SA’s longest mural


Ogilvy Cape Town’s Castrol Oil Journey Mural has been awarded an in-book entry in the acclaimed D&AD Annual for 2009. The 70-metre mural – the longest in South Africa – has been up on the busiest highway in Johannesburg, the M1 North highway, since the start of 2009.

Prabashan Pather: Art Director
Sanjiv Mistry: Copywriter

Garth Walker Focus: The AK47 addicts


This week MarkLives is dedicated to the work of South African design great Garth Walker.

Client: Saint-Etienne International Design Biennale 2009
Title: AK47
Garth says: A comment on Africa’s reliance on the West for Aid and Food. And the continents (and our political leadership or assorted despots) continued love affair with the tyranny of the AK47.

Hit a home run online

What are the key ingredients to online marketing success? We explore some case studies.

The Internet as a medium might be fairly young, but it isn’t a new medium for most marketers. Countless brands locally and globally are integrating the Web into their marketing strategies with great success, and those who haven’t will face increasing pressure to do so.

Taking your brand online requires patience. It involves testing, measuring, refining, improving and testing again, according to Diane Charton, Managing Director of Acceleration Media. “An online strategy and approach should be dynamic and ever-evolving,” says Charton.

Your online strategy also needs to be aligned with and integrated into your other marketing endeavours. “Consistency is key,” says Charton. “From here, you need to define success events or what you want to achieve. You need to consider relevancy and what solution you are providing / need you’re addressing. You also need to understand how you are going to track and measure these, as this will give you the opportunity to understand the value the campaign is bringing.”

Veteran online media planner Andrea Mitchell of DigiVox believes it’s crucial that a marketer clearly defines the objectives (e.g. lead generation, sales) of their digital strategy before they venture online. Engage and interact with the audience – this is the power of the medium – and ensure the creative input is compelling, initiates engagement, and gets the message across as quickly as possible, says Mitchell.

How successful have local firms been in integrating the digital component of their advertising with their broader marketing campaigns? Certain industries, and marketers, are doing it better than others. “Simply putting your website in the last frame of a TV commercial is not integrating,” warns Charton. “I think those that are using it most effectively are those who have bought into, and understand the value of the medium. They know the value the online environment brings to them and apply appropriate energy.

“Unfortunately, a large number of decision makers are still unaware of the power of the medium. Education is still a big challenge for us as a medium and it is only through this that we will see larger investments and better adoption of effective, fully integrated campaigns.”

Mitchell agrees that very few agencies are getting this right, with many utilising a different creative message to what they are doing off-line, or not using each medium to its maximum.

For Mitchell, the failure of marketers to initiate two-way communication with consumers stands out as a major strategic failure. “Whilst digital offers the distinct opportunity for direct communication (where traditional media fall short), most marketing campaigns treat media in isolation, rather than pulling them into a coherent whole, says Mitchell. “Mobile and online marketing cannot be treated like other media, and the unique opportunities offered by digital marketing should be maximised – in particular, engagement, return and retention.”

A presentation by researcher Booz & Company titled the Marketing & Media Ecosystem 2010 shows that marketers want more two-way media, and nearly 90% consider digital the ideal medium. Mobile was second with 50%. About 85% of ad agencies are also using digital media to better understand consumers, the researchers found.

Two South African brands that have set out on creative two-way communication strategies are Savanna Lemon Light and PLuGG, a new broadband consumer brand.

Savanna Lemon Light recently took its well-known ad campaign (with 16 ads in the series) online because, it says, that is where fans of the campaign have asked it to go. The now famous payoff-line, “It’s dry, but you can drink it”, has inspired viewers to send in their own creative executions for nearly as long as the campaign has been running. The brand decided to listen and engage fans in creating and starring in their own Savanna ads.

Non-database consumers were redirected via the Savanna website to a new micro site www.inthelemonlight.co.za, and its existing database was emailed or SMSed the new URL. Once there they select friends and family as co-stars, ‘write’ a script using available words and phrases, and then edit and save the final commercial for viewing.

The objective of the campaign, according to Rochelle Reid, Account Manager for Savanna at DraftFCB, was to keep the Savanna brand top of mind with loyal and new consumers, enable consumers to interact with the brand continuously, and of course in a Savanna way, increase traffic to the Savanna site and expand the database. Between 5 Jan and 16 Feb this year, the micro site generated over 9 000 visits and 31 000 page views from 7 504 unique visitors. Some of the Active Videos created – 288 and counting – ended up on social networking sites such as Facebook and YouTube. The site was developed by local online media agency Prezence.

In another interesting campaign, PLuGG, the new consumer broadband provider from Internet Solutions (IS), launched an online viral campaign aimed at the local gaming community. Hello World Agency, RedCube Brand PR Agency and Re:Act Ideas Agency were all involved in the execution of the campaign. They targeted a sub segment of the broadband user base: namely, gamers. The campaign set out to start a debate amongst gamers that would culminate in a final Game-off event.

Betting on that age old staatmaker, the battle of the sexes, the agencies started posting the question “Who are better gamers, girls… or guys?” onto various forums and sites frequented by gaming enthusiasts. They also posted videos on YouTube supporting one argument or the other. Numerous gadget and gaming site picked up on the ‘debate’ which had now taken on a life of its own. PLuGG finally revealed its hand by launching a “Girls vs. Guys Game-Off”. A team of girl gamers travelled to South Africa to play against a guy gaming team made up of local gamers. (The guys won.) The campaign generated 17 290 views with 640 replies on debate pages, ROI on publicity garnered is 1:12 (calculated at three times AVE) and PLuGG is now a known name in the gaming community. At the time of writing, gamers still didn’t know the debate was partly a marketing ploy and it would be worth keeping an eye on how they react to the people and brands involved once the information is revealed.

Community is another key word online, and it has grown in importance with the dramatic uptake of social media networks, blogs and micro-blogs (such as Twitter, where messages are limited to 140 characters). BMW’s Facebook fan site has passed 7 000 and it uses YouTube and local video sharing site Zoopy to promote new TV commercials. Its YouTube video channel has enjoyed over 1.4 million views to date.

The real value that local social networking and user generated content (UGC) sites provide is a niche which can deliver a targeted audience to an advertiser, says Colin Daniels, Publisher of TheTimes Online. “Advertisers and media planners need to shift their expectations when dealing with social networks and UGC sites and focus more on the quality they can deliver, rather than the quantity,” he says.

A medium that avoids the disconnect consumers feel staring at TV screens or billboards, and champions two-way communication, is surely a medium marketers should support as they position their brands for an age where consumers move away from the passivity that used to be a hallmark of consumerism.

By MarkLives editor Herman Manson
From Tony Koenderman’s AdReview, published with Finweek, May 1, 2009
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Garth Walker Focus: War on Terror gets remote

This week MarkLives is dedicated to the work of South African design great Garth Walker.

Client: Saint-Etienne International Design Biennale 2009
Title: War On Terror
A comment on WoT which could be interpreted as a ‘reality show’. The TV remote idea is a metaphor for the (generally USA) attitude to terror whereby the military ‘dial in’ their desires (continent, country, type of intervention etc) and then unleash their forces. Usually to little effect…

Garth Walker: Jabu Ndlovu and the G13

This week MarkLives is dedicated to the work of South African design great Garth Walker.

Client: Saint-Etienne International Design Biennale 2009
Title: Jabu Ndlovu – Self Portrait
Says Garth: A comment on the (current) G8 which will grow to include 13 countries (including South Africa). Jabu is an alter ego for young disenchanted Africans who see their leaders as having sold out to the ‘boys club’ – at their cost. Jabu shows his feelings towards the Group of 13 nations…

Lucky Star 50th birthday

South Africans have trusted Lucky Star to bring them great tasting wholesome fish products for the past 50 years. Hallmarking this auspicious occasion The Jupiter Drawing Room took a trip down memory lane, highlighting some of the key positive changes the company have experienced in the past 50 years.

Also as part of the 50th celebrations, Lucky Star is offering 5 start up bursaries consisting of R50 000 and a Vuka Scuta, giving their consumers a chance to grow their minds and opportunities in 2009 and beyond.

Creative Team:
Art Director: Yumna Sadan
Copywriter: Marcelle du Plessis
Concept Illustration: Roger Williams
Final Illustration: Am I Collective

Garth Walker Focus: L’enfant Jesus

This week MarkLives is dedicated to the work of South African design great Garth Walker.

Client: Saint-Etienne International Design Biennale 2009
Title: L’enfant Jesus
Says Garth: A comment on the city of Saint-Etienne and their history as an arms manufacturer (mostly during the Napoleonic wars). More recently the city has switched to the manufacture of textiles.

The disintermediation of GSM operators

Mobile Network Operators are at serious risk of losing revenue to disruptive startups in the next 12 to 24 months. By: Justin Spratt, VoIP Mobile General Manager at Internet Solutions

In South Africa the kings of mobile telephony are of course MTN and Vodacom, with Neotel and Telkom pushing their new CDMA wireless technologies. They have all spent massive amounts of capital building networks and are quite understandably vehement in protecting their investments. The problem is the market is facing increased competitive threats from businesses making use of disruptive technologies, just like any market that yields abnormal profits for a prolonged period would.

Corporate South Africa and consumers are fed up paying exorbitant telephony prices. Both India and China enjoy cellular call costs that equate to around 20 South African cents. Clearly the average call cost of R2 in South Africa is vexing. Even accounting for population numbers, geography is also sparse which means capital investment is likely very large in those countries.

There is however a global trend that is emerging. AT&T bought a company late last year that gave it 20,000 Wi-Fi Hotspots across America and has subsequently allowed Skype traffic across its mobile network, enabling users to make cheaper calls. EBay also recently announced that it will list Skype as a separate unit in early 2010, while BP has already enabled Wi-Fi at all of its 9,000 franchises across the UK.

What these facts indicate is that the Mobile Network Operators (MNOs) are at serious risk of losing revenue to disruptive startups in the next 12 to 24 months. Revenues are in fact already leveling and Average Revenue Per Users (ARPUs) are falling. So, you can be sure that despite healthy balance sheets MNOs are worried about declining revenue growth.

One of the most hyped disruptive technologies, which has been growing steadily over the last five years, waiting for the chance to steal market share from the MNOs is Voice over IP (VoIP). VoIP uses “packet switched” technology to essentially deliver telephony using internet rules. It is deemed disruptive because it slashes the fixed cost base of delivering telephony, and the fall in the capital investment required has meant startups can now enter this industry relatively easily.

This is by no means breaking news, as almost everybody has heard about VoIP, or at least Skype. Skype use currently erodes 8% of the world’s telephone minutes and generates $240 million in revenue for eBay. Thus far, despite the success of Skype and VoIP gaining a great deal of traction in other areas, this technology has struggled to be as dominant in the “fixed line” space. However, the tipping point is nigh!

Competitive threats usually come in two flavours, namely new licenses or innovation. Markets normally favour transformation that follows Schumpeter’s creative destruction theory on innovation, as it yields either lower prices or higher functionality. Nonetheless, Neotel and Cell C have made good ground through the government bequeathed licensed route, adopting the same “circuit switched” technologies of the other industry incumbents. The problem is that large scale investment is then required to leverage the license and deliver a return, which can only be achieved by way of continued high prices. So it doesn’t really solve the pricing problem.

Startups and smaller companies have obviously preferred to take the innovation route, using “packet switched” technologies to ensure they have a lower cost barrier to entry. This has obviously led to a number of new technologies being launched, as well as existing technologies being combined to offer something that is greater than the sum of its parts.

A case in point is the use of Wi-Fi combined with VoIP, which is giving rise to the ultimate disruptive technology – “VoIP over Wi-Fi”. This technology will inevitably lead to the disintermediation of the GSM operators.

Wi-Fi is unlicensed spectrum and is a fraction of the cost of GSM and CDMA technologies. It makes up for its shorter range with its ability to deliver much higher throughputs, and if you add the Wi-Fi savings to those derived from using internet packet switching technologies like VoIP, prices fall significantly.

As to the quality, I have first hand experience and can personally attest to the level of quality offered when using Wi-Fi as the network, as opposed to GSM. Tests such as PESQ and MOSS, which measure call quality, also show “VoIP over Wi-Fi” can yield better quality. Yes, you read right, and I have experienced it.

So the question that begs answering is, if we can get better phone quality using cheaper, unlicensed technology, like Wi-Fi why can’t we get a service that does just that? The answer is South Africans can and very shortly will have access to this type of service. In my opinion the future is very clear. Cheap mobile telephony is only a matter of months away. Whether that is delivered via GSM or “VoIP over Wi-Fi” remains to be seen. If it is delivered over the GSM network the disruptive nature of “VoIP over Wi-Fi” will ensure that operators have to address the crippling price issue.

A case in point is VoIP in townships. Where people can least afford it some rates are as high as R2.80 per minute, yet it is widely known within the industry that the variable cost to terminate a GSM call is around five cents. So, why the disparity between price and cost then? This I unfortunately don’t know, but MTN’s latest financials indicate that some of the answer might be in their bank account.

So clearly the incumbents have room to drop prices and combat any new “VoIP over Wi-Fi” entrants, but in my view we are unlikely to see this happen very soon. Revenue churn is not something any shareholder will be happy to see and until “VoIP over Wi-Fi” starts taking market share in excess of 1% (about R800 million in today’s terms) we are unlikely to see price discounting from the GSM carriers. More likely it will come from the smaller, disruptor type providers.

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