Publishers explain ABCs hits, misses

The Audit Bureau of Circulations (ABC) released the local print media’s 2011 first quarter circulation figures earlier this week and, as usual, it makes for interesting reading. A couple of figures really jump out as worth investigating.

Men’s magazines

Take the steep decline in the men’s magazine market, for example. FHM saw its total circulation drop to 59 961 from 66 940. This continues a steep decline from 74 367 in the corresponding 2009 period. In 2005 the magazine was selling 117 365 copies per month (January to June 2005 ABC figure). Men’s Health fell to 70 439 from 76 373. In the UK, the bottom has dropped out of the ‘lads mag’ market – one FHM helped pioneer in there and here in South Afrcia as well.

But publisher Jonathan Harris is promising a turnaround strategy for the title. According to Harris, as soon as his division (within Media24 – the so called ‘Developing Market’ division’) took on the title from former publishers UCM, his team began a complete bottom-up review of the brand.

“The July 2011 issue will be the first in its new format – funnier, sexier, awesomer as we say on the cover,” says Harris.

“A significant reinvestment into the brand has delivered new bleeding-edge design, carefully restructured editorial and a new flow that delivers a better read. FHM is the title to watch over the next year. Editorial is our best marketing, as we say in my division, and FHM is primed to deliver a reversal of its circulation trend based on this.”

“No doubt the men’s market is facing a challenging period on the newsstand,” says Jason Brown, editor of Men’s Health. “While we are slightly down year-on-year, we take a broader view and see Men’s Health’s overall performance as solid, given the downward trend in our competitive set. In fact, in the past year Men’s Health has increased its share of the men’s market.”

Brown says sales of the January 2011 issue was quite disappointing – possibly because the magazine did not include its annual workout calendar package – but says Brown, “I think it can viewed within the context of what’s happening in men’s magazines generally.”

Business and news

In the business and news category, Entrepreneur saw its circulation fall from 29 620 to 19 572. CEO Andrew Honey explains that a one-year business subscription of 10 000 bought by Telkom ended in August 2010. “Our true circulation [projected before launch] was always around 20 000, although we are working on getting this to 25 000,” notes Honey.

Financial Mail held relatively steady at 26 115, while rival Finweek declined to 26 729 from 29 675.

In the celeb category, FHM’s former stable mate (a reorganisation at Media24 resulted in FHM being moved into the Developing Market division while heat moved to the ‘weekly magazines’ division) declined to 39 935 from 49 959 – continuing its decline from 54 611 in the corresponding 2009 period.

‘Family interest’ title You declined to 182 909 from 195 821 and Huisgenoot declined from 313 581 to 323 917. You editor Linda Pietersen says that while the magazine’s decline is worrying, it is understandable given the current economic climate and that she is sure the tide will turn in the near future. “We are already seeing much higher sales figures for our past few issues,” says Pietersen. Royal wedding mania is sure to help.

Golfing

Golf Digest fell to 13 892 from 51 621. When the ABC released its circulation figures for the second quarter of 2010 (April to June), it showed circulation jump from 19 855 to 43 937. At the time, Golf Digest editor Stuart McLean explained that following the closure Golf+ magazine, which went out free to all Playmoregolf and World of Golf members, its readers were moved to Golf Digest and offered a subscription deal. The initial deal with former Golf+ subscribers seems to have expired.

Other noteworthy declines included Top Billing, which declined to 19 548 from 30 426, and the Gardener, which fell to 24 980 from 29 219. On the upside, House & Leisure managed to grow its circulation to 41 646 from 37 636. Tuis Home grew to 77 924 from 68 585. Stuff grew to 19 728 from 15 670.

The rivalry in the travel category between Weg/Go (at 84 348, down from 89 161 in 2010 and 96 517 in 2009) and Getaway (at 60 366, up from 59 222 in 2010 and similar to the 60 036 it managed in 2009) continues, with Weg dropping in circulation and Getaway seemingly regaining its footing after a lengthy period of playing second circulation fiddle to its younger competitor.

Women’s market

In the women’s market, Cosmo continued its decline to 91 213 (from 102 138 in 2010 and 116 714 in 2009) as did Finesse, falling to 83 306 from 94 812 in 2010 and 104 549 in 2009. Rooi Rose fell to 108 790 from 115 988 while archrival Sarie jumped to 134 939 from 114 856. Kuier grew to 32 287 from 15 681. Women’s Health maintained interest after launch to grow its circulation to 72 700.

Also interesting were the ones that have fallen out since last year. Sarie Kos vir Mans is listed as discontinued, as is Fit Pregnancy. SoccerLife 442 has also been discontinued by Avusa Media.

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S’HOT 2011 review: Quirky paint ads

The Client: Medal Paints
The Agency: Lowe Bull (Johannesburg)
The Brief: “The right colour matters” campaign has been particularly successful for the brand but during late 2010 it was decided it was time to evolve the print art direction.
Creative Solution: The campaign’s core message remains the same, ‘the right colour matters,’ and these quirky new print ads deliver this message in a fun and colourful manner. The print ads are accompanied by outdoor and radio.
Creative Team: Rui Alves (Executive Creative Director), Chris Charoux (Senior art director), Safaraaz Sindhi (Copywriter) and Ryan Jones (Art Director)

This ad was also featured in the ‘Create’ pages I compile for AdVantage magazine. It was run in the February 2011 edition of the magazine.

S’HOT: Afrikaans creatives ‘jolling’ and ‘rolling’ in New York

PENDORING POSTERS
PENDORING POSTERS
PENDORING POSTERS
Client: Pendoring Awards
Agency: Ogilvy JHB
Concept: ‘In a series of three posters aimed at luring entries from the industry, the overall Pendoring winner shows how he revels like a born rock star in New York, Paris and Amsterdam, asking his chum in the process to take a quick snap shot on a roof in New York, a couch in Paris and among the tulips in Amsterdam.’ Dis zef want dan dis die punt.
Creative team: Mariana O’Kelly (creative director), Renier Zandberg (art director), Nico Botha  (copy writer), Alettie Marx (designer), Katinka Slabbert (client service), Maree Hofmeyr and Esmé de Mirande (producers), David Prior (photographer) and  Lourens van Rensburg (director)

Remember to enter the Pendoring Awards. See www.pendoring.co.za for details. The closing date for entries is 15 August. Judging takes place in September and the awards evening at Vodaworld, Midrand is on 21 October 2011.

Nikki Cockcroft leaves Primedia Online for Woolies

Nikki Cockcroft, long serving CEO of Primedia Online, where she oversaw leading South African portal iafrica.com, digital agency Prezence and trafficking solutions provider 365 Digital, has announced her resignation, effective 30 June 2011. She joins retail giant Woolworths as head of online and will take up her new position at the beginning of July.

Cockcroft is currently chair of the Digital Media and Marketing Association (DMMA) and chairperson of the annual digital industry award show, The Bookmarks Awards, and will continue to fulfil her duties in both capacities.

Cockcroft says her new role will see her focus on establishing the Woolworths brand in the digital retail space.

Research by World Wide Worx recently revealed that online retail spend passed the R2 billion revenue mark for the first time in 2010 and has been experiencing rapid growth of between 30-35% per year over the past five years. This year, growth is expected to tick up to 40% reaching revenues of between R2.6 and R2.8 billion.

Online retail in South Africa has reached a tipping point, Cockcroft says, and her challenge will be ensuring the online retail experience matches the in-store retail experience. The current Woolworths web site will be upgraded soon and the first phase will see a shift in focus to products available online, rather than the corporate information the site currently pushes.

Significant changes and updates will follow as Cockcroft and her new team’s ideas and strategies take a firmer shape.

Cockcroft believes online retail technology and systems are as good in SA as it is elsewhere but that infrastructure limitations, logistics and the ineffective use of mobile platforms has limited online retail’s potential.

She is particularly excited about the digital retail possibilities of Woolworth’s Country Road clothing range. She predicts mobile shopping on the go by busy executives will be an important growth factor for Woolies’ digital retail efforts and predict that Woolies consumers will be prepared to pay for delivery services on premium products.

Free delivery isn’t viable, says Cockcroft, who will form strategic partnerships with delivery firms, and, while there isn’t margins in delivery, consumers will be prepared to pay for deliveries at cost, she believes.

While there are real talent in the digital commerce and in the digital marketing fields, Cockcroft believes her experience spans both fields, having been involved in building major transactional sites and in online marketing, which helps positioning her perfectly for the new challenge of heading the digital retail efforts of Woolworths. She intends travelling to several countries and visiting a number of major international retail brands to bring back best of digital retail practice to SA.

Cockcroft decided to leave Primedia Online and the digital media world after 10 years to push out of her comfort zone and in the hope for renewed personal and professional growth. She also wanted to let “fresh blood and ideas” into the businesses she had been running these past 10 years (at 365 and five years at Primedia). This doesn’t mean she will be any less active in the broader SA digital community, as borne out by her continued involvement in the DMMA and the Bookmarks, she promises.

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[Netprophet 2011] African ecommerce market has a long way to go

A billion Africans and 50 million bank accounts. In South Africa, credit cards are used by only 16.5% of the population (2008). No African country comes close to 1% of total retail spend spent online – the magic figure which constitutes the tipping point for digital retail growth (in SA, ecommerce has a 0.4% share of the retail market, while in countries such as Egypt and Nigeria, the figure stands at 0.01%). No wonder, then, that the ecommerce market in Africa hasn’t bloomed.

Oliver Rippel
Oliver Rippel

Looking at these numbers, many international ecommerce plays have shifted investment in the African market 5-10 years down the line. But where others fear to tread Oliver Rippel, CEO ecommerce Africa & Middle East at MIH, sees opportunity and first-mover advantage.

MIH has an ecommerce footprint in a number of African economies, starting in SA and gradually working its north. It is already investing in Senegal, Cote d’Ivoire, Ghana, Cameroon, the DRC and Nigeria, among others. Its brands include Kalahari.net, Mocality, PriceCheck, Careers24, Payu and Dealfish.

Speaking at the 2011 NetProphet conference on Thursday, 12 May 2011, in Cape Town, Rippel said he sees a number of positive macro-economic indicators warranting investment in the African online retail market.

For one, the continent is experiencing real GDP growth at a time that many developed economies are experiencing varying levels of stagnation and contraction. This translates into a growing middle class – now estimated at 350 million Africans – up from 135 million in people in 1990 and 200 million in 2000.

His sense of optimism seems to be borne out by research released by Arthur Goldstuck, MD at research firm World Wide Worx, via a tweeted presentation at NetProphet.

Goldstuck’s research reveals that, for the past five years, SA experienced 30-35% growth in SA online retail every year and that for 2010, total online retail sales in SA passed the R2 billion mark to reach R2.028 billion (the ‘physical’ bricks and mortar retail market was valued at R561 billion in 2010). This year should see online retail hit the R2.6 – R2.8 billion mark, translating into a growth rate of 40%.

High mobile phone penetration (and a shift in focus to data by the cell service providers that is gathering steam) is another reason Rippel believes the market requires investment by early movers.

SA stands at 92.2 phones per 100 people and the figures are similar in a number of other African markets. Gabon has 89.9 phones per 100 people and in Algeria the figure stands at 92.7 per 100. Couple that with new undersea broadband cables now connecting to Africa and it becomes clear that we are bound to see a more digitally familiar audience migrating to ecommerce.

Finally, entrepreneurs are having an easier time with doing business in Africa, which in turn helps stimulate innovation and new ventures.

Rippel says success in the digital retail space depends on a number of key factors, including embracing mobile, leveraging offline environments, factoring in that in Africa cash is still king and building a trust relationship with consumers.

According to Rippel, MIH’s Mocality service aims to serve as a “Yellow Pages for the masses” by expanding mobile location services to the informal market. Mocality’s reps go into public spaces where people rely on message boards (ie where the customers are) and contact posters directly – the hope being they would be willing to migrate their ads to its mobile service.

Credit card penetration remains low in Africa – remember the ‘one billion people with 50 million bank accounts between them’ stat – meaning 95% rely on cash-based transactions. This has lead to the success of M-PESA in the Kenyan market – it offers a mobile solution that allows people to transfer cash from the city to relatives in the countryside.

People now use M-PESA accounts for real world commerce and it is starting to translate into ecommerce as well. Vodacom and Nedbank recently announced the introduction of M-PESA into the local SA market.

Finally, says Rippel, brands need to build trust – often through controlled commerce environments.

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For youth market mobile access to information and communication is the answer

Mobility no longer simply refers to motion, it has also come to describe the untethered use of technology on devices like smart phones, both of which seems to have come together in a perfect storm to enable the revolutions currently sweeping the Middle East and North Africa. Setting these revolutions in motion, is the youth, who organise and spread their message using social networks primarily accessed through mobile devices. These platforms are not only changing how young consumers engage with politics but also with commerce and one another.

Infographic depicting the top 10 mobile subscription countries in Africa.
Infographic depicting the top 10 mobile subscription countries in Africa. Copyright: afrographique.tumblr.com

In South Africa research by consultancy World Wide Worx suggest younger consumers are more likely to spend a greater percentage of their mobile expenditure on non-voice services, particularly data services. For 16-18 year olds as much as 29% of their spend goes towards non-voice while the figure stands at 16% for 19-24 year olds. The research found that data as a percentage of total mobile spend has grown from 5%-8% in 2010. Expect further growth in the future.

World Wide Worx MD Arthur Goldstuck says 39% of urban South Africans and 27% of rural users are now browsing the Internet on their phones which means at least six million South Africans have Internet access on their phones. MXit (with 24% of that audience) and Facebook (with 22%) are the two most popular mobile sites in the country according to Goldstuck while Twitter is showing good growth. Social media is quickly transforming levels of social engagement and is helping drive what is becoming known as the ‘referral economy’ where consumers base purchasing decisions on advice from their social circles.

Popular mobile browser Opera Mini has also released statistics on its user bas which indicates that during 2010 the top 10 countries African countries using its popular browser were South Africa, Nigeria, Egypt, Kenya, Ghana, Sudan, Libya, Tanzania, Zimbabwe and Namibia. During the course of the year page views in these countries increased by 365%, unique users increased by 176% and data transferred increased by 331%. In 6 out of the top 10 countries social network Facebook was the most visited site. Echoing Goldstuck’s research Opera Mini has MXit and Facebook in its top three mobile sites for South Africans with YouTube at number four and Twitter at number 10.

On Device Research meanwhile found that, based on research from a number of countries, more than 50% of users in Africa use mobile as the sole access device to the Internet. In Egypt this jumps to 70% of users while in South Africa its 57%. The researchers already predict that the “mobile only’ internet generation is a billion users strong – and in developing economies 70% of them are under the age of 25 while 52% of mobile browsers engage in social networking (downloading games and music come in an 55% and 54% respectively).

As for the hardware (the actual phone) itself Nielsen’s whitepaper ‘Mobile Youth Around the World’ found that 84% young people with mobile phones chose their own device. While Nielsen found that in many emerging economies price as the first purchase driver for people aged 15-24 Synovate found that in SA users aged 18 – 34 were most concerned about the image and functionality of their handsets. Local research found most South Africans (88%) prefer pre-paid packages – often to avoid big overuse charges – while 72% of pre-paid customers believe these packages are cheaper than contracts.

Last year Synovate found that 91% of those in the 25 – 34 year old age group declared that they could not live without their cell phones, followed closely by 87% in the 16 – 24 age category.

Nielsen come to the interesting conclusion that a reverse innovation model is evolving, “where effective mobile advertising platforms are identified first in emerging markets, then transferred back for further refinement in established markets. The implications of the disruptive growth associated with mobile technology in emerging markets also should readily transfer to other industry sectors.” For example it expects innovation in services like mobile banking to be driven by emerging markets.

Goldstuck’s research shows that 37% of South Africans in urban and rural areas aged 16 and above now use cellphone banking, and that cellphone banking usage peaks in the 26-34 age group, at 41%, and drops to 11% in the over-45 group. It’s a younger audience driving adaption of new mobile innovations. MXit earlier this year signed as agreement with wiWallet offering MXit’s 10-million active users access mobile payment services.

As the youth market (now worth R95 billion) increases it use of mobile phones to talk, shop, bank, listen to music, play games, watch movies and make clear their political agenda, the forward motion of mobile innovation is bound to increase dramatically. And the youth will lead it.

An edited version of this article first appeared in the 2011 edition of Tony Koenderman’s AdReview (a FinWeek annual). The fantastic infographic copyright Afrographique.

Brandt Botes plots a new design course

Designer and illustrator Brandt Botes has set up his own design studio called Studio Botes in Cape Town. The agency will specialise in corporate identity work, packaging design and illustration. Brandt is one of South Africa’s best known graphic designers and was until recently design group head at The Jupiter Drawing Room (Cape Town).

Brandt Botes
Brandt Botes

Brandt fell in love with graphic design and illustration through the influence of his older brother Conrad Botes, who together with Anton Kannemeyer founded the famously subversive comic book series Bitterkomix.

He studied fine arts at the University of Stellenbosch in the early ’90s before joining Orange Juice Design Studio in Cape Town (the office has since closed). At Orange Juice, he learned much about the African vernacular which still informs his work today and really made his name through his contributions to ijusi magazine (published by Orange Juice Design in Durban), a magazine that feels a bit like the Bitterkomix version of design magazines (in fact, they even published a collaborative issue themed ‘Bitterjusi’).

He joined The Jupiter Drawing Room for the first time in 2002 and stayed with it for five years before heading off for a short stint at Lowe Bull.

Brandt rejoined The Jupiter Drawing Room in 2005, and the more-than-nine years he spent with the agency has helped teach him a conceptual approach to work, says Brandt. But in the end, agency work proved too restrictive and formulaic, explaining his exit from the big agency environment.

Brandt talks a lot about his passion for craft. He still uses a tailor in Long Street out of appreciation of the craftsmanship and personality, distilled through personal attention to quality work – something retail store purchases no longer offer (and some would argue many big agencies don’t either).

Craft is something pushed to the wayside as mass-produced items take up more and more design space. Losing design skills such as letterpress printing in this the digital era concerns Brandt – surely skilful craft should be celebrated and protected or we risk losing the passion that should drive design. Putting passion back into work, and particularly into own his work, believes Brandt, will have better results all round.

So far going solo has been lots of hard work, according to Brandt, who says the feeling of accomplishment in taking a client through the entire process, from the first call through design and production, helps make it worth it. Not being a relatively small part of a big machine means better client relationships, and therefore a better chance of fulfilling the brief, says Brandt.

While Brandt says he misses the buzz of an office environment, his interaction has simply shifted from agency staff to clients – he doesn’t have much time to feel isolated – and it’s the change he happily embraces. He is already working on a number of commercial projects, as well as some self-initiated projects, and looks forward to embracing a collaborative approach to the business.”

Illustration used to be the black sheep in communication design but this has dramatically changed over the last few years, especially after magazines started using illustration in place of photography. Outfits such as Cape Town’s illustration and animation outfit AM I Collective has already put Cape Town on the global illustration map, making it easier for new players to break into the market. Brandt, who mentions the possibility of taking in international work, promises clients concept-driven but carefully crafted work from his studio.

Brandt hopes he can convince his wife, Katherine (an art director), to join the business once it takes off properly, and in the meantime she serves as a sounding board for his ideas. Studio Botes won’t be limiting its work to paper (or digits) – Brandt plans a range of products in the future which might include anything from posters to decor items. I’m betting it will be stunningly crafted – and that Visi will be all over it.

In the meantime, his first attempt at stop-frame animation, which he created for the Toffie Pop Culture Festival and which highlights the diverse advice he received on going solo, is creating plenty of buzz, and has already lead to several offers of work.

Going Solo. from Studio Botes on Vimeo.

For more, go to studiobotes.com and blog studiobotes.wordpress.com.

Bizcommunity Originally published on Bizcommunity.com Marketing & Media | South Africa – click to see more comments.

Enjin: Data Art

Enjin Magazine reports the latest trends and technologies for design professionals seeking to stay up-to-date in the global economy. Check out their latest issue here.

COVER: HOW INFORMATION BECOMES FORM
AGENCY: ROGER BEEKMAN/60 LAYERS OF CAKE
FEATURE: CONTRADICTIONS IN ARCHITECTURE
FEATURE: DATA ART
FEATURE: DESIGN BY UBUNTU
FEATURE: THE DEEP IMAGE
PLATFORM: CAMERON PLATTER/PETE CASE/RICHARD HART/MOMA
EDITORIAL THE DEAL/BEING WITH MACHINES/A TIME FOR NEW THINKING

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