire, 16 Empire Road (cnr Hillside Road) Parktown Johannesburg 2193 Postal Address: PO Box 1746 Saxonwold Johannesburg 2193 Telephone: +27 11 280 3000 EDITORIAL Editor: Glenda Nevill glenda.nevill@cybersmart.co.za Content Manager: Raina Julies rainaj@picasso.co.za Sub-Editor: Lucinda Jordaan Content Co-ordinator: Vanessa Payne Contributors: Praneetha Aniruth, Dan Berkowitz, Warwick Bloom, Chris Botha, Jacques Burger, Graham Deneys, Glenn Gillis, Shaune Jordaan, Kgaugelo Maphai, Zibusiso Mkhwanazi, Johanna McDowell, Katlego Mokubyane, Joanna Mondon, Muzi Mthombeni, Craig Naicker, Mathe Okaba, Simon Parkinson, Neil Pursey, Kirsten Roos, Gail Schimmel, Samantha Thomas, Jay Thompson, Tara Turkington, Joe Steyn-Begley, Cesar Vacchiano, Dashni Vilakazi, Sven Wolf DESIGN Head of Design: Jayne Macé-Ferguson Project Designer: Anja Hagenbuch Cover image: Katlego Mokubyane/Avatar Agency SALES Sales Manager: Tarin-Lee Watts wattst@picasso.co.za +27 79 504 7729 Sales Administrator: Neesha Klaaste PRODUCTION Production Editor: Shamiela Brenner Advertising Co-ordinator: Johan Labuschagne
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MANAGEMENT General Manager, Magazines: Jocelyne Bayer Copyright: The Media Online No portion of this magazine may be reproduced in any form without written consent of the publisher. The publisher is not responsible for unsolicited material. The Media Online is published by Arena Holdings. The opinions expressed are not necessarily those of Arena Holdings. All advertisements/advertorials have been paid for and therefore do not carry any endorsement by the publisher.
On the record…
B
ack in 2011 when I began editing The Media Online, the agency space was simple. Advertising agencies created ads. Media agencies bought ad space. Media owners sold ad space. Digital agencies just did digital. Traditional agencies operated in the same way they had for years. Cue 2022 and every agency is digital. Some creative agencies are buying advertising space. Some media agencies are developing creative and content. Brands are taking agency skills in-house, or operating hybrid models. The Covid-19 pandemic spurred digital transformation at an unprecedented rate. Client agency relationships are even more complex. Communications agencies have to master everything from social to video to content to native advertising. And data is everything. It was this that got us thinking about an issue of The Media dedicated to agencies. The year opened with a renewed focus on the issue of transformation in the media sector. The Media Advertising and Communications (MAC) Charter is back at the head of the queue, and government has created a MAC Council to make sure it stays there. But transformation is so much more complex than a government-mandated, tick-the-box exercise. To get an idea of the macro view of the agency space, we asked the Matrix Group’s founder and chairman, Kgaugelo Maphai, to write a thought leader around why he chose to launch an integrated pan-African communications group. His starting point is his belief that “lines within marketing are becoming blurred on a day-to-day basis purely because brands are starting to realise that the power rests in the hands of the consumer, not in theirs”. And he absolutely believes that Africa, the continent with the highest youthful population, will make its mark on a global stage. Then there’s the partnership between Zibusiso Makhwanazi, founder of M&N Brands and Avatar Agency, and Chris Botha, CEO of Park Advertising; in an effort to boost the earning power of black-owned media agencies, they have launched AMA, an agency determined to claw back some of the 80% of income that goes to the global networked agencies operating in South Africa. AMA, they say, has the buying power parity of its global counterparts, with more than $200-million in credit facilities – along with the benefits of bulk buying with local and international media owners. CEO of the Association for Advertising Communication, Mathe Okaba, outlines how the organisation took deliberate steps to make it a more “inclusive and accessible organisation, rooted in a new membership proposition”. At the same time, she says, the ACA has moved beyond simply viewing the industry through a racial lens – media businesses also have to provide for greater diversity, equity and inclusion. These are big, important reads. But we also wanted to publish insights, be they views or trends, from a number of players across the media sectors to give readers a broad sense of what agencies think we should know. It makes for interesting reading.
The Media. Got to love it. Glenda
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THE MEDIA I 1
Contents 1 FROM THE EDITOR
16 CHANGING THE MONEY FLOW
On the record
4 TAPPING INTO AFRICA’S YOUNG, RICH, INNOVATIVE FUTURE Chairman of the Matrix Group Kgaugelo Maphai on why an integrated Pan-African communications group is essential at this time and in this place.
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INSIGHTS Transparency in media measurement by Carbon1; Carat SA on the importance of tactical strategies.
10 INSIGHTS The MediaShop on the metaverse; Localisation is lekker, says Pulse Connect
12 REDEFINING DIVERSITY The Association for Advertising Communication CEO Mathe Okaba describes the organisation’s journey to become fit for its current purpose.
15 INSIGHTS Measurebyte on direct measurement; Hoorah Digital embraces data for creativity
With global buying power, M&N Brands and Park Advertising are paving the way for a more representative local media industry, write Zibusiso Mkhwanazi and Chris Botha.
19 INTEGRAL INFORMATION The Agency Scope 2021/2022 report reckons South Africa’s creative agencies are encroaching on media agency spaces. Johanna McDowell and Cesar Vacchiano discuss this and other fascinating findings emerging from the research.
22 INSIGHTS Flow Communications’ six PR trends; Razor PR on the value of values.
24 INSIGHTS Ultimate Media on a winning frequency; DUKE Group keeps the dance alive
26 TRUST IN ME Joanna Mondon (agency) and Warwick Bloom (client) get to grips with the changing nature of client/agency relationships.
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28 INSIGHTS The medium is the message, write HaveYouHeard; voluntary engagement is the goal, says Sea Monster.
29 A LANDMARK RULING Consumers are the winners after a Supreme Court of Appeal ruling allows the Advertising Regulatory Board to consider, and issue decisions on adverts created by agencies and brands that don’t belong to the industry body, for the guidance of its members, writes Gail Schimmel.
31 INSIGHTS M&C Saatchi on being future-fit; Swiitch doubles up on immersive experiences.
32 INSIGHT Black Wolf Agency is concerned about a skills shortage.
33 INSIGHT Idea Hive believes data mining is a trend.
ON THE COVER Founder of M&N Brands and Avatar Agency, Zibusiso Mkhwanazi, and CEO of Park Advertising, Chris Botha. Together, they are disrupting the media agency space.
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I N D E P E N D E N T. I N T E G R A T E D. I N S P I R E D.
AGENCY OVERVIEW
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Content: still king – and Africa’s new gold
very so often the world experiences catastrophes that transform our lives in one way or another. Think 9/11; the global economic crisis of 2008/09 and, most recently in 2020, the genesis of the Covid-19 pandemic, which has had an indelible impact on every country on earth. This impact will be felt for many years to come and I believe historians will capture this moment as a turning point for humanity. “Why?” you’d ask. Well, my view is that Africa has always been seen as a poor, developing continent dependent on handouts from the west. While this is still true in many respects, it also still remains a very wealthy continent. We have vast minerals and natural resources that feed the world economy, but its most important resource is its people – specifically, its young population. According to the World Bank, with a median age of 25, the African continent is the youngest in the world. The statistics demonstrate that countries that have battled the most with the pandemic are those with an ageing population, as we have seen with the likes of Italy, Spain, India and China, to name a few.
As the world looks to a post-Covid-19 global reset, Africa is already making its mark with an innovative, youthful population proving a content goldmine, writes KGAUGELO MAPHAI.
These countries reported higher morbidity and death rates than many African countries and, while many administrations have been accused of under reporting, what’s clear is that younger people are recovering a lot faster, and with less longterm complications, than adults. This background underscores the fundamental reason I decided to set up an independent, integrated panAfrican communications group. As an entrepreneur you often see opportunities where others see adversity. And in this instance – similar to 2009 when I started my first venture Dream Team SA – I saw an opportunity to create a unique group of specialist owner-run and -managed agencies during the height of the pandemic in September 2020. This is because I could foresee what’s to come in our industry based on my experience over the last 23 years. I’ve had the unique benefit of working and gaining experience across the key marketing value chain of being a client, creative agency, media agency and media owner executive. I truly believe the lines within marketing are becoming blurred on a day-to-day
IMAGE: SUPPLIED
Kgaugelo Maphai
4 I THE MEDIA
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basis purely because brands are starting to realise that the power rests in the hands of the consumer, not in theirs. A brand’s market share is not determined by the marketing budget, but by the consumer and the decisions they take. As such, at a group level, when we get a brief we apply humancentric design principles that start with people, not the brand. We understand what people or consumers need, where your brand fits in their lives and how best to connect with them. We could very well come up with a public relations or content idea that then becomes a big idea – which is why we are the Matrix, because we are non-linear in our solutions and we believe this is what will make our model successful.
“WE ARE NON-LINEAR IN OUR SOLUTIONS AND WE BELIEVE THIS IS WHAT WILL MAKE OUR MODEL SUCCESSFUL.” In fact, I have always felt that media agencies should be the starting point to determine where your target market is and understand what media they are consuming, then brief the ‘factory’, ie. the creative agency, to develop the creative assets for the channel. However, what’s becoming more and more prevalent is that consumers are looking for engaging content – and that is what will be the game changer for the marketing industry over time. The conversation will now start with the consumer, not the brand. This is why we will also be launching a new partnership soon. We recently had our quarterly group Exco meeting in Limpopo as part of our endeavour to understand the country better. We went to villages like Elim and towns like Thohoyandou in Venda, to see how provinces outside of the usual Gauteng, Western Cape and KwaZuluNatal are thriving. As expected, Limpopo is showing phenomenal growth signs particularly in property, both residential and commercial. In Venda, for instance, the world-class Thavhani Mall has a 98% occupancy with high-end food, clothing and quick service restaurants
(QSR) tenants such as Woolworths, Fabiani and Rocco Mammas. This in an area that’s pretty much still considered a village, but with homes that would give many Sandhurst residents a run for their money. What this means, I think, is that the local economy is slowly self-correcting and townships and rural areas will start developing at an alarming rate over the next few years. Limpopo residents believe in developing their ancestral homes and villages rather than the big cities. Entrepreneurs are investing in the secondary provinces because they see the potential for development, as there are still vast tracts of land available. We hope to take a long-term view in growing the group within the continent, while continuing with our strategy to partner with like-minded young entrepreneurs in various countries on all regions of the continent. One of the biggest historical problems in South Africa as a result of apartheid has been the establishment of homelands and townships. This restricted people of colour, forcing them to live in specific areas within the respective provinces. Many of them lived very far from work and that’s what led to a bustling taxi industry that moves millions of commuters on a daily basis from home to work and back. The restrictions that came with the various lockdown levels demonstrated where the economy really is. We’ve seen the impact on commercial property, many with high vacancy rates; malls in suburbs struggling with footfall and tenants having to close their doors. To the contrary, business in townships remained resilient, with more entrepreneurs coming up with solutions for their communities. Malls in townships were not as impacted and will probably thrive moving forward. I believe with the pandemic, we experienced a global reset. This is exactly what the continent needed as it was always playing catch up to western democracies and had something like
“THE WORLD IS HUNGRY FOR YOUNG, FRESH CONTENT FROM THIS CONTINENT.” this, albeit tragic, never happened, I’m not sure how long it would have taken the continent to emerge. Today what’s clear is that this continent is certainly the future in many respects because of our young population, but also because of our ability to adopt technology and innovation a lot quicker than most continents. This is largely because our young people are growing up in a digital world, with a high penetration of mobile phones, increased access to internet, solving some of Africa’s problems through many start-ups in the fintech, mobile money and e-commerce space.
CONTENT IS GOLD The Covid-19 lockdowns also impacted positively on e-commerce adoption across the various SEM groupings. Today the quick service restaurant (QSR) segment, together with food and pharmaceutical retailers, has seen phenomenal growth in home deliveries, while other smaller, local delivery businesses have also emerged alongside the likes of Uber Eats and Uber Parcel, Mr D, Woolie’s Dash, Checkers Sixty60 and more. Digital adoption and content consumption has also increased over the last two years via the various streaming services. As fibre and mobile becomes more and more accessible – and hopefully, cheaper – content consumption on social media networks will continue to be key. I believe our content will be gold in the new future. I think the world is hungry for young, fresh content from this continent. We’re seeing this through the work that creative South Africans are producing for instance in the art, fashion and music industries. If one just looks at the influence of Amapiano as a sub-genre of locally curated dance music and how that has taken TikTok by storm, and
“(AGENCIES NEED TO) … GIVE THOSE THAT HAVE HAD THE LIVED EXPERIENCE A VOICE WHEN DECISIONS ARE BEING MADE ON CREATIVE DIRECTION.” themediaonline.co.za
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AGENCY OVERVIEW
Lastly, as I have always maintained, our greatest asset as a country is our global diversity. In advertising, unlike many industries, we have the benefit of being at the coalface of reflecting and living this. Our tragic past reminds us that our movement in the country was restricted for all. White people could not go into townships and black people were restricted in their respective areas. With this pandemic, it’s clear that the many people driving the economy are still in the rural and township areas and not Bryanston and Constantia; this area has still not been recognised by many decision makers within the marketing value-chain, who keep thinking their customer is their neighbour in Umhlanga. As such, agencies need to recognise the opportunity cost of not being able to understand our country and its people, and give those that have had the lived experience a voice when decisions are being made on creative direction of adverts and campaigns.
According to the World Bank, with a median age of 25, the African continent is the youngest in the world.
how many African musicians and DJs are playing to big crowds across the globe. What’s becoming clear is that content will be a big influence – especially in advertising. Creative agencies exist to create content for their clients based on a brief – my view is that this is going to shift and we as agencies need to find the content first and then see where our clients fits within it. This is a paradigm shift I foresee and think that influencer marketing is only going to grow. The agencies and production companies are now not the only custodians of producing content – individuals are now also empowered to curate. 6 I THE MEDIA
To future fit our offering, we will soon be making strategic announcements on a culture and content business we are acquiring within the group that will work closely with our research, creative, media and digital agencies in informing our strategies to connect brands with consumers in an authentic and meaningful way. We are also concluding an investment and partnership into a futures and foresight strategy consultancy with one of only 6 000 global and 200 African qualified African foresight strategists in South Africa. We hope to position our offering to assist brands in remaining relevant in the evolving people-led world. themediaonline.co.za
The MAC Charter has been adopted and will try to address some of these issues more directly, to ensure that there is parity in the industry. My view is that if we can commit to a broader national agenda of driving parity and inclusivity, we can do it ourselves without a charter to monitor us. If we cannot accept that our past was abnormal and that we have the power to set a different and positive trajectory that will benefit all, we will only have ourselves to blame for any eventuality. This is because we had the power and chose not to use it as life was still good for us - yet not for the many who just want a fair chance to contribute meaningfully and to provide for themselves and their families. Thinking in abundance is more impactful and sustainable than thinking in scarcity; there is more than enough for all of us. Kgaugelo Maphai is chairman of the Matrix Communication Group and former managing director of The MediaShop (Johannesburg). Passionate about South Africa and its people, Maphai’s interests lie in consumers and the nuances that exist in various parts of South Africa.
IMAGES: NQOBILE VUNDLA, SUPPLIED
PARITY & INCLUSIVITY
FOR THE PURSUIT OF SOMETHING BETTER
Our unique understanding of the intersection of culture, content, data, and technology powers how we build brands out of every moment of connection
Born to perform. Designed to deliver. www.iProspect.com/en/za/
PARTNER CONTENT
Meet us at the new intersection of media The intersection of media – culture, content, data and technology – allows for possibility, innovation and change, reports iProspect.
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edia has become the intersection of culture, content, data and technology. With digitally native brands accelerating growth at this new intersection at triple the rate of e-commerce overall, we see that this new intersection of media allows for possibility, innovation and change. Brands must examine the fundamental shifts in how they operate, organise, and ultimately transact. In the latest Future Focus whitepaper released by iProspect, three mega-trends – The Next Normal, Empathy and Responsibility and Personal Privacy – were examined to better understand the unrivalled possibilities existing within these intersections. At the intersection of Next and Normal, unlimited creativity, connections and recommendations powered by artificial intelligence will open possibilities that will mean these new worlds won’t be clunky replicas of our analogue life, but instead will open new possibilities, unlike anything we have seen before. NFTs (non-fungible tokens) success is a great example of something that defies ‘analog’ logic, yet is proving a runaway success for luxury and collectors’ items. And Facebook’s recent rebranding as Meta is a great marker of that change and the potential behind the metaverse. With these shifts in mind, the future of media lies within these new intersections and their ability to give birth to immersive, interactive, highly personalised and value-based experiences. The exponential growth and proliferation of content, channels and general choices
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have given rise to ‘My Media’, where consumers have the power to curate their own experiential ecosystems, meshing their passions with unrestricted accessibility to what they want; and where they want it. The recent explosion of interest towards the likes of metaverse and NFTs and the increasing adoption of TikTok are all manifestations of consumers’ increasing need to control and curate their content and brand experiences. Future Focus details how artists and creators are using the technology to mint proofs of ownership for their items, such as original artwork, or a limited run of prints. The adoption of NFTs started in areas traditionally associated with collecting – artwork and memorabilia such as baseball cards – but is now spreading to a much wider range of creators. Not surprisingly, brands are also testing the water. Several, including Taco Bell, Coca-Cola, Campbell’s, Budweiser, Microsoft, Nike, Marvel and Warner Bros, have produced NFTs, either for existing campaigns or as one-off activations, for example, raising money for charity. What can brands do: If relevant to your audiences, identify the superfans willing to pay for items or experiences connected to the brand and develop strategies to appeal to them. Partner with platforms and intellectual property
that will appeal to the fans or already have a strong crossover in audience. Start small, test and scale. The past year has also seen the adoption of virtual reality (VR) accelerate, with new use cases being found, like fitness. Several apps such as FitVR allow people to take part in immersive workouts that feel real because of the VR headset. Probably the biggest indication that we are moving into metaverse is the development of virtual economies or Direct-to-Avatar instead of Direct-to-Consumer. Established brands such as Vans and Balenciaga are the latest to sell clothing within virtual worlds – Roblox and Fortnite, respectively – with Balenciaga selling items such as hoodies in game and real life. We see huge developments in this area - more brands, more drops, more partnerships, and more physical/virtual crossovers. What can brands do: Incorporate virtual and in-game elements into existing campaigns; virtual should be part of an omnichannel strategy. Experiment with the idea of avatars as an audience. Explore ways to target, based on new, virtual and in-game metrics. Evaluate any applicable lessons from social media that could also work in virtual worlds. Download the full Future Focus 2022 whitepaper here. This is sponsored content.
THE RECENT EXPLOSION OF INTEREST TOWARDS THE LIKES OF METAVERSE AND NFTS AND THE INCREASING ADOPTION OF TIKTOK ARE ALL MANIFESTATIONS OF CONSUMERS’ INCREASING NEED TO CONTROL AND CURATE THEIR CONTENT AND BRAND EXPERIENCES themediaonline.co.za
INSIGHTS
Transparency, reimagined S
imply put, adaptability is the standout skill the last two years has forced us to harness. The advertising world is no stranger to unplanned changes, yet we still haven’t seemed to realise the full extent of what this means for ensuring consistent results, supported by a resilient yet flexible approach. The media industry is notoriously plagued by a lack of transparency and trust. Marketers rely on agencies and media buying platforms to report on campaign performance, with no other option but to accept results calculated by ‘black box’ attribution vendors. Reluctant acceptance of compromised reporting accuracy is something none of us should continue to blame on technology restrictions and/or privacydriven policy changes – popular scapegoats often accompanied by a shrugged “it is what it is”. The next assumed quick-solve would be shifting ad budgets from the likes
of Google and Facebook, a change equivalent to “shooting the messenger”. Issues impeding tracking and measuring effectiveness aren’t platform specific at all. All platforms will eventually succumb to policy changes – that’s the point. So. What is the solution? Multi-touch attribution (MTA) was the appealing promise – and the industry spent years trying to make it work. Tracking customers and assigning appropriate credit to each touchpoint on their path to conversion made sense, right? Unfortunately, without user-level tracking, MTA isn’t just flawed, it’s impossible. The only way forward is a system of measurement independent of any platform bias – and incrementality measurement can deliver where methods like last-touch and multi-touch attribution fail. Media incrementality represents the true incremental contribution of a media channel and campaign/tactic to business results. This approach delivers where
methods like last-touch and multi-touch attribution fail. Joe SteynBegley Geo-matched market testing or first-party audience split testing, for example, can connect advertising tactics to business metrics in a statistically sound way. Mapping media’s influence on data gives advertisers a clean read on the true incremental contribution of media without the need to track users. Transparent measurement delivered by a neutral party will ultimately help marketers protect themselves while working towards a future-proofed measurement model.
Joe Steyn-Begley is the MD of Carbon1, a martech and adtech advisory, partners to Measured, a global leader in media measurement.
Strategy before tactics
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ime. It is all about time: creating time to think, evaluate and consider a hurricane of choices. Due to the relentless rate of digital adoption across the globe, media has become a ubiquitous part of our existence. We are seeing new products, applications and channels arise daily and, as a result, a plethora of new communication opportunities for brands. This has, in turn, also had a significant impact on media strategy and planning. Strategy and planning has always been an intricate, rigorous process that requires time and a large dose of perspective. However, the pressure to be at the forefront of every one of these new platforms, services or channels is shifting the scales into an uncomfortable arena where these new
stars are soaking up an inordinate amount of time and attention, shaking the orbit that enables their shiny existence in the first place: good, solid strategy. The chase is on to deploy, and this rush has created a fog of tactic-based decisions. To paraphrase a marketing professor I once interviewed: “Strategy without tactics won’t get you very far, but tactics without solid strategy is absolutely pointless.” Channels are essentially tactics ready for deployment in the pursuit of a goal. Yes, we need to be strategic when we evaluate and or use them. But, in the end, YouTube, Instagram and Graham
TikTok are all tactics – so is radio and TV. They should always be evaluated against a much broader structure, and without a commitment to this evaluation they will be lost in “media schedule orbit” destined for an awfully expensive tactical crash-landing. Going into 2023 we need to enforce a renewed balance. It is very tempting to be part of the latest development and of course be first-to-market, but we need to create time and an environment for these opportunities to be judged against an unforgiving jury of strategic rigour to ensure they can stand up and deliver against what really matters. Graham Deneys, group strategy director, Carat SA & SSA
Deneys
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INSIGHTS
Local(isation) is lekker Kirsten Roos and Samantha Thomas
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outh Africa, and Africa as a whole, is seeing more and more global retail brands extend their reach to our continent. With the population set to double to two billion by 2050, and a steady GDP growth of 3.5% by the end of 2022, Africa offers continuous economic growth and opportunities for global brands. With the influx of sought-after brands heading our way, it’s imperative – as
marketers – to remember that while a communications strategy for a brand may work in one market, it does not necessarily mean it will resonate with an audience in a different market. Recent examples of this in South Africa – such as a large global retailer’s online ad that showed a black child modelling a hoodie with the text ‘Coolest monkey in the jungle’; and a global haircare brand’s stereotypes depicting natural, African hair as less favourable in their advertisements – shows how what may work in European markets won’t work in our market, with our history. With 11 official languages, a clear wealth and cultural divide, South Africa provides its own unique challenges to communications specialists looking to ensure that global brands resonate with the mass market. We foresee localisation becoming a key focal point in the conceptualisation
of campaigns going forward, with global brands using local voices and faces in campaigns as well as targeted messaging per audience group. A good example of this in action is how a US celebrity-owned beauty and skincare brand recently used a Zimbabwean model as the face for their African launch, and enlisted top South African content creators as local ambassadors to resonate with the audience locally. While aspiration is one thing, it’s important to remember the reality that many South Africans face in terms of disposable income; so, brands need to be talking to their audience in the right place and with the right messaging in order to achieve brand loyalty in our market. Kirsten Roos and Samantha Thomas, Pulse Connect
Where brands rush in
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product lines and brand launches before being released in the physical world. The metaverse will, theoretically, comprise multiple interoperable virtual worlds, which will allow people to easily teleport from one experience to another, and facilitate everything from social interactions to entertainment, shopping and work. But while some brand case studies have proven successful at reaching wide audiences, the long-term value of marketing in the metaverse remains a mystery. Almost every product that is marketed to humans can be sold to their virtual counterparts, and I believe the concept of selling themediaonline.co.za
Direct-to-Avatar (D2A) will become a more consistent strategy among local marketers. We’re talking about brands presenting quick turnaround purchases like toothpaste and tomato sauce to high ticket items like luxury vehicles and land – it’s all up for grabs in the metaverse, and consumers are eager to stake their claims. The question is: which brands are they going to choose? Will they stick with the brands and products they know and love in the ‘real world’ or will they be open to other opportunities? In closing, it’s clear that the Metaverse will play a huge role in the future of business, and marketers shouldn’t wait too long to dip their toes into this dynamic space. Dashni Vilakazi, managing director of The MediaShop Johannesburg
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n incredible example of South African ingenuity in the metaverse is the recent launch of Ubuntuland, a virtual world that marries creativity, cryptocurrency, and commerce. With reportedly only 204 642 plots of land available users can customise their 3D land spaces, and even have dedicated areas for work and play. South African artist Norman Catherine has developed a unique collection of avatars, called the Normunda Tribe, that will be available to purchase – and it’s going to be incredibly interesting to watch the evolution of South African consumer’s behaviours and adaptability to the metaverse. It’s an exciting space for brands and could very well become the ‘testing Dashni ground’ for new Vilakazi
PARTNER CONTENT
Celebrating 34 years of wins Offering pioneering media options within the South African media industry, The MediaShop celebrates 34 years of existence this year. In that time, it has seen numerous business wins and received multiple local and international industry awards.
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n 1988, The MediaShop was the first independent media agency formed in South Africa. “Today, we are a full service, level 1 B-BBEEE-empowered media agency providing ingenious communication solutions,” says The MediaShop Johannesburg’s MD Dashni Vilakazi. “We still carry a sense of autonomy and groundbreaking soul with us every day. With that comes the responsibility to make sure that we keep innovating, stay revolutionary, and continue to lead the pack. “The MediaShop digs deeper to understand our client’s business – their customers, goals, challenges, and pain points – so we can create a custom-fit approach that delivers innovation and drives tangible business results,” explains Vilakazi.
IMAGE: SUPPLIED
INNOVATION AT THE HEART OF THE AGENCY “Innovation is central to everything we do: it’s our ever-evolving strategy for every plan we place before a brand in an ever-changing landscape. We have the ability to adapt and see change as an opportunity for discovery, experimentation and transformation. Creativity and technology are the building blocks for innovation and are central to the ideas that will disrupt,” says Vilakazi. “Our clients partner with us to place advertising in the right spaces to reach our customers, be it anywhere between radio, the metaverse, television, and others. As we work towards reaching the right customer, the content, channel and authenticity play the best roles in effective brand conversations.
Dashni Vilakazi
“South Africa is not a one-size-fits-all market, which we understand. We also understand how important it is to move beyond analysing consumers from just a numbers point of view and rather gain a
better understanding of their behaviours and cultural insights. By seeing South Africa as a heterogeneous market, we can drill down to just how different consumers are, taking aspects like language, location, shopping behaviour, and so much more into consideration,” Vilakazi explains. “We believe in evidence-based strategy and therefore rate the importance of intelligence in the form of Tirisano Consulting. Tirisano Consulting effectively uses big data filtered through various tools, technologies and analyses to provide customer and brand-appropriate outcomes that incorporate behavioural economics and predictable consumer patterns, taking into account cognitive biases and cultural nuances. “Digital communication is one of our pivotal services, and Lucid Media is our performance media specialist across search, social and programmatic platforms. Lucid offers expertise in the single fastest-growing area of digital media in South Africa. It is the response to an increasing client need for a holistic media solution and competitive digital service in our group.” The MediaShop has three offices: in Johannesburg, Cape Town and Durban, and is part of the Nahana Communications Group. www.mediashop.co.za or connect on Facebook, Twitter or LinkedIn This is sponsored content.
WE HAVE THE ABILITY TO ADAPT AND SEE CHANGE AS AN OPPORTUNITY FOR DISCOVERY, EXPERIMENTATION AND TRANSFORMATION
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TRANSFORMATION
A unified voice
The ACA’s broader, more inclusive membership is reflective of ongoing transformation within the industry, writes MATHE OKABA.
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n November 2020 we launched our new ACA brand identity in preparation for a new era in the broader communications sector in South Africa. This provided the springboard along our journey of diversity and inclusiveness as an industry body. This was the precursor, the first step if you wish, in our own transformation journey: a journey that would see a more inclusive and accessible organisation, rooted in a new membership proposition. To understand the genesis of this journey, it is important for the purposes of this discussion to have a view of the principles that guide the ACA – as the official representative body for the communications and advertising profession in South Africa – in its ongoing efforts to build a stronger, more effective and truly representative industry and profession for all involved. The ACA firmly believes in and enforces self-regulation, and is steadfast in its promise to promote agency and professional transformation in order to remove barriers that may prevent access for disadvantaged groups.
Mathe Okaba
12 I T H E M E D I A
themediaonline.co.za
It is the ACA’s members that represent the industry, and it is this very industry that constitutes the ACA. So, when we say that the ACA is committed to the transformation of the industry, we mean that the industry, the profession itself, is committed to transformation. And since we are the change we want to see, the imperative to transform who and what constitutes the ACA became the key driver in our journey of transformation. We had to drop the barriers to be more inclusive, and we had to develop a membership that is accessible to all within the industry. We remained intent on providing valuable resources and information to assist in improving the services to our members, supporting the move toward a more inclusive and diverse agency employee make-up while fast-tracking diverse and previously disadvantaged population groups to take leadership roles in the profession.
IMAGE: SUPPLIED
“WE HAD TO DROP THE BARRIERS … AND WE HAD TO DEVELOP A MEMBERSHIP THAT IS ACCESSIBLE TO ALL WITHIN THE INDUSTRY.”
Critical to the operations and effectiveness of any association, particularly one such as the ACA, is the inclusiveness of the membership and constituency it represents. When it launched its new brand identity, the ACA made a clear statement that it was in the process of overhauling the organisation, its purpose, its offering, its activities, visibility and now, crucially, its membership. Our profession is undergoing a transformation. The physical make-up of our members and non-members has changed. And change, as we all know, is constant – defining and redefining our profession and activities. As the profession in our country changes and evolves, so have we too, evolved as an organisation.
BEYOND THE RACIAL LENS Transformation, however, has varying definitions – and whether it is being effected or not is often clouded by the lens through which it is viewed. There has been much discussion within the industry and the media of late with regards to transformation. It is important to clarify that from the perspective of the ACA, transformation has moved beyond simply viewing the industry through a racial lens. Make no mistake, the importance and championing of empowering black professionals and black-owned agencies remains an absolutely critical matter. There are, however, other transformative areas and issues that need to be provided with an equivalent position at the centre of the conversation. Here, I am specifically referring to how industries, businesses and more are providing for greater diversity, equity and inclusion (DEI). And specifically, how we as an industry are tackling and addressing this. It’s important to emphasise that we have not lost sight of what has traditionally been defined as transformation, and we are actively continuing our work to address this ever-present issue. Yes, we have accepted the broader definition of ‘transformation’, but we remain focused on addressing the issues that define our industry as not having transformed since the dawn of democracy. That said, there are signs that we are making progress. The MAC Charter Council has finally been announced following a long, arduous journey (through no fault of the industry) that started with
the promulgation of the charter many years ago. The Council is entrusted with a number of responsibilities, one of which is to ensure true transformation is taking place, and that it is recorded and reported on accurately. It is also responsible for revisiting the charter and the codes, and should there be a need, that it considers feedback from the broader industry and makes the necessary changes. And that is how we approached our new membership proposition: by listening, understanding the feedback from the industry, and addressing to correct where we may have erred in the past. The previous structure excluded many smaller agencies, collectives, partnerships, individuals and students, as well as companies that failed to meet certain qualifying criteria. This is no longer the case, with the inclusion of an individual membership offering alongside the overhauled corporate membership. We will continue in our efforts to ensure that we are fully representative, and not just ‘an old boys club’. We will keep abreast of what the industry requires from a body that represents it at the highest levels. This, I firmly believe, is the true power of transforming ourselves as an industry: by addressing the past, and preparing for the future.
REVISIONS TO THE CODE In much the same vein, The MAC Charter Council will be constantly reassessing and measuring the impact of transformation in the sector. It is expected that the Council will ensure the implementation of an industry-wide research programme, making sure the necessary required revisions to the code are made. While self-regulation remains an imperative, this will be supported and guided by legislation, ensuring that we achieve real, effective transformation. It is important however to be able to benchmark this transformation. In the not-too-distant future, this will help separate views and opinions on how far the industry has moved, or not, from actual fact. We all know there is a long way to go yet, but let’s have a discussion based on facts and not individual perceptions. The research of the current status quo will be key in establishing a base against which to benchmark in the future, and allow for precisely that. themediaonline.co.za
I am excited by the transformative nature the industry has taken with respect to its representative body. The new membership proposition will reinforce inclusion and create access for all who play a role within the industry. While this could be described as a radical departure from the past, it remains additive to the essence of the association. This supports my view that while DEI may be a radical departure from what is seen as the essence of the MAC Charter, it very much remains additive to the true essence of transformation. This sentiment was echoed by Minister in the Presidency Mondli Gungubele’s address at the launch of the Council in March this year. In announcing the Council, the Minister noted it is tasked is tasked with broadening the meaningful participation of blacks, women, youth and people with disabilities in this sector – not just as consumers but also as entrepreneurs. It was also tasked with building progressive partnerships that unleash the creative abilities of professionals and technically skilled people in our sector, changing the sector and society for the better. The bold decision taken to make the ACA more accessible is rooted in the ACA positioning statement, One Profession. One Voice. The decision catalyses a stronger and more effective association to the benefit of all involved, building on the unity, diversity and brilliance of a profession that adds immense value to brands and the daily lives of consumers. It is with this in mind that I am completely reassured of the fact that together, as one, we will, as stated by the Minister, “Grow South Africa together.” There are real, tangible changes afoot. Changes of a truly transformative nature. The future of our profession, of our sector will be shaped by the actions we take now. I encourage you to become part of the greater collective as we chart a course forward into a transformed future. Mathe Okaba is CEO for the Association for Communication and Advertising. She has 25 years’ experience in advertising and marketing within the broadcast sector, which she cemented as general manager for SABC 3. Okaba is also a seasoned businesswoman and entrepreneur with expertise in sponsorship and events management.
T H E M E D I A I 13
PARTNER CONTENT
Pro bono – more pros than cons The importance of merging pro bono campaigns into your marketing strategy.
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CREATIVITY When working pro bono you are not restricted by client budgets or briefs. This is a playground where you can run wild with ideas. Use the power of being different and take risks. It’s how your campaign will stand out.
14 i T H E M E D I A
RELATIONSHIP BUILDING Pro bono work calls for an innovative approach to sponsorship and donation drives. Whether donating media space, products or services to your campaign, your negotiations will open doors to companies you may not yet have engaged with and offerings and services that could embellish future paid campaigns.
BEE STATUS By selecting 100% black-owned NPOs and charities, you can obtain a higher BEE rating, particularly helpful in the case of independent or boutique agencies.
TALENT ACQUISITION Gen Z and millennial generations consider companies showing their core values and
passions through pro bono work more attractive to work for.
ENGAGEMENT WITH CORE TEAM Pro bono campaigns are often considered ‘passion projects’. Your team can run engaging campaigns creating a dynamic and rewarding work experience for all involved. When it comes to pro bono work, every agency will need to weigh up the pros and cons for themselves. Clear objectives, goals and budgets should be identified from the get-go. If your agency can commit to a cause-related marketing campaign, you will find the experience beneficial and rewarding to your business, your team and your soul. This is sponsored content.
WHEN WORKING PRO BONO YOU ARE NOT RESTRICTED BY CLIENT BUDGETS OR BRIEFS. THIS IS A PLAYGROUND WHERE YOU CAN RUN WILD WITH IDEAS themediaonline.co.za
IMAGE: SUPPLIED
hile many South African agencies have seamlessly merged pro bono campaigns into their wider marketing portfolio, a lack of understanding of how beneficial they can be remains. Empowerment work in your agency’s portfolio holds great corporate value too. Responsible, cause-related campaigns create numerous marketing opportunities. While many agencies continue to look at pro bono work as a ‘nice-to-have’, the non-profit organisation (NPO) and charity sector is a fertile ground for creativity, corporate responsibility, relationship building and talent acquisition. Companies can vet and adjudicate candidates and donate their talent’s time towards building the foundation of pro bono campaigns, resulting in maximising the marketing efforts of the NPO clients. Using supplier development, enterprise development and responsible social marketing as overarching themes, many opportunities to incorporate pro bono campaigns into workstreams exist. But why would a company donate so much for free? It’s simple. Not only are agencies serving a societal goal through their contributions, but working pro bono can benefit your marketing strategy too.
INSIGHTS
Changing standards A
s marketers we are accustomed to adapting strategies based on platform updates but, as experts in the field, we believe the biggest change is about to come – and it will make a lot of marketers and business leadership uncomfortable. The rules for marketing are changing for businesses. We are seeing an overinvestment and obsession at the bottom of the funnel ‘performance’ marketing to drive leads and sales for businesses, yet we’ve seen many case studies of companies experiencing stagnated growth and declines in growth due to this approach – even in high growth categories – so we can’t blame Covid-19 or slow economies for this. This obsession with lead generation has been driven by multi-touch attribution, i.e measure only what your adtech can measure. As marketers, we have built a reliance on attributed reporting. Time lag is attribution’s biggest enemy. Think of
how many touch points there are along the customer journey. Attribution software can’t measure in the dark funnel and it’s a big piece to the customer journey. So where to next for measuring marketing performance? The lack of a measurement framework across paid, owned and earned media is probably the single biggest challenge I see companies having. Too many silos, too many misaligned KPIs exist because there is no standardised measurement framework in place. A well-structured measurement framework focuses on what we call ‘direct measurement’; we use it to centralise marketing, sales, customer and product data. Direct measurement across the full customer journey identifies the right counter metrics across teams, which then is the catalyst for collaboration. Once your measurement framework has been visualised, it changes culture
Neil Pursey and Jay Thompson
for the better and ensures C-suite understands the impact across the full customer journey. It’s not only acquisition that will drive growth. Surprisingly for most, it inspires creativity among teams because the right customer journey metrics are being presented to all relevant stakeholders. There is no doubt a case for attribution measurement – which is dependent on the maturity of the company – but an over-reliance on this approach will stifle the growth of marketing’s impact on sales. Neil Pursey and Jay Thompson, founders of Measurebyte
Creativity: data’s refinery
IMAGES: SUPPLIED
B
ack in 2006, British mathematician Clive Humby coined the phrase “data is the new oil”; Michael Palmer expanded on this saying that like oil, data is “valuable but if unrefined, it cannot really be used”. In our industry, creativity is data’s refinery and no agency should be doing one without the other. As marketers, advertisers and creatives, connecting with people is at the core of what we do; on its own, in its unrefined form, data does not speak to the majority of people. It needs to be enriched with a story, a message or emotion before it makes an impact. Data can certainly enhance creativity, but it Shaune
will never replace the human connection that true creativity sparks. What data gives the agency is a tool that takes the guesswork out of marketing and advertising, helping them create personalised campaigns that reflect a deep understanding of who the customer is. Data tells us what customers want, when they want it, how they want it, their pain points in getting what they want and much, much more. This ability to creatively engage people in an authentic way significantly boosts results and potential return on investment for brands. Leveraged correctly, data and creativity result in the coveted trifecta of preference, loyalty and engagement. And isn’t this precisely what we as agencies are looking to do for our clients?
So instead of considering how to bridge the gap between data and creativity, or entertaining the argument that data is stifling creativity, a more useful and accurate approach would be to embrace the value of data, while elevating the importance of creativity. Data is certainly one of the key elements that will set the agency up for success in 2022 and beyond – but practically worthless on its own. The data leaders are not the brands or agencies with access to the most data, but the ones who are using it to tell stories, to connect with people and seeking innovative new ways to leverage it for their competitive advantage. And for that, you need creativity. Shaune Jordaan, CEO Hoorah
Jordaan
themediaonline.co.za
T H E M E D I A I 15
AGENCY DISRUPTER
AMA is taking back a piece of a R44-billion pie A disruptive new media agency aims at levelling the playing field for small, black-owned media owners in South Africa, write ZIBUSISO MKHWANAZI and CHRIS BOTHA.
M
ore than 80% of South Africa’s media pie is shared between the top five global media agency groups. This leaves very little room for local, independent players to enter the market and compete, because of the large capital and credit requirements needed to book media on a large scale. This advantage is what global agencies have had for many years, coupled with the financial backing from their parent companies from around the globe. This is why earlier this year M&N Brands and Park Advertising took action – a move that envisages paving the way for a more representative media industry in South Africa. Collaborating to form AMA to disrupt the media agency landscape in South Africa,
the two gentlemen have their eyes on the prize: to open up the media industry to as many small, black-owned media owners as possible. AMA is the first fully black-owned media agency that is able to compete on the same scale – with the same tools – as the big, networked agencies, which currently control 80% of the media industry in South Africa. For us, this translates to several significant positive effects. Firstly, AMA is a media agency that has the same buying power as its global counterparts. AMA has more than $200 million in credit facilities and enjoys the benefits of bulk buying with local and international media owners. Traditionally, only the networked agencies have had this kind of buying power, but with AMA – which has the
leverage of benefiting from a rate card billing of over R5 billion – our clients will benefit from this purchasing power locally as well as global buying discounts on platforms such as Facebook and Google. Secondly, AMA’s best-in-class tools and processes, combined with its 100% black ownership, make it a no-brainer choice for advertisers. Client spend now contributes towards B-BBEE targets. And thirdly, AMA is opening the market for small, black-owned media owners; we intend to work closely with previously overlooked media owners as well as those who have unconventional assets, such as wall murals in the townships, online radio stations, etc. This makes it easier for advertisers to tap into bespoke marketing solutions.
Zibusiso Mkhwanazi
IMAGE: SUPPLIED
Chris Botha
16 I T H E M E D I A
themediaonline.co.za
We are committed to growing the South African media landscape. We know there’s a long road ahead of us, but our commitment is unwavering and we look forward to teaming up with likeminded organisations such as the MAC Council in ensuring the transformation of the industry. AMA welcomes the establishment of the MAC Council and deems it one of the most important developments of our time. It’s no secret that the marketing industry – more specifically media – has a big transformation challenge, as highlighted by the recent South African Human Rights Commission inquiry about racism and discrimination in the advertising industry.
BESPOKE METRICS LIKE ‘TRUE ATTENTION’ AND ‘ENGAGEMENT’ WILL BECOME MORE IMPORTANT, AS WELL AS WHAT THOSE MEAN FOR EACH BRAND AND EACH CAMPAIGN We have to acknowledge that the charter was created a long time ago and the business environment has changed since then. With the sector council in place, our hope is that there will be an oversight role regarding B-BBEE in order to review targets and ascertain where we are as an industry against them. The council could also review the targets and see if they are indeed still relevant for today’s business environment and make the necessary recommendations. The common ground between AMA and the MAC Council is that we seek to achieve the same thing at the end of the day: to drive transformation in the industry. MAC uses legislative authority to drive transformation while AMA is a business that uses its ability to infiltrate and to buy media on a large scale to drive this transformation. AMA exists to change money flow to smaller, up and coming black-owned media owners that traditionally would not get access to larger brands. This is how we are going to ensure that we create a more representative media industry. As an entity, we strongly feel that we should tackle transformation collectively
as an industry. AMA is taking on a Goliath of a problem, and we encourage clients to rethink as well as act upon their activism on how their media budget is spent. At the end of the day, these tangible efforts are what will make the difference. Having legislative authority is important because it provides a destination, but equally important are the entrepreneurs who are the vehicles in which the MAC sector achieves its targets and finally, the clients who are the fuel to this transformation. All three must sing from the same hymn sheet to start seeing meaningful change in the media industry. Created a mere few weeks apart, AMA sees an opportunity to share learnings with the MAC Council to create a more representative media industry.
CHANGE IS NOT A THREAT As AMA, we embrace the drastic changes that are happening in the marketing industry. Creative agencies and media agencies are integrating again, which we believe has some merit for some clients. The narrative is changing with the growth of digital media – creative and media are so closely interlinked that it doesn’t serve either party for the services to be separated. As such, we do not see this as a threat to media agencies but in fact as an opportunity. More and more media agencies today are employing some creative staff to help with the faster execution of some of the digital work. Dynamic optimisation of the creative starts with media performance feedback – which we believe then informs creative, which in turn informs media performance back again in a continuous loop. Media agencies the world over are employing ‘predators’ (producer/ editor mix). These folks focus on quick turnaround work that is heavily performance-based. AMA views this not as a threat, but rather as an opportunity we plan to capitalise on. The media industry is drastically changing, and nowhere is this more evident than in the performance metrics that are being used in communication. For example, 95% of digital media has over the years moved to very linear metrics such as Cost Per Click and Cost Per View. In the near future, we believe themediaonline.co.za
AMA EXISTS TO CHANGE MONEY FLOW TO SMALLER UP AND COMING BLACKOWNED MEDIA OWNERS THAT TRADITIONALLY WOULD NOT GET ACCESS TO LARGER BRANDS that more bespoke metrics like ‘true attention’ and ‘engagement’ will become more important, as well as what those mean for each brand and each campaign. Locally, we should also not lose sight of the impact that digital terrestrial television (DTT) has on television ratings. We have noted with concern a huge drop in audience ratings because of DTT – especially on the free to air channels. So, as traditional linear ratings are dropping, clients are moving increasingly to Cost Per Point (CPP) guarantee type television buying and moving far away from cherry-picked buying. As consumers across the board get access to more and more channels, we will find the battle for attention and engagement only growing more.
AMA … HAS THE SAME BUYING POWER AS ITS GLOBAL COUNTERPARTS Lastly, the battle to stand out is hotter than ever before. According to Adex, R131 million was spent on advertising in 2021 – every single day! That is an enormous number. Our job as communications experts is to get our clients’ brands engaged with and noticed. AMA intends to achieve this by creating unique, creative, breakthrough opportunities for clients in a sea of sameness. AMA seeks to level the playing field for small, black-owned media owners and transform the industry as a whole with a little bit of help from its friends. It also has bold ambitions to flourish in Africa to help grow the African media landscape – and it is just getting started.
Zibusiso Mkhwanazi, chairman, M&N Brands Chris Botha, group managing director, Park Advertising
T H E M E D I A I 17
PARTNER CONTENT
Connecting buyers and sellers through niche marketing
MAILERS STILL MATTER
The expanding digital landscape has opened exciting opportunities for B2B businesses to attain real return on their marketing spend, writes Varushka Padayachi, digital manager in New Media’s B2B division.
Email may be one of the oldest forms of digital communication, but for B2B content marketers this medium has never been more important. Our newsletter databases continue to grow due to our concerted POPIA-compliant list-building efforts. Reader engagement is essential; therefore, our design, content and strategy must provide a consistently rich and relevant user experience.
RETURN ON INVESTMENT
18 i T H E M E D I A
LIVE CONNECTIONS COUNT The epidemic also put paid to in-person events, which was catastrophic for industries reliant on face-to-face networking. To address this, New Media introduced medical webinars six weeks into the pandemic in 2020. We had conservative hopes for the first webinar, yet the registrations and attendance exceeded our expectations. Since then, we have hosted close to 100 webinar events for several industries. With our clients increasingly eager to explore this cost-effective and convenient way of reaching their audiences, we don’t see webinars slowing down anytime soon.
LOOKING AHEAD New Media B2B is pooling the knowledge of our digital experts in content, design, web development, strategy and sales while consulting with our readers and clients to deliver the best digital solutions. Melding technology with new skills, diverse talent, and curious minds, we are telling the business stories that matter most on a new digital frontier. Looking to generate leads for your business? Email us at info@newmedia.co.za This is sponsored content.
DIGITAL OFFERS MEASURABLE DATA ON RETURN ON INVESTMENT – ONE OF THE MAIN REASONS CLIENTS TURN TO DIGITAL MARKETING themediaonline.co.za
IMAGE: SUPPLIED
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usiness-to-business marketing (B2B) differs from business-to-consumer (B2C) marketing. B2B’s target audience is hyper-focused on return on investment (ROI) and motivated by financial incentives and logic rather than emotion. With a B2B brand legacy dating back decades, New Media has evolved from print to content-rich digital experiences that keep niche professional audiences informed and confident to buy. Covid-19 has been a disruptor and catalyst for the increased adoption of digital technology. Many of our clients have adopted a digital approach to business through e-commerce platforms, virtual product launches or digital sales tools. As a content marketing business, our role is to create storytelling solutions for our B2B clients in this expanding digital landscape.
Unlike print, digital offers measurable data on ROI – one of the main reasons clients turn to digital marketing. B2B marketing aims to provide clients with tangible business leads and valuable connections to key decision-makers in their industry. New Media uses several platforms to create lead generation campaigns, resulting in sales for our clients. We also provide data on their customer base and create connections between buyer and seller. The data and analytics we extract on each campaign tell the client a meaningful story about their industry, their customers and how their brand is perceived
AGENCY RESEARCH
A roadmap of industry complexities The Agency Scope 2021/2022 report, compiled by research company Scopen in conjunction with the Independent Agency Search & Selection Company, reckons South Africa’s creative agencies are encroaching on media agency spaces. JOHANNA MCDOWELL and CESAR VACCHIANO discuss this and other fascinating findings. Global investment in the sector continues apace, with the data showing that in this more complex ecosystem, each advertiser surveyed works with an average of 13 different partners across communications, marketing, advertising and media projects. Managing this number of partners requires robust leadership to establish which companies are responsible for which space, and how to keep them in their own lanes. A standout in the research is the satisfaction clients expressed with their agencies, and appreciation of the lengths agencies went to in intensifying working relationships through the pandemic. Clients are acutely aware of and grateful for the strength of their partnerships with their agencies.
Cesar Vacchiano
IMAGE: SUPPLIED
T
he largest sample for Agency Scope in South Africa to date – 465 video interviews comprising 239 leading marketing professionals from 158 companies; 156 creative agency professionals; 50 media agency professionals; and 20 media owners – has resulted in a an intriguing roadmap for all stakeholders. Highlighting just the key points from any of the SCOPEN studies is never easy but it is important to spotlight certain trends that arose during the pandemic and will likely grow as economies recover. We agree that digital is on everyone’s lips and certainly on top brands and
Johanna McDowell
agencies’ agendas. Digital has grown 2.9 percentage points (+7.6%) in the last three years, with China and Brazil designating a budget of 50.1% and 45.1% respectively. The IAB South African Digital Ad Spend Report for 2020 showed the digital industry experienced an 18% year-on-year growth, despite the economy. Agency Scope 2021/22 reveals current digital ad spend accounts for 38% of marketing spend in South Africa; with overall digital spend divided largely between three sectors: digital paid media (33.1%), social media and influencers (23.4%), and search engine optimisation (15.5%). themediaonline.co.za
INVESTMENT AND INTEGRATION Agency Scope 2021/22 analysis also highlights how marketers invested their spend. Globally, investment is about 50% on brand building, long-term brand development and big campaigns; and around 50% in shorter-term, performance and sales driven lead generation initiatives. What this tells us is that reinforcing brands in the minds of the consumer is of equal importance to marketers as the short-term wins from leads and sales. The take away from this part of the research is that opportunity for big branding campaigns should not be ignored. With regard to the marketers’ more intricate ecosystem, an integrated agency is what most seek. When asked which disciplines comprise their definition of an integrated agency, almost 100% said ‘digital and advertising’, which is largely T H E M E D I A I 19
in line with previous figures. However, the percentages for PR, media, activation and events decrease in number of mentions, but the rest of the disciplines remain stable from 2019. To determine the model of integration companies are employing, business leaders were asked whether they have a lead agency coordinating their communications requirements. Seven out of 10 in South Africa identified a lead agency to address this need, noting that large and medium-sized companies
declare the highest percentage, being 75.4% and 70.4% respectively.
A look at Agency Scope 2021/22 data will show the media agency has become a far more valuable marketing partner than ever before. Where media agencies shine is in their ability to examine all possible channel opportunities. In their infancy, digital platform owners often bypassed media agencies and worked directly with marketers – and some still do, possibly to their detriment. Agency Scope shows 57% of clients prefer their media agency to look after their digital initiatives along with their
THE EXPANDING ROLE OF THE MEDIA AGENCY While the nuts and bolts of the media agency’s role aren’t changing, it is growing. Making sure the channels and media opportunities they recommend to their clients are the most appropriate and best performing, and dispensing budgets accordingly, is still core to their function.
INTRODUCTION | METHODOLOGY
1
Technical Details COMPOSITION OF THE SAMPLE
UNIVERSE §
(NUMBER OF INTERVIES IN THE FOUR EDITIONS)
Leading Marketing Professionals, decision-makers in the Marketing and Communications Industry from the largest companies by ad spend.
465
SAMPLE §
465 interviews.
§ § § §
239 Marketing Professionals from 158 companies 156 Creative-agencies professionals. 50 Media-agencies professionals. 20 Media Owners
§
541 client-agency relationships analysed (creative agencies: 372, media agencies: 169).
369
239
TYPE OF INTERVIEW §
Face-to-face (F2F) video call interviews through CAWI system (Computer Aided Web Interview). The average duration of interviews was 60 minutes. (Marketing Professionals) and 15 minutes (Agency Professionals and Media Owners)
MARKETING PROFESSIONALS CREATIVE-AGENCIES PROFESSIONALS
239
MEDIA-AGENCIES PROFESSIONALS
70
156 97
66
Through all this report, we pointed out in green colour (arrows or cells) ‘positive difference’ and in red colour ‘negative difference’ vs. the previous edition (at 95% confidence level).
FIELDWORK TIMELINE §
217
191
SYMBOLS §
388
106
55
55
43
2016
2017
2019
MEDIA OWNERS TOTAL
50 20 2021
June - September 2021.
*ERROR SAMPLE: n=465 =±4.63%. If p=q=0.5 p for a significance 0.5%
1
INTRODUCTION | STRUCTURE OF COMPANIES
3
Budget Split (ATL: Conventional Advertising / BTL: Activation, Promotional, DIGITAL: Paid-Owned-Earned Media) BUDGET YEAR 2021
DIGITAL BUDGET SPLIT
37,3 g ATL CONVENTIONAL ADVERTISING
g DIGITAL PAID MEDIA g SOCIAL MEDIA / INFLUENCERS
25,1
g SEARCH ENGINES (SEO / SEM)
g BTL
g PROGRAMMATICS
ACTIVATION, PROMOTIONAL
5,6
6,1
5,7
33,1
10,7
g CRM (DIGITAL)
g DIGITAL
g E-COMMERCE AND MARKETPLACES
PAID-OWNED-EARNED MEDIA
g OTHER 37,6
15,5 23,4 (New question in this Edition) BASE: ‘INTERVIEWEES INVEST IN DIGITAL’ IN 2021 (190)
PROMPTED. MARKETING PROFESSIONALS ‘DECLARED BUDGET’ INTERVIEWED IN 2021 (233). DATA IN PERCENTAGES (%) AND AVERAGES IN ZAR.
2
20 I T H E M E D I A
themediaonline.co.za
AGENCY RESEARCH
current responsibilities, to ensure they’re getting the best deals, and the channels’ performance is up to scratch. To make prime recommendations, media agencies have had to become far more agile to ensure the pace at which they make choices matches the rapid growth of choices being offered. Bearing this out, Agency Scope shows that South African CMOs believe media agencies contribute an average of 34.1% to a client’s growth, where the global average is 24.2%. With years of experience across
With the complexity and fragmentation of media channels coupled with new ones coming on stream, SCOPEN spotlights the marketer’s core role as being one of total immersion in the brand, so trusting their media agency to make choices in the brand’s best interests is vital.
all sectors of media and marketing, we are adamant about one thing: in the complexity of media channels and the ever-increasing platforms arising today, I would not make a single decision without consulting a media agency expert. They are matchless when it comes to making sure a target audience is reached. It’s always in the numbers. Media agencies can quantify their choices to clients, and the number of CMOs in Agency Scope 2021/22 who agree highlights this.
Johanna McDowell is CEO of the Independent Agency Search & Selection Company (IAS) and SCOPEN partner, and Cesar Vacchiano is president and CEO of SCOPEN International.
INTRODUCTION | STRUCTURE OF COMPANIES
2
Budget Split (Brand Building-Sales Activation) BUDGET YEAR 2021
BUDGET SPLIT YEAR 2021
9,2
32,6 g BRAND BUILDING
49,1
g BIG COMPANIES (>450 M ZAR)
YEAR 2021 AVERAGE
g MEDIUM-SIZED COMPANIES M - 450 M ZAR)
206,091 M ZAR
50,9
g SMALL COMPANIES (<50 M ZAR)
YEAR 2019 AVERAGE 204,040 M ZAR
g SALES ACTIVATION
� 1.0%
(50
55,6
g DO NOT HAVE BUDGET
(New question in this Edition)
PROMPTED. MARKETING PROFESSIONALS ‘DECLARED BUDGET’ INTERVIEWED IN 2021 (233). DATA IN PERCENTAGES (%) AND AVERAGES IN ZAR.
3
INTRODUCTION | STRUCTURE OF COMPANIES
4
Model of Integration (Q. WHICH DISCIPLINES DO YOU TAKE INTO ACCOUNT WHEN DEFINING AN INTEGRATED AGENCY?) 2021
2019
100
•
Marketers define integration considering expertise in 5 different disciplines.
•
Except for the disciplines of ‘PR’, ‘Media’, ‘Activation’ and ‘Events’, that decrease in number of mentions, the rest of the disciplines remain stable vs. 2019.
•
Big companies give more importance to disciplines like ‘Direct Marketing’, than other companies, when defining an integrated agency. Smaller marketers give less importance to ‘Activation / Sales Promotions’ when defining Integration.
75 50 25 0
OTHER DISCIPLINES
EVENTS
DIRECT MARKETING
ACTIVATION / SALES PROMOTIONS
MEDIA
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PROMPTED. MARKETING PROFESSIONALS ‘WOULD WORK WITH INTEGRATED AGENCIES’ INTERVIEWED IN 2019 (120) AND 2021 (122). DATA IN PERCENTAGES (%). (AVERAGE OF MENTIONS: 5.5/5.3).
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T H E M E D I A I 21
INSIGHTS
Acquisition out, attention in
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t’s been a chaotic two years for the strategic communications and public relations Industry. Coming out of a prolonged period of public uncertainty, Dustin an increased scepticism in Chick brand messages and general distrust of information, we find ourselves standing face-to-face with a tougher but far more significant challenge as we approach the second half of 2022. We have one simple focus: to regain a position of trust for the leaders and brands (or companies) we represent in the minds of South Africans. The question we should be asking ourselves is: how do we play a meaningful part in this as strategic communicators? With this, there are three priorities that PR agencies (or any company
really) should move to the top of their business agenda as a key focus in 2022 and beyond. Firstly, communication and PR objectives that aren’t aligned to business objectives have no place in your 2022 strategy. Work that delivers business results will deliver business wins for agencies looking to elevate their offering above the rest. This is no more about the busy work but the work that delivers. Secondly, PR agencies need to reassess their overall creative offering and the role that creative plays as part of campaigns and always-on work. There is a strong call from clients and consumers for better, cut-through creative that elevates a conversation to its most powerful. Better creative
means it needs to be adhesive, able to effectively drive conversation and cut through the noise of the news cyclone. The third – and potentially most important – objective as it directly impacts the first two is the ongoing war for the right talent. Talent acquisition is out, and talent attraction is in. Finding and retaining the right talent that deliver at the top of their game but also feel a sense of belonging and fit to your corporate culture will be what makes or breaks agency success. Your values are where you can make the greatest impact on value. Like we always say, a better place for our people and a better place for our clients. Dustin Chick, partner and managing director at Razor PR
Six industry trends to watch their buck from their agencies. Agencies will need to be more creative and hardworking than ever to avoid losing market share to hungry competition.
1. South African agencies are increasingly providing integrated marketing and communications services. A few short years ago, for example, specialist digital agencies took on digital work; now every agency worth its salt has strong in-house digital capabilities and is able to deliver through-the-line work.
3. The past few years have seen consumers demanding more than ever that the brands they support have a strong purpose, and this trend is set to strengthen. Consumers want their brands to have ethical employment and environmental policies, to stand up for relevant social causes, to create jobs, to have a diverse and inclusive culture and to have a strong set of values. The younger the consumer, the more important the brand’s purpose is.
2. Marketing budgets are under more pressure than ever in the tough economic times we are in, both locally and internationally. Expect marketers to want even Tara Turkington more bang for 22 I T H E M E D I A
4. E-commerce has grown faster than ever in the past few years in South Africa, with this trend set to continue. We still have relatively low internet and e-commerce penetration, so there are good growth opportunities for retailers here. themediaonline.co.za
5. Hybrid and remote working are trends set to stay. Few agencies and corporates will demand all their staff back in a company office all the time. This poses challenges for growing company culture and managing staff at least partly online. 6. The advent of the online meeting – barely heard of before 2020 and now a staple of creative life – offers unprecedented opportunities for South Africans to take on international work. Expect more South African freelancers and agencies to be winning more international work than ever, considering our weak exchange rate and ability to provide world-class service at much cheaper rates than in, for example, the USA and Europe. Tara Turkington, CEO of Flow Communications
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hange is a constant, especially in our rapidly evolving industry – here’s what’s making its mark across the media space.
www.ultimatemedia.co.za
INSIGHTS
Still on a winning frequency
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the upper hand over ’ve been working in the radio their competitors has industry for over 30 years and and, increasingly, it’s a fun, vibrant platform radio plays a of the media and advertising vital role in the industry. The beauty of radio overall messaging is that fundamentally, it has ecosystem. not really changed. It’s no longer In 2022, as in 1962, there good enough are real, breathing, happy Simon just to slap some Parkinson and sometimes sad human commercials on the beings in studio engaging with radio station and hope other human beings going about to hell customers will come their daily lives. flooding through the front door. It’s sincere, honest, real, consistent Media agencies are under pressure and mostly engaging. There are no bots, to ensure that the radio component no visuals of perfect people or videos of of any campaign stands out and celebrities or influencers telling us how to delivers. Creative agencies don’t often live our lives. It’s no wonder advertisers understand radio station programming are increasingly using radio with its down mechanics and, sadly in many instances, to earth “real people” approach to gain the radio stations are guilty of not trust from the wider population in order to listening nor understanding that they drive engagement with their product. need to fit into a “bigger than radio” While on the face of it radio hasn’t media campaign. changed, the way advertisers try to gain
Layer all of this with really short deadlines, a need to be measurable along with tight budgets, and you have a recipe for short tempers, misunderstanding of objectives, too many emails and in some cases, disastrous campaigns with poor results. We, as agencies, should be embracing the culture of listening, asking, listening more and understanding. We don’t sell radio and nor should anyone else. In 2022 it’s about engaging with clients and creating solutions incorporating radio and other media to achieve a common goal: response that is measurable. I believe co-operation between agencies and a keen desire for openness and discussion around client objectives will result in better campaign solutions and therefore, responses and results. Simon Parkinson, director at Ultimate Media
Dancing to a new rhythm
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Thankfully there’s light at the end of the tunnel – it’s just been dimmed by the shiny new digital toys that have been thrown into our communications mix over the past decade or so. Our North Star, though, should always be creativity. It’s what works best, and it’s what ultimately delivers results, no matter what else around us changes. Creativity unlocks business value. The everchanging media landscape is exciting but it still requires creative work to make it pop. Magical storytelling infused with the right creative craft, and scientifically placed across the multiple media platforms, is the secret to brand success. To make this possible, a critical component is needed: the agency-client partnership needs to be in sync. It is a delicate dance. The music will always change – sometimes we may need to
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tango, and other times we may need to foxtrot. If the agency and client are out of sync, the dance stops. Mutual respect, smarts, passion, and courage form the bedrock to creating outstanding work. The Covid-19 pandemic has created havoc around the world, and we have been forced to hit the reset button. People’s daily behaviour, work, relationships, travel and shopping patterns have all been upended. We’re piecing it all together, and it’s unlikely to return to the original pre-Covid mould. We need to see this as an opportunity, especially for brands that are willing to be creatively bold and show up positively in the new world. It’s time to go big, to be brave, and to keep the dance alive. Wayne Naidoo, founder of DUKE Group
IMAGE: SUPPLIED
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ver the past 25 years I have spent time as a marketer, CEO of a multinational advertising agency and then as the founder of an independent agency group, DUKE. There’s been one common denominator throughout: a forever changing landscape. The world is moving at such a rapid pace, it can feel near impossible to keep up. The concoction of new media, data, influencers, and content Wayne are all being produced Naidoo concurrently, at breakneck speed. We’re learning on the run and challenging ourselves daily. It may feel, at times, like we are experiencing the Peter Principle, and being pushed into incompetency due to the rapid rate of change.
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EIGHT OF MEDIA24’S TITLES ARE AMONGST THE TOP TEN MAGAZINES:
According to the latest ABCs (Jan – Mar 2022), Media24 remains the largest player in the consumer magazine industry, with 77% market share in print circulation and 65% market share in digital circulation.
6th 62 348
2
1st
126 659
3
5
73 874
67 392
65 307
7th
9th
10th
36 698
30 656
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rd
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YOUR JOURNEY STARTS HERE
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CLIENT-AGENCY RELATIONS
Brave new village Heidi Brauer, Hollard’s chief marketing officer, says that it takes a village to raise a brand. The question is, what happens when an earthquake strikes and irrevocably changes not only the village, but also the very landscape that surrounds it? JOANNA MONDON and WARWICK BLOOM get to grips with the changing nature of client/agency relationships.
W
hile there is much about Covid-19’s longterm effect on business and marketing that has yet to emerge, it is already clear that the ways in which we work, network, collaborate and deliver have changed forever. And this has important implications for client-agency relationships and the way in which we’ll have to adapt as we go about the task of building and maintaining brands together. We experienced some of this need to adapt first-hand recently when we filmed our Hollard Big Ads for Small Business commercials. Most Covid-19 restrictions were still in place and, in stark contrast to the days of enthusiastic on-set participation by clients/brand, only the smallest viable production team was allowed on set, with everyone else dialled-in virtually. Rather than via live briefings, live casting, in-person wardrobe processes and direct conversations, feedback happened via various WhatsApp channels as dialled-in client representatives watched happenings via their laptops at home. Matters were further complicated by the fact that the reliability of internet connections varied throughout the day, depending on the location of the particular set. The exercise was exceptionally challenging, but our strong agency relationship enabled us to adapt and eventually collaborate almost seamlessly in this strange new environment. We may even have become proficient in approving casting, advising on wardrobe and applying live edits remotely. Additionally, remote viewing of the filming process
26 I T H E M E D I A
also provided a customer’s-eye view of the commercials, which is not always the focus on a live set. We’re now required to move from the work-from-home model forced upon us (or enabled for us?) by the pandemic, to a hybrid model of sometimes-work-fromhome and sometimes-work-from-the office (or, in some cases, a return to pre2020 office arrangements). As we do so, we need to recognise that change is hard; big change is even harder – and we’re dealing with change at a global, societal level. There will be trauma.
“WE SEEK TO UNLOCK THE POWER THAT COMES WITH PEOPLE KNOWING THEY ARE VALUED NOT JUST FOR THE WORK SKILLS THEY BRING, BUT FOR WHO THEY ARE.” Consumers have changed, the way in which we work has changed, and the place of the office in our lives has changed. What has not changed (and we would argue is unlikely to change) is the need for brands and agencies to forge trusting relationships that include learning from failure and celebrating successes together, to embrace a common and well-articulated set of values and, above all, to connect deeply with a genuine brand purpose. This is especially true when working with multiple agencies across marketing disciplines. If we’re going to raise a brand together, we’d best all believe the same things and share a common vision of the future. themediaonline.co.za
Lunch with Hollard’s lead agency VMLY&R.
Everyone who touches the brand in any way must take responsibility for their actions and take accountability for the way the brand is perceived. Of course, you can’t ask people to be held accountable for things they don’t understand. Brands can’t expect agencies to ‘get’ a brand based only on what they’ve seen or heard. And working effectively with multiple agencies across various marketing disciplines (as we do) requires all agency partners to effectively have the same view of the brand. But it’s even more powerful when that view corresponds directly with the in-house view and it becomes irrelevant where resources are actually employed.
BRAND IMMERSION We’ve found a few useful ways to ensure that agency and in-house resources operate from a common foundation and have the same passion for the brand, no matter the number or type of agencies involved. We start with our organisational purpose. Our purpose not only describes why Hollard exists, but also serves as the guide rail for everything we do on a dayto-day basis. It informs how we engage our agency partners, how we treat our customers, and what we set out to achieve through our communications and campaigns. We work with agencies who
Daredevil Run day with the Hollard CEO, Saks Ntombela, and some of his team mates and friends.
At the Hollard Sport Industry Awards in 2020 celebrating with the Hollard agency Creative Space Media and Hollard team.
IMAGE: SUPPLIED
Hollard and Flow Communications receiving a Marketing Achievement Award for Hollard Highway Heroes.
share a similar ideal, who embrace our way of operating and who are willing to play a role in realising our purpose. It’s a deal-breaker if you don’t buy in. And it’s a success-clincher when you go all in. We also use deliberately loaded language. The terms ‘brand mama’ and ‘brand papa’ describe anyone working with the Hollard brand, be they Hollardites or agency employees. These labels convey the level of care we expect everyone to bring to bear in the raising of the brand. Just as in the case of a real-life parent, fulfilling these roles requires an in-depth understanding of both the potential and the limitations of the brand, as well as its history and dreams. That’s why everyone who works or is likely to work on the brand – designers, account managers, copywriters, cinematographers, community managers, event planners – is expected to attend an intensive brand immersion hosted by senior Hollardite marketers. The immersion covers the actual business of the organisation (history, status, prospects, culture and purpose), the journey of the brand through time in the eye of the consumer, and detailed guidelines relating to the practical use of the brand identity. Complementing this process, our ‘brand recipe’ booklet acts as a simple summary of the brand identity. From purpose to
“IF WE’RE GOING TO RAISE A BRAND TOGETHER, WE’D BEST ALL BELIEVE THE SAME THINGS AND SHARE A COMMON VISION OF THE FUTURE.” positioning, from targeted audiences to targeted brand attributes and from brand outlook to pragmatic brand application, this take-home document provides all villagers with a quick and handy guide to seamless execution of any brand communication. We know that relationships, just like marketing campaigns, work best when they’re 360˚. So, when we get together to talk business, we also always make space for socialising and the human side. From a simple cameras-on approach to online meetings enriched by deliberate, genuine check-ins, to time set aside for “not work” at physical gatherings, we seek to unlock the power that comes with people knowing they are valued not just for the work skills they bring, but for who they are. Finally, just like any village worth its salt, we make sure we reflect on completed projects and celebrate our victories. Modifying an approach used by the US Army, we conduct “after-action reviews” following major initiatives, creating a disciplined and psychologically safe space for identifying potential future improvements. And then we take time to celebrate successes, big or small. While a celebratory WhatsApp suffices for small victories, it’s not uncommon for the tequila to flow at the more elaborate celebrations reserved for big wins. themediaonline.co.za
In considering the potential application of these tools and approaches in your own environment, it’s important to acknowledge that there is no foolproof way to guarantee brand cohesion in an increasingly volatile and division-ridden world. There will be mix-ups and wrong decisions. There will be changes of direction. There may even be disasters. But if there truly is a village, and the people of that village are genuine brand mamas and brand papas, then any obstacle can be overcome and a better future must surely be guaranteed for your brand. Joanna Mondon, AKA Jo, is head of marketing for Hollard Group, responsible for their 360˚ group brand campaigns, co-ordinating the full marketing mix across digital and traditional channels and ensuring that they’re proactive, and that their comms are on-brand and on time. Mondon works with VMLY&R, Creative Space Media, M&C Saatchi Connect Media and Flow Communications. Warwick Bloom is head of PR and internal marketing at the Hollard Group. Having started there in 1996 and originally trained in Actuarial Science, his experience spans various operational and management roles. Bloom works with multiple PR and Events agencies, including Flow Communications, Aprio Credence, Tribeca Communications, Toni Elephant Media and Creative Directions and Creative Space Media.
T H E M E D I A I 27
INSIGHTS
Message + Medium = Magic
O
ur industry’s evolution, and often times revolution, has and will always be driven by the shape-shifting needs of the global cultural zeitgeist. Beyond informing rapid shifts in the strategic and Dan creative ideas that Berkowitz will resonate in the hearts and minds of today’s always-on audience of global citizens, the mediums to broadcast those messages are being forced to not only adapt or innovate, but also reinvent themselves entirely, just as quickly.
Media has always been one of the most lucrative verticals in the marketing mix and the economy is tough and looks primed to get tougher before it picks up again. So, at face value, it’s easy to assume that the integration of media into creative agencies is primarily to do with stealing our media partner’s lunch. I don’t think it’s quite as simple or short-sighted as that. With the proliferation of digital in a leading role and the ever-growing ecosystem of digital channels at play, it’s imperative for smart creative
agencies to invest in the training, people and skillsets that will turn their integrated teams into modern media experts. And these modern media experts will be the ones able to create innovative work for those channels, with the new challenges and opportunities they bring, and remain connected and relevant to the audiences their clients want to connect with. More than ever before, the medium is becoming an integral part of the message. Dan Berkowitz, group executive creative director, HaveYouHeard
I
n marketing, we’re always talking about the next big thing – so it’s no surprise that agencies and the brands they represent are piling into the metaverse. This immersive, digital world provides an opportunity for people to escape their own lives for a brief moment, building avatars that allow us to be whoever we want to be – while giving brands a new space to engage potential customers and raise brand awareness. Glenn Gillis
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This desire to immerse ourselves in stories, for social reasons, to learn and have fun, is a fundamentally primal human need – the only thing that has changed is the technology we use to do it. The future of marketing is not in the metaverse – or in the apps or websites that came before it – but in voluntary engagement. What the metaverse does is give businesses the opportunity to go back to basics, to find their stories and make it easier for people to engage. But there are also downsides to the metaverse. Beyond its already welldocumented dark side that includes crime, harassment and bullying, the metaverse simply isn’t a one size fits all solution for brands. So agencies shouldn’t be lumping all their clients in there just because they ask about it. We also need to distinguish between hype and reality; there are platform and interoperability issues that we themediaonline.co.za
just haven’t figured out yet, and we are severely constrained by the limited availability of VR headsets. We also haven’t even begun to figure out regulation and how disputes will be settled. I imagine a future filled with business for lawyers arguing complex legal issues related to the metaverse. For instance: if you establish your business in the metaverse, who owns that digital twin? For brands who are purpose-driven, who are looking to share value and who want to drive voluntary engagement, it makes far more sense to have a solid serious gaming strategy in place – because that is the more present opportunity. And agencies need to understand the gaming space, respect that it is a specialisation, and partner with the specialists to deliver a strategy that meets their clients’ needs. Glenn Gillis, CEO Sea Monster
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Meta’s not that major – yet
REGULATION
SCA affirms ARB as the industry-established advertising watchdog The Supreme Court of Appeal’s ruling that the ARB can consider the advertising of members and non-members is a win for consumer protection, writes GAIL SCHIMMEL.
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he court confirmed that the Advertising Regulatory Board is entitled to consider the advertising of non-members, and issue decisions on adverts created by agencies and brands that don’t belong to the industry body, for the guidance of its members. The Supreme Court of Appeal handed down the decision in April 2022 following a protracted litigation starting with Bliss Brands bringing a review application before the High Court, which
Gail Schimmel
resulted in the High Court making a finding that the jurisdiction of the ARB was “unconstitutional”. Ultimately, a comprehensive decision handed down by the Supreme Court of Appeal, confirming the ARB’s right, and the rights of its members, to make decisions about the advertising of non-members.
Unfortunately, the battle is not yet over, as Bliss Brands has applied to the Constitutional Court for leave to appeal, and the decision on that application is still pending. The ARB will continue to strongly defend its right to protect consumers from all misleading and otherwise harmful advertising. The decision confirms the constitutionality of clause 3.3 of the ARB Memorandum of Incorporation that recognises that while it does not have jurisdiction over nonmembers, it may make decisions on the advertising of non-members for the guidance of its members and broadcasters. This has been a long, hard road but we have been driven by the knowledge that our work is a vital part of consumer protection in South Africa. Our enormous thanks go to our legal team: Matthew van der Want (Fairbridges Wertheim Becker), Adv Steven Budlender, Adv Nick Ferreira, Adv Katherine Harding and Adv Karabo Mvubu. This team continues to work tirelessly to save selfregulation of advertising in South Africa.
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KEY TAKEAWAYS FROM THE JUDGMENT 1. “The ARB’s MOI and Code, incorporating its Procedural Guide, constitute empowering provisions. The mere absence of a statutory source for these powers is therefore no barrier to the ARB validly exercising public functions. To hold otherwise would invalidate the actions of all other private bodies that perform vital public functions in the public interest, without any empowering statute, such as sports professional bodies, the Press Council, professional associations and the like.”
2. “… the ARB is entitled to consider, on behalf of its members, complaints in respect of advertisements published by non-members of the ARB, so that its members may make an election whether or not they wish to publish that advertisement. This is an incident of their constitutional rights to freedom of expression and association.” 3. “The ARB’s members are entitled to refuse to publish advertising as part of their right to freedom of expression in s16 of the Constitution, a right recognised in international law.”
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4. “The ARB’s power to consider complaints relating to advertisements by non-members for the benefit of its own members, advances the right to freedom of association. The Constitutional Court has held that the right of association, ‘enables individuals to organise around particular issues of concern’ and permits a group ‘to collectively contest and ameliorate the structure of social power within its midst’. This is precisely what the members of the ARB have done.”
T H E M E D I A I 29
REGULATION
Andrew Papadopoulos, partner at KISCH IP attorneys, shares his observations on the ruling. This is a watershed judgment. Not only does the judgment underscore the right to self-regulation to retain the ability to prevent advertisers from cutting corners and unlawfully imitating their competitors’ advertising, but it is also a win for consumers to have a voice when they believe advertising is not decent, honest or truthful, or is contrary to a basic level of societal standards. With this judgment, the SCA affirmed the ARB as the industryestablished advertising watchdog to regulate advertising for the benefit of responsible marketers and media owners alike, and to protect consumers from unscrupulous advertisers. The ARB has industry-specialised knowledge, the resources to adjudicate
the hundreds of complaints (the vast majority of which are from consumers), and can hand down decisions within just a few weeks of a complaint being lodged. The SCA also held that the ARB’s processes for considering advertising complaints are fair. When it comes to the right of access to courts, the SCA held that as with any completed administrative process that adversely affects a person’s rights, a dissatisfied person may approach a court to review decisions taken by the ARB’s adjudicative bodies. As for Bliss Brands’ argument that the ARB lacks independence due to its funding model, the SCA held that there was no evidence to support this allegation.
TWO ICONIC BRANDS
ONE SPECTACULAR CELEBRATION
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Gail Schimmel is an admitted attorney with four degrees to her name. She is currently the CEO of the Advertising Regulatory Board. Schimmel has published five novels, most recently The Accident and Two Months. She lives in Johannesburg with her husband, two children, an ancient cat and two very naughty dogs.
Visit eatout.co.za for more details.
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‘A WATERSHED WIN FOR CONSUMERS’
Sadika Fakir, chairperson of the ARB Board, says the decision is important not only for the ARB but for all self-regulatory and voluntary bodies, as the Court recognised the right of association that is exercised when entities join a self-regulatory association. But mostly, this victory is a victory for consumer protection, which is the driving force behind the work of the ARB. The decision even garnered international praise with Sibylle Stanciu-Loeckx, director of the International Council for Advertising Self Regulation, saying it was a victory for self-regulation. “The principles in this decision that uphold the freedom of expression and the right of an industry to self-regulate in the public interest, are important principles for self-regulation all over the world,” she says.
INSIGHTS
Shaping the talent shift A
s we approach the mid-way point of 2022, we need to acknowledge that in a post-pandemic world there is a huge pressure on short-term gains for many clients. Companies had to hit the pause button for almost two years, with many stifled by prolonged restrictions .However, well into 2022 it’s back to business as usual for most as our clients work on delivering results very quickly to overcome the fallout of the pandemic. This brings with it a massive short-term focus on getting numbers back, alongside the need to remain cognisant of the longer term need for brand building and sustained consumer trust and engagement. This sensitive balancing act is a key priority and needs to be managed very carefully to ensure brands do not jeopardise their positioning and equity advantage that can springboard growth in the longer term in favour of tactical short-term gains.
Consumers are no longer the passive patrons of our arts; instead, they are now reassessing their values and priorities, with many having to possibly tighten their belts in the next 12 to 18 months – this will directly impact how and where they spend their money. And the work we create with our clients and partners needs to bring value propositions to life that will stand up to the scrutiny of these consumers. In addition, we also now face a challenge as a global industry: the war for talent. There has been a massive shift in the need for talent in a world where global pressure has shaped what talent now consider important drawcards when selecting an employer. They can work wherever, whenever, and thus for whomever they choose while holding firm on calls for workfrom-anywhere and hybrid models. Full-time employment in an agency in is no longer as attractive as it used to be (and
not just in our industry). Jacques We need to Burger unpack and understand which talent behaviours and needs are short-term trends vs longer-term shifts – and how we need to shape our employee value proposition accordingly. As much as we look at how we position brands in a way that is future-fit, we need to now more than ever focus on how we position our industry and agencies in a way that is future-fit for great talent. After all, we know that in this game, the people with the best people win. Jacques Burger, founding partner and group executive at M&C Saatchi Group South Africa
Making the Meta switch
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n 2022, Happy Friday launched a new collaborative, people-first take on the advertising agency model. Happy Friday has incorporated meeting-free Fridays; a four-and-a-halfday work week; side hustle support; a no email or WhatsApp after 6pm rule; a Human Library (allowing staff with exciting perspectives to make themselves available for conversation or mentorship); 25 days of annual leave and the freedom to work from anywhere. 2022 is looking to be another busy year for this forward-thinking, through-theline agency. Earlier this year, Happy Friday
Praneetha Aniruth
Craig Naicker
formed a partnership with leading digital agency Carver Media to conceive Swiitch. This creative agency crafts immersive brand experiences and campaigns in the Metaverse and real world. The metaverse is still a relatively new concept. It encompasses so many different aspects of the digital space, and there is still apprehension about key factors for some – blockchain technology, for example. Education and collaboration with our clients are the most important things we as partners can do. Among other things, we will offer master classes – both for marketers and for CEOs – to make the metaverse a friendlier space and break down any barriers attached to its adoption as a commercial tool. The two ‘i’s’ in our name represent a future state where everyone will have a presence in both the real and virtual world – a human and digital version of you
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that co-exist. This is our focus: creating immersive experiences with no realworld limitations. As a team, we aim to create a bridge between the real world and the virtual world. Among other real-world/digital/hybrid services, Swiitch’s portfolio of offerings includes product launches, exhibitions, events and conferences, brand experiences and e-commerce. Where traditional activations or events might have had a core group of ‘VIP’ guests experiencing the event in the real world, in the Metaverse, the rest of the world doesn’t need to be excluded anymore. According to Swiitch, in 2022 and beyond, everyone is invited.
Praneetha Aniruth, co-founder of Carver Media and co-CEO of Swiitch Craig Naicker, co-CEO of Happy Friday and Swiitch
T H E M E D I A I 31
INSIGHTS
Embracing a skills sharing economy S
ince before the global pandemic, the creative agency sector has been battling with technological advancements, largely driven by the Fourth Industrial Revolution (4IR). Businesses in the space have shifted strategic focus towards achieving best-in-class results that are more measurable with the technological tools now at hand. Spurred on by Covid-19, Black Wolf Agency, a full-service digital marketing agency, has recognised that measurable results cannot solely rely on technology. Instead, to truly achieve impactful results, agencies should look to the challenges and opportunities it presented. There is a growing need for digital marketing specialists and generalists, with demand far outstripping current supply. And as budgets have decreased across the board, freelance consultants can reap the benefits. Those looking for more remote and hybrid ways of working, and have the necessary skills, will find partnership opportunities abound.
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Sven Wolf
The skills shortage challenge has created an opportunity for businesses with smaller cash flows to leverage outsourced talent. Hiring freelance consultants can be a great risk mitigation strategy, but only where it makes sense. For example, making the case for product diversification is easier when the cost to company is not on a full-time basis and can save the agency in the long term should a product need to be decommissioned. This further plays into another challenge: the need for diverse offerings. Growing an agency’s offering to accommodate real business needs requires careful consideration, including whether it will impact the agency’s brand identity, or be sustainable in the long term. Agencies are finding that clients are keen to explore digital transformation, opting to either leave their current agencies or pivoting completely. This presents a conundrum, specifically as to whether or not to invest in new offerings, including the necessary training and manpower. themediaonline.co.za
Again, outsourcing to a specialist at the outset could be an agency’s saving grace. However, it also places the agency on the back foot as the client could bypass the agency completely in lieu of better rates and the knowledge the consultant holds. In this case I suggest bringing a consultant on board for a set period of time where they are able to provide knowledge transfer and skills training to full-time staff. This presents an opportunity of regular work for the consultant while allowing the agency to gain multidisciplinary capabilities that can be carried into other projects. Given the ever-changing nature of the media landscape, agencies would be well-placed to embrace these developments in order to produce work that is not only to a global standard but can compete more efficiently within the sector while encouraging sustainable business growth. Sven Wolf, founder and managing director of Black Wolf Agency
Influencing a precise sync up
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here is no doubt that digital marketing has grown and taken over the marketing sector expeditiously. The rise and popularity of social media and content curating also made this growth seem seamless because someone out there is uploading content on their digital space day in and day out. It has now birthed what we call influencer marketing where those with a large following constantly sell brands to us through content marketing. It has become a trend that when brands want to introduce a new product, they get influencers to post on their social media accounts to get their followers to buy a product or service or engage with the content. Keeping the above in mind, is it safe to now say anyone is now a digital marketer? Is it cost-effective for brands to use influencers to promote their products/ services through digital campaigns instead
of sourcing assistance from digital marketing agencies? What is the thin line between influencers who do content marketing and digital marketing Muzi agencies who curate Mthombeni content with the hopes of selling it? Digital agencies now have the burden of distinguishing themselves from the everyday influencers to brands. The effectiveness of influencers through their content makes it almost impossible to want to choose an agency to run a campaign for you, at least to some extent. Data mining might be a trend to look out for with digital agencies. It already exists, but that is just above-the-line research to get information about clients, products, and insights. However, the
foreseeable future sees extensive research done to get precise information about specific aspects of product and insight research. Under status quo,for example, above-the-line research might mean understanding when customers like burgers, but extensive research might sink deep into what time do customers like having burgers and what usually triggers this desire. Precision and content marketing will sync up to become a future trend. The likes of Idea Hive have already stepped into this future. Data mining is the distinguishing factor between opting for influencers to market your content or going with a digital agency. Muzi Mthombeni, head of precision marketing at Idea Hive
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Hear them roar… We must mentor, coach, enable and be invested in other women’s success, as this will develop long-lasting relationships, foster a deep sisterhood, and allow for more women to claim their seat at that boardroom table. ~ Koo Govender, CEO South Africa of dentsu International Trust women more than men. Because as women, when we trust each other, we grow each other, and we put each other in key positions just like men put their boys on. ~ Simoné Bosman, founder and executive creative producer of Osu Creative Productions Sometimes I look around and wonder … where are my female peers? I am a young-ish female media entrepreneur. I can count on one hand others like me in South Africa – heck, even in the region. ~ Verashni Pillay, founder of explain.co.za. Over the years I have learned to embrace my skin colour, particularly in a management position, having realised that I should not limit my abilities and talents based on this. ~ Pearl Muthivha, head of production at Cape Town TV. If I had R50 for every time I’ve heard the words “Women don’t do well in talk radio”, I’d be retired in Clifton by now, living my best life and sipping cocktails each evening instead of prepping for the next interview. ~ Pippa Hudson, host of Lunch with Pippa Hudson on CapeTalk
The Media’s second issue of the acclaimed Women in The Media magazine Out in August 2022 Hear their voices Tarin-Lee Watts c: +27(0) 79 504 7729 e: twatts@themediaonline.co.za