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Caxton deal values Moneyweb at R100 million

Caxton Publishers & Printers Ltd has upped its stake in Moneyweb Holdings, the financial content company that produces Moneyweb.co.za, Miningweb, Marketingweb and a host of smaller properties, as well as Alec Hogg’s syndicated radio show (broadcast on SAFM, RSG and Lotus FM). Moneyweb also produces the business news section of Caxton-owned The Citizen.
Caxton acquired a 35% shareholding in Moneyweb late last year and, after the latest share acquisition (valued at R10 660 397), holds 73 827 766 ordinary shares in the company, which is 68.50% of its issued share capital.

The deal values the company at R100 million, according to founder Alec Hogg. Caxton injected R20 million into the company in cash for shares last year. Moneyweb’s board will be joined by TD Moolman and PG Greyling – both from Caxton.

Pre-emptive right

According to Hogg, he exercised his pre-emptive right to buy out the shares of his ex-wife, Louise Hogg, and bought three million of her shares to increase his stake in the business while selling the balance to Caxton.

“In a field like ours which is moving so rapidly and where there are so many exciting opportunities, [it] makes sense to have a partner with substance,” comments Hogg. “We have around R25 million cash in the bank so watch this space.”

The initial deal with Caxton centred on the rollout of a national platform of hyperlocal community websites under the single Looklocal brand. Caxton owns a profitable stable of community titles across the country and expectations are that 52 online communities will be rolled out over the course of three years.

Read the full story on Moneyweb.

BCCSA fines M-Net over promo, rules on use of “moffie”

M-Net has been fined with R5000 for contravening the Broadcasting Complaints Commission’s Code of Conduct for Subscription Broadcasting. M-Net had scheduled a promo for its Horror Festival that contained scenes from several horror titles which was scheduled across all the M-Net channels to coincide with Halloween.

According to M-Net an internal classification team issued a directive that the promo should only be scheduled after 9.30pm but it was still scheduled for broadcast at 6pm on the 13 October 2010 “in error”.

The BCCSA found that the time slot aggrevated the offence “since this is a time when families are usually at home watching television, and it is before the bed-time of many younger children.”

Scenes of violence and horror

The BCCSA found that, “The video indeed contains graphic scenes of violence and horror as described by the complainants (e.g. “demons and ghosts” and other inexplicable scenes of horror). Most children would, as alleged, be severely disturbed by such images, since they do not have the cognitive ability to process them, or a frame of reference within which to locate them and perhaps make sense of them. The negative emotional and psychological effect of such images would thus be exacerbated, and such effects could even be permanent.”

The fine was imposed as the BCCSA had issued frequent reprimands to M-Net on promos containing scenes with violence broadcast before the watershed.

In another BCCSA judgement issued in December the commission found in favour of Highveld Stereo in a complaint on the use of the word “moffie” (Afrikaans slang for gay) and a song broadcast during The Rude Awakening show.

Read the full story on BizCommunity.

Annual Google Zeitgeist identifies brands in the news

Every year, Google provides some insight in the spirit of the times, our collective zeitgeist, when it releases lists of the worlds’, and South Africa’s top search items. YouTube, owned by Google, has also released its list of the most-watched videos on its service during 2010.
Locally, a number of brands made it onto the list of fastest rising searches, including new pay television entrant TopTV, super-sized lotto game Powerball, local go-to page for news News24 and ISP Afrihost, thanks to its genius marketing offer of 1GB of free ADSL data for life.

The list might still be dominated by global pop sensation Justin Bieber (he vacationed in SA in September) and hip hop artist Nicki Minaj but local electro hop music duo Locnville and Zef-rap trio Die Antwoord showed they were two of the most talked-about local acts around this year.

The least obvious entry on the list must be for moshi monsters – it’s a free, online game encouraging users to adopt a pet monster.

Read the full story on BizCommunity.

Global magazine industry in decline, FIPP report shows

Magazine publishers face increasingly tough times as the category struggles to reverse declines in its share of global ad revenue, brought upon by the double whammy that was the

Their piece of the global ad pie is expected to continue declining over the next three years, according to World Magazine Trends 2010/2011, an annual magazine market report published by FIPP Limited, the worldwide magazine media association, and will make for grim reading for magazine publishers.

Globally advertising revenue declined by 10.6% in 2009, compared to a 2% decline in nominal GDP in the same year. Spend on the magazine market alone fell by a dramatic 20.2% in the same year as luxury advertisers pulled their budgets.

This year, global ad revenue saw growth of 4.8%, with growth projections for at 4.6% and for 2010 at 5.4%. This doesn’t translate to magazine adspend, though, with 2010 experiencing a 1.8% decline, a 1.4% decline in 2011 and a 0.1% decline in 2012, according to ZenithOptimedia, which contributed research on advertising figures to the report.

Ultimately, magazine publishers’ portion of the global ad pie is expected to shrink 8.7% of spend by 2012, substantially down from 13.5% in 2003.

Emerging markets now account for 31% of global magazine adspend and contributes 63% of projected growth in the market. The Internet, which continues to siphon away market share from magazines, is expected to increase its share of total ad revenue to 16.5% in 2012, up from 12.8% in 2009.

Developed markets in the northern hemisphere, hardest hit by the Great Recession, will see revenue in 2010 continue to lag pre-recession levels. Money will continue to shift online and magazine publishing will see its share of total adspend continue its decline.

In North America in the US, the outlook for magazines remain grim, while Canada is seeing a slight recovery. Mexico, meanwhile, is experiencing solid growth. Magazines’ share of spend in the region is expected to decline to 10.7% in 2012 – down from 14% in 2003. Online adspend overtook magazines in North America in 2009 with 14% market share, compared to 12.2%.

Picture in Europe remains bleak

The picture in Europe, says FIPP, remains bleak, with magazine closures, organisational restructuring and cost-cutting continuing. Magazine publishers in Western Europe will see their share of the advertising market drop from 18.2% in 2003 to 11.8% in 2012, while their colleagues in Central and Eastern Europe will see a decline to 8.1%, down from 15.3% in 2003.

Internet adspend in Western Europe already outstrips magazines with 15.9% of the market. This will grow to 19.6% by 2012.

The Asian Pacific markets expect growth in advertising spend, with the exception of Japan, which saw its economy slide from second biggest to third in global rankings, behind China for the first time. Even so, magazine publishers’ share of ad revenue will decline from 8.1% in 2003 to 4.6% in 2012.

Asia Pacific is expected to overtake Western Europe as the second largest advertising market in 2012, representing 24.4% of global ad revenues. Japan remains the second largest advertising market in the world, even as adspend in the country continues to plunge. China is expected to overtake Germany as the third biggest advertising market in 2012, up from fourth position.

Read the full story on BizCommunity.

The New Age: not an agent of change

TNA Media has launched the long-awaited, and much-debated, newspaper The New Age. Its front page, its second after the freebie Heritage Day special, reflects editor Henry Jeffreys’ careful juggling act of batting away any criticism that the newspaper is obviously pro-ANC while also creating interest during a rather slow news cycle.

One issue doesn’t make a newspaper, or break it, and the paper has some obvious strengths, mostly in the form of Jeffreys, but also in its regional news, which still needs to build some strength but holds promise. Its retail price of R3.50 seems quite reasonable, and the fact that it publishes its page count next to the cover price, which suggests transparency to consumers.

On the downside is a dated, conservative look and feel; the lack of infographics, which is playing an increasingly important role in how newspapers present information to readers, and which Media24 is apparently investing quite heavily in; and its reliance, in both the Heritage Edition and this commercial launch edition, on government adspend.

Seemed a little stale

If much of the news, including that of the three-page business section, seemed a little stale, I won’t hold it against a launch issue. News will inevitably be forced to be fresher as stories filed in preparation for the first couple of editions run out. A deeper analysis reveals:

* The lead story of Johannes Rapau, who claims he is due a R500 000 for providing information that supposedly lead to the arrest and conviction of convicted mass rapist and murderer Moses Sithole, was a good one – except for a single point that seems the negate the basis for putting it on the front page of a national newspaper.

Rapau himself admitted that he had pursued his claim through a civil case but failed to corroborate his claim. Did Rapau produce the collaborative information for inspection by The New Age then? The story doesn’t give any indication, but it looks unlikely. What exactly is the point of the story then and why is an apparently dubious claim worthy of this much attention?

* The Editorial Comment page applauded WikiLeaks, and took a firm stance against government regulation of the media, with Jeffreys declaring “…we are not The New Agent.” The paper promises to support all levels of government, including provincial governments and municipalities – “provided they fulfil their mandate and live up to voters’ trust.”

*There should be plenty of news material for the paper then, given service delivery protests in areas around the country, and it’s a bargain that would serve The New Age well if it manages to uphold it, despite the perceived closeness between its financial backers and President Zuma’s inner circle.

* Overall, opposition voices seem to be fairly represented in news stories.

o A story on the meningitis outbreak at several Gauteng hospitals gives extensive space to opposition spokesperson to deplore the state of the hospitals in question, as does a story on the Gauteng department of Health losing more than a billion rand, following a dispute with a private contractor.

o Cosatu received considerable coverage on its 25th birthday celebrations, including a two-page photo spread, a full page of opinion on the movement and a news story on page three. Cosatu is, of course, a member of the ruling alliance.

o An opinion piece by Ebrahim-Khalil Hassen on a need for the union to return “back to basics” (and away from politics, one assumes) formed the primary opinion piece on Cosatu. It’s a whisper from members gaining momentum, the author writes, but the advantages of this ‘whisper’ taking root seems quite clear for the ruling party. It offered an interesting alternative to increased media speculation that Cosatu and the alliance partners are drifting apart. “Back to basics” at Cosatu would certainly solve a couple of problems for the ANC.

* I do think national news over only two pages was a little wanting, and some items, such as COPE’s congress and leadership election later this month, don’t sit well on the regional pages (they were filed under Gauteng News but surely the goings on at COPE is of national interest).

Read the full story on BizCommunity.com

Wayne Naidoo elected as ACA chair

Wayne Naidoo (CEO of Lowe Bull) has been appointed the new chairperson of the Association for Communication and Advertising South Africa (ACA) in place of Reinher Behrens. Two vice chairs were re-elected, namely Mike Gendel and Boniswa Pezisa, while Nina Morris took the third spot vacated by the election of Naidoo. Naidoo will chair his first official ACA meeting in the new year.

Members can expect continued work on issues such as transformation, education (through the AAA School of Advertising), engagement on relevant legislation and a legal advisory service and further discussions with other associations to cement and expand the ACA’s stance on tenders and pitches (which limits the number of agencies pitching on a single account) to the broader marketing industry.

Naidoo says no quick fix is available to industry issues – instead a process of dialogue and tweaks to current policies should drive progress and finding solutions for the ad industry and ACA members. His aims are to continue enhancing services to members in a bid to deliver tangible benefits and build on the relevance of the ACA in the broader industry domain.

Membership currently stands at 47 agency group members, which equates to 110 agencies being represented in the association. Naidoo says this is broadly representative of the industry, but he will continue efforts to expand the ACA’s membership profile. He believes this will grow as the ACA gains more prominence through its well-regarded APEX awards. The APEX awards focuses on advertising effectiveness and ROI, as well as creative effectiveness.

Naidoo says that the industry speaking as a collective is much more effective than if members had to speak up individually. The tenders and pitch guidelines the ACA put in place is an example of this. Dialogue with other associations in this regard will continue, says Naidoo, with this in mind.

Read the full story on BizCommunity.com

Y&R to restructure, refuses comment on Lamb resignation

Following the recent surprise announcement that Fraser Lamb had resigned as group CEO of Y&R, a wall of silence around the resignation seems to have been erected around the company by its management.

Yossi Schwartz, chairman of Young & Rubicam Brands SA, declined to comment on Lamb’s resignation, saying it was a private decision he wished to respect. Schwartz is the only spokesperson within the company allowed to engage with the media on the matter of Lamb’s resignation.

Schwartz would not be drawn on industry speculation and comments on Bizcommunity – a considerable number of which appear to originate from within Y&R – that the full story around Lamb’s resignation is yet to emerge. He rejected the suggestion that the comments posted on Biz’s forum signified significant division within the agency.

The WPP group, of which Y&R forms part, also declined to comment on Lamb’s resignation. Feona McEwan, group communications director at WPP (London), says the group is “aware of the situation, but it is not appropriate for WPP, the parent company, to comment”.

While Y&R and WPP decline to be drawn on Lamb’s resignation, Jonathan Ackerman, until recently marketing director at Pick n Pay Retailers (he recently changed portfolios to become customer director as well as executive director of Pick n Pay Stores Ltd), expressed his support for Lamb as well as his unhappiness at Lamb’s departure. According to Ackerman, he remains very upset that Lamb is gone. Pick n Pay is Y&R’s largest single client.

Read the full story on BizCommunity.com

Riaad ‘Riyad’ Moosa now guilty of hate speech – BCCSA

The Broadcasting Complaints Commission of South Africa (BCCSA) is at it again – this time accusing comedian Riaad Moosa of hate speech for busting some racial prejudices and using the word “coolie” in the process. It also renamed him “Riyad”. The BCCSA recently made a similar ruling against comedian John Vlismas although, in that instance, it actually got his name right.

The BCCSA seems to be unfamiliar with intent and context when it comes to its numerous rulings against comedians and the satire they produce. Instead, its judgements show it chooses to take what is said at face value, as it assumes the average radio listener does – which the average radio listener really should find offensive.

The complaint centred around a skit by Moosa that was played on 94.7 Highveld Stereo. The judgement contains the following description of the skit:

“He [Moosa] started off by referring to people from Pakistan as “Paki’s” and then compared that to the use of “coolie” and stated that, although the word was no longer used in South Africa where he comes from, people might still be referring to him as a “coolie” when he leaves their company. In fact, the audience might, afterwards, be referring to him as a funny “coolie” comedian. The audience in the insert reacted by laughing loudly at every sentence where the comedian used the word “coolie”. So, the show must have been very successful. Even when he supposedly quoted a man with a typical sophisticated English accent: “These bloody coolies, they have so many wives…completely unacceptable by Western standards, as I was saying to my mistress!” The audience roared with laughter.”

Read the full story on BizCommunity.com

Award-show behaving badly

Immature or wild at heart? Either one could describe the third annual Bookmarks awards evening, where the digital marketing and publishing evening took the opportunity last night, Thursday, 18 November 2010, to pat one another on the back – albeit cautiously.

Held at Brio in Cape Town, the long narrow room filled to capacity by 7pm, the evening kept guests on their feet for the next two and a half hours, literally, since no seating was available.

The vibe was clubby, with MC Don Packett looking ready to take a club to the audience and batter them into silence (“Shut up. That fucking works.” really did not), the confined space flashing conversations around the hall like those stupid green strobe lights they kept shining into my eyes. I’ve come to realise there is a reason award shows sit people down at tables and ply them with food or drink. Bookmark organisers take note.

The MC never had a hope of managing or engaging his audience; with events taking place upfront and obscured by several hundred heads, those at the back had little to do but catch up with other industry folk. Trust digital junkies to turn any event into a networking opportunity.

At the end of it, an annoyed Packett simply tweeted; “The crowd at #bookmarks2010 are honestly the rudest bunch of f*cks I’ve ever had to entertain. Have some respect for ur industry. Pathetic.” Sure fire way to win them over. The porn, strip club and JZ’s Facebook relationship status jokes didn’t work, either.

For the digital agency crowd, the evening can only be described as disappointing. The awards were few and far between and consisted mostly of Bronzes and a handful of Silvers. Not a single Gold was given out in this category. No awards were given out in six of the listed categories. Is SA’s digital marketing industry that bad? If so, clients should be mightily annoyed, considering the judges focus on measurability and results (which counts towards 40% of the final score).

Of the 20 awards given out (18 Pixels and two Best of Show), Ogilvy Interactive stood out with two Silvers and Best of Agency Show (Integrated), thanks to its Goodbye Citi campaign. Gloo won two Silvers and a Bronze, Trigger Isobar two Silvers, Click2Customers won a Silver and Best of Agency Show (Best Paid Search Campaign). ClickThinking got two Bronzes and a Silver and YuppieChef a Bronze and a Silver. New kid on the block Native went home with a single Bronze in this category, as it did at the Loeries earlier this year, thanks to Stonewall+.

Read the full story on BizCommunity.com

Magazine summit no crystal ball on media future

Journalism and marketing will continue to move ever closer, with the wall once separating them being steadily dismantled. By publishers. And that’s a good thing. Read on.

Seeking to answer questions around magazine strategy in the information age, publishers from across the country gathered at the Cape Town International Convention Centre for the first annual SAPPI MPASA (Magazine Publishers Association of South Africa) Media Summit. A prelude to the day’s main draw, the PICA awards (the magazine publishing industry’s annual award show), the summit was meant to explore what the magazine landscape will look like five years from now. There seemed to be few answers.

James R Gaines (@JamesRGaines), former managing editor of People, Time and Life magazine before he become editor-in-chief of FLYP, a now defunct biweekly multimedia magazine published online, and later CEO of StoryRiver Media, was the keynote interview at the summit.

Tim Modise was tasked with interviewing Gaines in what turned into a fairly broad conversation on Gains’ work and his views on the future of magazines and journalism. The audience received many familiar sound bites, such as “storytelling can be done in multiple mediums,” “the sound of inauthenticity is loud,” “media has become social,” that media should embrace loss of control over flow of information and that the Internet is a new medium not suited for repurposed content.

The interview never quite came together to allow a proper narrative on the digital future of magazines to emerge, though. What was interesting was Gaines’ take on the future of content, in that he advocated a closer relationship between publishers and advertisers to generate more revenue, and for the breaking down of walls that separates newsrooms from marketing departments.

Gaines is selling storytelling, not journalism in its more traditional sense, to anybody with a story to tell. It’s not a sell that goes down well with journalists, and Gaines freely admits that he has given up trying to sell his particular angle on storytelling to the editorial side of media. He simply no longer engages with them, out of frustration he says; instead he’s pitching to the people controlling the purse strings. They seem to be buying and his sentiment on the closer association between journalism and advertising would be echoed several times during the course of the day.

Read the full story on BizCommunity