#TheInterlocker: PR worth • Resilience • Spin • Press releases • PR pitching

by MarkLives (@marklives) Every month we ask a handpicked selection of PR execs to each select ONE feature, news article or research report (accessible online) that they believe their peers would benefit from reading. Next up are Palesa Madumo, Kate Kenny, Reatile Tekateka, Sasha Kupritz and Marisa Louw. Bond, connect, engage, involve, join — welcome to The Interlocker!

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Palesa MadumoPalesa Madumo’s pick

Is Hiring a PR Firm Worth It?
Entrepreneur.com

I am instantly attracted to articles that question the need for public relations. And, often, I go to sleep really well at night because there is high praise for our industry and the work we do. However, sometimes, I come across critical analyses as well, and this opinion piece by New York Times best-selling author, Adam Bornstein, who happens to be the founder of a marketing and branding agency, is a must-read and a rude awakening for executives in our industry. He tackles some important issues that I believe don’t just keep us awake at night but our clients, too:

  • buzz vs long-term ROI
  • PR’s rate of conversion and success vs ‘the gamble’
  • PR vanity metrics vs tailored and attentive client servicing (particularly for small budgets), and
  • (Most concerning) hiring a PR firm vs creating your own.

Whether we like it or not, these questions are still being thrown at us, which tells us that, even as experts, we need to do a better job of positioning ourselves and creating tangible proof points for our work — and if we aren’t already — to get out of our pat-ourselves-on-the-back comfort zones!

— Palesa Madumo (@PalesaLove) is executive director of strategy of Vuma Reputation Management

 

Kate KennyKate Kenny’s pick

Recovering Resilience: 7 Methods For Becoming Mentally Stronger
Forbes.com

I recently read a South African article, Four tips on honing your mental resilience in PR, touching on the need for mental resilience in public relations. It’s a topic I frequently think about as we work in a field that requires a strong emotional EQ, mental stamina and an ongoing positive attitude.

This may be a daunting prospect in light of the needs of constant proactive client service, creativity on call, media rejection and team management — all of which make PR professionals highly adaptable and often ‘jacks of all trades’. We need to be on the pulse of our clients’ varied industries (one minute technical engineering, next minute a new shampoo and hair trends or upcoming government legislation), and up to speed on the brisk speed of media moves and platform changes, while juggling a strong understanding of social media and traditional and non-traditional marketing.

This ‘always-on approach’ also includes constantly looking for opportunities or imaginative PR ideas while ensuring no client crises happen under your watch. Added to this, many of us pros are also dealing with the exhilaration and pressure that comes with pitching to potential clients and coping with the highs and lows of that process.

The article How PR can act on its mental health problems also addresses some of the importance of strong mental resilience, showcasing some statistics regarding this stress on UK professionals while also suggesting means of managing PR pressures. My main pick, the Forbes article, although not a recent one, provides guidance and suggestions for recovering your resilience, a need each of us have when faced with another tough week of PR.

— Kate Kenny (@Katjie24) is strategic content and ideation director at JNPR

 

Reatile TekatekaReatile Tekateka’s pick

Karima Brown Show: SA journalists take legal action against insurers for Bell Pottinger
702 podcast

PR professionals walk a thin line in harnessing the power of influence while avoiding what News24 editor-in-chief, Adriaan Basson, refers to as the “dark art of spin”. This balancing act remains an ever-present threat to our credibility as trusted advisers in business. As the reputation custodians, we should be the conscience of business and yet we there are many instances where we are found wanting.

The impending lawsuit against Bell Pottinger, filed by leading South African editors, has resurfaced questions around our fundamental purpose as a profession. We are often accused of spin, a term most PR professionals balk at, and the Bell Pottinger saga did us no favours. Despite the negative fallout for our profession, it invites us to look critically at the state of public relations here and abroad. Do we consciously behave ethically and with integrity? We leverage the power of communications to influence behaviour but do we act responsibly in our wielding of that power?

While the scandal was an unwelcome tarring of our industry, it presents an opportunity to assess whether we are in danger of drifting from our noble purpose as communicators in pursuit of headlines, hashtags and shares in an increasingly competitive information market. We must strive to build credibility and accountability.

— Reatile Tekateka (@mzrae2905) is managing partner of Engage Joe Public

 

Sasha KupritzSasha Kupritz’s pick

Report: Journalists are ditching the press release
PR Daily

This headline made me pause and think: Is it the “press” release or public relations being referred to? A press release is just one of the tools PR uses to engage directly with media; PR generates detailed content and authentic engagement.

Does PR exist without relationships with journalists, editors, producers, photographers? PR without press and media relationships isn’t PR, or is it? “Earned media refers to publicity gained through publicity efforts other than paid media advertising, which refers to publicity gained through advertising, or owned media, which refers to branding” (Wikipedia).

The PR industry might not have a global measurement tool but, if social media gives currency to views, likes, shares… and the same data weighs ‘engagement’ as mostly generated through public relations, then there’s still place for the lobbyists, story-tellers, messengers or ‘PRPs’ aka public relations professionals.

The spinoff effect of coverage in ‘traditional’ media (TV, radio, print and digital) is worth much more than a Facebook boost. The PR industry has always been misunderstood and, now with social media planners and content managers getting the bigger piece of the budget pie, I think PRPs need to break through the PR box, embrace culture, show that we are as good at content generation as any other industry and will always be a more trusted source of content, and that editorial, by default, has currency and is measurable. Unlike likes, views or shares.

— Sasha Kupritz is a communications consultant at TenacityPR

 

Marisa LouwMarisa Louw’s pick

A journalist dissects a lousy pitch and a good one
Ragan’s PR Daily

The PR industry seems to struggle to maintain a positive reputation with the media. This is partly due to poor pitching techniques. Take this real-life example as tweeted by journalist Mandy Collins on 22 May 2018: “A Pee Arr has just sent me a grundbreaking [sic] release about the fact that apparently smoking affects non-smokers too. WHO KNEW???!!!”

In this article on Ragan’s PR Daily, two pitches are being evaluated: a bad one and a good one. Why I picked this article, out of dozens on the same topic, is because of its detailed evaluation. It is a must-read for any young PR professional, and some seasoned PR pros may also enjoy a refresher.

The key learnings are:

  • Know who you address the pitch to. The journalist has a name, and it is not ‘newsroom’.
  • Think like a journalist. Will the readers care about the story?
  • Your story must be newsworthy. Often timing is everything. Share the right news at the right time with the right publication.

It is time PR pros learn to do better. Your reputation is at risk and so is that of your client.

PS Another great read is The How Not To Guide To Public Relations.

— Marisa Louw (@marisalouw) is an independent PR practitioner

 

MarkLives logoLaunched in 2018, The Interlocker is a monthly newsletter (available as a regular column on MarkLives, too) in which we ask a handpicked selection of PR execs to each select ONE feature, news article or research report (accessible online) that they believe would benefit their peers to read and why. Sign up here!

— One subscription form, three newsletters: sign up now for the MarkLives newsletter, including Ramify headlines; The Interlocker, our new monthly comms-focused mailer; and Brands & Branding, launching soon!

Shelf Life: Nikel Cosmetics for SA • Prima games fest • HomeFixer app

Cheryl Hunter (shelflife at marklives.com)’s weekly pick of all things new in retail — consumer products launches, retail news and FMCG campaigns!

Urban makeup

Blending traditional knowledge and the latest in cosmeceutical innovation, international cosmetics brand, Nikel, has piqued local interest, where the trend is toward cosmetics with natural active ingredients.

Nikel Cosmetics evening primrose oilNikel Cosmetics, which launched locally in May 2018, is described as a combination of traditional knowledge and the latest innovations, such as time-release ingredients, nanomolecules, probiotics and the latest addition — alpine rose plant stem cells for skin rejuvenation.

Created in Croatia and the brainchild of scientist Mirjana Brlečić, Nikel is aimed at the urban, educated woman who enjoys a fit and healthy lifestyle and has a zest for travel and the outdoors.

According to Brlečić, South Africa was targeted because consumers here are considered to be receptive to natural cosmetics and a healthy skin and lifestyle — the right fit for the ethos of Nikel Cosmetics — and the range itself is well suited to the needs of South Africans, in particular because of the sunny, dry climate.

Brlečić’s inspiration to create her own range, consisting of 63 products, came about while she was selling luxury skincare products and realised that many products seemed to be causing skin issues: “Pharmacy and biochemistry opened my eyes to new perceptions and knowledge in the area of cosmetic preparations, as well as their advantages and disadvantages.”

She received assistance from a dedicated Women in Business programme in Croatia that included marketing and packaging advice, integral to the success of the brand.

Nikel Cosmetics are available at Zando and Beauty Worx.

nikelcosmetics.co.za • Facebook • Instagram

 

#PrimaGamesFest

This winter season, friends and family are being invited to make a date to play the latest, most-exciting boardgames, and toy stores and retailers are stocking up to meet the need.

Prima Toys in Checkers Hyper MenlynThe Prima Toys Games Festival has been launched to showcase Prima Toys’ hottest game and boardgame products from the traditional, such as Rummikub and Snakes & Ladders, to the brand-new King Pong, Boomblast and Flipside.

Says Chiquita Patrizi, Prima Toys spokesperson, “Prima Toys Games Festival is about bringing everyone together and finding every excuse under the sun to play a game or two. Boardgames can be played indoors near a roaring open fire; they can be taken on a picnic on a gloriously sunny Sunday afternoon; they can be played on date night; at book club or at a party. Invite your mates over for dinner and a game because boardgames are the perfect reason to bring family and friends together.”

The #PrimaGamesFest promises something for everyone, from toddlers and tweens to teens, adults and grandparents. Parents with toddlers may look forward to products such as Frozen matching game, Peppa Pig Dominoes and the L.O.L. Surprise Game. Experience the festival in-store, where POS will guide consumers to the latest on shelf.

primatoys.co.za • Facebook • Twitter • Instagram

 

Free fix-it finder

HomeFixer is a new free mobile app that puts users in touch with tradespersons, service providers and companies involved in the home-improvement industry.

Aiming to take the pain out of household renovations and maintenance, the app is meant to simple to use and assists users in finding rated service providers using its location functionality, while also providing the capability to obtain quotes from multiple companies.

Free to download from the Android and IOS app stores, HomeFixer also has an emergency function, giving access to service providers who offer 24-hour assistance. Aside from a clean and easy user design, it offers keyword searches, location services, listing details, click actions and quote request options, plus a rating and review system.

HomeFixer • Facebook • Instagram

Cheryl HunterShelf Life is MarkLives.com’s weekly column covering all things retail. Notify us of yours at shelflife at marklives dot com. Want to sponsor Shelf Life? Contact us here.

Cheryl Hunter (@cherylhunter) has written for the South African media, marketing and advertising industries for more than 15 years. A former editor of M&M in Independent Newspapers and contributor to Bizcommunity, AdFocus, AdReview and the Ad Annual, she has also produced for various television networks and currently consults on communication strategy and media liaison.

— One subscription form, three newsletters: sign up now for the MarkLives newsletter, including Ramify headlines; The Interlocker, our new monthly comms-focused mailer; and Brands & Branding, launching soon!

Make advertising fun again, for everyone

by Lucas van Vuuren (@lucasvan) When did advertising become hard work? When did we start feeling like victims in our industry? When did we start feeling like we just couldn’t get our clients to buy in on our ideas? When we tried to do it in isolation, that’s when.

Consultative process

Creative work is a consultative process. If your client enjoys the creative process and the process is fun, the work will show it. This doesn’t happen halfway through a campaign; you need to start with the brief. Is the process fun and engaging, and challenging? Is there ownership and collaboration with the client? Is the client emotionally invested and excited?

Everyone needs to be on board and aligned in terms of where the campaign is going.

Take it step by step. Involve the client as much as possible. They know their brand or product best, and it’s their ad. We are the people making a shared vision a reality.

Don’t get me wrong; honest opinions are valid and debate is healthy. Have conversations; unpack the concerns. Don’t just agree to have conversations — it’s possible and, wait for it, they’re really constructive, too.

Execution process

Get your clients involved to a point in the execution process. I don’t mean putting them behind a camera or working on call sheets and treatments, but make the process less intimidating for your clients and make it an environment they’re going to be comfortable in.

You would never feel 100% confident sitting with your clients’ shareholders discussing profit share and dividends. Remember, the execution process is something we’re trained to work in, so help them feel comfortable in the process, too, by explaining what’s going on and why certain things are done. It may be overwhelming to a few clients at first but, if you do this from the get go, it gets easier and easier every time because there’s an understanding of the process.

If people usually spend their time in boardrooms and offices, then going to edit suites or creative spaces may be an “out my comfort zone” experience. If we’re not cognisant of this, it may feel like a clash of the creative vs the client. Take the friction out of the experience; make it constructive.

Adapt

Once everything is made and it’s out there, as the agency partners, we need to be adaptable and be interested in the results. Take time to review the response from the public and try to understand their feedback. Many clients take a leap of faith with their agencies; we need to support them in return.

If the commercial stars align and the public like what you had to offer, it’s simple.

Adapt. Learn. Adapt.

Life’s too short to not enjoy your job, so make the process fun and collaborative.

 

Lucas van VuurenLucas van Vuuren (@lucasvan) began his career in design but made the switch to art direction to satisfy his love of storytelling, film and big concepts. With 15 years’ experience in the ad industry — 10 of those at The Jupiter Drawing Room, where he’s currently ECD — he’s worked at some of the best agencies in the country, and has won a raft of awards, nationally and internationally.

“Motive” is a by-invitation-only column on MarkLives.com. Contributors are picked by the editors but generally don’t form part of our regular columnist lineup, unless the topic is off-column.

— One subscription form, three newsletters: sign up now for the MarkLives newsletter, including Ramify headlines; The Interlocker, our new monthly comms-focused mailer; and Brands & Branding, launching soon!

The Martini Shot: How intl approach to in-house production impacts here

by Bobby Amm. The international trend of the monolithic, worldwide, ad agency groups opening in-house production houses/units is not only affecting South African (director-based) production houses but also SA service-based production houses; the knock-on effect in the SA commercial service industry has been evident, with a huge drop in work this past summer season.

The in-house production units are now commissioning their own branches locally to produce (or, at least, shoot) their productions, therefore no longer working through local, independent, experienced service companies.

Hogarth

The most-alarming example is Hogarth Worldwide, which is part of the WPP portfolio (a few of the (other) WPP-owned companies include Ogilvy & Mather Worldwide, JWT, Y&R, Grey, Wunderman and VML; locally, MetropolitanRepublic, The Hardy Boys, The Jupiter Drawing Room and Cerebra (etc) are also WPP-owned).

Hogarth — which calls itself a “marketing implementation agency” — hasn’t been candid in its representation as it doesn’t clearly show that it’s owned by WPP on its own website. This lack of transparency is underhanded to its clients and smacks of anti-competitive behaviour. Allegations of internal bid rigging have also been noted.

Hogarth has over 40 offices worldwide; in SA, there are offices in Johannesburg and Cape Town. It sells itself on the premise that it has developed “a unique ‘Camera-to-Customer’ workflow to address the needs of our clients who need high quality TV advertising, produced and delivered at much lower cost”. It also throws around words such as “a strong belief in the craft of production” and “outstanding talent in every market”. But how may a company proclaim to employ the best skills and ‘outstanding talent’ under one roof? This would require thousands of the most-talented and experienced filmmakers (from directors to editors to DOPs to producers) to be employed or, at least, be available to Hogarth permanently. It’s an impossible and untruthful claim.

Internationally, production associations are speaking out against this anti-competitiveness and attempt at closing down the independent production industry. Experienced filmmakers are avoiding supporting Hogarth as they realise it tolls the death knell for indie filmmakers.

Other groups such as Omnicom and Publicis Groupe also have production units.

Flare Studio

Omnicom (which includes BBDO and TBWA agencies) names Flare Studio as its unit; however, our investigations show that Flare Studio operates more as a platform that represents independent production companies and talent.

Its description includes: “Flare Studio is a new approach to the traditional ad agency production process. It opens up opportunities for filmmakers and content creators of all levels to pitch for and produce content in response to live briefs from brands. Part of the Omnicom network, a global leader in marketing communications, Flare Studio operates for the world’s leading creative agency networks, including BBDO and TBWA, who represent over 5000 brands and clients in over 100 countries.”

It’s good to see that it’s honest on whom it represents (Omnicom) and it (cleverly) continue to access available independent skills and talent on the platform, rather than purporting to have these in-house. It also supports growth in talent through its foundation.

Prodigious

The Publicis Groupe (including agencies such as Publicis Consiel, Leo Burnett, Saatchi & Saatchi, BBH, and Sapient, to name a few), too, has its own in-house production unit, Prodigious.

Prodigious claims: “We design, produce and deliver brand content across all channels, using the best talent, processes and tools. The result? Seamless global execution of multiple content types across all markets, without compromising creative quality. We call this brand logistics™, our new vision for a new content-driven media landscape.”

It seems that Prodigious, too, provides a platform for talent to be accessed by its group. However, to sign up to be included in this talent pool is difficult.

It remains to be seen how Prodigious intend to run its operation in SA, and production companies will be watching with interest to see the impact this has on the independent production community.

In-house suppliers

Production companies have also expressed unhappiness about agencies that insist on using suppliers (particularly post houses) which are owned by them. Again, this is anti-competitive, not transparent (particularly to clients) and also prone to bid-rigging. This system is often an expensive route to take and the finished product may be inferior:

After some investigation in the local post-production industry, we discovered that the independent post houses are finding that, more and more, they have to fix in-house post work and that the quality of production is of a low standard. This “redo” contributes to the expense of a job, which is then passed onto clients.

While the CPA does embrace change, we must insist on transparency and work hard at keeping the quality of work good. We must also protect and continue valuing our skills set and independence.

CPA position on working with in-house production companies

The members of the CPA have requested the association put together this communique to advise the industry of our position on production companies (and other supply companies) that are owned and managed by advertising agencies.

  1. Members of the CPA are in unanimous agreement that they will not loan out directors represented by them to in-house production facilities in South Africa. This includes in-house production entities of independent South African-owned agencies, as well as those that are owned by global agency groups ie Hogarth and Prodigious
  2. Members of the CPA call for full transparency when they are asked to bid on agency work. Members will ask agencies with in-house production companies if they will be bidding against their in-house facility. It is requested that agencies respond prior to briefings.
  3. CPA members have advised that they will not bid against in-house production companies due to the conflict of interest that is inherent in this process. CPA members are happy to bid against other independent production companies, provided that no more than three (3) companies are invited to bid. If an agency wants to invite more than three bids, it should advise all companies up front so that they can elect to continue with the process or decline.
  4. CPA members have advised that they will bid on work where the agency (or their in-house production facility) oversees post-production. Production companies should, however, be informed of this at briefing and before pitching, as some directors prefer not to work with in-house post. Disclosure will give these directors the option to decline the job before they pitch. Agencies are requested to desist from giving production an option to use their in-house posts at briefing but then enforcing this when confirming the job. In the interest of transparency, clients should be informed that the post-production is not an open bidding process and that the agency is dictating to the post-house and -operators. If an agency is using an in-house post facility or paying post direct, the production company may charge the traditionally paid post “mark-up” as a “post supervision fee” for the director and producer to oversee the post production.
  5. CPA members will also bid when briefed by in-house facilities, provided that they aren’t putting themselves or their directors forward for the same job, thereby eliminating any potential conflict of interest.
  6. The majority of CPA members are in agreement that they won’t loan out directors on international jobs produced by in-house production companies in South Africa. While a few members are of the opinion this doesn’t deprive independent companies of opportunities, the view of the majority is that loaning out directors to agencies undermines the international production community, which stands united on this issue.
  7. CPA members call on agencies to be transparent in revealing to all clients and suppliers the ownership structure of in-house production companies. All too often, these in-house structures have different names, which may make it difficult for clients and suppliers to identify them.
  8. Disclosure to clients should also be applicable where agencies select a preferred post-production supplier (and then insist that production companies work with them), particularly where more-competitive quotes or a better end-product can be achieved by the production company. In our view, this practice suppresses healthy competition in the market place and drives creative standards down. Clients have the right to know about such practices and to veto them, if necessary.

Right of reply

Of the agencies contacted for right of reply, only Net#work BBDO chose to respond:

Net#work BBDO, is a member of the Association for Communication and Advertising; therefore, we take industry policies and institutions like the CPA seriously. So, when we set out to establish Flare in South Africa, we had to ensure that Flare operates as a production unit that adds value to our business without negatively affecting the broader industry.

Below is the outline of how Flare operates in South Africa.

    • Flare Johannesburg is part of the Omnicom group of companies
    • Flare South Africa has been set up by Net#work BBDO to provide Net#work BBDO clients with quick turnaround content work
    • All commercial TV productions are briefed as normal to various production houses and Flare is excluded from these briefs
    • Flare’s ownership is transparent and communicated to all potential clients and cost consultants
    • In the interest of transparency and to ensure fair trading conditions, Flare does note and will not pitch against any other production house; these conditions are clearly communicated to clients and cost consultants
      • For example, recently a new brief came in from our Flare London counterparts. On receipt of the brief and internal scrutiny, it was decided that the best production house for this project would be Star Films. Flare briefed and handed the project over to Star Films.
    • As already stated, Flare South Africa (operating out of Johannesburg) is different to Flare international.
    • Please note that the Flare global model operates as a pitch platform for various production houses, whereby new briefs can be accessed from anywhere in the world.
    • It is an open platform: www.flare.studio

 

Bobby AmmBobby Amm is chief executive of the Commercial Producers Association of South Africa (CPA), the trade association of production companies that produce television, cinema and internet commercials for the local and international market. After a brief stint in journalism, she began her career in the industry at the Consultative Committee for the Entertainment Industry in the early 1990s. She first joined the CPA in 1997 but left three years later to join a production company. After finding that she missed the big-picture perspective of the CPA and the interesting issues which continuously perplex the production industry, Bobby returned to the CPA in 2003. She contributes “The Martini Shot” column monthly, covering developments, trends and insights into the commercial production and film services industries in South Africa, to MarkLives.

— One subscription form, three newsletters: sign up now for the MarkLives newsletter, including Ramify headlines; The Interlocker, our new monthly comms-focused mailer; and Brands & Branding, launching soon!

SA’s young millennials: invincible, bright-eyed, money-saving big-earners

by David Smythe. Based upon what they tell us about themselves, their career goals and aspirations, South Africa’s younger millennials — dubbed the culture creators — won’t be anything like older millennials.

This is another key takeout from a comprehensive study of South African youth, completed towards the end of last year; the objective was to analyse the attitudes, behaviours and values of the youngest millennials and oldest Gen Z South Africans.

Value different things

One of the critical differences highlighted by the research is that South Africa’s younger millennials value different things in the workplace than their older millennial counterparts, starting with money. This has major implications for brands in the financial services space, as well as the retail environment.

Young South Africans may only now be entering adulthood with limited purchasing power but there are indications that they’re more conservative with their money than previous generations, and prefer financial independence. Most of young South Africans say that earning a great salary while making a difference is most important to them. Oh, and, they really, really don’t want to work for you.

Entrepreneurship is seen as a way to not have to rely on anyone or anything else, and their version of it will likely be focused on sustainable ‘singles’ and ‘doubles’ ventures. Their overriding attitude is that, if the job opportunities aren’t ripe for the picking, they’ll go out and carve their own success. The research showed that 66% of young South Africans want to work for themselves, 19% to work at a company and 15% to be an online influencer.

Less debt

Another way they differ is that the younger millennials take on less debt, and they expect more from their money; they prefer to save it. Their interest in holding on to money is more from a desire for stability, rather than status. By and large, they feel insecure about their financial futures. Being prepared for retirement and their ability to pay off loans in the future worry them in the present. So, they prioritise saving over spending and are financially quite conservative.

The figures show that 81% says that saving is important for them. And, while 9% has accumulated more than R12 500, 56% has accumulated less than R1000 in their savings account. That said, a whopping 85% have a savings account vs only 16% with a credit facility, 14% a student loan, 13% a retirement facility and 13% some form of life insurance.

Most interestingly, stokvel membership — something they would have known their grandparents and parents to have — sits at only 7%. This is a large cultural shift.

Some 40% is saving for basic living expenses, 38% for education, 23% a car, 21% a home, 15% electronic gadgets, 15% a special life event, 9% retirement, and only 3% not saving at all.

Savings

Underlining the importance of savings and financial security, asked what they would do once their savings account reached R5000, 28% would continue to save it, 23% would spend it on necessities, 21% would put it towards tuition, 14% would pay off debts, 8% would share with their family and 3% would just spend it.

If forced to spend the R5000, 19% would just spend it on clothes, 18% would buy necessities, 17% would put towards tuition, 16% would pay off debt, 11% would give to their families, 8% would buy the latest tech, 4% would experience something new and 3% would travel.

This low interest in ‘experiences’ — something new or travel — is a hallmark of the younger millennials. Contrary to their millennials elders, younger South Africans are more inclined to spend their money on buying high perceived value items (albeit infrequently), rather than the stereotypical accumulation of experiences. Simply put, they’d prefer a cool product, instead of a cool experience. To a large extent, they’re playing asset catch-up.

Money is spent on food (88%), transport (44%), savings (29%), entertainment (21%), beauty and grooming (18%), technology (16%), clothing (16%) and books and music (6%). Bricks and mortar retail outlets get the lion’s share of their money — 90% for clothes and 94% for groceries, compared to just 7% and 2% spend using their mobiles, and 3% and 4% at markets or roadside stalls.

Ecommerce

In conclusion, the ‘rejection’ of the experience, coupled with being more likely to save for the future than their experience-seeking elders, will put pressure on brands. Ecommerce, however, represents a big opportunity for those who can get it right, as shopping online, or, more importantly, on their mobiles, has not yet reached critical mass among younger South Africans.

See also

 

David SmytheDavid Smythe, the strategic planning director at FCB Cape Town and an exco member, led the above study of South African youth using FCB Africa’s insights tool, FCB Alchemy, in partnership with Answered Insight, which produced the above analysis. He believes that to be brave is to embrace change — embracing something that you’ve perhaps not seen or done before but which will utterly pulverise the status quo. He is a passionate advocate of neuromarketing and devotes his professional and spare time to understanding what makes human beings tick.

“Motive” is a by-invitation-only column on MarkLives.com. Contributors are picked by the editors but generally don’t form part of our regular columnist lineup, unless the topic is off-column.

— One subscription form, three newsletters: sign up now for the MarkLives newsletter, including Ramify headlines; The Interlocker, our new monthly comms-focused mailer; and Brands & Branding, launching soon!

Did the MAC Charter lie to us?

by Jarred Cinman (@jarredcinman) In April 2016, the Marketing, Advertising and Communications Charter (MAC Charter) was promulgated in the government gazette. This heralded the arrival of new black economic empowerment (BEE) codes for the marketing sector, particularly businesses such as advertising agencies which operate in this sector.

Some quibbles

This special set of codes replaced the generic BEE codes and gave this industry specific targets to meet to receive their BEE rating. So far, so good.

The broader industry had some quibbles with this set of codes: precisely who was consulted and when? How were the targets reached? Who makes up the “charter council” referred to in the document? Why were only a tiny handful of our industry bodies mentioned and, apparently, endorsed? And what exactly is “Responsible Marketing”? (We still don’t know.)

Still, overall, this was a good change. It broadened the way points could be earned and refined the way money needed to be spent to enact transformation. There was a much bigger focus on skills development — bringing young people into the industry and skilling them up — and a drive toward supporting small enterprises as start-ups and as suppliers. The 45% black ownership target was a challenge but more of logistics than philosophy. No one with any credibility thinks that South African businesses should be mostly owned by white people.

Agencies worked hard to earn new BEE scorecards. I know of a few that got Level 1 scores and that really showed a commitment to broad-based transformation. As I said to our staff, when we proudly announced our Level 1 scorecard, you can’t trick the system. A level 1 (or any high level) represents meaningful transformation. You must have taken on learners and made them employable; you must have procured services from transformed businesses; you must have invested in training and contributed to CSI projects and done good for society; and you must have transferred a meaningful amount of your equity to people of colour.

Are our clients delighted?

So, our clients are delighted with us and feel we have made a profound contribution to their efforts to transform their businesses, right?

No, not really.

As it turns out, I’ve been in numerous conversations with clients who quite openly say the BEE levels mean very little to them. Sure, they’d like agencies with high BEE scores. But what they really care about is ownership. They want to steer their spend toward black-owned businesses.

In other words, in a choice between a Level 1 agency with 20% black ownership and a Level 4 agency with 51% black ownership, they want the latter. And this is not an aspiration for them. I’ve seen several pitches that stipulate these figures as criteria.

Deep lack of foresight

When I’ve asked some of the people involved in drafting the MAC Charter “what gives?”, the response has been: companies are free to set their pitch criteria as they wish. While obviously true, this implies a deep lack of foresight on the part of our industry leaders and the government teams responsible for this sector code. Why bother crafting this incredibly complex scorecard, paying a fortune to ratings agencies and driving the industry to adopt and succeed at it — only to find that the most-important customers don’t really care about it?

Things change. Yes, I get that. But things like this don’t change in two short years. If they are changing at this pace, why are the industry bodies we pay lots of money to not engaging corporates and government on our behalf to figure out a solution to this?

Did the MAC Charter lie to us? Have we, as an industry, been sent off on a wild-goose chase? Even those of us who’ve actually caught the geese find ourselves empty-handed.

Not unreasonable

Now, what corporates and perhaps the community at large is expecting is not unreasonable. After nearly 25 years since the end of apartheid. our industry is still filled with white-owned and white-controlled agencies. Many dodgy and insincere BEE deals have been done to try and stave off the inevitable: transfer of ownership and control to a more-representative team.

To be fair, there are agencies which have actually made this shift. There are also a flurry of new, black-owned communications businesses that are enjoying some success because they are truly of the new South Africa. However — and crucially — these are people who have ignored the BEE sector codes (or may as well have) and focused on something else. If they turn out to be right, that’s not because we as an industry have driven sensible transformation but because they are more plugged into the zeitgeist.

Agencies now face a stark choice, and a complicated one. Getting high BEE scorecards costs a lot of time and money — and will only commit you to 45% black equity. If clients expect either 51% black ownership or 30% black-female ownership, that 45% could prove to be an expensive and pointless mistake. However, selling a large stake in a business to an investor, who may not be able to buy it outright, means complex financing schemes, share trusts or other mechanisms. Considering how many local agencies are in the hands of global groups, multiply that complexity by 10.

Entirely different consequences

It’s not to say these two outcomes are mutually exclusive but they could easily be. And they will have entirely different consequences for agencies, their staff, their clients and, perhaps, the industry and country.

May I humbly suggest the following?

Agencies

  • Make a change, now, before history overtakes us
  • Stop trying to employ delaying tactics — clients are in no mood to buy vague plans
  • Listen to what the market wants, not what rating agencies or sector codes say; sadly, these may be at odds with each other
  • Embrace change, not because we have to, but because it’s the right thing to do
  • Don’t lose the focus on broad-based empowerment (BBBEE) just because ownership has such a high priority. We owe a debt to the future to build a better society for all.
  • Partner with your clients to create meaningful change

Clients

  • Make sure your agencies know exactly what you expect from them — or at least how you will be rating your agencies on their transformation efforts
  • Don’t focus on ownership to the detriment of everyone else in society who also wants to enjoy the benefits of transformation; we’re already one of the most-unequal societies on earth and we don’t need more elites
  • Help to create competent and sustainable businesses in our sector; advertising and communications has become a complex business and you’ll need deep skills and experience to win at your business
  • Build some consistency into your ideas of transformation — agency businesses can’t change their goals every couple of years as these things take time to put in place and solidify
  • Partner with your agencies to create meaningful change.

See also

 

Jarred Cinman. Credit: Chris Saunders (www.chrissaunders.co)Jarred Cinman (@jarredcinman) is the CEO of VML South Africa, part of one of the leading digital agency networks in the world. He sits on the Loeries Committee, was a board member of SAARF and the Creative Circle, and is a board member of DALRO and, in his spare time, answers his email.

“Motive” is a by-invitation-only column on MarkLives.com. Contributors are picked by the editors but generally don’t form part of our regular columnist lineup, unless the topic is off-column.

— One subscription form, three newsletters: sign up now for the MarkLives newsletter, including Ramify headlines; The Interlocker, our new monthly comms-focused mailer; and Brands & Branding, launching soon!

#AgencyFocus: Agency challenges industry to share profits

by Carey Finn (@carey_finn) Fort, which punts itself as a creative, content and production network, prides itself in doing things differently — and challenging others to rethink the way they operate, too. “We’re not a traditional agency,” says Shukri Toefy, its CEO and co-founder. “I know everyone says that, but we really aren’t.”

Shukri Toefy
Shukri Toefy

Philosophy in action

Toefy, who in 2006 founded Fort with Amr Singh when they were both students at the University of Cape Town, is passionate about promoting transformation in the South African advertising and communications industry, taking the approach that local is lekker, legit — and necessary. The company’s #CreateMovement campaign, launched early last year, is one way in which they have put this philosophy in action so far; the initiative seeks to “start a conversation around decolonising the African creative economy”.

“We’re trying to draw awareness to inequitable ownership patterns in the industry, and to the illusion of choice that exists,” says Toefy, who will be taking his message to the G20 Global Solutions Summit in Berlin, 28–29 May 2018.

Fort is very serious about creating a more-equitable financial and development landscape in South Africa and Africa, not simply because it has a horse in the race, as Toefy puts it, but because it’s necessary for creative economies to benefit communities more broadly. “What we’re saying is, make sure that your employees are stakeholders in the company and, if you are foreign-owned, that you’re also developing other companies and making sure that there’s local ownership,” he says.

Shared-prosperity model

This is something that has been put in place at Fort, with the rollout of a shared-prosperity model in February last year. “We created an employee share scheme in which 10% of profits go to our employees,” he explains. “That’s been a massive internal shift for us, and is an example that we would like to set for other creative companies and people in the advertising industry, and also, generally speaking, for other companies across South Africa and the rest of the continent.”

A further 1% of profits goes to the company’s Hold the Fort community development training fund. “It’s not a matter of making money and then doing good; it’s a matter of recognising that both the community and the people who bring it to life are stakeholders and need to share in those profits,” says Toefy.

On a financial note, he describes Fort’s performance over the past year as stable: “We kept our revenue at the same level; it wasn’t what we had projected, because we had wanted to do better than 2016, but we were able to be agile enough to get through what was a tough year for many agencies.”

Expanded presence

The company expanded its presence into other parts of Africa last year, enjoying a boost in brand prominence. After trying a model of owning offices in Nairobi and Lagos, it decided to shift to a network approach, working with partners instead.

Highlights from Fort’s extensive portfolio of projects over the past 12 months include a content series for Uber in sub-Saharan Africa, work on the Axe deodorant brand in conjunction with digital agency Gorilla, and the launch of an animated web series for Domino’s Pizza new tracker. The company counts tech brand Opera among its major clients, working with it across Africa, as well as Western Europe and the US. “We came up with campaigns [for Opera] that really captured the colours and textures of Africa,” says Toefy. “We do Africa well.”

This strength saw Fort scoop a 2017 Loeries Bronze for its Viacom/MTV Base Africa Channel Rebrand campaign, which made use of fabrics from different regions of Africa in the channel idents and motion graphics. The same project snagged a Silver Pendoring.

No stranger to awards, the company celebrated another win when Singh took home a Director’s Craft Gold at PromaxBDA Africa in November 2017, for his work on a DStv Africa brand film.

In the pipeline

Going forward, there are exciting things in the pipeline, says Toefy, though he can’t disclose details just yet. He suggests keeping an eye on what he terms the “pseudo-entertainment branded content space”.

While he expects the upcoming year to be one of increased stability, he adds, he’s also trying to fundamentally change the way Fort makes money. “I’m going to be trying to move us away from being a purely service-based company that provides creative content and production services to a company that actually owns the IP and the asset and the underlying property around what we do, and then getting brand partners, rather than brand clients.”

This ties in with the overarching vision that sees Fort moving towards an ever-more inequitable model of business, decentralising power and empowering local creatives.

 Fort logo

fort.co • Ramify listing

  • Office locations: Cape Town and Joburg, with partners in Nairobi, Lagos, Accra, Abidjan and Dubai
  • Revenue band: R30–35m
  • Staff count: 35
  • Key clients: Opera, Uber, Nike, MTV Base, Domino’s Pizza and Axe
  • Services: Creative, content, production

See also

 

Carey FinnCarey Finn (@carey_finn) is a writer and editor with a decade and a half of industry experience, having covered everything from ethical sushi in Japan to the technicalities of roofing, agriculture, medical stuff and more. She’s also taught English and journalism, and dabbled in various other communications ventures along the way, including risk reporting. As a contributing writer to MarkLives.com, her new column “#AgencyFocus” is an ongoing weekly series updating the market on agency performance, including business performance, innovation, initiatives, the work, awards and people.

— One subscription form, three newsletters: sign up now for the MarkLives newsletter, including Ramify headlines; The Interlocker, our new monthly comms-focused mailer; and Brands & Branding, launching soon!

Cover Stories: National Geographic, Bona, Minotaure, Pickles & Quanta

Shane de Lange (@shanenilfunct)’s weekly analysis of media design — both past and present, print and online — from South Africa and around the world:

  • Local/print: Bona celebrates the youthful and defiant character of Sarafina
  • Iconic: Minotaure exposed surrealism to the world, and remains an important source of information about the prolific art movement to this day
  • International/print: National Geographic illustrates how we are literally drowning in single-use plastic
  • International/print: Pickles praises the career of a football legend, Johan Cruyff
  • Online: Quanta adopts an inclusive approach to reportage on all matters related to science, physics, mathematics, and biology

Find a cover we should know about? Tweet us at @Marklives and @shanenilfunct.
Pinterest icon Want to view all the covers at a glance? See our Pinterest board!

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¯\_(ツ)_/¯  Bona (South Africa), June 2018

Bona, June 2018 - Leleti KhumaloTwenty-six years after the original release of the celebrated South African film, Sarafina!, its lead actor, Leleti Khumalo, has emerged as an inadvertent, iconoclastic, feminist extraordinaire. The June 2018 issue of Bona celebrates this, featuring the actor and producer on four different covers, one for each of the most widely used languages in South Africa (English, Xhosa, Zulu, and Sotho). Her youthful and defiant character portrayal of Sarafina has made Khumalo synonymous with Youth Day and, with this issue, she shares her feelings about her celebrity status and the film that made her famous, first screened at the 1992 Cannes Film Festival.

 

¯\_(ツ)_/¯  National Geographic (US), June, 2018

National Geographic May 2018, Tesco Iceberg, WWF Plastic Ray and Surfers Against Sewage Red TeethThe cover for the June 2018 issue of National Geographic reminds one of the first few lines of the lyrics to Radiohead’s iconic song, Fake Plastic Trees: “A green plastic watering can, for a fake Chinese rubber plant, in the fake plastic earth”. It also recalls the writings of French postmodern theorist, Jean Baudrillard, and his seminal text “Siimulation and Simulacra”, where he implies that the original no longer exists; only a representation of a representation, a copy of a copy of a copy remains. This cover encompasses all of that, representing the fakeness of plastic but also representing the copy of a copy. The sheer fact that there are so many sources out there with the same reference — one copy after another — seems apt, given the subject matter at hand. But despite the pretenses towards originality implied by all the examples above, we are literally drowning in single-use plastic, and the headline on this cover rightly stresses urgency: “Planet or Plastic ?”

The iceberg/plastic bag photomontage, titled “Iceberg Plástico”, was created by Mexican artist, Jorge Gamboa. He first showcased the illustration at the Biennial of Poster Art in Bolivia in 2017, where it won first prize in the political and social posters category. All things considered, we all need to step up to the plate.

 

Heart-Love-Polygon-Geometric-Flat-Design-Icon-Illustration by lekkyjustdoit courtesy of FreeDigitalPhotos  Pickles (US), issue 14, Spring/Summer 2018

Pickles, issue 14, Spring Summer 2018Independent football magazine, Pickles, praises all the best bits of soccer culture through engaging and layered stories that almost surpass the sport itself. If the cover to issue #14 is anything to go by, Pickles certainly understands how design and illustration may be used to support stories in fetching ways, representing the beautiful game in the most tasteful manner. The Illustration for this cover, with its warm considered colour contrasts, stylised and distorted shapes, and dynamic and open composition, was created by Dutch illustrator, Joren Joshua, known for his previous work for magazines such as de Volkskrant, Dialogue magazine, Cover magazine, and WWD Weekly, to name a few. The illustration is meant to represent a legend of the sport: player and later coach for Ajax, Johan Cruyff. A nice inclusion here is the issue’s number, which happens to coincide with Cruyff’s actual shirt number — he became synonymous with fourteen.

 

Online

Heart-Love-Polygon-Geometric-Flat-Design-Icon-Illustration by lekkyjustdoit courtesy of FreeDigitalPhotos  Quanta Magazine (US), June 2018

Quanta Magazine online, May 2018Founded by the Simons Foundation, Quanta is a nonprofit foundation-funded online magazine that aims to increase popular understandings about physics, science, biology and mathematics. With its name derived from Einstein’s reference to photons as “quanta of light”, the magazine adopts an inclusive and pluralist approach to reportage in the service of a wider audience outside the confines of the scientific community. Crossbreeding good science with compelling storytelling, Quanta’s website is just as succinct as its brand promise. Great branding, supported by art direction and graphic design that would make the most hardened design veteran smile, makes this site particularly special. Quanta’s easy to follow information hierarchy, intuitive navigation, textbook layout, refined illustration, choice typography, and simple interactive elements, makes for an aesthetic user experience that allows the greater public easy access to the scientific world. A democratising site to say the least.

 

Iconic

Heart-Love-Polygon-Geometric-Flat-Design-Icon-Illustration by lekkyjustdoit courtesy of FreeDigitalPhotos  Minotaure (France), 1933–1939

Minotaure vol 1 issue 1 Picasso 1933, issue 9 Miro 1935 and vol 1 issue 2 Gaston Louis Roux 1933

Succeeding the infamous periodical, Le Surrealisme au service de la revolution, Minotaure was an avant-garde magazine, mostly associated with the surrealist movement. It featured many important exponents of 20th century art, literature and design, including Pablo Picasso, Marcel Duchamp, Joan Miró, Henri Matisse, René Magritte, Max Ernst, and Salvador Dalí, to name a few. Minotaure remained in print from 1933 until 1939, and its purpose was to familiarise the public with surrealism and aiming to attract writers and artists to join the movement; it remains an important source of information about Surrealism. The magazine was established by Albert Skira, the famed Swiss publisher noted for quality publications on art and art history. Skira was accompanied by André Breton, writer of the first Surrealist Manifesto and founder of Le Surrealisme, as the magazine’s editor.

Minotaure was generous, to say the least, supplemented with original artworks on its cover, including a piece by Pablo Picasso for #1. Among the variety of subjects covered in the magazine, Minotaure’s reportage on architecture made it appeal to the broader public, as opposed to most other avant-garde publications of the time which focused on extremely niche material. The magazine depended on contributions from several prolific and relevant cultural protagonists at the time, all seen as a collective effort, a veritable exquisite corpse. Notable contributions came from literary and theoretical giants such as Paul Éluard, Georges Bataille, and Jacques Lacan (who published his earliest essays on psychiatry and philosophy in the magazine). Minotaure also made the public aware of unknown artists such as Alberto Giacometti, and Roberto Matta, who would later become important historic figures. Like most other avant-garde establishments, the inception of World War II forced the publication to end print in 1939.

References

 

 

Shane de LangeShane de Lange (@shanenilfunct) is a designer, writer, and educator currently based in Cape Town, South Africa, working in the fields of communication design and digital media. He works from Gilgamesh, a small design studio, and is a senior lecturer in graphic design at Vega School in Cape Town. Connect on Pinterest and Instagram.

Cover Stories, formerly MagLove, is a regular slot deconstructing media cover design, both past and present.

— One subscription form, three newsletters: sign up now for the MarkLives newsletter, including Ramify headlines; The Interlocker, our new monthly comms-focused mailer; and Brands & Branding, launching soon!

SA TV Ratings: e.tv — primetime top 20 for Apr 2018

by MarkLives (@marklives) The hottest primetime shows on e.tv in South Africa revealed: TV ratings for April 2018.

e.tv April 2018

BRCSA TV Ratings April 2018 primetime etv
Click to enlarge to view clearly.

Source: BRCSA April 2018

In 2016, the Broadcast Research Council of South Africa (BRCSA) changed its policy about giving away TAMS and now only monthly reports, highlighting the top 20 or 30 primetime shows on several popular channels, are available.

 

Broadcast Research Council of South AfricaThe Broadcast Research Council of South Africa (the BRC) is a non-profit, industry body that was incorporated in 2015 to cater to the audience research needs of the radio and television industry in South Africa.

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eMarketplaces & Brands: Optimising online for ecommerce success

by MarkLives (@marklives) What roles do brands play in today’s world of ecommerce? How does this impact on how consumers choose products? We emailed a panel of key industry executives for their take on South Africa’s ecommerce market. Next up is Gareth Pearson of BMi Research.

BMI logoGareth Pearson (@gareth_pearson) is CEO of BMi Research, a market research company with particular focus in the consumer, industrial and CPG markets in various sectors, including the retail market. Gareth has 18 years of research experience, is always looking to create value for clients and is passionate about brands, strategy trends and growing people. BMi Research is a wholly-owned subsidiary of Cognition Holdings, a JSE-listed company based in South Africa.

Consumers are never further than 2m from their mobile phone at any time. This is an interesting statistic I picked up at a mobile research (MRMW) conference in Chicago a while ago. What does this mean for brand owners? You have a 24/7 consumer connection just waiting to be maximised to improve ecommerce sales.

Consumer research conducted in 2016 by BMi Research indicated increasing online activity by South African consumers. They’re actively looking at, comparing, buying and talking about products online. It’s not just millennials doing this; older consumers are making the leap from traditional brick-and-mortar outlets to ecommerce stores.

Ecommerce stores as pricing tools

One of the areas of greatest activity is price comparison. Before, consumers only had broadsheets to compare competitors’ prices. Now, they simply do it online. This doesn’t mean they always buy online; many consumers use ecommerce sites as a pre-shopping tool to find the best price, and then visit the store to make their final purchase decision.

However, this emphasises the importance of accurate pricing in the ecommerce space, and the need for brand owners and retailers to adopt intuitive price-management software.

Current cloud-based solutions, for example, allow marketers to set optimum selling prices for their products by analysing competitor pricing, ensuring that they neither under- nor over-sell, ultimately improving sales and margins.

The fewer clicks, the better

Of course, ecommerce stores aren’t only used for price comparison. South Africa is currently experiencing double-digit growth in ecommerce, albeit off a small base. However, we expect this to gain momentum significantly in the future.

To tap into this, brand owners need solid, well-planned and well-executed ecommerce offerings. This means websites that are easy to navigate with products that are correctly categorised and priced. Ideally, consumers should only have to click three times to find the exact product they’re looking for. Any longer, and they will check out of the site.

One way to optimise sites for this positive online experience is to include tabs, with different labels but the same product information, along horizontal and vertical menus. This adds flexibility to the site, allowing customers — who all shop and navigate sites differently — to quickly and easily find what they’re looking for. If I were a brand manager, I would be cognisant of how to connect consumers to my online products in as few clicks as possible.

A consistent brand experience

It’s important to remember that consumers are not only engaging brands in the online store; they’re connecting with them on all media platforms and channels where those brands are active. Because of this omnichannel engagement, brand owners must strive to create a consistent brand experience for consumers. That means that, whether a brand’s customers are on Twitter, Facebook, Instagram, its ecommerce site or standing in the brick and mortar store, the essence of the customer experience should be the same.

Remember, consumers can be fickle, and will choose the channels that suit them best. Outstanding ecommerce experiences can tip consumers who have been sitting on the fence about a certain brand into the camp of new customers, or drive them away. But it’s no good having a slick ecommerce offering that nets brand new customers, only for the in-store or social media interaction to leave them underwhelmed and looking for alternatives.

Slow but steady growth

Looking at the current ecommerce landscape in South Africa, there is still plenty of scope for growth. I don’t think we’re going to see an overnight ecommerce explosion but rather, under the current conditions, slow and steady growth. South Africans are tech-savvy, and actually very quick to latch onto new technology. I think we would’ve seen even greater consumer support for brands trading online if it weren’t for the exorbitant costs of data in our country. That being said, I believe a drop in data costs will radically transform ecommerce in SA.

Brands should start preparing themselves for that. Because it will be a game changer, and then only the fittest will survive.

See also

 

MarkLives logoLaunched in 2016, “The Big Q” is a regular column on MarkLives in which we ask key advertising and marketing industry execs for their thoughts on relevant issues facing the industry. If you’d like to be part of our pool of panellists, please contact editor Herman Manson via email (2mark at marklives dot com) or Twitter (@marklives). Suggestions for questions are also welcomed.

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