The Ad Annual 2008

15671 SAPPI adS UD R 13/10/08 13:25 Page 1 C

ADVERTISING ANNUAL

2 — The ANNUAL 2008

M

Y

CM

MY

CY CMY

K

CONTENTS — The Annual 2008 7

Introduction by Jeremy Maggs

8

Profiling e.tv

13

The Research. A survey by TNS Research Surveys on public perception towards advertising in South Africa

21 22 24 26 28 30 32

The Top 100. SA’s most influential media and advertising people Academic & Training Advertising Branding & Design Magazines Media Owners New Media Newspaper Public Relations Radio Television

33 34 36 40 42 46

The Awards 2008 South African Creative Review Cannes Lions The One Show Awards The Clio Awards D&AD Awards The Loerie Awards 2008 Creative Circle Ad of the Year Apex Awards Pendoring Awards

51 52 53 54 58 60 62 64

The Case Studies Case study #1: Absa Case study #2: Allan Gray Case study # 3: Audi Case study #4: ACSA Case study #5: Coca-Cola Case study #6: Nike Case study #7: Nashua Mobile

67 68 82

The Media Year at a glance incorporating Television, Radio, Newspapers, Magazines, Outdoor and Online Think Design

87 88 90 92 94 96 98 100 105 106 108 113 114

The Agencies 8t Image & Brand Actuate AdMakers ARM Atmosphere Communications Berge Farrell Black Brand & Strategy Black River FC Cape Town Black River FC Johannesburg Blue Moon Corporate Communications Boomtown Brand Union, The

4 — The ANNUAL 2008



118 Coley Porter Bell 120 Cross Colours Consultancy 122 DDB 126 Draftfcb 12 Ebony & Ivory 130 Elements 134 Euro RSCG 137 Fearless Executive, The 138 FoxP2 140 Grey 143 Hammer Live Brands 144 Hardy Boys, The 146 Initiative Media 148 Interbrand Sampson 151 Ireland Davenport 153 Jigsaw 154 Joe Public 156 Jupiter Drawing Room SA & Partners, The 158 Jupiter Drawing Room (Cape Town), The 162 Jupiter Drawing Room (Johannesburg), The 164 JWT 166 King James 171 Leo Burnett 172 Letsema Communications 174 Lowe Bull 176 McCann Worldgroup 178 MediaCompete 180 Media Shop. The 182 Mercury 186 MetropolitanRepublic 190 Mick&Nick 192 Morrisjones 195 New World Communications 196 Ogilvy 50 Old Shanghai Firecracker Factory, The 199 OMD 200 One Digital Media 204 Pod Communications 207 Proximity#ttp 208 Publicis 210 REX 214 Saatchi & Saatchi 216 Switch Design 220 TBWA 223 thirtyfour 226 Tomcat 228 Troika Imagineering Works 230 Yellowwood Future Architects 232 Zinto

235 The Rockstars 236 Adelle Wapnick 238 Alistair Duff 240 Andy Sutcliffe 242 Anthony Swart 244 Aubrey Malden 246 Ben Wagner & Evan Milton 248 Brett Morris 250 Brian Wright 252 Dale Tomlinson 254 Dan Pinch 256 Francis Blitz 258 Gail Schimmel 260 Glen James 262 Gordon Patterson 264 Harry Herber 266 Ingrid Veysie 268 Ivan Moroke 270 Jason Knight 272 Johan Prins 274 Jonathan Hall 276 Josh Dovey 278 Keith Stevens & Ginny Felps 280 Larry Shiller 282 Michael Blore 284 Michelle Caldeira 286 Mike Abel 288 Mike Bosman 290 Modise Makhene 292 Muzi Kuzwayo 294 Neil Clarence 296 Neil van der Weele 298 Nina Morris 300 Paul Middleton 302 Ronald Wohlman 304 Steve Miller 306 Terry Behan 308 Tim Beckerling 310 Tim Byrne 313 314 315 316 317 318

The Industry Associations ABC – Audit Bureau of Circulation ACA – Association for Communication & Advertising AMASA – Advertising Media Association of South Africa AMF – Advertising Media Forum ASA – Advertising Standards Authority CC – Creative Circle ICASA – Independent Communications Authority of South Africa MA(SA) – Marketing Association of South Africa NAB – National Association of Broadcasters OHMSA – Out of Home Media South Africa OPA – Online Publishers Association PMSA – Print Media South Africa PRISA – Public Relations Institute of South Africa SAARF – South African Advertising Advertising Research Foundation SAMRA – Southern African Marketing Research Association

The ANNUAL 2008 — 5

CREDITS — The Annual 2008

The team

PUBLISHER Richard Lendrum EDITOR Jeremy Maggs PROJECT MANAGERS Bronwen James Marcia Minnaar SUB EDITOR Gareth Richards EDITORIAL TEAM Debbie Derry Lynette Dicey Francis Herd Cheryl Hunter

6 — THE ANNUAL 2008

Fiona Kalk Christina Kennedy Anne Maggs Sarah Mann Jayne Morgan Gareth Richards Lisa Witepski PHOTOGRAPHERS Jeremy Glyn Stuart Williams Zoom Photography DESIGN CONSULTANTS REX

DESIGN & LAYOUT Simone Anderson Colin Double Sean Izaakse Lazlo Kissimon Michélle van der Walt

The Annual is published by Future Publishing (Pty) Ltd PO Box 3355, Rivonia 2128 9, 3rd Avenue, Rivonia 2128 Tel: (011) 803-2040 Fax: (011) 803-2022

PRODUCTION Tanya Lane

Note: Opinions expressed in The Annual are not necessarily those of the publishers. Permission to re-publish any article or image or part thereof must be obtained in writing from the publisher.

ACCOUNTS Desiree Roos PRINTING Typo Colour Printing Specialist Printed on Sappi Avalon Triple Green Silk 135g/m2 (Paper supplied by Sappi, Triple Green Initiative)

OPENING STATEMENT

A Big Book For A Tough Year In the crazy two months in which this book is compiled I was struck by one telling phrase from a leading creative director who said she was worried that South African advertising agencies had lost their differentiation. By that she meant there were times when you could say with supreme confidence that an ad was made by this or that agency and probably be right. And the reason, I inquired. “Well we’re all too safe, she said.” “We don’t go out on a limb any more for fear of breaking one.” Is that the state of advertising, marketing, branding and design in 2008 and 2009 as we enter what many believe will be the toughest year in the business since tough was measured? This is a time for marketers to engage and test and even torture their agencies for results, and agencies need to push back and become real partners. Keep an eye on the margins of safety but don’t let them constrain you to the margins

where mediocrity lives. It was telling to read just a few weeks ago in the authoritative brand value survey published by Interbrand that the winners, those who were worth more, had not only pushed the envelope, but in many cases had discarded them and found other solutions. Welcome to the second edition of The Annual, my review of the communications year 2008, written and compiled by a team that is now large enough to qualify for name tags at our planning and progress meetings. This is a genuine attempt to give an overview of the calendar year in our wildly unpredictable industry and for agencies to tell their own stories. To those who’ve come back, thank you. To newcomers, my appreciation, and to those who are absent, come back next year, we still love you. Agency profiles give an excellent indication of how the entrants have performed through their own eyes. This gives clients

the chance to read, compare and make some decisions, if and when they need to. But we’ve added more this year. We publish the first ever comprehensive survey of the public perception towards advertising and agencies. It’s hard hitting, truthful and telling, and my thanks to Neil Higgs and his team at TNS Research Surveys. We’ve also upped the opinion pieces this year from 15 to around 40, give or take an ego or two. The contributors have been thoughtful, insightful and measured and I thank them for moving the industry debate forward. While we’re dishing thanks around, well done to Rex Creative, who took on the task this year of design conceptualisation. Their brief was as good as any creative wants: “make it look good and authoritative and deliver it on time.” We hope we’ll take some stick for our list of the country’s most influential media practitioners. We had a team of engaged and competent judges. If you’re not on

the list, bitch like mad. If you’re surprised and flattered, use it on your CV. My team of writers have worked admirably hard, but none more so than joint project managers Bronwen James and Marcia Minnaar who have taken the word cajole to a new and fearful art form. Bless you both, for I know not what I do most of the time. A final special thanks as well to my broadcast colleagues at e.tv who have become our new media partners. It is simply the most exciting television station in the country and moves at the speed of light. I’m confident that the advertising, branding and design sector will survive 2009, battered, bruised and a little wiser. I hope this publication helps as something of a blueprint. Jeremy Maggs Editor

The ANNUAL 2008 — 7

PROFILE

The DNA of e.tv When e.tv launched an entirely new concept in broadcasting in 1998 – that of a free-to-air station, driven solely by advertising – it was met with scepticism. As the station celebrates its 10th anniversary, it proudly proves the cynics wrong; so wrong, in fact, that e.tv has become the station of choice for a large portion of South Africa’s viewers. The passion of e.tv’s sales management team, as they discuss the station’s triumphs and milestones, is almost palpable – and it’s this passion, they believe, that has seen it emerge as a stellar success. However, credit manager Marilyn Sevathiyan, who has been a part of the team since its inception, recalls that e.tv’s early days were something of a struggle: “We were the first station to launch in South Africa’s new broadcasting environment. The notion of a free-to-air station was completely novel back then; not to mention the fact that many felt it would be

Back Row: Jay Dayaljee, Jonathan Cooke

8 — The ANNUAL 2008

almost impossible to break the national broadcaster’s stronghold.” So, what was it that enabled e.tv to do just this? “Our DNA,” says Cape Town sales manager Marc Frampton simply. “e.tv’s DNA is an irrepressible blend of passion, loyalty, honesty, dedication and perseverance.” “For us, it was a matter of believing in a dream and a vision: providing a truly great product,” adds Lynn Adams, sales manager: Gauteng. The team has done this by keeping an eye on the competition and by also focusing far more emphati-

Front Row: Lynn Adams, Santie Raubenheimer, Marc Frampton

cally on the station’s own activities. This approach has allowed e.tv to emerge as a trendsetter, insists Jonathan Cooke, sales manager: eNews Channel. “For example, while other stations traditionally screened their news bulletins at 8pm, we broke the mould by introducing ours at 7pm,” he points out. Team Spirit The team adds that e.tv’s staff has also played a great part in the station’s success. CEO Marcel Golding maintains that the staff is the station’s greatest asset, and

this shows in the way the station rewards staff for their skill and enthusiasm. Says Jay Dayaljee, sales manager: Gauteng, “We all love coming to work, because of our exciting work environment. e.tv’s drive and culture make it one of the best places to work.” And with little extras like an office popcorn machine, foosball and a cricket side, who would argue that e.tv has a great atmosphere? More specifically, it’s the team’s diversity, their enjoyment of a healthy debate, and the fact that they’re empowered to make decisions quickly, that thrills the

PROFILE

team. Sales operations manager Teresa Kay maintains that at the heart of the team’s unity is the vision of chief commercial officer Khalik Sherrif, whom she describes as “a great mentor”. “We share many of his beliefs – such as his ethos that work is worship.” Add to this the fact that most members of the sales management team have been sharing their ideas and pooling their passion for more than six years, and it’s easy to understand the root of e.tv’s stability and common philosophy. Importantly, too, most of the station’s managers have been promoted from within – another example of the station’s dedication to its hard workers – so they’ve grown with the company. “And we continue to grow even more, together,” says Jay, describing the sales team’s annual conference as the ultimate growth opportunity. Hosted in various venues since the station’s birth – from Nelspruit, it moved on to Magaliesberg, then Victoria Falls, the Commores, India, Dubai, Bangkok and, next year, Brazil – it’s an intensive learning experience. Through Project Excellence, the team is broken into small groups, each tasked with researching a Harvard case study, such as the growth of Google. “This gives us examples of success, and broadens our horizons,” points out Marc.

a local spin on two giant international hit series (Fear Factor and The Biggest Loser), and has proved its mettle in producing its own, immensely popular, local drama series. Marc explains that e.tv’s programming is based on five pillars: news, movies, football, wrestling, and local productions. Of these, news is undoubtedly e.tv’s shining star: in fact, e.tv’s offering is the most watched news channel on South African television. Jonathan notes with pride that e.tv effectively changed the face of news in South Africa; in addition to its earlier time slot (introduced because of the belief that “by eight it’s too late”), e.tv’s presenters also offered a more relaxed appearance than the traditional, deskbound news reader. “We’ve tailored our news programmes to match our viewers,” Lynn says. “For example, the 7pm slot targets

the general viewers; the 10pm bulletin has a stronger business focus; and we’ve recently introduced Zulu and Sotho broadcasts at 6pm.” The success of e.tv’s news encouraged the station to become the first South African broadcaster to launch a 24-hour news channel (located on DStv channel 403). Likened to a blend of Al Jazeera and Sky News by media guru Chris Moerdyk, the channel is a full spectrum lifestyle offering featuring programmes on current affairs, media, sport and weather, presented by the cream of South African journalists, including the likes of Debora Patta, Jeremy Maggs and Redi Direko. Like e.tv’s news, movie programming has also been themed to suit viewers’ needs: Thursday nights feature popular “chick flicks”, Fridays are for action films, Saturday nights are family time and Sunday is about blockbusters. “This lineup

Riaz Ebrahim

Content With Kudos Lynn maintains that another reason for the station’s success lies in its solid lineup; a programme that’s so varied and wideranging that it confirms e.tv as a “broadcaster”. “There really is something for everyone,” Teresa agrees. While at its outset e.tv focused primarily on entertainment, it has since garnered a reputation for producing credible and unbiased news – but more about that later. Marilyn believes that e.tv reached a milestone as a broadcaster when it screened the 2002 Fifa World Cup; a major coup for a small station. Since then, it has repeated this success by putting Teresa Kay and Marilyn Sevathiyan

The ANNUAL 2008 — 9

PROFILE

taking place in the year, clients are treated to excellent seats. Then there’s the PGe, e.tv’s special golf day. Every year, more than 100 golfers are invited to take up their tees and clubs at The Wanderers, and to make the event even more of an occasion, they’re treated to a major welcome from the grandstand crowd at the eighteenth hole – just like Tiger Woods. “These initiatives are entirely unique and help set us apart from our competitors,” Riaz notes. Marc adds that the station pays just as much attention to building relationships with employees, and every quarter the entire e.tv Commercial Time Sales team joins on exciting, spirit-building adventures – from trout fishing to human foosball and the mini-Olympics, they all help entrench the e.tv ethos. Left to right: Jay, Teresa, Marilyn, Riaz, Santie, Jonathan, Lynn and Marc

allows us to attain dominant market share: from Thursday night until Sunday night, we are the channel of choice,” says trade marketing manager Riaz Ebrahim. Wrestling, a previous poor performer, has become the station’s most watched offering. This is largely thanks to the persuasive insights of the sales team, opines Adams, who were able to prove to advertisers the value of being associated with a very popular pastime. Speaking of popular pastimes – e.tv caters to the soccer-loving public by screening major global football events, including the UEFA championship, with a live match on Tuesdays and a postponed fixture on Wednesdays. Local productions complete the station’s offerings – and e.tv does, indeed, have much to offer here, with programmes including Scandal, Rhythm City (both of which have proved firm favourites with viewers), the Showbiz Report; eShibobo; Great Expectations; Third Degree; 20something; Shooting Stars; and Forgive and Forget. “This wide range, once again, ensures there is something for everyone,

10 — The ANNUAL 2008

from local soaps with gripping storylines that people can identify with, to Let’s Fix It, a programme that lets us give back to our community.” Sales Stars The team firmly believes that this stunning lineup serves as a great incentive to advertisers who want to be associated with e.tv. Says Jay, with justifiable pride, “e.tv generates more revenue than any single South African channel” – annual revenue of more than R1 billion. However, he’s quick to mention the strength and experience of the sales team, too, as well as their flexibility and willingness to accommodate clients. “We’ve been very careful with the pricing of our rates,” adds Jay. “e.tv advertising may not necessarily be a cheap buy, but it’s a good one. We’re careful not to overprice our product, but nor are we going to cheapen it by offering ridiculous prices. Our focus is on value for money – and this has created demand.” At the heart of e.tv’s sales success is the relationship that the station enjoys

with clients. “We take time to get know our clients – and their needs – thoroughly,” Marilyn explains. “As a result, we have long-lasting partnerships built on trust.” e.tv takes time to nurture that trust with exciting trade marketing initiatives. The most memorable of these, says Riaz, is e.tv’s Mumbai “MBA in a day.” In the three years since it was launched, e.tv has taken almost 200 clients to the vibrant Indian city, “which offers the most intense shopping experience in the world; there are at least 10 versions of every product, and traders don’t take no for an answer”, Riaz says. In other words, it’s the perfect destination for clients and the sales team alike to see peerless negotiating skills in action; to learn the power of persuasiveness, and to understand the principles of client retention. Another long-standing tradition, this time aimed more at relationship building, is the annual client trip to major footballing events. Whether it’s the World Cup or the UEFA Championship, whichever international tournament is

Into The Future With 10 memorable years behind it, what lies ahead for e.tv? First, says Jonathan, the station plans to capitalise on the success of eNews Channel with the launch of more channels. Next, continues Santie Raubenheimer, sales manager: new business, the station will establish itself as a content aggregator and expand deeper into Africa. The first steps have already been made in this direction, with e.tv acquiring Botswana’s Gaborone Broadcasting Corporation in 2007. “As of May, we have been providing the station’s sales and programming functions,” Santie reveals. She adds that the station’s progress into the continent will continue, with plans already afoot for media channels in Ghana. In the meantime, e.tv is preparing for the introduction of digital television next year. “We think it’s very noteworthy that we are the only licensed free-to-air station to have been granted a satellite licence in the same country. We think it’s a true sign that e.tv and its management have come of age,” Jonathan concludes.

FULL SERVICE AGENCY

+ ebonyivory.co.za

+ no

5 seventh avenue parktown north

THE ROCKSTARS

The Research

THE ANNUAL 2008 — 1

RESEARCH

ATTITUDES TO ADVERTISING A Survey Into Public Perception Why is this important? A 1995 paper (American Academy of Advertising) showed that, for magazines, attitudes to advertising had an effect on subsequent purchase outcomes, suggesting that it is both important and useful to know – • what these attitudes are; and • who is more negative or positive – to develop an “attitudes to advertising” spectrum. A literature search led to the development of a broad model that yielded a framework for research.

A set of agree/disagree statements to tap into these various constructs, as well as a set of additional questions to address particular issues, were devised. A core statement set (34) were administered to a sample of 2 000 adults face-to-face in their homes in the metro areas of South Africa in September 2008. This, along with an expanded set and additional questions were posed to TNS Research Surveys’ online access panel, 880 responses being received by the cut-off date. Executive summary Almost half of metro adults have a posi-

tive attitude towards advertising (19% extremely so), engaging with, approving of, talking about and actively enjoying advertising. Just over a third are ambivalent, having positive views but with many reservations. The remainder (17%) are negative (6% extremely so), feeling ads are intrusive, untrustworthy, boring and damaging to society. Positive people are more likely to be younger, black, and in Gauteng (especially Soweto) whereas negative people skew towards whites and Indian/Asians, older and English speaking people. Advertising is felt to be too ubiquitous

but is reflective of today’s society although concern over its effect on beliefs and values is evident, especially where sexual innuendo is present. Its place as both a source of information and entertainment is undisputed, although many have reservations about the credibility of performance and quality claims in ads: six out of ten people trust the opinion of friends and family more than they trust advertising and a quarter prefer the internet as a source of information. Ads that are clever and humourous are felt to be best, with ordinary people in everyday situations evoking a positive response. Good music is clearly crucial for relevant media as is the quality of the execution. Whilst half the sample feels that there are too many boring ads around, over half say that ads brighten their lives. A quarter feel that billboards make the environment look ugly. The need for brands to advertise is almost universally recognised. Part of everyday culture/contribution to society Three-quarters of the metro sample feel that ads reflect society but a third say that advertising “often damages our values and beliefs”. This response rises to over 40% for whites (especially English speakers) and Indians/Asians and to 50% for Muslims. However, 71% feel that advertising sponsorships help many sports to grow and develop (86% in Soweto). That advertising is ubiquitous is reflected in the finding that 69% of metro adults (46% in the online study) feel that there is far too much advertising around these days. However, half of metro respondents say that they often talk about ads with other people (especially blacks at 55% but less for whites (35%); more so for those below the age of 34 (55%) compared with those over 50 (37%)). Soweto (64%) is particularly buzzy in this respect as are LSMs 5 to 8 (55%),

14 — The ANNUAL 2008

RESEARCH

Tswana speakers (67%) and the online community (70%). Entertainment value and what constitutes “best” advertising According to metro adults, the best advertising – • is clever (77%) (Soweto 88%); • involves humour (76%) (less so for blacks (71%) and LSMs 2 to 5 (64%) but 83% in Soweto); and • shows people in everyday situations (69%). Four out of ten of the online sample don’t always understand the humour in ads. People feel that music makes a big difference to ads (79% – especially white females at 86% and residents of Soweto (92%)) whilst 77% love ads with children and 58% love ads with animals (less so for blacks at 49%, especially LSMs 2 to 6). But 41% feel that there is too much reference to sex in ads (especially whites (49%) and Indians/Asians (51%) and those in Pretoria, the West Rand and East London (online 52%). However, 36% of the online sample likes pictures of pretty girls in ads (males – 67%). More generally, 69% feel that advertising provides entertainment (especially blacks at 74%) (Soweto 81%) and people under 35 (72%), but less so for whites (56%), those over 60 (50%) and Muslims (49%). Three-quarters love seeing or hearing new ads, especially blacks at 80% (Soweto 89%) (whites 66%). On a more cautionary note, twothirds of people feel that ads that are not well made reflect badly on what is being advertised (90% in the online study). This attitude is particularly high for whites (79%), coloureds (77%) and Indians/ Asians (83%) and Hindus and Muslims (83%) but much lower for blacks at 61%. A quarter of people feel that billboards make the environment look ugly (mostly

whites and Indians/Asians at 33%) but 58% feel that ads in general do brighten up their lives (78% in Soweto and 65% in Durban but 37% amongst those in LSM 10). Two-thirds of the online sample said that life would be dull without ads; 45% feel that billboards brighten up the environment. One person in six hates ads, this rising to one in four amongst whites and Indians/Asians and Muslims. Information value and language issues An encouraging 80% of people feel that it is important for brands to advertise (whites and Indians/Asians are higher at 88%, perhaps surprisingly) with 65% preferring ads in their home language (62% for blacks), this rising to over 70% in Cape Town and Durban and to 75% amongst English speakers (60% for blacklanguage speakers and 66% for Afrikaans speakers). By contrast, 58% of people prefer English (there is some overlap) with blacks at 52%, whites at 60%, coloureds at 72% and Indians/Asians at 88% (online 69%). By language group, this figure is 81% for English speakers, 52% for Afrikaans speakers and averages 50% for black-language speakers. People feel that ads help them to know what is “in” (79% but less so for those over 60 (69%)), gives them the confidence to make correct buying decisions (69% but less so for whites at 56% and those over 60 (50%)) and that, without ads, they would miss out on new products and services (70% with 76% of those aged under 24 saying this compared with 58% of those aged 60 and over)(93% in the online study). Further, 74% feel that ads often make them think. Nine out of ten of the online sample feels that ads promote competition. However, 47% of metro dwellers say that advertising is not reliable when it comes to claims about performance and quality, especially Indians/Asians at 63% and English speakers (55%) as well as the online community (71%) but less so for

LSMs 2 to 5 (37%). A quarter prefer the internet (55% online). Irritation levels and what puts people off Half the sample do not trust performance and quality claims, four in ten feel that there is too much sexual innuendo in ads and a third are concerned about advertising that damages beliefs and values. In addition, 55% feel that there are “lots of boring ads around these days” – especially whites and coloureds and the online community. People in Cape Town are particularly critical here (67%). Blacklanguage speakers averaged 45% with Afrikaans speakers (76%) and English speakers (69%) being the most critical. Ads that use people who cannot speak the language properly annoy two-thirds of the online community (“funny accents” irritate 34%) whilst “terms and conditions apply” and small print annoy 59%. Ads that come on the screen during favourite sporting events are also a source of irritation for half the online people. Pet hates about advertising amongst the online sample include repetitive ads (11%) and untrue ads (9%) followed by ads with a sexual connotation at 6% (8% amongst females). Other mentions of 5% or more included “senseless ads”, ads that interrupt, ads that do not relate to products, boring ads and long ads. Only 2% of people did NOT make a comment here. Credibility, ethics and self-regulation We recall that half our sample do not trust performance and quality claims in advertising and a third feel ads can damage beliefs and values. Beyond that, 61% say that they trust the opinions of friends and family more than they trust advertising (73% for Indians/Asians and 69% in Cape Town) and 23% use the internet rather than advertising for information about products and services (Soweto – 15%). This rises to 55% in the online study where 34% feel that the

ad industry is not to be trusted. Half of those surveyed say that, if they find an ad offensive, they know that there is an organisation they can turn to (blacks – 40%, whites – 63%, others – 51%; Pretoria – 55%, Cape Town – 60%, Soweto and East London – only 28%). This rises to 84% in the online study. Further, 57% feel that ads aimed at vulnerable people should be regulated (especially LSM 6 to 10 and English and Afrikaans speakers as well as the online community (76%) where 88% felt that ads aimed specifically at children should be regulated). General issues – the Loeries and ad agencies Just 23% of the metro sample has heard of the Loeries, this rising to 44% amongst whites but dropping to 16% amongst blacks. Fully 80% of the online sample knows of the Loeries. A third of the metro sample says that they know the names of quite a few ad agencies. This is across all races except for Indians/Asians where it rises to a half. There is no correlation with LSM. Segmenting people along an “attitudes to advertising” spectrum Using the core battery, we segmented people into five groups: 1. 19% fall into a group that loves advertising, engages with it, talks about it, trusts it, is not at all critical about it, seeing it as a fundamental and important part of society that provides both entertainment and crucial information - but it does not know much about the industry or the ASA. 2. 28% are positive about advertising. 3. 36% are ambivalent – they can be quite critical but also see ads as an important contributor to decision-making. 4. 11% are negative. 5. 6% are highly negative. They hate ads, want regulation, feel there is

The ANNUAL 2008 — 15

RESEARCH

too much sex in ads, do not trust claims made, feel ads damage values, are boring and too ubiquitous, and prefer the internet. They mostly know who to complain to about ads they find offensive. The most positive people are black, younger, in Gauteng (especially Soweto), LSM 5 to 7, with a tendency towards Tswana and Sotho speakers. Conversely, the more negative groups skew towards whites (especially males) and Indians/Asians, older people, LSMs 9 and 10, and English speakers. Other highlights from the online component • Costs – 73% of the online panel realise that, without advertising, TV, radio, newspapers and magazines would cost more but 39% feel that, without advertising, other things would cost less. • BEE – 21% feel that there should be more black people in the ad industry (66% amongst blacks, though, as against just 7% of whites). Imagery of the media People were asked to associate attributes with different media types on the online panel. The resulting correspondence analysis map shows how the different media are differentiated. Special interest magazines are much more likely to be associated with “ads that I trust the most” and “would be too expensive without the ads” than average. “Ads that are relevant to me” is also in this space. Other print media are in this image arena but are less strongly differentiated with newspapers also being differentiated on “tells me about prices and promotions”. Specialist magazines share “has ads I notice” with cinema and, to some extent, DStv which is differentiated on having particularly enjoyable ads and “ads that liven up my day”. However, all the TV stations

16 — The ANNUAL 2008

RESEARCH

are felt to have too many repetitive ads, this being the main differentiator of SABC TV and e-tv, although they do share to some extent the enjoyable and livening attributes with DStv. Newspapers are distinguished by not having ads that interrupt what people are doing – this is associated more with the free-to-air TV stations. The left of the map is about a lack of trust, irritation, avoidance and offence and is associated more with telesales, direct mail, e-mail, cell-phone ads and ads on the internet. Most memorable pay-off line Some 50 pay-off lines were given by the online sample. The most popular was “Just do it” (Nike)(7%) (more amongst younger people) with “Today, tomorrow, together” (ABSA) (6%) and “It’s not inside, it’s on top” (Cremora)(6%) next (especially amongst older people). However, this hides differences between race groups: • For blacks, “Today, tomorrow, together” (13%) and “How can we help you?” (FNB)(12%) were top, the latter especially amongst females. Cell C’s “For yourself” (8%) was third.

• For whites, “It’s not inside, it’s on top” was the leader at 9% with Nike at 8%. • The coloured sample’s top three were Nike, ABSA and “Spar, good for you” all at 7%. • The Indian sample gave “Coke adds life” (7%), Nike (7%) and ABSA (6%). Best ad at the moment Fast food outlets (19%) dominated with KFC ads the highest (9%), followed by Nandos (5%). Beverages were next at 17% – mainly Coca Cola ads (11%). Cell phone service providers (10%) were led by Vodacom (7%). Car brands (8%) had no clear leader. One person in ten could not give a best ad. Most memorable character/device Vodacom ads were cited by 17% of people, particularly the meerkat (8%) with other characters together being mentioned by 7%. Thereafter, no one character or device emerged as a clear leader.

The ANNUAL 2008 — 17

ReSeARCh

PROFILING OUR RESEARCHERS TNS Research Surveys

We are a passionate team of marketers and researchers who cannot rest until we’ve found the answers to unresolved issues. Since 1979, TNS Research Surveys has provided its clients with the highest quality marketing research expertise, coupled with sound marketing insight, and consistently delivered actionable solutions to marketing problems. Formerly part of the JSE listed company Adcorp Holdings Limited, Research Surveys has recently been acquired by a consortium led by one of the world’s leading market research firms, TNS, a new BEE partner, Kapela Investment Holdings (Pty) Ltd, and the senior management of Research Surveys. Our promise to our clients is the delivery of a solution – the answer to your marketing question. The starting point of our business is to live our clients’ brands and products. It becomes our brand or product and ensures that we intimately understand our clients’ marketing strategy and

18 — The ANNUAL 2008

problem. Our research approach is tailor-made to address this problem, and our brand and product knowledge turns the research findings into actionable, strategic solutions. It is our investment into our clients’ brands however, that makes our solution a unique, relevant and personal one. We pride ourselves on our long-standing partnerships with our clients that help us turn research information into strategic marketing solutions. TNS, a world leader in market information, is also the largest provider in the world of custom research and analysis and is a major provider of consumer panel data, media intelligence and TV audience measurement. It has a global network of over 14 000 people employed in over 70 countries and is a world leader in delivering value-added information and insights. In addition, TNS holds the global rights to the world’s leading measure of brand commitment, the Conversion Model™, originally developed by TNS Research Surveys. We are very proud of our lever 4 contributer, ‘A’ Empowerdex rating. Our team of researchers and marketers have decades of collective experience, including the best technical research experts in the industry and marketers with in-house experience at some of the top marketing companies around. Our offering to our clients is based on a collaboration of these skills and ensures sound, high quality and relevant solutions. The quality of our input ensures that our solutions are based on what consumers really say, feel and how they behave. Whether the approach be qualitative, face-to-face quantitative, telephonic or webbased, our people, quality checks and accurate data production services deliver data with integrity. Curious? Phone us on: Cape Town: 021 657 9500 and ask for Mark Molenaar or Peter Wilson Johannesburg: 011 778 7500 and ask for Ivan Motlogoloa or Karin Du Chenne Durban: 031 583 3500 and ask for Debbie Booth Or visit our Website: www.tnsresearchsurveys.co.za CEO: Margarita Putter, COO: Andrew Lancefield, MD: Karin Du Chenne

RESEARCH

Black DiamondTM Why is the Black DiamondTM segment important? In any society, a vibrant, significant middle class is an essential prerequisite for sustainable long-term economic growth. In general, such a group is associated with the ownership of key items such as property and homes, cars, electronics and appliances. But, in times of great social disruption, there can be exceptional leaps in a single generation. This is the case here in South Africa. There is good evidence of the speed of this phenomenon: GDP growth has risen from 1.9% in 2001 to just under 5% in 2007, despite static or even slightly declining white buying power and black unemployment of over 40%. There have been massive changes in black ownership, achievement, and status over the last 15 years. For example, from 1994 to 2008, the black share of: • Microwave ownership has risen from 6% to 57%; • Fridges has risen from 45% to 67% and electric stoves has risen from 36% to 62%. TNS has done research in this segment and call this segment the Black DiamondTM segment. Interesting facts about Black DiamondsTM include that: • This segment of three million adults is responsible for R250 billion worth of consumer spend. This represents more than half of the black South African population’s spending power. • This segment is growing fast; it has grown by 50%

from 2005 to 2008 and is currently growing at 15% per year. Remain leaps and bounds ahead of your competitors Is your business always speaking about this ‘emerging black middle class’ in South Africa? Does your business understand this segment? Which of your products are in demand in this segment? TNS has a few options to help you target this segment. The Black DiamondTM Media pack: Is your business concerned about where to place advertising aimed at this important market to best leverage your budget? Do you want to get maximum ROI (return on investment) on your marketing spend? The media pack has been used by TNS Research Surveys’ clients to draw up media plans and some of these clients have seen increased usage and sales from this emerging market. The media pack tells you what the black middle class is watching, listening to and reading. Black DiamondTM OmniTM Is your business confident about targeting this segment? Do Black DiamondsTM know your brand? The Black DiamondTM OmniTM is a syndicated study that incorporates a collection of questions from a number of different clients on the same questionnaire. The shared nature

of this study enables shared costs, shared demographic information, and a cost-effective means of conducting research amongst this lucrative market. The questions included by a particular client remain confidential and clients only receive the results of the questions they pay for. A total of 1 500 Black DiamondsTM, male and female, are interviewed. The interviews are conducted face to face in the seven major areas of South Africa: • Johannesburg • Pretoria • Cape Town • Durban • Bloemfontein • East London and • Port Elizabeth The Black DiamondTM Financial pack: Does your business understand how this segment handles its finances? The financial pack looks at personal monthly income amongst Black DiamondsTM and identifies who is personally benefitting from this income. The financial pack also looks at the type of debt Black DiamondsTM have and the average amount currently owed for each type of debt. It then looks at the types of financial products Black DiamondsTM currently hold and concludes by looking at how Black DiamondsTM currently feel about their financial standings. Contact: Rudo Maponga 011 778 7772 or Ivan Motlogeloa 011 778 7748

The ANNUAL 2008 — 19

13911 - Questions 273x210 7/21/08 2:04 PM Page 1 RESEARCH

C

M

Y

CM

MY

CY CMY

K

If you know the answer to the puzzle or have any theories of your own please phone Rob Powell (011) 778 7725 or Neil Higgs (011) 778 7725

20 — The ANNUAL 2008

Composite

THE ROCKSTARS

The Top 100

TOP 100

SA’S TOP 100

Category: Academic & Training

MOST INFLUENTIAL PEOPLE IN ADVERTISING & MEDIA HOW WE DID IT The actual premise of this project is by definition and design tinged with selfindulgent arrogance. Those of us who work in this sector think we are terribly influential. We, after all, shape public opinion don’t we; and influence billions of people every day to use and buy products and services? We are the kings and queens of the universe, aren’t we? Sigh. If only it were true. When it comes to journalism, practitioners are more often than not criticised for getting it wrong; missing the point and being glib and pompous. On the marketing and advertising side, we are no longer hidden persuaders but rather purveyors of dark commercial arts. We concede there is a bit of truth in all of this. But having said that we embarked on this endeavour for two reasons, one readers love lists and so do we; secondly, people in any industry love being on them. Mark my words, we’ll be inundated with complaints from people and their acolytes about omission, and those who cracked the nod, will feature this on their CV’s. That’s the whole point. We want people to argue and next year we want to bump people off and include new names. So how did we do it? We commissioned two senior and jaded non-media space journalists to compile a per sector list of likely candidates. We chose the pair because they had to approach this dispassionately and with some degree of naiveté. Inside knowledge is a dangerous thing. They ended up with a total of around 500 names in all categories.

They compiled their initial list by talking to people and asking for advice and referrals. Once they had the list we invited a panel of eminent people in the industry to sit around a large table one morning and reach consensus per category. There was argument, persuasion, hostility and humour in the four-hour session. Some categories were easier to conclude than others. At the end we had 10 people per category. Then there was some debate as to whether to rank them in order of influence and then put that into a bigger consolidated list. Could we find the most influential person across all categories? Not this year but maybe in the future. So what constituted influence? We judged the group on the amount of power they wield in their chosen sector; did they have the ability to change thinking and behaviour; and were they widely respected by their peers. For good measure I chucked in these quotes into the brief: • Influence may be the highest level of all human skills • You cannot antagonise and influence at the same time • Because everything we say and do is the length and shadow of our own souls, our influence is determined by the quality of our being If you didn’t crack the nod this year, don’t fret, its just a list for goodness sakes. If you did, show your friends and stand a round of drinks. Jeremy Maggs.

Fackson Banda Unesco chair of media & democracy: School of Journalism & Media studies, Rhodes University

Guy Berger Head, School of Journalism & Media Studies, Rhodes University and former deputy chair, SA National Editors Forum

Gordon Cook National school navigator, Vega Brand Communications School

Anton Harber Caxton chair of journalism & director of the journalism & media studies programme, Wits University

Chris Kabwato Director, Highway Africa

Frans Kruger Senior lecturer, Journalism & Media Studies Programme, Wits University

Professor Tawana Kupe Dean of Humanities, University of the Witwatersrand

Lizette Rabie Director: Department of Journalism, Stellenbosch University

Reg Rumney Director, Centre of Economic Journalism in Africa at Rhodes

Ruth Teer-Tomaselli Unesco chair of communication for South Africa, deputy dean of humanities, development & social sciences Univeristy of Kwazulu Natal

22 — The ANNUAL 2008

Adver

8LMAGAZINEISA4HUTHUKA)NITIATIVE

Advert.indd 1

James Hemphill ~ J13683

GUIDINGTHEYOUTHINTHERIGHTDIRECTION

10/7/08 2:47:49 PM

TOP 100

Category: Advertising

Category: Branding & Design

Matthew Bull Group chief executive officer, Lowe Bull

Harry Herber Group managing director, The MediaShop

Mike Freedman Partner, Freedthinkers

Sean Harrison Creative director, Code

Andrew Human Managing director, Loeries Company

Gerry Human Chief Creative Officer, Ogilvy

Gary Harwood Executive creative director, HKLM

Thebe Ikalafeng Managing director, Brand Leadership Group

Muzi Kuzwayo Group chief executive officer, TBWA/ Hunt/Lascaris

Julian Ribeiro Managing director, Ogilvy Johannesburg

Steve Miller Brand consultant

Ravi Naidoo Managing director, Interactive Africa

Mike Schalit Chief creative officer, Net#work BBDO

Paul Warner Founder & chief creative officer MetropolitanRepublic

Nathan Reddy Chief executive officer & executive creative director, Grid

Andy Rice Chief executive officer, Yellowwood Future Architects

Graham Warsop Group chairman, The Jupiter Drawing Room South Africa & Partners; founder & chief creative officer The Jupiter Drawing Room Johannesburg

Paul Wilkins Chief executive officer, MediaCompete

Jeremy Sampson Chief executive chairman, Interbrand Sampson

Larry Shiller Group managing partner, The Switch Group

24 — The ANNUAL 2008

Adver

(IDDENINTHEDUSTYSTREETS RURALOUTSKIRTSANDBUSYTOWNSHIPSOF3OUTH!FRICAARE ASPIRANTBUSINESSMENANDWOMENWHO WITHTHEPLATFORMPROVIDEDBY8LMAGAZINE ANDTHE4HUTHUKA)NITIATIVESOF3!)#! WILLRISEFROMTHECHALLENGESTHEYFACETOBECOME #HARTERED!CCOUNTANTS¨THEDESIGNATIONTHATMANYOF3OUTH!FRICA´SPREMIER BUSINESSLEADERSHOLD 8LMAGAZINEISATRENDY COLOURFUL INFORMATIVEBAG SIZEDCAREERLIFESTYLEPUBLICATION THATREACHESTHEHANDSOFHIGHSCHOOLAND"#OMUNIVERSITYSTUDENTS )TISPUBLISHEDQUARTERLYANDDISTRIBUTEDINALLNINEPROVINCES ANDTAKESITSREADERSON AJOURNEYTHATUNPACKSTHESCHOOLCURRICULUM TALKSOPENLYABOUTSOCIALCHALLENGES GIVESADVICEONCAREERCHOICES ANDINTRODUCESTHEOPULENTLIFESTYLEOFTHE#!3!  )TMOTIVATES INSPIRESANDGIVESOURYOUTHANOPPORTUNITYTOEXCELATLIFE

0UBLISHEDBY4HE3OUTH!FRICAN)NSTITUTEOF#HARTERED!CCOUNTANTS #ONTACTFORMOREINFO

Advert.indd 2

James Hemphill ~ J13683

8L¯GUIDINGYOUTHINTHERIGHTDIRECTION


10/7/08 2:47:51 PM

TOP 100

Category: Magazines

Category: Media OwnerS

Bun Booyens Editor, Weg

Peter Borchert Founder of award winning magazine Africa Geographic

Koos Bekker Managing director, Naspers

Marcel Golding Chairman, Hosken Consolidated Investments (etv)

Louis Eksteen Chief executive officer, Upper Case Media

Justice Malala Head, Avusa Magazine Division

Alec Hogg Chief executive officer, Moneyweb

William Kirsh Chief executive officer, Primedia

Barney Mthombothi Editor, Financial Mail

Alan Ramsay Publisher, Getaway & Car

Nolo Letele Chief executive officer, Multichoice South Africa Group & director, Multichoice Africa

Given Mkhari Chief executive officer, MSG Afrika Media

Jane Raphaely Founder, Associated Magazines

Esmare Weideman Editor, You; Drum & Huisgenoot

Terry Moolman Chief executive officer, Caxton

Murphy Morobe Chief executive officer, Kagiso Media Ltd

Martin Welz Editor, Noseweek

Makhosazane Zwane Editor, Move

Trevor Ncube Chief executive officer, Mail & Guardian

Tokyo Sexwale Executive chairman, Mvelaphanda

26 — The ANNUAL 2008

ASA adve

TAKE AIM, FOCUS AND

www.accountancysa.org.za

ASA advert_bookmark.indd 2

James Hemphill ~ J13684

CAPTURE

10/7/08 3:16:05 PM

TOP 100

Category: New Media

Category: Newspaper

Matthew Buckland General manager: publishing & social media, 24.com

Jonathan Cherry Managing director, Cherry Flava Media

Peter Bruce Editor, Business Day

Deon Du Plessis Founder, Daily Sun

Jarred Cinman Software director, Cambrient Internet Applications

Khaya Dlanga Video blogger, most downloaded South African on youtube.com

Tim Du Plessis Editor, Rapport

Ferial Haffajee Chief executive officer & editor-in-chief, Mail & Guardian

Dave Duarte Programme director, UCT Graduate School of Business

Arthur Goldstuck Managing director, World Wide Worx

Bareng-Batho Kortjaas Senior sports writer & columnist, Sunday Times

Thabo Leshilo Former editor-in-chief, The Sowetan, and this year’s Nieman fellow

Vincent Maher Head of social media, Vodacom

Louise Marsland Editorial director, Bizcommunity.com

Mondli Makhanya Editor, Sunday Times

Xolela Mangcu Columnist

Duncan McLeod Tech writer & blogger, Financial Mail

Carly Ritz Multimedia editor, The Times

Jovial Rantao Editor, The Sunday Independent and deputy editor, The Star

Zapiro Cartoonist

28 — The ANNUAL 2008

ASA ad

Accountancy SA’s readership allows you to capture and aim your brand at a dynamic audience that collectively spend in excess of R108 Billion annually on lifestyle purchases such as air travel, luxury hotel accommodation, information and communication technology, fleet cars, and financial & property investments.

Published by The South African Institute of Chartered Accountants. Contact 08610 72422 for more info.

ASA advert_bookmark.indd 3

James Hemphill ~ J13684

Our readers are key purchasing decision makers, both at home and in the market place, so can you really afford not to focus your brand on our audience?

10/7/08 3:16:05 PM

TOP 100

Category: PR

Category: Radio

Michele Anderson Managing director, Magna Carter

Marcus Brewster MB Publicity

Jenny Crwys-Williams Talk show host, 702

Redi Direko Talk show host, 702

Dick Foxton Managing director, Foxton Communicating

Brian Gibson Brian Gibson Issue Management

DJ Sbu Morning show presenter, YFM

Bob Mabena Executive manager: public commercial services, SABC

Peter Mann Chief executive, Meropa Communications

Rich Mkhondo Corporate affairs executive, SA Express

Tsepiso Makwetla Morning talk show host, SAFM

Jeremy Mansfield Morning show host, 94.7 Highveld Stereo

Ranjeni Munusamy Owner RanjeniM Communications

Jenni Newman Chief executive officer, Jenni Newman Public Relations

Thomas (Bad Boy T) Msengana Morning show host, Metro FM

John Perlman Radio show host, Khaya FM

Bridget Van Oerle Founder, Buz Publicity

Chris Vick Owner, Black

John Robbie Morning show host, 702

Terry Volkwyn Chief executive officer, Primedia Broadcasting

30 — The ANNUAL 2008

TOP 100

Category: Television

Carl Fischer Director, Original Productions

Harriet Gavshon Co-founder and managing director, Curious Pictures

Robert Marawa Presenter, Supersport

George Mazarakis Executive producer, Carte Blanche

Menzi Ngubane Mzansi winner 2008 and Generations actor

Ray Nkwe General manager, SABC1

Imtiaz Patel Chief executive officer, Supersport

Debora Patta Group editor-in-chief. eNews

Noeleen Maholwana Sangqu Talk show host

Snuki Zikalala Group executive news & current affairs, SABC

32 — The ANNUAL 2008

THE ROCKSTARS

The Awards

AWARDS

The awards 2008

2008 South African Creative Review by Kim Penstone

Three years, three Cannes Grand Prix. First it was Draftfcb, then it was Net#work BBDO. And this year, it was DDB South Africa, making the hat-trick for South Africa with a delightful campaign for Energiser that highlights all the dodgy antics kids get up to if they aren’t kept occupied by battery-operated toys. Despite this superb achievement, however, South Africa’s overall performance on the international stage was slightly disappointing this year, having dropped its total award count at all four of the heavy-weight international shows in which we participate – the Cannes Lions International Advertising Awards, the One Show Awards, the Clio Awards and the D&AD Global Awards. In an effort to get the best on-the-ground reportage of the whys and wherefores of the industry’s performance, we quizzed a selection of high-profile South African creative directors who were invited to judge at each award show. Then we tracked down additional commentary from Creative Circle Awards Committee chairman Gerry Human. This is what they had to say ... CANNES LIONS INTERNATIONAL ADVERTISING AWARDS What Gerry said: “Although South Africa didn’t win as many Lions as in previous years, there’s no question that we featured more prominently at the ‘Olympics of Advertising’ than we did at the real one! “Most notable was DDB South Africa and Energizer Batteries’ outstanding Grand Prix win in the press category, which is well known to be the largest category in the festival by far, so to actually win the top prize is a truly exceptional achievement. “Even more remarkable is that this was a Grand Prix hat-trick for South Africa – long may it continue! “The Jupiter Drawing Room group headed the agency group points table, with the Grand Prix, one Silver, one Bronze and 15 Shortlists.” What our judges on the ground said: Vanessa Pearson, executive creative director McCann-Erickson, Outdoor Lions judge: “Unfortunately, across most of the categories at Cannes 2008, the depth and range of our metal performance is down from previous years. Overall our thinking and crafting just seems to lack a certain kind of lustre. We seem to have lost that ‘look at me, look at me, love me’ magic. But it’s not all doom and gloom. Apart from the glory of taking home the Press Grand Prix, and King James bringing in a Silver Lions in the Film category, we are also beginning to see many more local agencies appearing on the awards tables, even if only for Shortlists.” Kirk Gainsford, creative director Lowe Bull Cape Town, Press Lions judge: “South Africa can – and does – compete well in categories where it can design for the show, but I believe we are falling behind in the digital and massive-budget film world “I would like us to build on the Grand Prix hat-rick, but please let’s not judge our entire industry on these three awards because it may camouflage the real situation. I think we need to grab back our rightful place in world advertising, and quickly.”

THE ONE SHOW AWARDS What Gerry said: “Just as the work recognised at the British D&AD tends to be quintessentially English, so the winners at the One Show are typically American: funny and to the point. As such, South African work isn’t well known for being covered in glory at this competition, but nevertheless this year’s tally of five Pencils was respectable when you consider how few are actually handed out to countries outside of the US. “As a country, we have only won five Gold One Show Pencils in four years – it’s worth noting that they were all in the design category, and all produced by Cape Town studios. “This year JWT Cape Town upheld the Mother City’s reputation by, once again, winning Gold in the design category. “And contrary to my point about the American-ness of the awards, this year’s Gold winner was actually typically African! The cleverly crafted poster for a hair salon obviously stood out as a truly original idea.” What our judges on the ground said: Jenny Ehlers, creative director King James rsvp, One Show Design judge: “South Africa definitely featured at the 2008 One Show Design and most of our work was put through for consideration in the final round of judging, which was great to see and to know that SA design is up there.” Pete Case, creative director Gloo, One Show Interactive judge: “South African work didn’t shine through this year in digital. “But our digital industry is alive and well and creating great work. It’s worth noting that South African digital work has seen some success at other international awards recently such as at Cannes, Echos, Clios, Promax and D&AD. So the standard is there, but perhaps the size of campaign, especially integrated campaigns, is not there yet. “In my view the key to future success here is in increased collaboration between the various creative agencies servicing brands, working together with brave clients. Add this approach to great conceptual thinking and despite the connectivity disadvantages we have here, we’ll still see great work shine through.” 34 — The ANNUAL 2008

THE CLIO AWARDS What Gerry said: “There were fewer of the coveted statues for South Africa overall than in previous years, but DDB South Africa and Energizer batteries’ print campaign collected the first Gold for SA since 2005 (and one of only 10 handed out in the print category this year). “It’s notable that nine out of a total of 15 statues won by South Africa were in the print category, which obviously suggests that the standard of print work in SA ain’t too bad!” What our judges on the ground said: Ross Chowles, executive creative director of The Jupiter Drawing Room Cape Town, Print/ Poster/Billboard/Innovative Media/Integrated Campaigns judge: “Entering awards is really like playing roulette. South Africa did very well. We mustn’t measure ourselves in actual medals (though we did get quite a few) but rather that to bubble up through the thousands of hopefuls from around the world is amazing. For such a small economy/industry, we really stand out above the average.” Garth Walker, Orange Juice Design, chairman of the Design Jury: “South Africa didn’t feature in the design category – nothing made the final selection. Local design has an inflated view of our standard relative to current global design. We need to focus more on the idea, and less on the execution. However, clients have much to answer for, as (in general) business has been slow to recognise the added value that good design brings. Business is not demanding enough of designers, and the ‘corporate standard’ of acceptance is low. The design market is still price driven, and design companies are increasingly profit driven over creativity. The work comes second. “Business needs to raise the bar, demand more from their designers, and designers themselves need to understand we have a long way to go if we want to catch up with competing ‘emerging design nations’. It’s a partnership really. To date, we haven’t quite gotten the marriage right. Our future depends on it. Designers are up for the challenge. Is business?...”

D&AD AWARDS What Gerry said: “For some reason, the miserly D&AD jurors seem to think South African radio advertising is a bit of alright. Following Grey Worldwide’s success in the radio category last year with Geronimo Condoms (two Silver Pencils), this year the top prize went to BBDO Cape Town and Marshall Music Store, again for brilliant radio advertising. The ad illustrates just how easy it is to play drums if you put a face to different drum sounds, encouraging aspiring drummers to ‘give drums a go’ at Marshall Music. “To put the significance of this award in sharp perspective, there was only one other Pencil awarded in the entire category!” What our judges on the ground said: Jenny Glover, creative director Net#work BBDO, Radio Advertising judge: “Our performance at D&AD, the most elusive of the awards, wasn’t bad. South Africa has only ever won a handful of Pencils and in recent years we seem to be steadily increasing our collection. Radio in particular seems to be our strong suit. Listening to all the entries during judging it’s evident that our radio really pops. There’s an under-production and a fresh charm. And then there’s that special flat South African accent. Always a winner. “My overall impression of the work across all categories was not that the rest of the world is necessarily better than us, just that they enter more. We should submit more stuff and specifically more non-traditional stuff. You’d be amazed at the scope of the entries in the design categories. I spotted a carpet on one of the judging tables. Basically, if you’ve got a beautiful smart thingie-ma-bob, and South Africa has lots of those, then enter it. It could win you a P encil.” The final word goes to Gerry, but ultimately, to the glittering Jupiter Drawing Room Group:

“Special mention must be made of the The Jupiter Drawing Room Group, which headed the agency group points table at every International award show this year,” comments Gerry Human, Creative Circle Awards Committee Chairman.

AWARDS

01. DDB South Africa won a Cannes Grand Prix in the press category for their Energizer Batteries campaign.

The ANNUAL 2008 — 35

AWARDS

THE LOERIE AWARDS 2008 In 2008, The Loerie Awards celebrated 30 years of recognising and rewarding outstanding work in brand communication. Launched in the late 1970s in an effort to support and grow the fledgling television advertising industry, they have since been expanded to include all areas of communication, including traditional formats such as television, radio, print and outdoor advertising to design communication, internal marketing, strategic CRM, digital campaigns and even live events and interior design. In 2008, The Loerie Awards celebrated 30 years of recognising and rewarding outstanding work in brand communication. Launched in the late 1970s in an effort to support and grow the f ledgling television adver tising industr y, they have since been expanded to include all areas of communication, including traditional formats such as television, radio, print and outdoor adver tising to desig n com mu nication, i nter nal ma rket i ng, st rateg ic CR M, dig ital campaig ns and even live events and interior design. Today, the Loerie board and committee represent all areas of the brand communication industr y – including t he Association for Communication

a nd Adver t isi ng (AC A), t he Creative Circle (CC), t he Sout h A f r ican Graphic Design Council (Think), the Commercial Producers Association (CPA), t he Dig ital For um, and t he Communication & Advertising Forum for Empowerment (Café). The brand also aims to extend its reach beyond that of two evenings of creative celebration, to a year-round focus on creative inspiration – helping marketers, agencies and consumers appreciate the value of ideas and fresh thinking. The Loeries’ calendar now includes the hard-cover printed annual and DVD of the year’s leading brands and agencies, the Travelling Exhibition showcasing the year’s winning work,

the Judges’ seminars and two editions of Migrate magazine. I n 2007, t he L oer ies committee launched The Young Creatives Award and t he Marketing L eadership and Innovation Award. In 2008, it topped this with the initiation of a high-school scholarship to assist creatively talented youth from a disadvantaged background. The scholarship, in partnership with the SABC and Woolworths Making the Difference through Design, is the largest of its kind in the industr y – covering fees, materials, travel and board as well as mentorship and guaranteed employment. I n t he 30t h a n n iver sa r y yea r, a record number of entries was received

and a record number of delegates attended the awards ceremony in Margate - - testimony to the successful turnaround of the Loerie brand. Og ilv y Sout h A f r ica ( Johan nesburg) topped the creative charts with a whopping 3 850 points, followed by K ing James Cape Tow n w it h 3 000 points, and Net#work BBDO with 2 350 points. The judging panels awarded four G ra nds Pr i x, to K i ng James i n t he T V and Cinema categor y; Trigger in t he A rchitecture & I nter ior Desig n categor y; Am I Collective in Craft Illustration; and Net#work BBDO and Gloo Dig ital Desig n, in t he Dig ital categor y.

The Winners GRAND PRIX

Allan Gray “ Beautiful ” King James

A l la n G ray L i m ited is one of Sout h A f r ica’s top i nvest ment compa n ies, t he suc c e s s of wh ic h i s l a r g ely ba s e d on it s abi l it y to ide nt i f y a nd buy u nder va lued stock s a nd h ave t he pat ience to wa it for t hem to reac h t hei r f u l l p ote nt i a l. C r e ate d by K i n g Ja me s , t h i s b e aut i f u l ly s hot tele v i s ion spot i s a n a n a log y of t h i s i nve st me nt ph i lo sophy, ba se d on t he a g e - old say i n g: I f you wa nt to k now wh at a g i rl is goi n g to look l i ke one d ay, look at her mot her.

for use, a nd t he bold sy mbol - based de sig n st yle of t he site was a lso u sed to c reate t- s h i r t s a nd ot her awa rene ss item s, i n t he rea l world. Wit h i n t he f i r st t h ree mont hs of t he ca mpa ig n, more t ha n 1 0 0 0 causes were c re ate d, g ener at i n g more t h a n 5 0 0 0 com ment s. E ig ht y percent of t he site content was gener ated by t he aud ience it sel f. I n novat ively, t he most d isc ussed cause was t hen r u n by 5FM as a rea lworld n at ionw ide c a mpa ig n, for t he people a nd by t he people.

Nike Be True Pop Up Store Trigger

Br iefe d to lau nc h Ni ke spor t swe a r to t he c y n ic a l 18 - to 2 4 -ye a r - old ma rket seg ment, wh ich t y pica l ly shu ns t r ad it iona l med ia, Tr ig ger c reated a tempora r y si x-mont h “pop -up space” i n Melv i lle, Joha n nesbu rg, t hat was neit her a shop nor a n a r t ga ller y, but rat her a ma rket i ng a rena w it h i n wh ich t he bra nd cou ld come to l i fe a nd i nterac t one - on- one w it h consu mer s. Us i ng soc ia l med ia, t he agenc y t hen developed a yout h c u lt u re - d r iven events prog r a m me t hat took place i n a nd a rou nd t h is space, i nclud i ng showcases of photog r aphy, g r aph ic de sig n, fas h ion de sig n, music a nd objec t de sig n, as wel l as t he f i l m i n g of a doc u ment a r y ser ie s w it h MT V. S crabble Am I Collec tive

Com m issioned by Og i lv y Pa r is, A m I Collec t ive was br iefed to i llust rate t he conc e pt of a sc r abble g a me – u si n g pic t u r e s i n ste ad of wor d s. T he re su lt is a v isu a l feast of h a nd- d r aw n i mager y t h at (qu ite l iter a l ly) h a n g s toget her to for m a n u n m ist a k able sc r abble g r id. A feast for t he eye s. Youngblood5 Net# work BBDO and Gloo Digital Design

To help 5FM R ad io com memor ate Yout h Day, Net # work BBD O a nd Gloo D ig it a l De sig n c reated a ca mpa ig n t hat g ave t he aud ience t hei r ow n voice, let t i n g t hem c reate a nd d isc uss t hei r ow n topic s of concer n a mon g t hem selve s. T he c ho se n me d i a for m at w a s a web site t h at w a s neit he r a blog nor a for u m, but r at her a t wo -way i nter ac t ive plat for m t h at si mu lt a ne ou sly com mu n ic ate d t he br a nd ener g y of 5f m, wh i le a l low i n g u ser s a nd t he br a nd a l i ke to g a i n a n i n - de pt h u nde r st a nd i n g of wh at w a s on t he m i nds of it s aud ience. To d r ive eyeba lls to t he site, awa reness poster s were desig ned by fa mous a r t ist s a nd placed i n schools, t hen ad apted a nd of fered as dow n load able screensaver s. St icker s a nd a nimat ions could also be created a nd dow n loaded

36 — The ANNUAL 2008

SPECIAL AWARDS

Marketing Leadership and Innovation Award

T he M a rke t i n g L e ade r s h ip a nd I n nov at ion Aw a r d , w h ic h w a s f i r st i nt r o duc e d i n 2 0 0 7 to r e c og n i s e i nd i v idu a l s for t he i r lon g - te r m c om m it me nt to a nd ac h ie ve me nt s i n br a nd com mu n ic at ion, w a s pr e se nte d to M i ke G lend i n n i n g , sa le s a nd m a rket i n g d i rec tor at Vol k swagen, Aud i a nd Seat. G lend i n n i n g joi ne d Vol k s wa g en Sout h A f r ic a a s a g r adu ate t r a i ne e. O ver t he subsequent 23 yea r s, he has held va r ious posit ions w it h i n t he sales a nd ma rket i ng d iv ision a nd c u r rent ly over see s t he sa le s a nd ma rket i ng of t he Vol k swagen, Aud i a nd Vol k swagen Com merc ia l Veh icle s br a nds. He was selec ted f rom a g roup of f i n a l ist s f rom Cel l C , Vi r g i n a nd M Net / DSt v for h is c a r e er - lon g cont r ibut ion to out st a nd i n g cl ient- a g enc y r el at ion s h ip s , h i s i n - de pt h u nde r st a nd i n g of w h at it t a ke s to de velop, nu r t u r e a nd bu i ld icon ic br a nd s a nd h i s k n ack for spot t i n g g r e at ide a s when t hey come h is way. Creative Achievement Award

M i ke Sch a l it, ch ief c reat ive of f icer of BBDO Sout h A f r ica, took home t he Creat ive Ach ievement Awa rd, a new awa rd t h is yea r, for h is record of con si stent ac h ie vement ove r t he ye a r s, h av i n g b e en r a n ke d t he nu mb e r one c reat ive by t he C reat ive Ci rcle for t he last 10 yea r s i n a row. The Young Creatives Award

L au nc hed last yea r to recog n ise out st a nd i n g ac h ievement by t a lented i nd iv idu a ls at t he beg i n n i n g of t hei r ca reer s, t he You n g Creat ive s Awa rd 2 0 0 8 went to Da r ren C ronje f rom Net # work BBD O a nd Si mone Rosu m f rom Joe P ubl ic. T hey eac h received a G old L oer ie a nd a n a l l - ex pen se s pa id t r ip to a n i nter n at ion a l adver t isi n g awa rd s how of t hei r c hoice.

AWARDS

01. Loerie Grand Prix Winner: Allan Gray ‘Beautiful’ (King James) 02. Loerie Grand Prix Winner: Nike Be True Popup store (Trigger)

01.

02. The ANNUAL 2008 — 37

AWARDS

03. Loerie Grand Prix Winner: Scrabble (Am I Collective)

38 — The ANNUAL 2008

AWARDS

04. Loerie Grand Prix Winner: YoungBlood5 (Net#work BBDO and Gloo Digital Design)

The ANNUAL 2008 — 39

AWARDS

CREATIVE CIRCLE AD OF THE YEAR 2007 Small Cape-based agency FoxP2 came up trumps in the Creative Circle Ad of the Year 2007, taking top spot in the magazine category, as well as both first and second place in the recently established experiential category. The Lowe Group (if you combine wins from the Cape Town and Johannesburg agency) fared equally well, also taking home two first places, in the newspaper category (for Lowe Bull Cape Town) and radio category (for Lowe Bull Johannesburg), as well as a second spot in the film category (Lowe Bull Johannesburg). The hotly contested film category was won by JWT Johannesburg, for Ford Bantam’s “Ubuntu”, while Ogilvy Cape Town took top honours in the outdoor category for Eskom “Save”. The Creative Circle Ad of the Year 2007 takes cognisance of work produced from January 2007 to December 2007. The 2008 Ad of the Year will be judged in March 2009. The Winners MAGAZINE 1) 8Ink Media/National Geographic Magazine “Freak of the Deep/Exploding Toads/Cyclops Kitten” – FoxP2 2) Nampak/Cuddles “Protection/Comfort/Happiness” – Grey Advertising 3) VWSA/The Epos Cabriolet “Monkey/Hadeda/Cat” – Ogilvy Cape Town NEWSPAPER 1) Independent Newspapers/Cape Times “JFK/Hiroshima/Soweto” – Lowe Bull CT 2) Independent Newspapers/Cape Argus “Aids Stats” – KingJames CT OUTDOOR 1) Eskom “Save”, by Ogilvy Cape Town 2) WWF “Global Warming” – TBWA Hunt Lascaris FILM 1) Ford Bantam “Ubuntu” – JWT JHB 2) Unilver/Axe “Gold Fish”/Magician/Bokrdrol” – Lowe Bull JHB RADIO 1) Unilver/Axe “Answering Machine/Announcements/Fart/Gnome” – Lowe Bull JHB 2) Toyota/Genuine Parts ‘Godfather/6th Sense/Gone with the Wind” – Draftfcb Johannesburg EXPERIENTIAL 1) 8 Ink Media/National Geographic Magazine “Comic Book Cover” – FoxP2 2) Addis “Hot & Cold Mailer” – FoxP2 3) Standard Bank “Fridge Magnet” – TBWA Hunt Lascaris

01.

FoxP2 won two first place positions for client 8Ink Media, for work on its National Geographic Kids magazine. In keeping with the brand’s philosophy of “Edu-tainment’, both campaigns used a comic book style to educate kids about an amazing fact in nature. The winning campaign in the Experiential category involved the production of fake comic book covers to cover existing school exercise books, which were then handed out at schools around the country.

40 — The ANNUAL 2008

AWARDS

02. After a series of power cuts caused by rapidly increasing demand for electricity, Ogilvy Cape Town switched off all the unnecessary lights on this Eskom billboard in an appeal to the public to use electricity wisely.

03. Based on the precept that “The world can change in a day”, Lowe Bull Cape Town created this stirring campaign for the Cape Times to demonstrate the importance of daily news.

The ANNUAL 2008 — 41

AWARDS

APEX AWARDS 2008 The APEX Awards are South Africa’s only brand communication awards that recognise and reward a measured return on investment. Launched in 1995 by the Association for Communication and Advertising (ACA), the awards have been held every alternate year since. But, in recognition of the growing necessity of branding communications adding to the bottom line, the ACA announced this year that it would henceforward be holding the awards on an annual basis. In addition, from 2009, the awards will be open to the entire African continent. Odette Roper, CEO of the ACA says: “We have entered an era where accountability and return on investment are of key importance, where a holistic approach to buying and selling in this complex and rapidly evolving era is required. The objectives of the APEX awards are to demonstrate that the purpose of communications campaigns is to contribute to business success. In this way, APEX encourages best practice in creating and executing effective communications campaigns.” Awards are made in three categories: Launch, for brands or services that are less than 12 months old with no significant history of advertising; Change, for new campaigns from previously advertised brands, which resulted in significant short-term effects on sales

and/or behavior; and Sustain, for campaigns that benefited a business by maintaining or strengthening a brand over a long period. In 2008, the judges elected to not award a Grand Prix. The highest accolades went to Ogilvy Johannesburg, which took home one gold in the Change category for its work on the Audi South Africa campaign as well as one silver and a bronze for KFC, plus a silver award in the Sustain category and two of the three Special Awards for longtime client Exclusive Books. Draftfcb Johannesburg won the Launch category for the Toyota Yaris launch campaign, while Draftfcb Cape Town won gold in the Sustain category for The Cider House Rules campaign for Savanna. TBWA won the final Special Award, for the Tsotsi

Stop Piracy Stop Crime campaign. According to chair of the APEX judging panel and chairman of Yellowwood Future Architects Andy Rice, the entries for APEX 2008 were of a slightly lower standard than in previous years, primarily because of time constraints. “Putting together an APEX entry involves seriously hard work, and very strong analysis – particularly when it comes to proving, in as much as you can, that the desired result was brought about predominantly by the communications campaign in question. Agencies tend to underestimate how much time and effort is involved in creating a convincing argument.” That said, he also believes that the agen-

cies in question should be mining this evidence as a matter of course for each of the campaigns that they undertake. It should become less of a task to compile the entries, given that clients should be demanding the selfsame information of their agencies year round. “Agencies should start placing more importance on the APEX Awards. In fact, I believe that the APEX Awards ought to be the single most important brand communications award on the calendar, because your clients are not with you to win awards, they’re with you to do business – and winning an APEX Award proves that you’re doing just that,” concludes Rice.

The Winners CHANGE Gold - Ogilvy Johannesburg for Audi South Africa Responding to a challenge issued from Audi International to create a more emotional positioning for the Audi brand, Ogilvy Johannesburg created a full 360 degree campaign around what it dubbed the “Spirit of Vorsprung.” Although there is no literal translation of the word “Vorsprung,” the agency created a campaign that demonstrated the term – and was subsequently adopted for use in 12 other markets around the world. Since the introduction of this campaign, Audi’s brand image has improved year by year, against marked declines in competitor image. For the past five years, Audi of South Africa has achieved and sustained a 20% to 30% YOY growth in sales, making it the fastest growing premium car brand in the local market. Over this period, it has also outstripped market growth – the premium car market has grown by 85%, while Audi has grown by 106% Gold – Net#work BBDO for repositioning Nedbank The brief was to rebuild the brand relevance, health and reputation of Nedbank, and Net#work BBDO proposed using a change in advertising to project a fundamentally new brand image, one that changed the bank’s image from niche elite to mass aspirational, from unashamedly not for everyone to proudly for everyone. In January 2006 a comprehensive new multimedia campaign was launched to reposition Nedbank as a brand committed to understanding and meeting the needs and aspirations of all South Africans. This campaign introduced the new Nedbank brand expression “Make Things Happen,” with the intent of positioning Nedbank as the enabling bank for all. Today, the Nedbank brand presence and awareness is at a new high, so too are consideration, loyalty and the brand relationship score. Brand usage is also at a new high, and most importantly, Nedbank’s financial results and headline earnings are too. Silver Award – Ogilvy Johannesburg for KFC Streetwise campaign Silver Award – Jupiter Drawing room for MTN go – going to town campaign Bronze Award – Ogilvy Johannesburg for KFC Twister campaign

LAUNCH Gold Award – Draft FCB Johannesburg for Toyota Yaris launch campaign With the launch of the Toyota Yaris, Draftfcb Johannesburg was tasked with not only selling a truck load of new vehicles, but also warming the hearts of a new generation of car buyers to the Toyota master brand. In order to do so, the agency positioned the Yaris as the symbol of “realistic ambition”, representing a celebration of present achievement and future possibility with its action-oriented pay-off line, “Move on. Move up.” With this line and campaign built around it, Toyota found a way to touch its traditional audience and a new generation. The proof is in the numbers. Yaris broke South African motor industry records for the

42 — The ANNUAL 2008

most units sold during a launch month, exceeding 2005 sales targets by 47% and 2006 targets by 16%. Bateleur’s Earlybird Research proclaimed the Yaris hatch and sedan launches the most noted car launches in the six month period. Bronze Award – Net#work BBDO for Cell C - Hola 7 campaign Bronze Award – Net#work BBDO for Nedbank Children’s Affinity campaign Bronze Award – Black River FC for Virgin Money Bling it on campaign Certificate of Commendation – Net#work BBDO Cape Town for Royco campaign

SUSTAIN Gold Award - Draft FCB Cape Town for Savannah The Cider House Rules campaign Savanna Premium Cider was launched just more than 10 years ago, but faced increased competition from newer entrants with hefty advertising budgets. Draftfcb Cape Town was briefed to capitalise on the growth of the Flavoured Alcoholic Beverages sector and increase Savanna’s share of throat, which it did by implementing a through-the-line brand experience that stayed true to the brand’s essence of being “seriously humorous.” The campaign consisted of TV, cinema, radio, print; online and ambient (tactical) media that would instantly break out of the clutter and create brand hype. This was supported by both trade and consumer promotions that brought the brand to life, while various sponsorship and public relation opportunities were utilised to create further word of mouth and drive awareness. Savanna experienced a substantial growth in market share year-on-year in a category where most competitors experienced a decline or stagnation, noticeably impacting the bottom line. Silver Award – Ogilvy Johannesburg for Exclusive Books campaign Bronze Award – Net#work BBDO for Cell C - Sustaining Cell C campaign Bronze Award – Ogilvy Cape Town for South African Breweries Carling Black Label campaign

SPECIAL AWARDS Most ingenious response to advertising or research funds Ogilvy Johannesburg for its Exclusive Books campaign. Best example of innovative strategic or executional thinking TBWA for Tsotsi Stop Piracy Stop Crime campaign. The case representing uniquely South African advertising Ogilvy Johannesburg for its Exclusive Books campaign.

AWARDS

01. Apex Gold Winner – Ogilvy Johannesburg for Audi South Africa

The ANNUAL 2008 — 43

AWARDS

02. Apex Gold Winner – Net#work BBDO for Nedbank

44 — The ANNUAL 2008

AWARDS

04. Apex Gold Winner – Draft FCB Johannesburg for Toyota Yaris launch campaign

03. Apex Gold Winner – Draft FCB Cape Town for Savanna – The Cider House Rules campaign

The ANNUAL 2008 — 45

AWARDS

PENDORING AWARDS “It is as if a new and fresh breeze has blown through the Afrikaans advertising landscape. This year’s Pendoring entries are some of the best that have yet been received in the 14 years of this competition’s existence. I believe that the standard of the winners’ work will silence those sceptics who feel that Afrikaans advertising and Pendoring are struggling to survive.” T h at i s t he opi n ion of L e on Jacob s , e xe c ut ive c r e at ive d i r e c tor of Sa atc h i & Saatch i Hon g Kon g a nd t h is yea r ’s i nter n at ion a l Pendor i n g jud ge. Accord i n g to Jacobs, t he pr i nte d me d ia - ent r ie s stood out he ad a nd s hou lder s a mon g t he ent r ie s. Pe pe M a r a is, exe c ut ive c re at ive d i re c tor a nd pa r t ner at Joe P ubl ic, s h a re s Jacobs’ v iew of t he g ener a l ly h ig h st a nd a rd but com mente d t h at t he c ateg or y for a lter nat ive med ia rema i ns d isappoi nt i n g a nd t h at t he v i r a l a nd on l i ne work is si mply not up to t he st a nd a rd t h at it s hou ld be i n a fast developi n g tec h no log ic a l world. A not her cause for concer n, accord i n g to Coen ie de Vi l l ier s, d i rec tor of Br a ndwea lt h, is t he not able absence of work f rom la r ge Sout h A f r ic a n cor por ate s. “ I a m at a loss to u nder st a nd why people spend le ss on A f r i k aa n s adver t isi n g , be c au se r e se a rc h h as t i me a nd a g a i n i nd ic ate d t h at a t h i rd of t he pu rc h asi n g power l ie s i n t he h a nds of A f r i k aa n s - spea ker s,” he say s. Adds Daw id Br a nd, co - ord i n ator of t he Pendor i n g adver t isi n g compet it ion a nd proje c t: “ R e se a rc h h as s how n t h at more t h a n 8 0% of A f r i k a a n s - spe a ker s w ish to be add ressed i n t hei r ow n la ng uage. Compa n ies t hat a re i ncl i ned to g ive t h is g roup t he cold shou lder w i l l t herefore pay at t he cash-reg ister as consu mer s st a r t to t ig hten t hei r belt s even more. M a rket i ng profe ssiona ls w i l l perh aps not feel t he c ut i n t he A f r i k aa n s seg ment at t he moment , but i n t he lon g r u n t here a re ch a l len g i n g t i me s a head.” Accord i ng to Br a nd, t he Pendor i ng adver t isi ng compet it ion a nd projec t h as now more t ha n ever a responsibi l it y i n t h is rega rd. “ Not on ly do we ack nowledge excel lent f ront ier -mov i ng adver t isi ng i n A f r i k aa ns, Pendor i ng a lso play s a n ever big ger role at t he subconsc ious level to c u lt ivate A f r i k aa ns w it h t he r ig ht fac t ua l fer t i l iser as pa r t of t he la r ger Sout h A f r ic a n adver t isi n g la ndsc ape.” Br a nd say s t he whole va lue c h a i n s hou ld be sc hooled i n t he i mpor t a nce of A f r i k aa ns adver t isi ng. “M a ny compa n ies a re st a r t i ng to rol l up t hei r sleeves a nd rea l isi n g t h at i f you sow, you w i l l a lso reap succe ssf u l ly i n A f r i k aa n s. We wa nt to encou r age a l l who hold A f r i k aa n s dea r, to t a ke a f re s h look at t he la n g u age a s adve r t i si n g ve h icle. T h i s i s not ab out e xclu siv it y. Not at a l l. A f r i k a a n s i s pa r t of a n exc it i n g a nd d iver se adver t isi n g r a i nbow.”

T he W inners Ta k i ng over f rom long t i me top - of-t he -log w i n ner s D r a f t fcb, Joe P ubl ic was t he big h it ter at t he 20 08 Pendor i ng Awa rds, wa l k i ng of f not on ly w it h t he P re st ige Awa rd (t he Pendor i ng ’s G r a nd P r i x equ iva lent) for cl ient K a la ha r i.net, but a lso t h ree gold awa rds. S e cond pl ace we nt to B a ie - L i n g u a l Bl i n k Stef a nu s w it h t wo g old aw a rd s , wh i le t he rema i nder of t he f ield was even ly spl it, w it h fou r agenc ie s (i nclud i n g D r a f t fcb Joh a n ne sbu r g , Og i lv y Joh a n ne sbu r g , McCa n n Worldg roup a nd 2Bu ffels Mel ker y) each t a k i n g home one gold a nd one si lver awa rd eac h. T h i s movement away f r om t he dom i n at ion of one a g enc y a nd i nde e d, one br a nd, to t h at of a va r iet y of newer ag enc ie s enter i n g a nd w i n n i n g ac ross t he boa rd for a nu mber of d i f ferent cl ient s, repre sent s a posit ive step for A f r i k aa ns adver t isi n g i n t h at it s how s a n i nc rease i n usage of t he la n g u age ac ross a w ider r a n ge of cl ient s.

T he L egend Award Fr a ncois de Vi l l ier s, exec ut ive c reat ive d i rec tor of D r a f t fcb (Cape Tow n), was awa rde d t he L eg end Awa rd, b e stowe d for on ly t he se cond t i me i n Pendor i n g Awa rd h istor y. C re ate d to pay hom ag e to t hose who h ave m ade a re a l i mpac t on t he A f r i k aa ns adver t isi ng la ndscape a nd who have c reated a leg ac y t hat ca n not be easi ly equ a l led, t he awa rd cou ld not h ave fou nd a more apt home t h a n i n De Vi l l ier s’ h a nds – he h as been lon g- ad m i red for t he work on awa rd-w i n n i n g br a nds suc h as K l ipd r i f t, Vod acom, Sava n n a a nd Pol k a. 46 — The ANNUAL 2008

AWARDS

03. Genuine South African Gold Award winner: Redd’s “Pilot, Vanishing Act, Savings Plan”, by Lowe Bull Cape Town

01. Prestige Award and Original Afrikaans Gold: Kalahari.net “Tweedehandse Anatomie, Tweedehandse Raka” by Joe Public to promote Kalahari.net’s wide range of affordable academic books, Joe Public tapped into the insight that secondhand books are often vandalized, making them quite difficult to use as study aids. By ‘vandalising’ N.P. van Wyk Louw’s epic poem, Raka – which is a prescribed work in Afrikaans literature – the agency created a print advertisement that speaks directly to its target market, and simultaneously makes for pretty entertaining reading.

02. Overall Student Winner: Sunlight “Fo*of”, by Roela Hattingh, Kate Binge, Trish Stewart and Mukondi Ralushayi of Vega The Brand Communication School

04. Genuine South African Gold Award winner: Metro FM “Xenophobia”, by Net#work BBDO

The ANNUAL 2008 — 47

CC

MM

YY

CM MY MY CY CY CMY CMY KK CM

CC

MM

YY

CM MY MY CY CY CMY CMY KK CM

SK_10037 OSFF Annual1.indd 1

10/7/08 11:48:27 AM

48:27 AM

THE ROCKSTARS

The Case Studies

CASE STUDIES

Case study #1 AGENCY: ACTUATE Client: ABSA Advertising format: inTERACTIVE Actuate agency responded to Absa’s need to modernise the electronic voice at a call centre with a lightening campaign that was fun for staff and the agency and resulted in unexpectedly large buy-in from employees.

N

eil Clarence, Actuate creative director, says Absa needed to ensure that the contact centre staff understood that the new voice was not replacing them, but becoming a member of their team. “Our target market was all call centre staff. Most are under 25, young, fun and very techno savvy. With this in mind we proposed a highly interactive, fun, amusing campaign, something that would make this cynical lot sit up and take notice. We wanted staff to vote for their voice of choice as a way of including them in the process and as a vehicle to reassure them that AI, the new voice, was not a threat to them.” Four options were chosen as the new voice of Absa. “Since the entire campaign was about voice we decided to use voice as our

52 — The ANNUAL 2008

primary medium of communication. And as we were looking for the ‘voice of Absa’ what better way to get everyone on board and interested than by having random ‘voice wannabes’ calling Absa Call Centre employees in the build-up to the vote all trying to audition for the role of voice of Absa?” says Clarence. The agency set this up by placing posters in the call centre saying the company was looking for the voice of Absa. “Then we sat back and listened as the most inappropriate, worst-fit candidates phoned to enquire about the job. The terrible voices calling served to reinforce how important it was for Absa call centre employees to vote – or they could be stuck with one of the candidates applying,” says Clarence. The agency used a selection of the countr y’s top comedians to bring a number of characters to life: imagine a

call centre employee’s phone rings, the employee answers…“Dddduuuuude its Waaayyne from Durbs. I’m calling to um, um..who am I talking to again…oh yes, I think I would be the most rad, totally bodacious voice of. …Dude check those waves…hey man.” Among the characters the comedians took off were: • An Indian with the best price • The “Alberton-ese” gym monkey • The kugel, calling from Sandton, doll • The white R to the A double P E R (rapper) • The SHOUTER! • Old fashioned private school WASP Each time these “voice wannabe’s” called in to audition, the centre employees were reminded to vote . For three days call centre staff fielded calls from the

absurd to the outright ridiculous. “Then we put stickers over the posters asking staff to vote for the four options Absa had pre-selected. We supported the call to action with desk drops and stickers placed on call centre agents’ desks. The message was simple: vote or you could be stuck with one of these losers,” says Clarence. Absa’s objective was to get a 10% response. In the end, over 30% of those eligible voted. “It was a fantastic campaign and demonstrates how easy it can be, with a bit of imagination, to turn an otherwise routine type of process into an opportunity to obtain staff buy-in, re-enforce what your brand stands for and have some fun,” says Actuate managing director Grace Harding. “It was all over inside of a month.”

CASE STUDIES

Case study #2 AGENCY: KING JAMES Client: ALLAN GRAY Advertising format: TELEVISION King James working beautifully for Allan Gray

A

llan Gray is respected for its unrivalled investment performance track record. This success is attributed to its unique investment philosophy that hinges on a long-term view to wealth creation. It has persistently stuck to this approach for the past 34 years, never deviating no matter what. As a brand, Allan Gray has an abiding belief in the values of integrity, consistency, transparency, respect, and simplicity. It’s these values and Allan Gray’s distinctive investment philosophy that advertising agency King James is tasked to communicate to South African investors. Over the years, the brand’s corporate campaigns have been consistently developed around a single-minded creative premise: focus on Allan Gray’s approach to investing and bring it to life by giving it a human dimension and relevance. These campaigns speak to the minds and hearts of investors, recognising and respecting their intelligence and reflecting their own behaviour and attitudes to investing with insight and empathy. Observations relevant to investing have been used to bring this to life. In a category characterised by choice, clutter and confusion, Allan Gray’s down-toearth pragmatism and single-minded simplicity make investing reassuringly uncomplicated and credible. What has set Allan Gray’s advertising apart is the delivery of a simple message presented in a fresh way. Historically, the campaigns have been executed with intimacy, insight and engagement not previously experienced in the category. This year King James enjoyed fantastic success at The Loeries, winning a Grand Prix for Allan Gray’s latest TV commercial, “Beautiful”. The TV ad also scooped a Gold, two Craft Golds and two Craft Certificates at the awards. It won a Silver Lion (one of two for South Africa) at Cannes the month before. The ad depicts a young boy’s fascination with a seemingly plain young girl. Although the attraction is unclear, he continues to dote on her, despite being teased and having to defend her honour. At the end his motivation for wooing the girl becomes apparent as the little girl’s mother is revealed. She is absolutely

beautiful – a good indication of what the little girl might ultimately grow up to look like. The ad is an analogy of Allan Gray’s ability to identify investment potential and then have the patience to realise it. The commercial was shot to feel like a real story rather than an ad; an honest, authentic portrayal of a day in the life of a young boy and girl with all its highs and lows. It was filmed in Buenos Aires by Velocity’s Keith Rose and introduces grain to give it an older cinematic feel that enhances the beautiful, touching story. According to Rose, “What stood out the most for me was working with the children who aren’t actors. It was their first time in front of the camera and they did not speak English so this presented some challenges. But I think the resultant performances are authentic and bring a certain sensitivity to a single-minded idea that works. We were especially lucky with our leads. The boy and girl were amazing and had all the qualities we needed to bring empathy to the story.” Asked why he believes the ad has been such a success, King James creative director Devin Kennedy says, “It’s a simple story that draws you in with beautiful imagery and emotive music. But I think the success of the ad lies largely in the fact that you don’t see the end coming. If you can surprise the audience and make them smile, then you’re more than halfway there.” The decision to shoot abroad was driven by the fact that, as a love story, it required a location with a sense of romance. Buenos Aires provided the answer with its amazing architecture and interesting people. It was a three-day shoot spent largely in the city’s slums – which wouldn’t typically be considered romantic, but resulted in something fresh and interesting. Tracy Hirst, marketing manager of Allan Gray, says the commercial follows on well from previous campaigns. “It is a captivating expression of the long-term nature of Allan Gray’s investment approach. It has all the values we look for in a commercial such as warmth, emotion, and honesty; and conveys a strong, simple message wrapped up in a human truth people can relate to.”

Frame grabs from Allan Gray’s ‘Beautiful’ TVC

The ANNUAL 2008 — 53

CASE STUDIES

Case study #3 AGENCY: OGILVY JOHANNESBURG Client: AUDI Advertising format: VARIOUS Audi: moving more than metal

A

udi has this decade achieved a rare improvement in brand perception as a luxur y marque – and a consequent d ra mat ic su rge i n sa les. Ca r s have become so much more t ha n t he metal out of wh ich t hey a re m ade. Ve h icle br a nd n a me s c a r r y sig n i f ica nt i nta ng ible value – to t he poi nt t h at, i n t he lu x u r y categor y, i nta ng ible bra nd benef its almost entirely dominate the tangible and often ut ilita r ia n product benef its. T h is is no accident. T he veh icle i ndust r y is beset by product pa r it y. Eve n i n t he lu x u r y s e g me nt , d i s t i nct ion is ra re. Ma rketer s a re more aw a r e t h a n e ve r t h at t he pr i m a r y def i n i ng cha rac ter ist ic of a ny veh icle – a nd t hus its key sales tool – is bra nd i mage.

54 — The ANNUAL 2008

T h is t heor y beca me sta rk realit y for Audi of Sout h A f r ica i n t he early 2000s. Despite t he ar r ival of a range of t r u ly mag n if icent veh icle models, sa les of t he Aud i ma rque rema i ned stat ic, lag g i ng sig n i f ica nt ly beh i nd competitor sales in a market t hat was g row i ng at a n u nprecedented rate. R icha rd R ice, one of Sout h A frica’s most respected market researchers in t he vehicle indust r y comments t hat, at t he t i me, “Audi had ver y litt le sta nd i ng i n t he prem iu m veh icle ma rket. It was m isu nder stood a nd u nder rated, a nd merely t he defau lt bra nd to BMW a nd Mercedes.” Unsur pr isingly, sales were static. I n a bid to re - energ ise t he bra nd at an inter national level, Audi AG issued a challenge to its markets around

CASE STUDIES

t he world to create a more emotional plat for m for t he Aud i bra nd. Ogilv y Johannesburg took the seed of t h is i nter nat iona l cha l lenge a nd nu r t u red it i nto a new st rateg ic po sitioning for t he Audi brand t hat has helped t ra nsfor m Audi f rom a “misu nder stood a nd u nder rated bra nd” into t he fastest-g rowing premium car bra nd i n t he Sout h A f r ica n ma rket. At t he hear t of t his campaig n lies the Audi payoff line “Vorsprung durch Tech n i k ”, but wh i le prev iously t he br a nd h ad foc u sed on t he tec h no log ical aspect of t h is ph rase, Og ilv y proposed a foc us on “ Vor spr u n g ”. Because t here was no literal t ra nslation of t his word, t he agenc y created a ca mpa ig n t h at demonst r ated t he spi r it of Vor spr u ng w it hout hav i ng to ex plai n it. T h is k icked of f w it h t he popu la r “Snails, Frogs and Tur tles” television ca mpa ig n i n 20 02/3. Not i ng i n t he f i r st f ive week s a f ter t he ca mpa ig n r e ac he d 62% , si g n i f ic a nt ly ab ove nor ms of 52% for t he categor y. T he campaign also achieved exceptionally h ig h lik i ng scores, bet ween 8.2 a nd 9.7%. On ly 1.5% of com mercia ls ach ieve a l i k i ng score above 8.5%. T he c a mpa i g n a lso scor e d above average linking scores of 37% (against a nor m of 32% i n t he categor y), a nd recog n it ion levels of 70% (ag a i n st nor ms of 53%). T h is leaps to 50% li n k i ng a nd 90% recog n it ion a mong ma les watch i ng DSt v, accord i ng to M illwa rd Brow n. Post-test research revealed that the dom i na nt bra nd message to emerge f rom t he campaig n i ncluded characteristics such as initiative, innovative, a he ad , s m a r t a nd te c h nolog ic a l ly adva nced. T he ca mpa ig n was sub sequent ly used i n 12 ot her ma rkets a rou nd t he world. Wit hin t he f ramework of t his new strategic direction and despite a budget t hat was sig n i f ica nt ly lower t ha n t he brand’s t wo pr imar y competitors, Ogilv y brought the Vorsprung strateg y to life t h roug h a 360 deg ree commun icat ions ca mpa ig n t hat con nec ted w it h consu mer s at nu merous touchpoi nts, f rom t rad it iona l above -t he li ne telev ision com mercials t h roug h to dealer suppor t and a revolutionar y

CR M prog ra m me. T his strateg y remained at the core of ever y piece of bra nd com mu n ication, including indiv idual campaig ns for dif ferent vehicle models, t hereby creating a cohesive brand image across t he m a rque. T he re su lt s spea k for t hemselves. A pa r t ic u la rly successf u l lau nch stor y was t hat i n Ma rch 2005, when Og i lv y was tasked w it h i nt roduci ng t he t h i rd- generat ion Aud i A4, w it h t he dua l a i m of f u r t her closi ng t he i mage gap bet ween Audi a nd its t wo pr imar y competitors in t he premium seg ment, a nd ac h iev i n g a pla n ned volu me sa le s t a r get of 6 073 u n it s f rom March to December 2005. T he BMW 3 Ser ies a nd t he Mercedes C Class were st rong contender s i n t h is seg ment. At t he time of lau nch, bot h brands were selling more t han double Aud i’s volu mes. The new Audi A4 was the f irst true example of the brand idea “Vorspr ung du rch Tech n i k ” bei ng t a ken i nto a produc t ca mpaig n. T he resu lts f rom a n i mage per spec t ive exceeded a l l ex pec tat ions. Accordi ng to Sy novate resea rch, t he Brand Value Index rating of t he Audi A4 improved f rom eig ht h position in 20 04 pr ior to ca mpa ig n lau nch, to f irst position in 2006, post-campaign lau nch. Since t he introduction of t he new s t r ate g ic d i r e c t io n, Aud i’s br a nd i m age h as i mproved yea r - on -yea r, wh i le its t wo compet itor s a re showi n g m a rke d de cl i ne s ( Pe pp e r cor n Bra nd I mage St udy 20 06). T he new statement upon wh ich t h is st rateg y rests – Vor spr u ng du rch Tech n i k – is t he most spont a neously reca l led payof f l i ne i n t he prem iu m veh icle categor y ( Peppercor n Bra nd I mage St udy 20 06/7). Og ilv y and Audi recog nized black buyer s as c r it ica l to t he g row t h of t he s t at u r e a nd s a le s of t he Aud i br a nd. I n 20 06, Og i lv y i nt roduced t he Aud i “ Vor spr u ng Per son of t he Week” followed up by the “Vorspr ung You r L i fe” radio prog ra m m i ng content i nitiatives, w it h t he objective of building t he Audi brand in t he black ma rket by ex plai n i ng t he concept of Vor spr u ng.

The ANNUAL 2008 — 55

CASE STUDIES

“Vorspr u ng Person of t he Week ”, wh ich ra n on U k hozi a nd Um h lobo Wenene FM, illust rated how a wellk now n person in t he commu nit y had demonst rated “Vorspr u ng” by doi ng t hings dif ferently and being one step a he ad of e ve r yone else - a nd u lt i mately, being rewarded for t hat effor t and achievement. Ogilv y believes t his was t he f i r st t i me t h at a prem iu m c a r br a nd c reated adver t isi n g i n a ver nac u la r la ng uage. I n t he most recent Aud i Br a nd Image study done by Peppercor n, t he consider at ion of Aud i i n t he black ma rket h as i nc reased f rom 19% i n 20 06 pre - ca mpa ig n lau nch to 43% i n 20 07, post- ca mpa ig n lau nch. I n

56 — The ANNUAL 2008

20 04, pre - ca mpa ig n, 20% of Aud i purchasers were black. By 2007, postca mpaig n, t h is f ig u re had i ncreased to 40%. Fo r t h e p a s t f i v e y e a r s , A u d i of Sout h A f r ic a h a s ac h ie ve d a nd su st a i ne d a 2 0% to 30% ye a r - on yea r g row t h i n sa les, ma k i ng it t he fastest-g row i ng prem iu m ca r bra nd i n t he Sout h A f r ica n ma rket. O ver t h is per iod, it has a lso outst r ipped m a rket g r ow t h - t he pr em iu m c a r market has grown by 85%, while Audi h a s g r ow n by 10 6% (accord i n g to f ig u res f rom t he Nat iona l A ssoc iat ion of Automobi le M a na fac t u rer s of Sout h A f r ic a for 20 0 0 – 20 06). I n 20 02 , Mercedes-Ben z a nd BMW

were outselli ng Aud i by 3:1. Today, t h is rat io is 1.5:1. From a brand loyalt y perspective, t he Aud i loy a lt y i nde x h a s g r ow n f rom 22% i n 20 03, to 37% i n 20 07, ac cor d i n g to a Pe pp e r cor n B r a nd Image Study. L oyalt y, which is measu red by repeat pu rchase, is a cr ucial element in t he Audi g row t h st rateg y. T he C R M st r ateg y, le d by Og i lv y One, has been i nst r u menta l i n t h is g row t h. Say s R icha rd R ice of Sy novate: “T he combi nat ion of t he new Aud i vehicles and the communication emanating from Ogilv y and Audi of South A f r ica have sh i f ted t he i mage of t he Audi brand from a middle-of-the-road

family car to a premium luxury vehicle. I f irmly believe that the change in the product could not have shifted the image on its own – in this categor y, you simply can’t move product if it doesn’t have the right image.” Greg Levine, Managing Director of Audi of South Africa, says: “Ogilv y’s contr ibution to t he success stor y of Audi of South Africa is tough to measure, because it’s not only about sales over the past f ive years. This strategy, and the resultant campaign, effectively transformed the brand, positioning it for future growth and ensuring future sales. T he results to date, measured by sales alone, are phenomena l. But t hey a re t he t ip of t he iceberg.”

CASE STUDIES

The ANNUAL 2008 — 57

CASE STUDIES

Case study #4 AGENCY: BLUE MOON Client: ACSA Advertising format: INTERNAL COMMUNICATIONS Helping clients’ employees to see the strategic big picture – literally

T

he company’s integrated employee engagement department spends months crafting detailed colour illustrations that depict their clients’ activities and envisaged changes. In conjunction with comprehensive facilitation guides and audio-visual material, these pictures are used by line managers in explaining company strategy to their teams, in order to get their buy-in. “Studies show that managers are the most effective carriers of news to staff – they are up to nine times more likely to be believed than other media,” explains Blue Moon managing director Michelle Caldeira. “That is why we make managers key to the process. The communication aids allow managers to create conversations with their staff about their roles in the business. From conversation f lows understanding, which leads to action that is measureable,” she says. “Blue Moon does not actually craft company strategies. What we do is help to communicate the strategy to staff,” Caldeira explains. “The challenge is to make the strategy relevant to employees at all levels and in all areas of work; to simplify complex material without being simplistic.” A recent such project was the communication of the business strategy and balanced scorecard for Airports Company South Africa (ACSA), whose managing director, Monhla Hlahla, gave it absolute priority. ACSA, like many other companies, uses a balanced scorecard as a tool to measure the achievement of its strategic goals. Developed three years ago, the system uses detailed scorecards for every division and department, setting out what is to be achieved and how it is measured, and these are linked to individual performance goals. In ACSA’s case, a major spur has been to gear the company to deliver both infrastructure and customer service to the required world-class standards, in anticipation of the influx of foreign visitors to the 2010 FIFA World Cup. “The aim is to achieve seamless processing of passengers 58 — The ANNUAL 2008

through the airports,” Caldeira says. “To do this, all employees must know and understand how and where they fit in to and affect this process.” ACSA’s brief to Blue Moon was to demystify seemingly complex material so as to make it accessible to a diverse audience of 2 116 staff at 10 airports and in the corporate office. “Monhla’s policy is that all communication goes to all staff, and the company already has a culture of openness,” Caldeira says. The project’s communication approach was based on the letters in the word AVIATE: (To be) Accessible, Visible, Inclusive, Accountable, Transparent and Empowering – a pledge to which all ACSA managers have publicly aligned themselves. Blue Moon’s first task was to simplify heavily academic and scientific content so that it would be understood by, for example, a trolley pusher. This involved absorbing dense material, stripping it down, building it up again, testing it, fine-tuning it and then packaging it before handing it over to managers for implementation. “We needed to start at the core of executives and work our way outwards.We were fortunate in that ACSA’s top 100 people meet every quarter and we were able to use one such meeting to test our material with them for veracity and clarity. We also ran pilot groups with staff to test their understanding of the material. We asked questions and more questions. No question was too dumb,” says Caldeira. “ACSA’s willingness to be interrogated in this way was key to our success. The time invested by senior people was remarkable.” “Then Monhla’s challenge went out to the management: ‘You are the leaders, I want to see you out and about among your people,’ she said. She also told all the staff that their managers would activate the project.” In the initial phase, managers were required to have face-to-face sessions with staff within a certain period. The managers’ kit includes a large end-to-end process map, showing a crosssection of an airport and how people move

through it. “This map is the visual tool that enables the conversation between managers and staff. Through its simplicity, it creates a line of sight for staff to see how they fit in to the company strategy and operations,” says Caldeira. The kit also consists of an A-frame facilitation file in a mini-flipchart arrangement, which guides the manager through the session on one side of a sheet while providing a simple, diagramatic explanation to staff members on the other, as well as building blocks that physically depict how the balanced scorecard is composed. “The end-to-end process map has become a kind of language in the business and elements of it are used in other communication media, such as the annual report to staff, and the launch of the Airport Management Centre at O.R. Tambo International Airport,” says Caldeira. As a matter of course, the material is also used for induction of new staff, career development discussions, and strategy implementation. “This kind of strategy visualisation is used all over the world to tell simplified stories. The secret is to make it relevant. It is work that needs to be constantly refined and clarified. It can, and is being, extrapolated across further aspects of ACSA’s business,” Caldeira says. “The next phase will look at ACSA’s relationships with all its stakeholders – and there are many, if you think of how many other organisations operate within any airport! ACSA really is an organisation with many challenges. An airport is an emotionally charged place, where there can also be confusion, leading to flared tempers and staff being put on edge. It is not an easy environment in which to operate.” “The bulk of our work is done, but the greatest measure of our success will only be 2010. It will be seen in the staff’s adeptness at embracing the multiple new technologies that are available and making best use of the vast infrastructure developments and customer service facilities the airports. It is about staff being able to be resilient and cope with change,” Caldeira concludes.

CASE STUDIES

A process map showing a cross-section of an airport and how people move through it.

The ANNUAL 2008 — 59

CASE STUDIES

Case study #5 AGENCY: OGILVY Client: COCA-COLA Advertising format: TELEVISION The iconic “Brrr” pay-off line that was developed by Ogilvy Johannesburg for Coca-Cola Africa is now synonymous with the world drink giant. It’s also a catchphrase that has travelled far, riding on a campaign that has caused a frenzy of interest online and in many countries across the world. “ I t ’s h a d a m a z i n g s u c c e s s ,” say s Og i lv y busi ness d i rec tor Caree Ferrari, who points out that t he agenc y won t he project i n a pitch. “ T he br ief was to develop a campaig n about ref resh ment for f lighting in A f r ica t hat could be transpor ted globally. It was quite unique in that it was a project for Og ilv y Joha n nesbu rg to develop a n ad for f lig ht i ng i n A f r ica, as opposed to adapting / localising a global Coke ad. “ W hat was also ama zi ng was that Coke took the idea up straight away from the pitch. Ver y often an agenc y w ill w i n a pitch on a hypothetical brief and then be given t he ‘real’ br ief to beg i n work i ng on. In this case the end result was not sig n i f ica nt ly d i f ferent f rom our initial presentation, which was fantastic.” T he ad has been used ex tensively in A f r ica, cer tain West Indian countries and Japan, and the idea has been adapted for use in Turkey and Pakistan. In all t hese env i ron ments, it did a g reat job of selli ng a n ice - cold ref resh i ng Coke in hot environments. “Even the US is looking at using the radio campaign,” says Fer rari. “It really blew us away. I don’t think anybody envisaged how well Brrr would be adopted and used as a catch phrase. Our nation took up the phrase and ran with it. A nd all it took was a simple, yet powerful idea.” Julian R ibeiro, M D of Og ilv y Johannesburg, says the group’s philosophy of brand liberation is clearly evidenced by the Big Idea and Roger Garlick awards. “The public reaction and lik ing of Coke Br r r has been exceptional and it’s become a hugely successful campaign, beyond

60 — The ANNUAL 2008

anyone’s w ildest dreams. Not hing points to universal liking more than when a catchphrase becomes pa r t of t he com mon ver nacu la r, ev idenced by how Coke Br r r has ver y much entrenched itself as part of ever yday speech.” Ogilvy creative director Jonatha n Begg s says: “It was phenomenal to see vendors on beaches last summer spontaneously tak ing up the call to sell drinks – it just exploded. T here were 8 Facebook g roups, one wit h 8 509 members and YouTube clips of people doing their interpretations of Brrrr. A nd at the Nedbank Million Dollar Golf challenge the ‘Brrr’ broke out like a Mexican wave in t he stands on the 18th hole. School sports teams have even adopted it for use in their wa r c r ies. Most of t he at tempts marketers make to leverage t heir campaigns are orchestrated through activations and online seeding – it was a ma zi ng to have ou r idea a mpli f ied sponta neously by t he general public.” T he ad has won t he 2008 Ad Review Big Idea Award and CocaCola’s Global Ma rket i ng Excellence Award. It is also t he Coke chairman’s favourite ad of 2007/8. T he radio campaign was voted by teens as t he best of 20 07 i n t he K huza Awards and in the Sunday Ti mes G enerat ion Nex t Awa rds 2008, Coke was voted SA’s coolest brand. Internationally the campaign has been compared in terms of creative excellence to t he br illiant “Hap piness Factor y” commercial shot in A msterdam by agency Wieden & Kennedy. “I t h i nk we’ve sta r ted some t h i ng. T h is may not be t he last time you’ll be hearing Br r r,” says Fer rari.

Frame grabs from the Coke ‘Brrr’ TVC

CASE STUDIES

The ANNUAL 2008 — 61

CASE STUDIES

Case study #6 AGENCY: TRIGGER Client: NIKE Advertising format: INTERACTIVE A South African full-service digital direct marketing agency has piloted a new retailing concept of “pop-up stores” for the global sports goods giants, Nike, to market a range of street wear. The agency, Trigger, was awarded a Gold and a Grand Prix at the 2008 Loerie Awards for its project based in a rescued art gallery in Melville, Johannesburg.

T he campaig n integ rates retail store desig n w it h d ig it a l ma rket i ng a nd one -to - one consu mer engagement. Tr igger, which has had Nike SA as a client for some six years, was br iefed by t he Sout h A f r ican div ision of t he company w it hin t he EM EA div ision of Nike, to identif y, engage and t hen capture “cool kids” aged 18 to 24 for its range of st reet wear. Tr igger did t his by tur ning an empt y ar t galler y i n Melv ille i nto a u nique retail a nd a galler y display space. Its pilot i ng of t his project precedes t he star t of Ni ke’s g loba l rol l- out by about si x mont hs. A s t he Beiji ng Oly mpics k icked of f, Ni ke beg a n i mplement i ng t he conce pt of pop -up store s – wh ic h combi ne reta i l a nd a r t ist ic or per for ma nce ex h ibit ion space - - i n si x cities t hat have hosted t he Oly mpic Games. A long wit h t he new clot hing goes a new pay- of f line of “Be tr ue”, as opposed to the iconic Nike sporting goods’ “Just do it”. “The kids in the target group were not by def inition sporty – though they mig ht be skateboarder s or BM Xer s – a nd t hey cer t a i n ly da nce a lot,” says Trigger creative head Roelof van Wyk. “Nike wanted to reach t hem in a physical way. Nike has always concentrated on spor t. We were to take t hei r reputat ion for excellence – i n t he use of tech nolog y, i n desig n i n clothing, and precision watch making - - as t he basis for tak i ng t he bra nd into t he street wear env ironment – a place where it has always been well presented because of its good qualit y and w ide appeal. “We chose Melv ille because it is a meet i ng place for all colou r s a nd creeds of youth in the city. It is a melting pot and already was a gat her ing place for you ng people, w it h lots of music and ar t galler ies and pubs and restaurants. We found the abandoned 62 — The ANNUAL 2008

galler y in Fourth Avenue and decided to use it as a pop -up space, wh ich would resonate with the youth because they are used to seeing unused spaces taken over for unexpected purposes. In t his case it was an unexpected space being put to an unexpected use in an unexpected place.” T he a g enc y c r e ate d a phy sic a l ma n i fe st at ion of t he br a nd i n t he pop -up shop/galler y. A schedu le of social events was conceptualised and planned to involve people with inf luence, such as ar tists and musicians, a nd a net work of soc ia l med ia was engaged to credibly broadcast informat ion on t he bra nd. T he buildi ng was transfor med into retail space on t he g round f loor and ex hibition and event space upstai r s a nd i n t he old f ra m i ng fac tor y i n t he back. I n its initial execution, spor t was a strong t heme, w it h change room lockers, a basketball court, white tiles to simulate a swimming pool env ironment and a space made to look like a g ymnasium, complete w it h exercise equipment. T he agency indentif ied 30 “edg y” young artists – illustrators, photographers, musicians and graphic, fashion a nd objec t desig ner s – to “ex press t hemselves i n t heir ar tistic f ield on what it mea ns to be t r ue i n Sout h A f r ica today”. “ T he yout h a re able to qu ick ly see t h roug h ma rket i ng t hat is not aut hentic to t hem and t hey reject it. So we broug ht t hem in to link Nike with the youth in a 3-D environment,” says Van Wyk. Work produced for the f irst exhibition included photographic essays. One of t hese had as a subject Osca r P istor ius, t he at h lete whose lower legs were amputated and who runs with the help of prostheses. “We took him out of the spor ting environment and photographed him wit h his ar tif icial legs that help him fulf ill his prom ise, a nd w it hout t hem, where

you see just t he 21-year- old look ing almost lost. It is ver y emotional. We photographed Nomsebenzi Tsotsobe, t he black female r ugby team captain who is strong and at hletic, but looks like a fash ion model. T h is was de liver i ng on t he ‘Be Tr ue’ spir it a nd ex hor tation.” The pop-up store, called simply Gallery on 4th, serves not only as a unique retail space for the brand, but also a physical hub where the brand engages with a network of creative individuals and consumers alike. The outside of the building was given a “skin” that allows displays to easily be changed – essential since the schedule is for a new campaign every three months. “We treated the building as kids would their clothes – they are keen to look fashionable and want to keep up with change. The galler y is a place where they can find new art or music and new clothing. K ids will have a curiosity about what is to be found there next by way of exhibitions or clothes, so it is a place that has a natural attraction for them,” says Van Wyk. A third phase of the project is its amplification to and through the web and electronic media through blogs, YouTube, Facebook and the like. “To connect with traditional media, in this case television, Nike has produced in collaboration with the music channel, MTV, three amazing documentaries on some of the creatives who have taken part in creating work for the Galler y on 4th - - a DJ, an illustrator and a fashion designer. The documentaries show another side of the South African yout h. It is about individual young South Africans who deliver on the ‘Be True’ spirit. One is a young fashion designer who is a community anti-hero in Soweto. He is incredibly creative. The films show their subjects in a very realistic light too,” says Van Wyk. “I think the project delivers on many

levels,” says Van Wyk. “As a venue, Melville has proved to be ideal. It is a haven for the kind of youth who are the target market. They come from all parts of the city to meet likeminded people. They are coming to the gallery. The brand has effectively become the people. “In the region, South Africa is a strongly growing arena for Nike – it has delivered consistently good sales. This project has been a success from many approaches, not least the retail aspect. So much so t hat we will be looking at other possible executions of brand activation, possibly involving mobile stores. Because of its success, the client is satisf ied that this edg y kind of approach is good for business and is amenable to looking at other new approaches,” Van Wyk says. The success has also been good for the agency’s people. “Trigger is a direct marketing agency mainly in the online space. If you keep doing that, eventually all your work feels virtual. That’s why we always link our work to the physical, real world, including traditional media like print, press and in this case television. This project was a prime example of that,” says Van Wyk. “We obviously enjoy the success of delivering on the overall objectives of the project, including and most importantly, the business case deliverables. We were 100% surprised that the Loerie judges had the time to go through the lengthy and sizable presentation and greatly appreciate the honour they have bestowed.” Of the 3 337 Loerie entries, only 23 Gold awards were awarded and only four were Grand Prix. Remarkably, Trigger entered only one piece of work and won both a Gold Loerie and Grand Prix for its integrated campaign for Nike SA in the categor y communication design in t hree dimensional and env ironmental desig n.

CASE STUDIES

The ANNUAL 2008 — 63

CASE STUDIES

Case study #7 AGENCY: STARCOM Client: NASHUA MOBILE Advertising format: INTERACTIVE Starcom media agency used the new Japanese-sourced quick response (QR) code technology for a campaign that achieved spectacular results for Nashua Mobile. QR is a two-dimensional but code that, when read by the scan function on a 3-5 cellphone, takes the user to any URL you care to choose, or present on the user’s phone any image and audio you wish to have available.

QR was developed in Japan, primarily to complement the highly popular cult of youth comic books. All over Japanese cities are posters made up of QRs that are so small the posters or other wall covering look to the initiated as if they are very roughly pixillated. Passers-by are able to read any QR with a suitably equipped cellphone to obtain a complete edition of a comic book on their phones. The cost is charged as air time. The phone companies are happy, and the comic producers save on production costs but still get an income for their creative works. Starcom managing director Gordon Patterson saw the technology when he was a judge at the Cannes Media Lion awards last year. He brought the idea back and threw it at his team. Jason van der Berg picked it up and immediately the potential opened up. The primary objective was to engage with cellular phone users and potential customers on the Nashua website. “Because cellphone ownership is so wide, the challenge was to segment and identify the target market. The sort of person Nashua Mobile wants to make contact with is curious and has an above average knowledge of technology,” says Patterson. The approach was to position Nashua Mobile as being particularly for those who appreciate and are curious about new technology. All attempts to access the technology should benefit the caller and offer engagement opportunity to Nashua. “They worked hard to find out how it would play out in a South African situation. We wanted to make a big bang for the South African launch,” says Patterson. Van der Berg suggested they find a media partner and identified the then relatively new daily newspaper, The Times, as a candidate, seeing that it was launched as an interactive platform. The newspaper’s parents – The Sunday Times and Avusa – embraced the concept and gave it their full backing. 64 — The ANNUAL 2008

The campaign launch consisted of Sunday Times news posters carrying the strange QR matrix coupled to a comprehensive education campaign presented on the front page as news. Subscribers who would not obviously see the street posters received bagged and branded delivery of their copy, with, of course, extensive invitations to cellphone users to read the messages in the QRs. Following the launch was a well choreographed presence of educational articles and advertisements spanning several platforms: online sites and solus positions in several sections of the Sunday Times and The Times. A maintenance campaign followed with weekly communication for four weeks. Starcom capitalised on the rugby world cup hype by offering prizes of a cellphone a day, a free ring-tone and video download of the “Zulu Haka” and a chance to win a signed copy of then Bok coach Jake White’s autobiography. “The response was phenomenal,” says Van der Berg. “Downloads were seven times higher than the average online response expected from Sunday Times promotions with incentives worth up R100 000. The results were more than threeand-half times larger than the previous most successful competition run by the Sunday Times irrespective of prize money. And if you look at the prizes that were offered, their cost to Nashua Mobile was really negligible.” Nashua Mobile’s customer data base grew by achieving more than 10 000 WAP interactions and by recording 1 523 unsolicited website mentions and blogs. Only 44 downloads failed. “In these cases, even rejection was valuable in that it provided Nashua Mobile with a database of people to whom it could offer cellphone upgrades,” says Patterson. “In effect the prizes weren’t the incentive,” says Patterson. “Rather it was for participants to realise they knew some-

thing other people didn’t, and that they were smart enough to be part of an elite, informed group. People in this situation then tell as many people as they can, so that they can also share the experience and you have a whole lot of people who become ambassadors for the project, stimulating curiosity among their peers.” Says Van der Berg: “QR builds on our relatively newfound ability to consume media when you want to, by for instance, PVR pay-television. It is huge in Japan. Comic book sales are in decline, but their consumption on cellphones has taken over on a pay-as-you-go basis. This is great for the comic companies in that their costs of production are reduced to producing a single version.” Patterson says QR has vast potential. “We have been taught a lot about the capability of the medium. We obtained data on people Nashua Mobile might wish to contact to ask if they wish to upgrade their phones. On the other hand, their next campaign might be designed to reach only those who have the functionality to access the QR code. The codes do not have to be the weird looking stamps that were featured in our campaign. They can be embedded in, say, a photograph so that you would not notice them, but they would still be recognised by the cellphone’s reader. “If you had a small QR in the form of a newspaper front page ear, that could take you to a site where you could play a 30-second commercial, or a two-hour documentary. In this way, QR could open up a whole new spectrum on the sharing of advertising income. It has many applications. You could use it as a business card, which would be a virtually timeless connection to your personal website, or you could have video images and audio, or just your cellphone details. You can put up as much information as you wish. This could be the ultimate in direct connection,” says Patterson.

PRIME TIME. ALL THE TIME.

CHANNEL 403 ONLY ON DStv PREMIUM AND DStv COMPACT

THE ROCKSTARS

The Media

MEDIA

the media The year at a glance Until about June, all was rosy for the economy and the industry. All the trends were up though it would have been preferable to have had inflation and interest rates going the other way. Nielsen figures 2008 showed above-the-line adspend was up more than 16% last year to some R23.4 billion. TV overtook total print last year, to a record spend of R9.379bn, or 40.1% of the cake, compared to print’s R9.112bn. In 2006 print had 39.9% compared to TV’s 38.3%.

Other notable moves on adspend were that cinema lost a massive 25%, for a 1.5% share of total spend; community newspapers’ share reduced from 7% to 6.6%, radio from 13.2% to 12.7% while that of the internet was up from 0.9% to 1.2%. But on media opportunities, as sourced from Media Manager, the biggest growth was in the number of community newspapers and magazines, from 375 in 2006 to 475 last year. Other significant moves were an increase of TV stations from 74 to 85, radio stations from 115 to 135, consumer magazines and newspapers from 610 to 690, and internet web pages from 9.7bn to more than 12bn. The South African Research Foundation’s latest All Media and Products (AMPS) report says there was significant growth in media consumption in the year to March. It coincided with findings of gains in the development of South African society, with improvements being seen in the SAARF wealth measure, as well as in education and access to services and amenities. More homes have TV sets – from 77.4% to 80.1% currently – with gains especially in the Eastern Cape, KwaZulu-Natal, Mpumalanga, Limpopo and Gauteng. SAARF says print has grown its share of the media pie to 58.0%, significantly up from the 55.5% seen in its previous report. Growth came through from Gauteng, where 79.2% of people consume print (up from 74.8%). Mpumalanga has also delivered more readers, with 55.8% of the adults reading papers or magazines (up from 47.9%). But an Audit Bureau of Circulations report for quarter two showed a marked slowdown in the number of new titles: magazine growth in the six months was only 17, to 486, while that for newspapers was four, to 280. Consumer magazines continued to lead the way, with 22 new titles, but 10 withdrawn, for a total of 191. It

68 — The ANNUAL 2008

Primedia Outdoor

showed daily newspaper circulation had declined 0.31%, while that of weeklies was down 8.6% and declining further and community newspapers had shown virtually no growth, though free newspapers showed real growth of 1.5%. The traditionally most conservative ABC started lifting its skirts a little: its August 2008 circulation report presentation for the first time referred to actual product titles, though always politely. It also improved access to its data for members. Major issues for the media include reported plans by the government to outlaw leaks of information, major differences between most privately owned media and the SABC over reporting of government affairs and claims that media reporting has aggravated deadly outbreaks of xenophobia. Media freedom issues were debated as the Forum of Black Journalists barred white colleagues from a briefing by ANC president Jacob Zuma. The Sunday Times fired raconteur and feisty columnist of 14 years’ standing, David Bullard, when the editor, Mondli Makanya, received a flood of complaints that a particular column – which he said he had not seen prior to publication - was overly racist. Llewellyn Kriel, a sub-editor on the Sowetan, was fired for criticising the newspaper in a blog. Deon Maas, a Rapport columinst, was fired after alluding to Satanism. The Sunday Sun was compelled to apologise when one of its columnists, Jon Qwelane, likened marriages between people of the same sex to bestiality.

MEDIA

The tragic but continuing comedy that the SABC board and top executive management have become, continues. It started accelerating by the corporation’s loss to MultiChoice of the rights to film processional soccer. Soon afterwards former President Thabo Mbeki cynically overrode the national assembly’s recommendations on nominations for the SABC board by appointing people seen as favouring him. When the leadership of the ANC changed at its Polokwane conference late last year, a further dimension was added to the struggle for control of the SABC. The public has witnessed a string of suspensions and re-instatements of the CEO, Dali Mpofu, and the man he has tried to bring under control, news head Snuki Zikalala, through continuing court cases and referrals to the Council for Conciliation, Mediation and Arbitration. At time of writing the government was seeking to enact legislation to fire the SABC board. Hardly a happy situation for a national broadcaster that controls the means to reach more of the country’s population that any other organisation. And with the SABC’s finances being far from rosy. From a public interest perspective, one of the most serious episodes in the saga was the SABC’s withdrawal from the most senior editorial representative body, the South African National Editors’ Forum (Sanef), over the forum’s support for the publication in the Sunday Times of former Health Minister Manto TshabalalaMsimang’s medical records. At a business level, the SABC says the reach and size of its TV and radio platforms, and advanced broadcast technology, such as regional advertising splits across television (SABC1 and SABC2) and national radio stations, as well as its newly developed audience segmentation model, gives it the edge over its competitors. The broadcaster says it has pioneered a concept - which it believes to be a first in broadcasting - that will see an integrated sales force giving “one-stop” access to all SABC offerings by March 2009. “The ultimate benefit for advertisers will be in dealing with people who have an extensive knowledge of all the SABC’s products and the ability to offer our customers an integrated service,” says SABC acting group chief executive officer Gab Mampone. On media ownership issues, in November the competition tribunal approved the sale of 38% of Johncom’s M-Net/SuperSport stake to Naspers for R4 billion. Caxton had been opposing the merger. Various reports during the year suggested the ANC was trying to acquire a media outlet, company or friendly voice. In November, Koni, a black group made up of prominent politicians allied to the ANC, said it had bid R7-billion for Johnnic Communication (Johncom). The next day Johncom closed 1.21 percent higher at R108.30, valuing the firm at R11.2-billion. Political adviser to the presidency Titus Mafolo, foreign ministry spokesperson Ronnie Mamoepa and former chief of state protocol Billy Modise have shares in Koni Media Holdings, with Koni CEO Groovin Nchabeleng as the majority owner. News of the bid drew more criticism of former President Thabo Mbeki, whose opponents say that placing the newspapers under the control of his allies would damage their editorial independence.

Other reports said the ANC was targeting the Sowetan. Later ANC heavyweight and Zuma supporter Tokyo Sexwale’s Mvela bought a quarter of Avusa, alongside interests in a number of media including Moneyweb, ITWeb, and Business Century, owner of the outspoken magazines Maverick and Empire. In April, Avusa appointed to its board Yolanda Cuba, CE of Mvela Group; Mikki Xayiya, executive deputy chair of Mvela Holdings; and Mark Willcox CE of Mvela Holdings. Avusa – formerly Johncom – continued to divest itself of unwanted or conflicting interests, in the latest cases its M-Net holding and then its huge share in rival Caxton. The Mvela holding could present an interesting balancing act should Sunday Times editor continue his mud raking inquiries into the past deeds of Mbeki on arms acquisitions, and of former Health Minister Manto TshabalalMsimang’s odd proclivities. Former Rand Daily Mail editor Raymond Louw, new deputy chairman of the SA Chapter of the Media Institute of Southern Africa told Moneyweb research by Sanef shows shifting government attitudes towards the media. “In 1994 government public relations officers and spokespersons fell over themselves to speak to the media. They answered phones cheerfully and willingly answered questions. This is not the case now. There has been a complete withdrawal of government information, a refusal to give information and obstruction in giving out information.” Media giant Naspers, meanwhile, sailed merrily along with the return from a year’s sabbatical of its CEO, Koos Bekker, the man who takes no salary but all his earnings in share options. There was a bump or two, like closure of some magazines and a circulation figure manipulation scandal, but nothing to seriously derail the giant. It is looking to sell off its internet service provider business MWEB because it is a said to be a misfit in the media company. As the biggest media company, Naspers generally weighs its words carefully in addressing public issues, which is why this quote from the annual report is a chiller for those who think the government has already comprehensively displayed a failure to understand the need to regulate timeously and with a light touch: “Financial performance in the period ahead will be influenced by the timing of regulatory approvals for ventures such as mobile television and the development of internet opportunities.” Primedia, listed on the JSE Securities Exchange in April 1995, a year after its founding, terminated its listing on 1 October 2007 following a private equity transaction. The company is now privately owned by a group of investors comprising the Mineworkers Investment Company (a black economic empowerment company), The Kirsh Consortium (existing founders of the company), management and Brait SA. The group’s businesses are mainly in the advertising and content sectors of the media industry. In December the Press Council unveiled its new identity that consists of a new logo, a newly-designed website and a booklet containing an amended press code to be used by all South African journalists.

The new Cap Lucas Radebe is the new captain of the Penquin Team. He is already a global brand, let his team help you build yours MARKETING
t
ADVERTISING
t
EXHIBITIONS
t
STRATEGY

it’s all about ideas

The ANNUAL 2008 — 5

www.penquin.co.za

MEDIA

Television

Pay TV is top of the pile as a topic of interest for high-income viewers and marketers anxious to reach them. For the population as a whole, though, the SABC remains the broadcasting behemoth. The corporation says SABC TV reaches 66,3% of the total adult population daily and 90% of the TV viewing population. In August new pay-TV licences were issued - as opposed to approved in principle - to On Digital Media (ODM) and to Telkom Media. Both have said they plan to launch bouquet services, but at least one industry pundit says the jury is still out on whether either has the wherewithal to take on MultiChoice. Mandla Ngcobo, CEO of Telkom Media, says: “Our business plan consists of a dual platform, multi-technology service that exploits the full range of convergent technologies, including IP, and will offer consumers a competitively priced spectrum of entertainment and interactive services through a single service provider. We look forward to providing inspiring, dynamic and refreshingly different programming for our subscribers.” He declined to comment on Telkom’s announced intention to sell part of its shareholding in Telkom Media. On Digital Media director Vino Govender says it plans to launch in the second half of 2009. In what is billed as a first for South Africa, ODM subscribers will be able to create their own bouquets based on their personal viewing preferences and will pay only for what they want to watch. Prices will range from R149 to R349 a month for the mix of channels under the broad category headings of news and knowledge, movies, family and sport, kids, music and cultural programming. Subscribers need will a set-top box costing about R400. ODM’s decoders will be high definition (HD) compliant from the outset, but it will initially broadcast in SD. A BEE consortium consisting of Lereko Investment Holdings (Pty) Ltd and a broad-based Women’s Group will own the largest stake in ODM, which has an international partner in the form of SES, the leading direct-to-home satellite system in Europe. An e.tv associate was also granted a licence – but decided to join the MultiChoice bouquet as the 24-hour e.tv news service rather than compete directly as a platform. “They did the right thing, joining a box that is already in a million South Africa households,” says Harry Herber, group managing director of the MediaShop. “Most people in South Africa don’t have pay television and are happy with their diet from SABC stations and e.tv. Most are not prepared to pay for more or can’t afford it.” If the MultiChoice monopoly is twitchy about the imminent arrival of its first real competition, it certainly isn’t showing any signs of nervousness. It continues to launch new services based on technological advances - including high-definition TV and the launch of the personal video recorder (PVR) and dual- and triple-view facilities – and new video and sound channels as if these are all in the natural order of things. Naspers, owner of DStv, says in its annual report for the year to March 2008 that competition in both South Africa and sub-Saharan Africa is set to intensify in the year ahead, which will continue to exert pressure on content costs. The entry of the new competitors has produced an upward spiral in the price of content rights, squeezing operator margins. The costs for renewing sports rights for various sports are high. Naspers is the biggest funder of sport leagues in Africa. Despite slowing consumer spending, the pay-television business in South Africa

70 — The ANNUAL 2008

experienced subscriber growth. The equated base expanded by 178 000 to 1,57 million households, whilst the personal video recorder (PVR) take-up increased from 133 000 to 242 000 homes. The lower-priced DStv Compact bouquet continued to perform well. Two tiers, DStv Select and EasyView, were, respectively, launched and relaunched to broaden the base. The government announced its plans to introduce universal digital signal by way of set-top decoders to cost about R700 if users wish to be able to communicate with government departments and R400 without that facility. In February 2007, the cabinet decided that the digital signal be switched-on on 1 November 2008, and the analogue signal be switched-off on 1 November 2011.

Other snippets: In August, SABC Africa was dropped from the DStv bouquet. Bizcommunity reported that after two short runs of a month each in 2005 and 2006, Soweto Community TV went on air for a year in July 2007. The station’s broadcasting licence expired on 30 June 2008 but it continued broadcasting. The internet news service also reported that the SABC, the SA Screen Federation and the Independent Producers Organisation had agreed to jointly research international best practices on procurement of local TV by public broadcasters and the issue of intellectual property rights. For the 17th consecutive year, M-Net and Franz Marx Films, have renewed their production agreement for the evergreen soap, Egoli. Early in the year, UK-based broadcaster Free2view said it would beam a satellite bouquet to much of Africa, including South Africa, at no cost apart from the R1 400 cost of a decoder. It does not need a licence in South Africa, it says, but Icasa says it does. Parent MSNBC Africa is a joint-venture between London-based Great Media Limited and MSNBC and is built on the worldwide resources of NBC News. The latter is owned by US giant General Electric. Free2view failed to respond to inquiries about progess in South Africa. One of the decoder installers listed on their website said he had not installed any yet. “I don’t think they’ve got going yet,” he said. The South African Advertising Research Foundation reported that any TV (Yesterday) viewership has climbed from 70.5% to 73.7%, with growth in KwaZulu-Natal, Mpumalanga and Gauteng. Across any given week, television viewing is also up significantly, from 81.4% to 83.4%, especially in Mpumalanga, Limpopo and Gauteng. Most TV channels have fared better across the week compared to the previous AMPS release. • Viewership of e.tv went from 58.4% to 59.7%. Growth was mostly in the Western Cape. • All three SABC stations have increased their viewership. SABC 1 grew its audience from 70.2% to 71.6%. SABC 2 increased to 60.7%, from 58.3%, and SABC 3 grew from 44.9% to 47.8%, with growth in the Northern Cape and Limpopo. • DStv is being measured on a number of new channels now, including Animal Planet, Channel O, Crime and Investigation Network, TCM and VH1. It grew its audience from 8.3% of adults to 9.7%, with significant growth in Gauteng. • M-Net’s reach has declined, from 9.4% to 7.3%, with declines in the Western Cape (from 32.8% to 21.1%) and in KwaZulu-Natal (from 8.9% to 6.1%), most likely due to the exclusion of open time from AMPS 2007B.

MEDIA

The government will subsidise 70% of the cost of the decoders for the poor. The first STBs will be available in mid-2009. The SABC says it will bring the benefits of the new digital technologies to audiences, strengthening and deepening its public service offering as it introduces 10 new channels. The Independent Communications Authority of South Africa (ICASA) has yet to decide the extent to which subscription broadcast services must carry the television programmes provided by a public broadcasting service licensee.

The Daily Sun continues to do all the right things. Crossing the 4 million reader mark in the previous AMPS release, the Daily Sun’s reach was up from 13.9% to 15.3%, with 4,755 million readers in the bag. This growth has come through primarily from Gauteng. The second daily to show statistically significant growth was the Sowetan, which grew its readership from 5.5% to 6.6%, with 2,040 million readers. The paper has grown its base in Greater Johannesburg and Soweto, on the Reef and in Pretoria. NAB

Newspapers

Daily and weekly newspapers continue to dominate as the big-issue forums of debate in top levels of society, while there continues to be strong growth in sales of titles aimed at blue-collar workers. Despite the depressed economy, rising transportation costs by almost 40%, increasing paper prices and labour costs, some newspapers showed remarkable signs of recovery and were holding their own, second-quarter results released in August by the Audit Bureau of Circulations of SA (ABC) showed. “These results have shown some fantastic developments. Daily newspapers are stable and have reduced emphasis on PMIE (print media in education) and thirdparty bulks, with healthy growth seen in typical blue collar titles,” ABC’s Gordon Patterson told the audience. Earlier SAARF data show newspapers have significantly increased readership across all categories. The latest AMPS release shows that 46.8% of all South Africans over 16 read a newspaper, up from 44.4% six months previously. There are now 14,572 million newspaper readers, a gain of 747 000 readers. Newspaper circulations world-wide rose 2.57% in 2007 while rapid growth of both free titles and online platforms was expanding the reach of newspapers everywhere, the World Association of Newspapers said at its annual conference in June. In South Africa, newspapers made good headway into three provinces – Gauteng, where penetration rose from 63.2% to 67.7%, Limpopo (36.2% to 41.7%) and Mpumalanga (38.6% to 45.0%). • UP – Any Daily Newspaper: 29.2%, a statistically significant increase from 26.7%, with 9,092 million readers, compared with 8,321 million in the previous survey. Strong growth was seen in Gauteng where newspaper consumption rose from 44.9% to 50.8%. Other areas showing strong uptake of newspapers included Cape Town (36.7% to 41.9%), Greater Johannesburg and Soweto (51,7% to 57.1%), on the Reef (41.2% to 47.4%), and in Pretoria (44.1% to 50.2%). Average number of publications per reader was 1.45 • UP – Any Weekly Newspaper: This category reaches 34.9% of adults, up from 33.2%, with 10,847 million readers – a statistically significant increase. Regional growth was seen in Gauteng. Average number of publications per reader: 2.02 Several titles made significant readership advances over the last AMPS release.

Snippets: Zingisa Mkhuma was appointed editor of the Pretoria News - the first black woman editor in the newspaper’s 109-year history, in October 2007. Business Report, Independent Newspapers’ financial daily, launched a redesign on 16 October 2007. The Eastern Province Herald did similar two weeks later. Homeless Talk also re-launched itself in the same month. In March 2008, Lucille van Niekerk, GM of Beeld, was made CEO of RCP Media - head of Rapport, Sondag and City Press papers. Restaurant critic, artist, columnist and racey cookbook author Braam “Kitchenboy” Kruger died in June 2008. In July 2008, Alan Dunn, editor of the Sunday Tribune, became editor of the Daily News and the senior editor at Independent KwaZulu-Natal, which has 16 daily and weekly titles. Philani Mgwaba, deputy editor of the Sunday Tribune, became editor.

Marketing Complete marketing solutions from concept to final execution – Penquin delivers. STRATEGY EVENTS
t
ROADSHOWS
t
PRODUCTION STRATEGY
t


it’s all about ideas

The ANNUAL 2008 — 7

www.penquin.co.za

MEDIA

72 — The ANNUAL 2008

robust advertising revenue growth, entrenching its growing position in the Sunday newspaper market. Operating loss contribution from The Weekender totalled R6 million, with circulation reaching a “pleasing” 12 600.

Magazines

People in the industry use war terms: battle to the death, survival mode, casualties. Magazines have been the first big losers as the media industry is backed up for the first time in years by economic factors. The biggest operator of them all, Naspers, says of its media24 magazines: “It was not a good year for magazines, reflected by the slowdown in advertising support. Looking ahead, advertising budgets are more conservative.” The Audit Bureau of Circulations said in August that the biggest casualty of its second-quarter results “is undoubtedly the consumer magazines, which have taken a real beating as a result of smaller print runs as well as economising consumers”. Compounding media24 magazines’ year misery was the scandal that saw circulation numbers having to be restated after an ABC probe, and refunding of affected advertisers. The harder times in the sector were alluded to in SAARF figures released early in the year. It reported that the glossier side of the print medium had enjoyed growth over the previous survey, with magazine readership in general going up. Almost 40% of adults consume the medium (39.3%, from 37.5% previously), with more readers coming on board from Gauteng. Total magazine readership is 12,239 million. Weekly and alternate-monthly magazines were the main contributors to the sector’s growth, being the only two magazine categories to achieve significant growth. Significant movements were: • Up – Any weekly: currently with a reach of 20.8%, from 19.2%. This category has 6,466 million readers. • Down – Any fortnightly: significantly down from 9.0% to 7.4%, with declines seen specifically in the Western Cape and KwaZulu-Natal. Western Cape readership went from 15.3% to 5.6% (primarily in Cape Town and the Cape fringe), and KwaZulu-Natal’s fell from 6.9% to 4.7% (predominantly in Durban). • Stable – Any monthly: at 29.6%, with 9,218 million readers. • Up – Any alternate monthly: this category has grown its reach from 5.9% to 7.7%, with 2,401 million readers. Significant gains were made in the Western and Eastern Cape, KwaZulu-Natal and Gauteng. • Stable – Any newspaper subscriber magazine: at 20.7%, with 6,430 million readers. • Stable – Any quarterly: at 1.8%, with 556 000 readers. The average number of magazine titles per reader is 4.25. Several titles grew their readership over the previous AMPS survey. A handful of magazine titles showed significant declines this period. Caxton

The Mail & Guardian was up from 1.2% to 1.5%, with 467 000 readers, a growth of 100 000 readers. It has enjoyed significant growth in Gauteng. City Press grew from 7.5% to 8.6%, with a readership of 2,667 million currently. The paper increased its reach in Gauteng. The Independent on Saturday has declined, from 0.7% to 0.5%, with a total of 163 000 readers. The Sunday Sun attracted 320 000 more readers, pushing up its readership to 2,846 million, with a reach of 9.1%, up from 8.1%. The Sunday Times picked up a further 260 000 readers, upping its reach from 11.4% to 12.3%. Much of the title’s growth came from Gauteng, where it grew its readership base from 1,271 million readers to 1,454 million (a reach of 22.7%, up from 19.9%). Sunday Times has 3,820 million readers. Sunday World’s reach has increased from 4.1% to 4.7%, with 1,459 million readers, just over 190 000 more readers than in the previous AMPS release. Caxton says in its 2008 interim report that despite the absence of growth, progress has been made in new products and there “are a number of exciting opportunities presently being investigated. The property and motoring sections of the newspapers have borne a disproportionate brunt of the pull-back in advertising as these two areas have been massively and negatively influenced by the large rise in interest rates and inflation in general. Further launches have taken place with good success in the Protea Urban Newspaper division.” John Bowles, joint managing director of Caxton subsidiary the Newspaper Advertising Bureau, says the company is fortunate that its community freesheets are supported strongly by food, grocery and other non-durable advertising. “The durable advertisers are in for tougher times without a doubt with consumer spend moving towards the semi- and non-durable categories. Although it may be appealing for them to slow their adspend in these times, it’s more important to be visible now more than ever for that thinner market that is buying,” says Bowles. The company has launched 10 township titles inside three years, mainly in Gauteng. “They are still being very well supported, but it is going to be interesting to see how the emerging market consumers are affected by the downturn, which will be the most severe and first of its kind for many of the new economically empowered black community. It’s hard to say what the result will be. Personally, I don’t think that it is the average township consumer who is heavily burdened with debts, they just have limited disposable income right now.” Avusa says that since its launch in June 2007, the new daily product, The Times, attracted 38000 new subscribers for the Sunday Times. The Times delivered an operating loss of R39 million net of advertising revenue. The Sowetan maintained steady circulation growth but, along with the Eastern Cape dailies, The Herald and Daily Dispatch, lagged the record profit levels achieved in the previous financial year. The Sunday World achieved exceptional circulation growth, passing the 200 000 level for the first time, to end the year at 203 400 copies per week. It also enjoyed

MEDIA

Caxton

•

Auto Trader is up from 1.5% to 1.8%, with 571 000 readers. Significant growth came from Gauteng. • Drive 2.0 readership declined from 0.5% to 0.3%, with drops in KwaZulu-Natal. • Drum readership climbed from 5.0% or 1,562 million readers, to 5.7% and 1,776 million readers. • Heat’s readership grew, from 1.3% to 1.6%, giving it a current readership of 491 000. • Kickoff’s readership was 6.0%, up significantly from 5.4% in the previous survey. Significant growth was seen in Gauteng and the Free State. Readership is 1,880 million. • Now with its second set of data, Move has grown its readership from 1.7% to 2.5%. • People is up from 2.5% to 2.9%, bringing it closer to a million readers at 904 000. • Three club magazines have increased their reach. First is Foschini Group’s Club Magazine, whose readership has now overshot the million target, at 1,307 million, up from 953 000 in the previous survey. Its reach has grown from 3.1% to 4.5%, especially in the Western Cape and Gauteng. Lewis/Best Electric’s Club Magazine now has a readership of 981 000, with its reach increasing from 2.8% to 3.2%. Jet Club’s readership is now firmly in the three millions, growing from 3,074 million to 3,330 million, with a reach of 10,6%, up from 9.9%. Caxton’s half-year report for 2008 says “Get It”, a monthly glossy free community magazine, has made good progress and has established itself as a firm favourite among readers and advertisers. There are now a total of 27 editions with a circulation in excess of 400 000 and “as this product is still in a development phase, further additions and circulation growth can be anticipated”. It says the company’s share of the magazine advertising market has been in-

creased but advertising spend is “anything but buoyant.” All this has impacted negatively on the profits of this (magazine) division where budgeted expectations were not achieved. “Competition continues to be fierce but given the present position it is anticipated that the number of new entrants to this arena will reduce and in fact a number of opposition products have already closed down their operations and more could follow. “One of the major problems still facing the industry remains the effectiveness of the distribution channel. Over the past number of years retail supermarkets have been the main sellers of magazines and yet they still do not devote enough time and attention to understanding the importance of the sales of magazines for them. Consequently too little selling space is devoted to magazines within the individual stores and merchandising is poor. There continue to be far too many titles competing for an insufficient amount of retail selling space.” Primedia Publishing CEO Jacques Breytenbach says economic factors and fierce competition were the outstanding factors in the industry in the past year. “Needless to say, the combined effect of these factors has negative results on magazine circulation. However, it is in these times that titles reinvent themselves through innovative content and design in order to not only remains relevant, but to act as a leader in your sector instead of a follower. Content remains king and readers still acknowledge a good read, even in tough times. The biggest challenge I foresee for the next 18 months is the influence of cover mounts and how to prevent a cover mount black hole in the future which directly/indirectly affects circulation figures.” The chairperson of the PICA awards, Silke Friedrich, said there were more categories this year. Organisers had been heartened that the number of entries was more than 120 up on last year. “We thought the downturn might affect us, but we

Advertising Concept to implementation, Penquin delivers through the line advertising to a diverse range of clients. It’s all about ideas. CONCEPT
t
DESIGN
t
DTP
t
MEDIA PALNNING

it’s all about ideas

The ANNUAL 2008 — 9

www.penquin.co.za

MEDIA

were amazed at the enthusiasm and excitement that is still being generated,” Friedrich said. The awards ceremony on 21 November is in Cape Town for the first time in many years. Harold Eedes, managing director of Ramsay, Son & Parker, where he worked for 40 years, died on 20 July 2008 after a long battle with cancer. Stuart Lowe had replaced him as MD.

Radio

Radio’s star continues to shine brightly, despite the arrival of so many other new technologies to rival it for attention. The South African Advertising Research Foundation’s RAMS is the official currency for radio. According to Bizcommunity, SAARF reported in its latest statistics in June 2008, that total radio listening has remained stable since RAMS April 2008. Weekly listening, however, has grown since June 2007, from 91.3% reach to 93.8%, beginning a trend seen in the RAMS April 2008 release. Average Monday to Friday listening stands at 76.7%, Saturday listening at 73%, and Sunday listening is at 71.1%, with gains in Port Elizabeth, Pretoria and on the Reef. Despite gains in weekly listening, the declining

74 — The ANNUAL 2008

MEDIA

trend for time spent listening is continuing. Adult Categories accounting for the most time spent by SA Internet population – August 2007 South Africans listen on average nine minutes less than in June 2007. Time spent listening per week is now 30 Rank Category % of total time Total time (hours) Rank by unique browsers hours, and four hours, 16 minutes per day. Over the 1 News & Weather 23% 1 143 605 1 previous survey, KwaZulu-Natal, the Western Cape, 2 Media & Publishing 16% 802 044 2 North West (despite the presence of a new commercial 3 Entertainment 12% 631 017 3 4 Travel 11% 557 026 4 station), and the Free State have all shown declines in 5 Email, Messaging & Chat 11% 545 838 6 time spent listening. 6 Employment 6% 315 219 9 Listening may be in decline, but listeners them7 Directories & Search 5% 263 826 5 selves are not. The profile of radio listeners is steadily 8 Sport 4% 217 145 7 improving. Across an average Monday to Friday, there 9 Financial Services 2% 125 434 8 are significantly fewer SU-LSM 1-3 listeners, and sig10 Real Estate 2% 87 418 12 nificantly more SU-LSM 5, 6 and 10 listeners. The head of a big buying agency – who wishes to Publishers accounting for the most time spent by SA internet population – August 2007 remain anonymous because the SABC is a huge client - says the SABC’s Zulu-language radio station is Rank Publisher % of total time Total time (hours) Rank by unique browsers the second-biggest in the world. “It’s incredibly com1 Media24 27% 949 076 1 petitively priced, but unfortunately suffers the stigma 2 MWeb 11% 376 047 4 of reaching only the lower-income groups. It is mas3 Interface 11% 369 028 3 sively important to 90% of the marketers who target 4 Independent Online 10% 353 321 2 its listenership. Somehow it’s just never reached it full 5 CareerJunction 5% 193 038 9 potential. The same applies to some other big black6 MSN 5% 164 786 6 language stations.” 7 Ananzi 4% 124 154 5 MediaCompete managing director Paul Wilkins 8 Johncom 3% 109 142 8 says radio was a very successful element of a sustained 9 SuperSport Zone 3% 106 029 7 campaign begun by Mazda about four years ago to woo 10 Auto Trader 3% 98 780 11 the black middle class. As a consequence, Mazda was the only major new car brand that was growing sales in the current market. budgets, thus forcing radio stations to look beyond reach and numbers. Podcasts “If you think about it, radio is actually a monopoly by genre, region and lan- and product placements on SABC radio station websites are some of the initiatives guage. If you own the 25- to 45-year-old market in any particular area, that’s almost offered by the SABC,” the corporation says. a licence to print money,” says Wilkins. “There are fewer radio stations than there East Coast Radio says it drive to create content on complementary technology are TV channels. It should be the other way round. Production costs are virtually platforms is improving its listenership profile, advertising revenues and the skills non-existent for radio. But if you are talking costs for greenfield services, then the of jocks and sales staff. Trish Taylor, CEO of the station, says: “Our offering to ratio is 90% for marketing and 10% for actual running, while for an established sta- advertisers has become far more multimedia focused, delivering a far richer bouquet tion the ratio is reversed.” for media buyers where they can access traditional broadcasting products along with The SABC says its radio stations reach 65,6 % of the total adult population daily outdoor billboards, online promotions, blogging, podcasts and so on. In turn, we and 80% of the radio listening population and that many people in outlying areas are creating an entirely new radio creature that is also demanding a far broader skills can still not access television. It says radio listenership stood at just fewer than 29 base of jocks and sales staff. With the advent of blogs, a jock’s most redeeming feamillion in 2008, with 86% listening to SABC radio. More than 10 million people tures are no longer just a great voice and sharp mind. We need radio presenters who claim to listen to SABC radio exclusively. can write well. While we are not looking for masters English students, we are look“The biggest challenge for most radio stations after the introduction of new ra- ing for presenters who can create great content on air and online. In essence, it’s all dio players has been the advertising budget. Advertisers are unlikely to increase their about ‘Radio 2.0’, a whole new ball game that has entirely changed our portfolio of

Exhibitions Award winning stands from Design and production to staffing and on site management, we deliver more than just a stand. DESIGN
t
PROJECT MANAGEMENT
t
STAFFING
t
MEASU REMENT

it’s all about ideas

The ANNUAL 2008 — 11

www.penquin.co.za

MEDIA

Online

Wideopen Platforms

offerings to clients and our recruitment strategy when searching for jocks and great sales people.”

The internet is becoming more powerful by the day, says media commentator Chris Moerdyk, now living in the Cape and who reads four daily newspapers online every day. “We are going into a period of intense change,” says Moerdyk. “This will accelerate dramatically when we get true broadband internet. Japan has had broadband for a decade and it has changed living patterns. The newspaper advert is dead. People go online to find things. At last we are beginning to see a glimmer of hope as far as the provision of true broadband is concerned. And television will finally understand that the 30-second commercial is really and truly dead.” There will unquestionably remain a place for newspapers, “but there is not a single medium that isn’t wringing its hands and asking how one reliably reaches the 18- to 25-year-old group. They have developed their own social networks that keep them informed. People are relying less on the mass media,” Moerdyk says. Naspers, the media giant of South Africa is a prime example. “Just look at their name – translated it is National Press. Now they are huge in broadcasting and run an internet site that has more readers than any if their print titles,” says Moerdyk. “The New York Times has become a digital medium that happens to have a newspaper attached to it. That is the future.” The South African Advertising Research Foundation reported that internet usage (past 7 days) had increased from 6.0% to 6.9%, with significant gains seen in Gauteng, while use in past 4 weeks rose from 7.1% to 8.1%. After much confusion and toeing and froing over three separate ventures to lay new undersea cables from South Africa to other parts of the world, mainly Europe, Trade and Industry Minister Mandisi Mpahlwa said in August progress in deploying the cables had also been noted by Cabinet. Broadband infrastructure company, Infraco, has reserved manufacturing slots with suppliers for the African West Coast Cable. The cable will boost broadband and connectivity with the European markets and make connectivity through Africa much easier and cheaper. The digital platforms of newspaper companies are growing at double-digit rates world-wide, both in usage and revenue production, according to the World Digital Media Trends report presented to the World Newspaper Congress by the World Association of Newspapers in June. In South Africa, the Online Publishers Association (OPA) opened membership to smaller online companies, ensuring a more inclusive representative body, and invited advertising agencies to join. The OPA has secured Nielsen’s measurement at a heavily discounted rate to accommodate small players. The association also redesigned its logo to comply with international online design trends. According to bandwidthblog, Nielsen//NetRatings revealed the sectors and publishers where South Africans are spending the most time online – news and weather, media and publishing and entertainment sites. Alex Burmaster, European internet analyst at Nielsen//NetRatings, comments, “The online sectors where South Africans spend most of their time highlights the

76 — The ANNUAL 2008

power of the internet as an information resource. Almost one in every four minutes online is accounted for by a news and weather site.” Categories where online South Africans spend most of their time are: • News and weather sites accounted for 23% of all time spent online (1.1 million hours) followed by media and publishing sites – 16% (0.8 million hours) • The 10 most engaging categories account for 92% of all time spent by South Africans online According to Nielsen//NetRatings, it’s also worth noting that the popularity of a sector isn’t necessarily aligned with how much total time it accounts for. Employment, for example, is the ninth most popular category but ranks as the sixth leading sector by total time. Publishers where online South Africans spend most of their time are: • Media24 accounted for 27% of all time spent by South Africans online (0.9 million hours) followed by MWeb – 11% (0.4 million hours) • The 10 most engaging publishers account for 81% of all time spent by South Africans online Says Burmaster, “The dominance of Media24 in the South African landscape is astonishing when one considers that just over one in every four minutes online is spent on [its] sites – and when comparing that to the most dominant brands in other countries. “MSN, for example, is the most dominant brand in the UK in terms of time, yet accounts for ‘just’ 12% of total time. Similarly in Australia it’s Nine/MSN which also accounts for 12% and, in the US, it’s AOL which accounts for ‘just’ 9% of total time.” A report from London in July quoted Nielsen Online as saying that the most engaging South African websites and sectors, as measured by average time per session, are recruitment and dating sites.

MEDIA

Outdoor

A new currency has been developed for outdoor that enables it to directly value its exposure opportunities on a par with other media. SAARF has dubbed the new electronic measure OHMS. Nielsen South Africa’s managing director, Ken McArthur, says the new measure is a major step forward. “Previously data was statistically modelled. Now they get actual travel data that is mapped against site locations. This enables us to compute their potential to be seen in the same way and TV and radio have presented the likelihood of themselves being seen. It makes outdoor more comparable to sell. It is based on actual behaviour, not modelled,” he says. Primedia Outdoor predicts that the new OHMS measure will boost industry investment. “...We will be able to offer clients, media agencies, and business partners quantifiable proof of the medium’s value in terms of reaching their markets,” says S’khumbuzo Nkosi, Primedia Outdoor’s chief executive officer. Out of Home Media Association of South Africa (OHMSA) executive director Les Holley says he is concerned at the level of antagonism displayed to outdoor by

many local authorities. Much time is spent lobbying for more sympathetic and realistic regulations, he says. One effect of the hardline approach is that many media owners spend much of their energy preserving or upgrading their existing sites, with little time or resource left over to explore the acquisition of new sites. “An upside is that multifaceted outdoor media like electronic boards and scrollers are becoming more common and owners strive for maximum returns and try to give their clients exposure in the places they need to be,” says Holley. “I believe we will see a reduction in the number of large, free-standing billboards and a move to smaller street furniture-type vehicles, like posters, bus shelters, and bins. These will provide opportunities for marketers to penetrate new areas that can’t be reached by conventional outdoor media. Another positive development has been the introduction of advertising within malls, on escalators and lift doors. It provides marketers a chance to take their message directly to the target market just prior to the point of sale being reached. Another good thing is that the look of many outdoor advertising structures has been improving, with decent materials and good design. The spin-off is that the medium attracts new, more up market customers like investment chronometers, cars and perfumes,” says Holley. But South African media owners have some way to go to catch up with European counterparts in introducing new technology, and media buyers in the share that is allocated to outdoors: in Europe the share of market varies between 6% and 11% compared with South Africa’s 4.5%. Holley believes high costs are a deterrent, both in terms of the introduction of the new media types as well as the rates that would need to be charged to clients to warrant this type of investment. MediaCompete managing director Paul Wilkins says there has been quite dramatic change in outdoor media ownership, with many municipalities tending to give licences to SMMEs. “This is affecting the big players markedly and changing the structure of outdoor quite dramatically. With more competition, though, in this case the price to the advertiser can also go up because, with a split in the market, he may be required to take more space to obtain the same amount of coverage he had before,” said Wilkins. Primedia Outdoor says it enjoyed a 14% increase in revenue up from R229-million, to R262-million this year. The outdoor giant has enjoyed exceptional growth from Indiza Media, incorporating internal and external sites at Johannesburg, Durban and Cape Town International Airports.

Interactive Penquin offers a full range of professional interactive services. Our in-house animation studio will blow your mind not your budget.

it’s all about ideas

WEB
t
MULTIMEDIA
t
MULTIMEDIA 3D ANIMATION
t
MOTION GRAPHICS MULTIMEDIA
t


www.penquin.co.za

The ANNUAL 2008 — 13

MEDIA

Wideopen Platforms

Primedia Outdoor

While digital trends have evolved at a rapid pace in the United States, the development of high-quality local digital networks is in its infancy. “The Primedia Outdoor Digital Network provides top-quality digital outdoor, offering advertisers unique flexibility and spellbinding clarity and definition, day and night,” adds Nkosi. The network allows advertisers to achieve high-impact, high-resolution outdoor communication on versatile digital platforms that enable exclusive tactical messaging, day-part message management, real-time updates and inexpensive creative changes. Another significant Primedia Outdoor milestone is the inking of a R69-million, 10-year contract with the Tshwane Metropolitan Municipality to provide modern and attractive new directional Street Name Signs – at no charge to Tshwane ratepayers. “Internally illuminated street signs mainly located in metropolitan areas provide directional signage and at the same time allow for impactful branding 24-hours a day, making them ideal for retail businesses,” Nkosi says. “Businesses wishing to promote their products and services will benefit from the medium.” Virginia Hollis, managing director of The MediaShop, says it is becoming increasingly difficult to find good sites. “The coastal areas are really lean when it comes to outdoor. I understand that you don’t want to destroy your beautiful coastal city, but hell, outdoor does not have to be an eyesore. As councils are looking to grow their budgets, I suggest that media owners offer them innovative projects that not only generate additional revenue streams, but also benefit communities.” Pedestrian bridges are an area that can be exploited to benefit all, Hollis says. “With the recent influx of new media owners it appears that just about anyone can put up a board, as long as they have the formal approvals – and I predict this is going to get worse the

78 — The ANNUAL 2008

The Letter Corporation

Targeting more affluent audiences and brand marketers, Primedia Outdoor launched Primelites, a major arterials spectacular concept, into secondary markets. Building on this success, the company recently erected the first large-format, high-resolution, Digital Outdoor Network (LED) in Sandton CBD.

MEDIA

closer we get to 2010. This is scary for us and for clients, because many start-up companies have no infrastructure. Agencies take it on the nose because there is a preference to buy from people you know and trust, rather than do business with a brand new media owner. The agencies have valid reasons why they are nervous - they are the custodians of their client’s budget. If they invest with a company that cannot/does not deliver, they are the one with egg on their face.” Her advice to new media owners when they are selling to agencies was to have everything in place and to be open and supply information. Latest available SAARF outdoors figures show only billboards and store ads failed to make a significant gain in reach, although even these two outdoor categories are trending up. All other categories showed statistically significant growth over any given week, compared to the previous AMPS period. • Billboard ads: trending up from 73.5% to 74.6%. • Store ads: trending up from 81.2% to 82.0%. • Bus shelters: up from 37.3% to 39.6%. • Trailers: climbing from 35.5% to 39.5%. • Minibus taxi ads: up from 65.0% to 66.9%. • Train ads: risen from 11.0% to 12.3%. • Bus ads: from 38.3% to 42.2%. • Trucks: from 60.0% to 65.5%. • Mobile TV • As with so many technology innovations before it, dating back to South Africa’s notorious delay in taking up television because the National Party government feared voters might learn the modern world view from it, mobile TV still waits for the powers that be to make the necessary rules for it to air. • In August, the Communications Minister, Ivy Matsepe-Casaburri, withdrew her policy directive that only one company would be licensed to provide a network. Industry watchers had expected the one provider to be Sentech, which would have had a monopoly similar to that in pay television. • MultiChoice has been itching to get ahead with its service, and in its latest annual report laments lack of progress in getting licences. “The development of this technology is at an early stage, but worldwide launches are proliferating and business models are evolving. Value-added internet type services on mobile phones are also growing. The group will continue to develop products and services in this area. In the current year R86 million was invested in the development of mobile television services. In South Africa an unfortunate delay has occurred in issuing mobile television licences. In the interim we continue to make progress with mobile TV trials in several major cities. For the rest of the African continent full mobile TV services are now operational in Nigeria, Kenya and Namibia. Licences have been secured in a number of other countries.” • MTN and Vodacom have expressed interest in the mobile TV market. • MediaCompete managing director Paul Wilkins says mobile must be the next big thing in South Africa, considering that there is saturation ownership of cellphones across the spectrum. • In June, Vodacom launched the first soap opera produced specifically for cellphones, SoLikeLife, broadcast to more than 1.7 million Vodafone live! users.

Harbingers of gloom

Ladies and gentlemen: sharpen your pencils. That’s the advice veteran media industry players had for their colleagues as a sudden and severe economic downturn, if not recession, took effect in mid-2008 because of a combination of sharply higher food and fuel prices and a spiral in interest rates. Two-thirds of the way through the year and effects were being felt as spending cutbacks began. Chief executives and financial directors looked to the age-old first victim in any slashing: adspend. “The media are in for a tough time, at least until the 2010 Soccer World Cup,” says Harry Herber, group managing director of the MediaShop. “I see the total market shrinking dramatically in the second half of the year. The recession is making people hungrier, leaner and meaner. What will be interesting to see is how media owners and buyers adjust their businesses to the tougher times. How are marketers adapting their use of media?” Marketing consultant and columnist Chris Moerdyk says marketers “will have to pay the price for the pathetic job they have done in proving their worth to their organisations. The year 2008 has been a watershed in that the good times enjoyed since the early 2000s – during which time adspend has almost trebled – has come crashing to a halt. There is nothing worse for the industry than when the economists can’t make up their minds which way sentiment is heading and unfortunately there is no question that marketing has already been told to tighten its belt. I hope that CEOs are at long last getting the message that they should check the efficiency of their marketing.” Big international brands will be relatively unaffected because they are used to operating in boom and bust conditions and run their marketing investment on the basis of what returns can be expected, says Moerdyk. “Unfortunately that is not how the majority of marketers in South Africa work. And unfortunately the situation will persist where staff in advertising and the media sit with swords of Damocles hanging over their heads. This is not good for an industry that is driven by people, and talented ones at that. In the hard times of the ‘90s most media organisations cut back on people and I am not sure we had caught up sufficiently before this latest setback. By cutting staff, the industry is playing games with its quality and there is nothing that damages a media brand more than poor quality.” Herber says the big publishing houses were the first to feel the icy blast of recession because of the plethora of titles in the market, the result of print being the only unregulated media in the country. “A sort of clearing out has already started. There was a flood of new titles in the good times as publishers rushed to be first to market in every niche. The market became extraordinarily competitive and cluttered. But all media are affected, even if it is just that they are unable to put up placement pricing or are having to offer big discounts.”

The new Cap Lucas Radebe is the new captain of the Penquin Team. He is already a global brand, let his team help you build yours MARKETING
t
ADVERTISING
t
EXHIBITIONS
t
STRATEGY

it’s all about ideas

The ANNUAL 2008 — 15

www.penquin.co.za

DESIGN

The State of SA Design Glenda Venn – Chairperson of Think (South African Communication Design Council) Think, formed eight years ago, is committed to promoting and protecting the interests of the profession for its membership base. The organisation is entirely volunteer based and its successful projects, which include the Sappi Thinkahead Student Awards, involvement with the Loeries, consulting with

educational bodies, arranging conferences, meeting with government and contributing to the sector charter for transformation, have all been undertaken by individuals who have a commitment to and care for this industry and who have invested personally to contribute to their profession.

It is remarkable in that Think has sustained itself financially, with the help of Sappi, the founding sponsor, but also that very many, very busy people have taken the time to make it happen. This year is our most ambitious year to date and has seen major interventions in three differ-

ent parts of our industry. The Sappi State of Design research, which is what will be focused on in this article, speaks to a better understanding of the business aspects of design and beginning a process and dialogue with our clients to improve the service and outputs we offer.

Figure 3: Design Challenges In South Africa 63

Lack of real skills Lack of understanding about or recognition from client companies

56 55

Cost of design

49

Under-resourced industry Agencies and companies, not having concrete knowledge of the market

48

Companies are too conservative in their approach to design

46

Lack of real talent

35

Companies are not conservative enough in their approach to design Other

82 — The ANNUAL 2008

16 7

DESIGN

On the education front we continue the unique success of the Sappi Thinkahead Student Awards by upping our game this year, with new entry kits, increased interaction with the tertiary institutions, and more prizes for them as well as students. The number of entries in this awards scheme has increased steadily each year since its inception seven years ago. In 2007 Think received 265 entries, which was a sound 40% increase from the 187 entries of 2006. The Thinkahead programme has also extended to include a workshop in the afternoon prior to the awards, with our sponsors Woolworths

and Sappi, in which we set up a forum for school teachers, lecturers and practising professionals to discuss issues around design education in South Africa. This is just the start of our commitment to a long-term strategic process whereby we aim to assist in developing a “talent corridor” for young designers that identifies them at school, assists them through their studies, and mentors them once they start their careers. A concern with print standards and varying quality standards was the catalyst for our third big project for the year. On 19 and 20 November a workshop, sponsored

by key industry representatives in print, among them Sappi, 3M, Adobe, PIFSA, and Think, was held at 3M’s offices. The workshop included expert speakers such as John Panton of Digital Distributors and Adobe’s Mohammed Jogie, along with active demonstrations of technologies towards reaching ISO standards in accurate print proofing for conventional and digital print. Combined with a display of the winning pieces from the Sappi International Printer of the Year Awards, the input and insights provided valuable working solutions for DTP managers and production managers within design agencies.

The abovementioned projects are our focus projects for this year and reflect our goal to add value to the many facets of our members’ businesses. Underpinning this is our ongoing commitment to creative excellence and The Loerie Awards. A member of our board sits on the Loeries executive and through this we constantly evaluate entry and judging criteria for the Communication Design categories in order to ensure that creative excellence is recognised and celebrated. Every year we nominate international judges who we think will add value and bring insight to the process and this year we

Figure 13: Measurement Of Return On Design Investment

66% No

32% Yes

2%

Don’t know The ANNUAL 2008 — 83

DESIGN

enjoyed hosting Australia’s Vince Frost, founder of Frost Design and a renowned award winner himself, and fellow communication design judges at a well-earned post-judging dinner at Sophiatown restaurant in Newtown. The Sappi State of Design Research 2008 – Key findings This year Think, with the sponsorship of Sappi and in partnership with Ipsos Markinor, conducted the first quantative survey of communication and marketing managers with the intent of finding out more about how our clients felt about the design industry. Initial focus groups with marketing and communication managers, combined with members from design agencies, set the framework for the second stage of the research, a questionnaire that was conducted as a 20-minute phone call with 400 marketing and communication man-

?b`nk^,)3=^lb`gBg]nlmkrÃl:[bebmrMh
=^lb`g\hÃZ[bebmr Bg]nlmkrZ[bebmr

-.

-,

,0

,1

+)

?Zbk(Ihhk

*0

@hh]

>q\^ee^gm(O^kr`hh]

?b`nk^13;nlbg^llI^k_hkfZg\^:g]=^lb`g3@k^Zm(fh]^kZm^Bg_en^g\^!HgKZm^]"

2*

G^pikh]n\mlhkl^kob\^l
1/

=^o^ehif^gmh_g^pfZkd^ml

1/

Bg\k^Zl^]ikh_bml

1)

Bg\k^Zl^]fZkd^mlaZk^

02

Bg\k^Zl^]mnkgho^k Bg\k^Zl^]^fiehrf^gm

84 — The ANNUAL 2008

00 /)

DESIGN

The definition of what design is, though, is not as important as defining its value and role in business in order to be able to sell it on to our clients. agers drawn from the Matrix Marketing database. These managers work for companies that employ 100 people or more and their answers addressed the discipline of design as used by their company. As such the survey covers many design disciplines, ranging from communication design, product and industrial design to exhibition design, fashion design and interior design. In principle, the major challenge to the design industry, as viewed by our clients, is the skills shortage and the lack of resources. Along with the cost of design, these are fairly global issues and can only be addressed with long-term strategies and collaboration between industry, clients and government. More pressing, however, were the three issues that also achieved high scores and that are within the immediate grasp of local agencies to address:

•

•

•

Lack of understanding about or recognition of design from client companies – 56 % Agencies and design companies not having enough concrete knowledge of the market – 48% Design companies being too conservative in their approach to design – 46%

All of the above three points highlight a lack of dialogue between ourselves and our clients in terms of us positioning the real value of the services we offer to their business. Some consideration was given in discussion on the research findings that perhaps we need to be clear about what design actually is. It has become such a generic term – engineers and business consultants “design” outcomes and outputs, manufacturers sell wholesale mass produced “designer” products and business process has strategically “designed”

management objectives while the print and copy shop on the corner will “design” your company look and feel for R150 for 500 business cards. The definition of what design is, though, is not as important as defining its value and role in business in order to be able to sell it on to our clients. So what do we do and how is it valuable? Most of our clients don’t measure the return on investment (figure 13) on design spend and so, unsurprisingly, are unable to sell its advantages to stakeholders within their own organisations (figure 30). Worse still, they reckon we aren’t that good at selling our own value either. On the whole, though, clients remain firm believers in the value of design in their business (figure 8) and the positive role it has to play in the future of the South African economy (figure 1). But the challenge to all design agen-

cies is – are we up to it? If 46 % of our clients think we are too conservative, 48% think we don’t understand their business and 63% recognise we don’t have the skills or resources, is it any wonder they shop around with free pitches and take their big projects off shore, where they feel that they are getting value? It is not a desirable state of affairs but ultimately, as in all business, we are responsible for the value perception we create of our industry. In two years time, when we plan to repeat this survey, it will be interesting to see if we have managed to create some more design “champions” for our services within our client base. At Think we believe we can indeed achieve this and, through the projects we support and initiate, will continue to build a platform for excellence in South African Communication Design.

Figure 1: Importance Of Design

1%

Not important at all

84%

Extremely important

15%

Not that important

The ANNUAL 2008 — 85

Independently rated ‘South Africa’s Leading Sports Marketing Agency’. Source: BMI Sport

MEGAPRO provides specialist expertise in MARKET INTELLIGENCE SPONSORSHIP SALES STADIUM NAMING RIGHTS SALES DIGITAL & STATIC STADIUM ADVERTISING AND VIDEO REPLAY BOARD ADVERTISING Contact us to find out more about our world-class knowledge in the South African sports market and commercial opportunities within sport in South Africa. Tel: +27 11 305 9800 www.megapro.co.za

A Primedia Sport Company

THE ROCKSTARS

The Agencies

AGENCY PROFILE

8 Image and Brand Consultancy Type of Agency: TTL Branding and Communications Consultancy Number of accounts/clients: 25 Biggest spending clients: Zain, Be Mobile, Natrodale, Universal Postal Union

Accounts won in 2008: Zain, Universal Postal Union Accounts lost in 2008: None

Laine Barnard (Chief Executive Officer)

Company ownership: PTY Ltd. 50% Black-owned Contact details: Laine Barnard (CEO) Tel: +27 11 705 1800

Fax: +27 11 465 8306

Cell: +27 83 675 6340

Email: [email protected] Agency billings: R68 million Number of staff: 51 Key senior staff: 20 Key MOMent in 2008: Being selected to develop a global brand identity to exist in 190 countries for the Universal Postal Union.

the agency snapshot: In just under a decade, 8 Image and Brand Consultancy has firmly established itself as a pre-eminent and reliable specialist agency that provides

branding, TTL marketing communication, strategy and design.

We integrate strategic thinking with creative

execution and focus on brand development and

positioning, rather than tactical campaigns that do little for brand or bottom line growth. We are de-

sign gurus and Africa specialists with an appetite for challenge.

We have the skills, experience and infrastructure to deliver for large brands.

Agency history 8 Image and Brand Consultancy was established in the year 2000 by an ambitious Laine Barnard. At the time the company had a team of three permanent employees and today 8 Image and Brand Consultancy boasts a staff complement of 51 permanent staff members operating in more than five countries; namely South Africa, Nigeria, Kenya, Botswana and London to name a few. Over the years 8 Image and Brand Consultancy has established a strong foothold throughout the African continent and is rapidly becoming a strong global player. Laine’s unfaltering dedication, passion and tenacity inspires his team to

88 — The ANNUAL 2008

achieve the overall vision and objectives of the company. Business performance in 2008 The agency is showing healthy growth this year. Its strategic decision to re-brand and re-focus the company has resulted in a new burst of energy and major client acquisition. The agency has acquired a crop of new talent, billings have increased by 38% and three new client acquisitions have been secured. Creative performance in 2008 This year, creative and design excellence have been high on the agenda. In line with our “Kaizen” approach to business, the agency’s focus is on improving design and production values while promising everbetter service delivery. Our creative team is a well-oiled unit that keeps current with new design trends both on the local and international front. Why you should hire this agency We deliver measurable results for our clients. This is achieved through strategic insight and a unique, methodical process that aims to positively impact the brand and its bottom line. We are driven by passion for what we do and stop at nothing to ensure that our clients are satisfied and their brands successful. We go against the grain and constantly seek out inventive ways of expressing the brand in the market. 8 Image and Brand Consultancy prides itself in offering an end-to-end brand solution. Our strategic process is based on a three tiered approach namely, LearnThink-Create. This summarizes a complex and methodical best-practice approach that ensures it thoroughly researches its brand, market and objectives to maximise campaign effectiveness. Who are the key people at the agency Laine Barnard (Chief executive officer Julanda Dreyer (general manager Africa Natali Dukhi (general manager Cape Town)

Tom Windows (general manager Nairobi) Gavin Pienaar (general manager Lagos) Warren Bosman (3D design director) Kevin Bird (creative director) Yvonne Loxton (events director) Gregg Rodrigues (group production manager) Agency philosophy 8 Image and Brand Consultancy is a can-do, go-getter type agency. We are tenacious, enthusiastic, ambitious and most importantly, we have a sense of humour. As a brand the agency has an explorer personality archetype. We encourage individuality, deemphasise rules and equalise opportunity, where every team member can grow and thrive. In keeping with modern corporate trends, we empower our professionals to be independent, flexible and self-directed. The overall result is a company that can operate and flourish, irrespective of adverse conditions. How the agency is structured and How it works 8 Image and Brand Consultancy has agencies in Johannesburg, Cape Town, Lagos and Nairobi; with affiliates in London, Brazil, Madrid, Angola, Mozambique, Cairo and Bahrain. The agency delivers a comprehensive throughthe-line offering including strategy, presence/situ/enviro branding, design, TV, radio, print, web, promotions, events and internal marketing. All creative is generated from the Johannesurg office and we can thus offer our Africa clients a high standard of creative and design output. 8 Image and Brand Consultancy is a branding and design agency with a formal yet innovative approach to analyzing the critical components of brand design. We do this

by identifying the boundaries of product, service or corporate and utilising research and strategy to move the brand to its desired potential. We capture the uniqueness of the brand experience and create relevant and strong brand iconography and campaigns that communicate in the language the consumer understands. Future of the agency and growth plans 8 Image and Brand Consultancy is evolving as an agency. From being solely a strategic branding agency, it has grown its core competencies to include a full range of marketing and advertising services. It is positioned as a through-the-line Africa specialist and intends to increase its footprint with new offices planned for Angola, Botswana, Mozambique and Dubai. Client references “8 Image and Brand Consultancy’s experience in the pan African market has been key to the success of our re-branding initiative. Their turnkey retail and presence solutions are unique, innovative and perfectly suited to our markets. We consider the agency to be a strategic partner in our African roll out.” – George Katendeigwa, group segmentation manager, Payphones Zain Group “It has been a pleasure to work with 8 Image and Brand on the creation and launch of Be Mobile. The agency provided us with a complete solution in recordbreaking time and stopped at nothing to ensure consistent and timeous delivery. They have exceeded our expectations and proved integral to the successful launch of our brand in Botswana.” – Scott Grimley, launch director, Be Mobile

AGENCY PROFILE

The ANNUAL 2008 — 89

AGENCY PROFILE

Actuate Type of Agency: Internal marketing Number of accounts/clients: 16 big spending clients: Standard Bank, SAB, MTN Accounts WON in 2008: SARS, Internet Solutions, Development Bank of South Africa, De Beers, LexisNexis, Standard Bank, MTN Number of staff: 16 Billings: Not disclosed Key awards in 2008: Owner/director winner of CEO magazine most influential women in business and government Key agency staff: Creative director: Neil Clarence Strategic director: Terri Brown Managing director: Grace Harding

01.

Contact details: Tel: +27 11 343 9100 [email protected] www.actuate.co.za The agency in 50 words: An internal consultancy combining expertise in HR, marketing and advertising. Internal brand activation aligning employee behaviour with business objectives. Full service offering – strategy, creative conceptualisation and execution, media planning, coaching and training.

Here’s an interesting fact: a study undertaken by Melcrum Publishing shows that effective employee engagement results in a 69% increase in customer satisfaction. The question is if companies aren’t communicating in a manner that is relevant and engaging, what’s happening to their brand? And how is this reflected to their customers? It was this thinking that inspired Grace Harding and Ter ri Brown – recently named one of South Africa’s 20 most influential women in business and government – to establish Actuate in 2004. With backgrounds in HR, marketing and advertising, the duo were well equipped to identify, and exploit, the opportunity to develop a consultancy dedicated purely to employee engagement, using the principles and practices of marketing and advertising – simply applied inwards. At the time, mention of “internal 90 — The ANNUAL 2008

marketing” would have been met with a quizzical expression, if not outright scepticism. Chat to any successful brand manager or CEO today, however, and you’ll note that employee engagement is high on their list of priorities. Brown notes that employee engagement has evolved: where once an “I’m the boss, that’s why” mentality would have been sufficient motivation for any employee – from management’s perspective, anyway – there’s now a far greater emphasis on collaboration and information sharing. “Employee engagement has evolved,” Brown asserts. “It’s become more sophisticated, less patronising and superficial. Employees are now seen as equal status partners, so previous attempts at teambuilding, like fire walking, have given way to integrated interventions with long-term, quantifiable impact.” The changing philosophy is reflected in the growth of Actuate itself, with the consultancy now providing a full service offering from strategy to creative execution, production, training and internal media optimisation. Driving it forward is the philosophy that “employees are people too” – and that’s what makes this agency so good at what it does. “Marketing to employees is highly specialised,” Brown notes. “Effective employee engagement hinges on a unique approach and execution. We view employees holistically, and understand what drives them.” This insight is demonstrated by campaigns like the brand activation exercise where eBucks employees experienced for

themselves the new payoff line, The Reward of Choice. To do this, they were treated to a day of endless choices. Throughout the day, they had the opportunity to pick, choose and decide – to literally experience choice and through this experience internalise the new brand positioning. A different approach was adopted to promote service at Absa. The starting point of this bold campaign was the realisation that everyone, at some point, ref lects on what they have achieved during their workday. Actuate “sold” service messages to a predominantly under-35 workforce by hosting a street concert (marketed through TV ads, posters and digital media), the highlight of which was an original recorded song performed by SA kwaito stars Danny K and Kabelo. Following the launch, the Absa campus was branded with posters, door hangers, floor decals and a building wrap. The countrywide campaign was particularly effective because it focused on all employees, with a specific focus on customer-facing teams. While Actuate’s adeptness may be explained by its status as a pioneer in this specialised field, first-mover advantage can only get you so far. After that, you need a compelling proposition, which Actuate undoubtedly has: it is one of South Africa’s only completely dedicated internal communications consultancies, with a fullspectrum offering and a diverse skills set embracing HR, advertising and marketing. Every solution is customised – “nothing is ‘off the shelf’” – and the agency stands out for its award-winning creative. “We’re

very focused on producing creative that’s as good as any external communication. That’s important, because companies pay lip service to their staff as their most valuable asset, but then talk to them with unattractive, poorly executed creative.” All executions are built around defined behaviours that impact on business results, and are aligned to client strategy objectives. This is achieved through a backward engineered process: Actuate identifies the experience inherent in the brand promise, then pinpoints the behaviours required of staff to deliver that experience. Each point in t his process is a collaborative effort between experts in the specialist fields of HR, marketing and advertising, which means that the solution is a truly integrated one. Added to this, Actuate collaborates with abovethe-line and direct agencies, such as The Jupiter Drawing Room and GreyMatter, to create for clients a 360 degree offering with absolute alignment between abovethe-line, below-the-line and in-the-line communication. Key to this collaborative process is the consultancy’s f lat structure, where guidance is provided by Harding as HR specialist and marketing strategist Ter r i Brow n, who lead a tea m of consultants and creative director and “go-to guy” Neil Clarence. Brown reports that the agency has enjoyed steady growth, with a number of prestigious new clients – including SARS, Internet Solutions, the Development Bank of South Africa, MTN and Standard Bank

AGENCY PROFILE

02.

03.

01. Neil Clarence, Grace Harding, Terri Brown,

Phephile Simelane

02. Absa ‘What have you done today’ event 03. eBucks campaign

joining the fold this year. How is the industry landscape likely to change as employee engagement gains momentum? Brown maintains that the discipline has reached a tipping point, and is fast becoming entrenched as part of the marketing mix. This is increasingly salient as companies carefully evaluate their marketing spend. In current climes, the advertising rand has to work that much harder – and the appeal of employee engagement is that the results are far more sustainable than most external communications. “Think about it: no company will use the same brand ad for 5 years, but their employees will likely stay for far longer – so communicating

with them is a true investment.” Brown adds that many industries have reached a parity point – think banks and telecommunications – and their sameness is reinforced by regulatory environments. In these situations, differentiation comes through service – and the best way of ensuring great service is bringing staff on board. That said, tight budgets remain a problem, and although employee engagement is an integral part of the marketing mix, it tends to be considered long after other elements – which means less lead time is available for excellent executions. That’s why Brown insists that client

education will continue to be a central focus for Actuate. “Company leaders are a special target in this regard: 48% of staff interviewed in the Melcrum Employee Engagement Research Report said that the actions of senior and front-line leadership are the single most influential factor in driving engagement, so we would like

to develop and upskill more leaders in this area.” That’s just one area that will garner attention in the future. With employee engagement still regarded as a fairly new discipline, there’s still plenty of room for growth – and Actuate is poised to take advantage.

The ANNUAL 2008 — 91

AGENCY PROFILE

AdMakers International Type of Agency: Full-service agency Number of accounts/clients: 71 BIGGEST SPENDING CLIENTS: Urban Ocean Group, General Motors, PB Shores, Banyan Tree Properties. Accounts won in 2008: Amari Holdings, Crystal Towers, Banyan Tree Seychelles, Tongaat Developments, Trident Investments, Ingleside, selected projects for Dubai World. Accounts lost in 2008: None Company Ownership: Independent with 25% equity ownership. Number of staff: 37 Billings: R125m financial year ending 28 Feb 2008. Key awards in 2008: As a business optimisation agency, AdMakers only enters International awards judging strategy in conjunction with creativity. 11 CNBC International awards for Luxury marketing in 2007. 1 US Benni Premier Award out of 10 000 American entries. A further 7 CNBC International awards for 2008 already awarded to date. Key aGENCY STAFF: Chairman: Duan Coetzee Chief executive officer: JP Fourie Financial director: Calla Wessels Studio manager & creative director: Mandy Crossley New business executive: Lara Colliani Media manager: Johan Giliomee Production manager: Mia Muylaert Account manager: Nadia Railoun Key moment in 2008: ”The opportunity of a Lifetime comes along twice a day” is one of AdMakers propriety quotes. Thus every single day that we are alive represents hundreds of key moments to do the right thing. Contact details: Cape Town Office Tel: +27 21 448 7074 Fax: +27 21 448 7095 Email: [email protected] The agency in 50 words: A refreshing common-sense business success approach to the luxury end of the market backed by a 20-year track record – a unique phenomenon in the agency world. AdMakers has a long history of success for clients and is regularly consulted by some of the world’s most influential business people.

92 — The ANNUAL 2008

01.

Established in 1989, AdMakers is a nonconformist, top-notch, through-the-line agency. Specialising in high-end luxury goods in the global arena, it deals with or consults to top brands, including some of the world’s largest property developers. Appreciating the faith required of clients when spending millions on an ad campaign with no guarantees on return, founder Duan Coetzee pioneered the risksharing approach to marketing in the late eighties. “It is amazing how the outlook on a creative idea changes if the agency has to put its own money where its mouth is!’ he remarks. Although some of AdMakers clients use the agency according to more conventional billing methods, there is always a risk-sharing tweak to every campaign. 2008 has been a busy year with a high demand from international clients. “We have travelled extensively to consult on various brands and property developments,” says CEO JP Fourie. “Our credo for this year is: ‘Everyone may not yet be aware of the fact that we are the world’s foremost luxury goods marketing and advertising agency – but tomorrow is another day.’ All indicators point to success. Locally the agency has added six new clients to its books and has launched new campaigns for Isuzu, Saab, HUMMER and Cadillac. In support of their international aspirations, Christo Smeda has joined the team to work alongside Coetzee on international new business development and service. JP is pleased about the new addition to

their team. “Christo has the qualifications, has worked abroad, has travelled extensively and adds yet another international frame of reference to the AdMakers team.” To complete their international credentials they have established permanent representations in the US, Brazil and Canada. In spite of this international expansion, most high-end creative is still handled exclusively by the same team that started the agency almost 20 years ago – resulting in a collective experience base spanning more than a century. Additionally, being a specialist in the luxury good market, the agency offers in-depth research on the top end of the market and first-hand current experience is immediately accessible. Today the agency is recognised globally as a specialist in this arena. For this reason the agency is unabashedly selective in terms of clients it will represent. The rationale is that it’s not plausible for the same company to sell a multi-million dollar tropical paradise and washing powder. JP expands: “What applies to buying high-ticket property applies to an expensive vehicle or jet. We have all the experience, research and insight in to luxury brands at hand. Our clients know that they can trust our expertise, track record and first-hand experience base.” As they are passionate about the bottom line and seek to boost sales, smooth efficiencies and minimise wastage, they stick to original guru David Ogilvy’s credo “If it doesn’t sell it isn’t creative.”

In line with their global profile and this hard-line business orientation, AdMakers doesn’t compete in the Loerie Awards and other local creative awards. JP explains that they are business optimisers that deliver results in partnership with their clients and that the shine of any creative award fades very quickly if the sales results do not support it. His experience backs this up. “I’ve sat with a lot of clients whose agencies are winning awards left, right and centre but they are not achieving the client’s objectives. This wears thin after a while. “So, we only enter awards that judge strategy, creative and the final product. We also prefer to focus on global recognition, and we are the most awarded agency in the world at the prestigious CNBC awards with almost 50 CNBC International awards since 2002 to confirm our international dominance in its field.” Duan is appreciative of their clients. “We are only as good as our next job” is another propriety AdMakers saying. “At AdMakers we are fortunate to have clients that allow us to explore new frontiers.” As proof he refers to a recent campaign for Florida-based Dolce Vita – ultra luxurious apartments priced between $1.5 and $ 12 million. A target market of high net worth individuals the world over took personal delivery of a Chinese lacquer wooden box showcasing a spectacular collateral set that included a Hollywood-produced mini-movie – a captivating and truly unique piece of work that immediately generated

AGENCY PROFILE

maximum desire and impact. With growth targets that are qualitative rather than quantitative, coupled with its outstanding performance, over the past seven years the agency has had to show away more clients than it was able to take on. JP ponders their success: “We operate according to a strong set of values and will not take on a client whose ethics don’t conform to ours or a project that we don’t believe we can make work. That tends to weed out a lot of possible clients in today’s day and age.” He adds that those clients whose profiles and product fit the AdMakers skills set won’t find better knowledge, talent, focus, accountability, partnership and results anywhere else around the globe. He unpacks partnership: “We are not just ‘the agency’ to our clients; we are an integral and trustworthy part of the marketing team – involved in every fibre of their business.” This is a strategy that has certainly borne fruit in the form of longterm relationships for AdMakers. “Some of our key client relationships span 20 years,” JP continues. “Long relationships result in the accumulation of a wealth of knowledge about our clients’ business, which is hugely beneficial. We know what they need before they ask for it.” It takes a well-established team to deliver this level of service and, with a focus on creating awesome advertising and delivering excellent results, there is no time to stand on ceremony at AdMakers International. “Another differential is that we are not title or position bound when it comes to delivery. A creative director will help pack boxes if the need exists – it’s all about getting the job done, whatever it takes,” says Duan. The management team is available to whoever needs to see them – 24-hours per day, while daily morning meetings about all work in the system ensure that everyone is on the same page and nothing slips through the cracks. JP praises this system. “We have found these daily status meetings to be invaluable to enable us to deliver turn-around times that set new industry benchmarks. AdMakers is not a heavy, fuel-burning battleship, but a fast, highly manoeuverable strike craft.” And, they intend to apply this agility to the future. As usual they aim to innovate and are working on introducing travelling “Strike Force Teams” to their menu. This will see mobile teams of client

service and creative people travelling the world to complete projects on site – from initial brief to production. This supports a two-year strategy to work with select local and international clients offering exciting business opportunities to further expand on the agency’s unique risk-sharing model. It is this international exposure plus the economic resilience of the luxury market that has protected AdMakers from local economic woes to a large degree. “But,” says JP, “this is also the time of opportunity – experience has taught us that marketers that increase spend and engage in brand-building in difficult times will end up with more market share when boom times return.” In the meantime, AdMakers invests in the future of the local industry through mentorship programmes for junior staff and students. Duan comments: “Agencies need to dedicate time and resources to developing skills in the junior staff they employ and to arm them with the knowledge required to move to the next level.” And, in their opinion, it is only this and the time it takes that will mitigate the current lack of qualified previously disadvantaged individuals in the mid-executive level.

02.

Client references “AdMakers know our business extremely well and deliver work that is on time, strategically aligned and results driven – exactly what we require. AdMakers is the best client service agency I have worked with globally.” – Brian Olson: general manager – marketing, General Motors South Africa “They are conceptually very strong and innovative, they understand our business and where we are going with our product. They develop great relationships with their clients and their service is really excellent.” – Mark Taylor: CEO, eLan Property Developments

‘Everyone may not yet be aware of the fact that we are the world’s foremost luxury goods marketing and advertising agency – but tomorrow is another day.’

01. The AdMakers Cape Town team

03.

02. An example of work completed for Dolcevita in Florida 03. Cadillac CTS

The ANNUAL 2008 — 93

AGENCY PROFILE

ARM Advertising & Design

Zibusiso Mkhwanazi

Richard Alcorn

London

Sydney

Johannesburg

Type of agency: Through the line Number of accounts/clients: 14 Biggest spending clients: Hertz, Cobra, Cliffe Dekker Hofmeyr Accounts won in 2008:

Brian Wright

New York

2

Dubai

THESE TIMES DEMAND MORE OF A LAW FIRM.

Accounts lost in 2008: 1 Company ownership: 25,1% BEE

An increasing number of South African organisations require global representation in their affairs, which is why our membership of DLA Piper is so important. It positions Cliffe Dekker Hofmeyr ideally to provide comprehensive and coordinated business legal services to clients whose needs are local or international.

Contact details: Tel: +27 11 656 9330

Because if it matters to our clients, it matters to us. 28825/1

Email: :[email protected] Agency billings: R 23 million

JOHANNESBURG +27 (0)11 286 1100 +27 (0)11 290 7000 CAPE TOWN +27 (0)21 481 6300 +27 (0)21 405 6000

Key awards in 2008: None entered

www.cliffedekker-hofmeyr.com

EVERYTHING MATTERS

Cliffe Dekker Hofmeyr is a member of DLA Piper Group, an alliance of legal practices

Number of staff:

DLA CLIFFE DEKKER HOFMEYR

14 Key agency staff: Chairman: Zibusiso Mkhwanazi

Ever wonder why Hertz is the world’s #1 car rental company?

Director: Brian Wright

Director: Richard Alcorn Key moment in 2008: Appointment of Zibusiso Mkhwanazi as executive chairman.

Try us. You’ll love our people. You’ll love our service.

The agency snapshot in 50 words: ARM 28784

A small agency, big on experience and

poised for growth. ARM offer a full service,

ensuring high levels of personal involvement

Call 0861 600 136 or visit www.hertz.co.za

from the top people in the agency. Effective

advertising and the client’s bottom lines take priority over creative awards.

It’s rare to find a small agency that has been in business for more than 25 years, particularly in an industry where agencies crop up like mushrooms and disappear just as quickly! The fact that ARM Advertising and Design’s origins date back to 1982 says a lot for the stability and quality of the agency. In fact, two of its clients have been with the agency for more than 20 years, which is a rarity in today’s environment. ARM has always been a strategybased agency. “Strategy builds brands and if the strategy is right, 90% of the creative work is effectively done before pen is put to paper,” says executive director Brian Wright. The agency does not enter creative awards. According to Wright this is due to two reasons: “Firstly there is a considerable cost involved and sec-

94 — The ANNUAL 2008

#1 worldwide

Featured are print advertisements from the Cobra, Cliffe Dekker Hofmeyr and Hertz campaigns.

ondly, we belong to that cache of agencies that believe the reward is in the client’s bottom line.” An exciting development for the agency has been the recent appointment of Zibusiso Mkhwanazi as executive chairman. Last year Mkhwanazi walked away with the BBQ Young Business Achiever Award while this year he was a finalist on the Endeavour International selection panel. Mkhwanazi is also chairman of digital agency Krazyboyz Digital. Agency founder Richard Alcorn is excited about Mkhwanazi’s investment and future role within the agency, “It’s an absolute coup for us to have Zibusiso join our board. He is an exceptionally talented businessman and his chairmanship at Krazyboyz is an added benefit to the agency. There are natural synergies between ARM and Kra-

zyboyz. ARM can now extend its service offering to include the full range of services within the digital realm.” According to Mkhwanazi, transformation within the larger agencies is well under way while transformation within the small-to-mid sized agencies continues to lag behind. “ARM was the perfect investment opportunity. They are small, independent and yet have a great track record of being well managed. They also handle some great brands.” Mkhwanazi, Alcorn and Wright have an exciting blend of experience and youth. “I intend to be very hands-on and together with the advertising experience of Richard Alcorn and the strategic marketing experience of Brian Wright, we can achieve great things for our clients,” maintains Mkhwanazi.

Wright, who recently joined the company, says, “One of the things that was apparent to me when I joined was that the agency was so focused on the promotion of its clients’ brands that it neglected the promotion of its own brand. As a result, many advertisers may not have heard of us, which is an unwarranted situation given the number of years the agency has been in business.” Mkhwanazi agrees, saying, “It’s not serving the agency well to be the ‘best-kept secret’ and it is certainly one of the key areas that I will be addressing as chairman.”

AGENCY PROFILE

Atmosphere Communications Type of Agency: Public relations and marketing communications Number of accounts/clients: 15 clients excluding project-based clients BIGGEST SPENDING CLIENTS: MWEB, Sanlam Investments, ghd Accounts won in 2008: Triumph Lingerie, kulula.com, KWV, Capitec Bank, Van Loveren Wines Accounts lost in 2008: HBD Venture Capital Company Ownership:

01.

02.

Great business performance is wellmatched by their creative performance. The team excelled at the 2008 PRISM Awards where it ranked as the second-most awarded agency with five awards under its belt – securing awards in each category it entered. Nicola acknowledges that their awardwinning work is a direct result of their clients giving them the creative space to excel. In return for these opportunities, Atmosphere takes a stand to offer exceptional creative concepts that deliver measurable, perceptionchanging PR campaigns. “We are upfront about what we can achieve and we build in measures to ensure consistency,” says Nicola. “Three months into a campaign we stop and say: ‘This is what we said we would do and this is what we’ve achieved’. Our clients trust us because of our transparency around our processes as well as our revenue model.” The agency’s success is made possible by its staff, all of whom radiate a passion for their chosen field. Nicola summarises the agency’s appeal: “We are a strategic, resultsfocused business and will do what it takes to meet the PR objectives of our clients. To back this up we offer a strong dose of creativity, delivered by a motivated team.” She prizes her team highly and all staff members are expected to engage equally in client service and the creative process with, “strong writing skills, sprinkled with a good dose of out-of-the-box thinking” being prerequisites for employment. The team comprises 20 employees who work out of offices in Johannesburg and Cape Town, all of whom thrive in the flat structure and dynamic culture that create a supportive environment buzzing with a high level of energy. There are two teams – one devoted to business/corporate communications and the other to pure brand communications. This

division is somewhat of a formality explains Nicola: “What I love about Atmosphere is that we all share ideas and cross-pollinate skills, we don’t stick to our silos.” Commenting on changes in the industry, Nicola believes, that Web 2.0 has created a shift. “The Web 2.0 environment has added a new layer of experts who have an opinion about your brand and business. Their reach, via blogs for example, is growing rapidly. Web 2.0 is also giving an opportunity for PR practitioners to become the editorial voice of brands or companies – whether it is through social networks, podcasts or online video.” In addition, Atmosphere has experienced a shift in clients’ attitude towards PR in that it has become a vital part of the strategic mix and clients are realising that, in some instances, it is more effective for PR agencies to lead communication strategies and campaigns. With a strong team and a finger on the industry pulse, Nicola is relaxed as she contemplates the future. “We’ve always believed in organic growth and our ambitions are focused on creating industry-leading PR campaigns and not necessarily on growing staff numbers or opening new offices in far-flung places! I believe that if we do good work and create a dynamic environment, the clients will follow.”

60% Nicola Nel 20% James Barty 20% Alistair King Number of staff: 20 Billings: R8.4-m (Jan-Dec 2007, audited) Key awards in 2008: 5 PRISM Awards (three gold, one siver, one bronze) – Winning an award in each category we entered Contact details: Tel: +27 21 461 2117 Tel: +27 11 250 7963 Website: www.atmosphere.co.za The agency in 50 words: Atmosphere is a creative, entrepreneurial business that builds brands and reputations through strategic public relations programmes. Our clients receive out-of-the box, clever communications strategies that are aligned to their business plans and deliver measurable business results. We are a motivated bunch who love the work we do.

Atmosphere opened its doors in 2001 and chatting to managing director Nicola Nel, public relations (PR) takes on a whole different hue – it becomes artful, fluid and, dare I say, exciting. Gone are the days of self-congratulatory media releases and illattended cocktail do’s – make way for speeddating media events, quirky brand activations and brilliant editorial campaigns utilising Web 2.0 tools. A continuous year-on-year growth by a minimum of 15% bears testimony to the ongoing success of this dynamic agency. New accounts include kulula.com, Capitec Bank, Triumph International Lingerie, and Fitflop with projects for SA Tourism and kulula.com, KWV, Sloggi and Bushmills Irish Whiskey.

96 — The ANNUAL 2008

Client references “Atmosphere’s expertise, relentless dedication and hard work have resulted in tangible growth in media exposure for our businesses. We love working with this team of innovative thinkers who are always willing to go the extra mile. They not only understand our business, they are also passionate about it.” – Claire Rabe: marketing manager, Sanlam Investments

03. 01. Nicola Nel, MD of Atmosphere 02. The Triumph Lingerie Awards was a campaign aimed at finding new design talent for client, Triumph International. Atmosphere managed the event, utilised Facebook and blogs to communicate with the media, key fashion industry players and the students. The campaign generated in excess of R5 million of media coverage. Pictured with the students and models is Christian Stolba, GM of Triumph Lingerie 03. During 2008 Atmosphere managed a media relations campaign for joint clients, SA Tourism and kulula.com. The joint venture between the two companies is aimed at promoting local tourism. Seen at the media event to kick off the campaign was, from left to right, Moeketsi Mosola (CEO of SA Tourism), Marthinus van Schalkwyk (minister of Environmental Affairs and Tourism) and Gidon Novick (joint CEO of kulula.com)

“Nicola Nel and her team have brought new insights into how we position and promote the Baileys brand through non conventional PR channels, contributing significantly to a growth in awareness in South Africa. Their understanding of the alcoholic beverage industry is excellent and they have developed sound strategies that deliver clear and consistent messages to the marketplace.” – Clint Hess: brandhouse, portfolio manager

AGENCY PROFILE

Berge Farrell Type of Agency: Branding and design Number of accounts/clients: 12

02.

BIGGEST SPENDING CLIENTS: Pick n Pay, SAB, BAT Accounts won in 2008: Pick n Pay, SABMiller, I&J, Cadbury, McDonald’s Accounts lost in 2008: None Company Ownership: Pty limited/Independent Number of staff: 32 Billings:

03.

R24 million Key awards in 2008:

01.

Sarita Key aGENCY STAFF: All Contact details: Cape Town +27 21 671 2001 Johannesburg +27 11 467 1993 www.b-f.co.za Key moment in 2008: International pitch successes The agency in 50 words: Berge Farrell is a strategically led design business that, in five years, has climbed into the top five design businesses in South Africa (Ad Review 2008). Our design solutions are used by major blue-chip companies both in South Africa and abroad, with particular emphasis on our expertise in the subject of iconography.

When a leading industry analyst names you as one of the top five design firms in the country after only five years in existence, your reputation has a habit of quietly building itself. In 2003, managing director Andrew Nel, along with Paul Farrell and Steven Berge, identified a niche for a strategically led design entity that was adept at building brands and created Berge Farrell. Johannesburg-based Richard Seegers makes up the agency’s quartet of directors. “Our establishing ethos was that design without the relevant strategy is design for the sake of design – transient, thin and with no longevity,” says Nel. Having started out with only SABMiller and Woolworths as clients, today the company’s blue-chip client portfolio includes the likes of British American Tobacco, Cadbury and, more recently, Pick n Pay, I&J, McDonald’s and Parmalat. “Our growth is mainly through WORM – 98 — The ANNUAL 2008

word of relevant mouth,” says Nel. “The best PR at the end of the day is your work.” Key to Berge Farrell’s rapid growth has been assembling the right team, he relates. “We only employ grown-ups – and that has nothing to do with age. We have calm, smart people on our team, who understand design in terms of strategy.” With offices in Johannesburg and Cape Town, Berge Farrell has established itself as a leading player in brand iconography, a term that it has been instrumental in popularising. What this entails, explains Nel, is understanding a brand’s unique selling point and enduring competitive advantage, and capturing it emotionally or functionally in a graphic form or a symbol such as a logo. Successful iconography is a communication device employing a visual language that cuts across language, literacy and cultural and geographical divides. “In essence, iconography means: ‘By seeing you, I know more’.” The agency only courts blue-chip clients, and has established itself as a serious player by revamping the design and packaging of well-known brands such as Hansa, Castle, Huggies, Chappies and Dentyne, with its structural design of the Sarita cider bottle winning an award from the Institute of Packaging SA. The firm recently scored a coup by adding Pick n Pay to its client stable. To complement the supermarket chain’s corporate identity facelift, Berge Farrell has been redefining and revitalising the packaging design across Pick n Pay’s bouquet of brands – undoubtedly one of the largest and most challenging design jobs in the industry. Another exciting development is Berge Farrell’s ventures into the international

arena, which it hopes to expand on in the coming year. In Romania, the agency was commissioned by SABMiller to rebrand and package one of the country’s top beer brands, Timisoreana. In Ireland, Berge Farrell won a competitive pitch for the rebrand of the country’s top toilet roll brand, Kitten Soft. Perhaps most exciting, though, is their successful brand development pitch for Italian beer Birra Peroni. “I love it that South Africans are doing this kind of work in Europe,” declares Nel. “European design seems to be a bit tired, and we’ve found the people tremendously enthusiastic about not only the way we do business and the way we do design, but they also really believe in the way we turn commercial symbols into icons and bring them to life.” Packaging has come into its own as a means for marketers to communicate with their audiences, he points out, and design’s role in the marketing mix has increased measurably. This is especially important in an information-driven society where brands must break through the “noise and clutter” to reach increasingly sophisticated consumers. Design is a process that goes way beyond merely creating a “pretty picture” and for Nel, there is nothing to match the feeling of when a consumer “gets” an icon’s message. Having shared a code of sorts, a bond is forged between the two parties. With Berge Farrell having grown “inch by inch” since 2003, Nel is optimistic that even rosier horizons beckon. “It’s hugely exciting, with no end in sight.” Meanwhile, they’ll continue quietly going about the business of designing the product icons that help make up our visual landscape.

04.

01. Paul Farrell, Andrew Nel 02. Part of 4500 sku’s relaunched for PnP 03. The Chappies legend gets an upgrade 04. Sarita, award-winning design 05. Marzen Gold, part of the Hansa

motherbrand extension

05.

OFM covering central South Africa

Wherever you go in central South Africa, we’re on your frequency.

Reach central South Africa’s wealthiest people for a song! OFM delivers the upper LSM market (7 to 10), 25 to 49 years, at the LOWEST Cost Per Thousand in the country. OFM has the number ONE penetration into central South Africa in the LSM 7 to 10, 25 - 49 year old market, measured against all available radio and print options in the region. To advertise on central South Africa’s number one radio station call United Stations on 08612372346

www.ofm.co.za

www.ofm.co.za

AGENCY PROFILE

Black Type of agency: Branding, strategy, design & interiors Number of accounts/clients: 10 Biggest spending clients: Not disclosed Accounts won in 2008: Kenya Airways, EDI – Electricity Distribution Industries, Chevrah Kadisha, Freedom Park, Denel Aviation, Cape Sun, Guvon Hotels, MTC Namibia, Palazzo Account lost on 2008: None Contact details Southern Africa: Tel: +27 11 880 1882/2889 Fax: +27 11 880 2266 East Africa

Tel: +254 20 360 1605   Fax: +254 20 360 1100

Website: www.blackbranding.com Company ownership: 100% Black. Veejay Archary & Peter Vundla Agency billings:

01.

Not disclosed Number of staff: 8 Key agency staff: Veejay Archary and Marisa Holley Key moment in 2008: Beating 48 international agencies to win the Kenya Airways worldwide rebranding and repositioning programme!

The agency snapshot in 50 words: An independent African strategic brand communications consultancy that understands diverse cultures and business dynamics.

After 18 years of the sturm und drang of helping steer the first black communications agency through South Africa’s choppy seas – losing partners, gaining them, into the red and then gloriously back into the black again, interspersed with strikingly memorable design moments tied up with the country’s history – Black has evolved into a feisty unit, its quintessential self, quietly efficient, focussed – perfect branding, perfect positioning All this has made chief executive officer Veejay Archary and partners Peter Vundla and Marissa Holley, the practitioners they are, with a conviction that all marketing should stem from a base “rooted in reality” and that branding and strategy work is not a process of colonising the

100 — The ANNUAL 2008

client but rather working from within and getting to the very heart of the beast. Perhaps this is why, when the economy threatened to go into free fall at the end of last year, Black took on 48 international branding agencies to pitch for the re-positioning and re-branding of Kenya Airways and won. “As a small agency, it was a huge thing for us,” said Archary. “The tender was advertised globally in top publications such as the Financial Times and Economist. Initially we were on a list of 48 and then gradually it came down to three of us – an agency in London, another in Tokyo and us in South Africa.” Archary, in part attributes this to their extensive experience in the airline industry, first designing a new corporate identity for South African Airways in 1995 with Difenbach Elkins (now FutureBrand) and then updating it 10 years later as the independent Black, as well as creating the brand architecture for all its brands, including Voyager, Flysaa, Cargo, and Technical. When SAA took the strategic decision to join the world-renowned Star Alliance group with members such as Lufthansa, Singapore Airways and Thai, it called on Black to take it to the heights of a

world-class status. The new identity needed to reflect SAA’s worldwide credentials and Black, using its unique ability to capture the moment, designed a cohesive worldwide brand evolution programme encompassing signage, interiors, printed materials, brand book, brochures, magazines, advertising, stationery, tags, tickets and fabrics. Black did not start with humble beginnings. With much hoopla it began as Herdbuoys Branding & Design, a business unit within the HerdBuoys McCannErickson group, in 1991, as South Africa’s first all-black agency. One of the founding partners was Peter Vundla, still part of the advertising old guard, and one of the country’s top businessmen. He and other partners disinvested in 2005 rocking the boat somewhat but, in later years Vundla returned as a partner buying a stake and simultaneously becoming non-executive chairman of Black. Black is still an all black-owned agency although it is called Black as a reference that brand design makes business sense and as a nod to the accounting term “in the black” rather than to a South African obsession with colour.

In fact Black strives to move away from stereotypes, preferring to embrace diversity in its truest sense – not just the narrow rainbow nation cliché. “Our South African heritage keeps us humble, we understand people’s cultures, it’s a melting pot that forces a tolerance on us and it keeps us down to earth,” says Archary. This approach percolates through to client work and Archary fosters a culture of listening, a pivotal part of his business. “We never tell our clients how to run their businesses, but we can say with confidence that we understand how people think, it’s really a type of universal truth,” he says. In the end everything hinges on this – the art of understanding and communicating with people. This is probably why the Chevrah Kadisha, the biggest and oldest Jewish community organisation, asked Black to help realign and reposition its brands. Keeping doors open is also part of the Black philosophy and its design reflects this. Black is now based in Rosebank in an open plan office. After a long history of association with the McCann group, first with HerdBuoys McCann Erickson and later with McCann Worldgroup in Europe, Black finally “cut

AGENCY PROFILE

the umbilical cord” and bought their own premises. By design there are no boardrooms at Black: “We all talk to each other and work together. We help solve problems together. There is no hierarchy here,” he says. The décor is edgey, African contemporary, clue to another dimension of Black. Over the past year the company has branched out into the world of interior design – “just another part of the customer experience”, says Holley. . Archary’s design talents are well recorded. Apart from his annual glimpse into the world stage of design as a vicepresident on the International Council of Communication and Design Association’s worldwide board (ICOGRADA), he also designed the imagery and identity for the first Truth and Reconciliation Commission and the ballot paper and voter education campaigns for the first democratic election in 1994. Like all other South African agencies, Black is squaring up to the “sombre” economic mood of the times and facing it down with a stream of creativity. “It’s tough out there. We have had to streamline our operations. I see a lot of consolidation going on. But tough times present opportunities and we need to

adapt to survive,” says Archary. Black has already partnered with likeminded agencies – there is a research and a strategy agency sharing their offices now. Sharing resources and skills base is more cost efficient. But on to challenges of the times – which Holley describes as exciting: “We are starting to think about business in a different way, what we are doing and why. “Right now we are starting a Black range of furniture for adults and children. We are also looking at wall design and thinking about starting a clothing range,” she says. “We are trying to bring green aspects

to it, something which should be a necessity. We only use local suppliers,” she says. How does branding and positioning work? By not minding your own business, that’s how. Black staff may take over a desk in a client’s office for a week, eat sandwiches in the canteen, chat to staff and find out just what and how the competition thinks. This is the exploratory phase, where they learn about office politics, inter-departmental rivalry. So whatever comes out of that is the real thing. They may conduct private investigations to find out what true experience of a company really is. This gives them a per-

spective from an outsider’s point of view. And the results are there for the client to see, usually via videotaped interviews, says Holley: “Black is set apart from other agencies by its strategic thinking. Clients don’t come to us with problems around graphics, it’s usually business problems and we need to work together to find out what they are. We hover like a helicopter and get very involved. There is no such thing as a recipe but rather looking at things with a fresh pair of eyes. And, of course, to unearth the truth, you need to realise the extent of the problem. Sometimes as in the case of MTC we find that the products aren’t aligned with the customer needs.”

The ANNUAL 2008 — 101

AGENCY PROFILE

MTC, a mobile network company owned by Portugal Telecom and the Namibian Government, had held the monopoly for the past 10 years. Enter Swedish Telecom with its Cell One and MTC’s faced with a threat to its huge margins. It’s tempting in a situation like this to start panicking and enter in a costly price war. Instead, MTC realised they needed to better understand their clients first, in order to portray a brand that adds more value. Black needed to review and re-energise the brand and began the exploratory phase by interviewing urban and rural customers as well as doing internal reviews. They had to unpack the entire brand experience in a way that would get people to understand and (hopefully) start needing MTC. It also identified potential

102 — The ANNUAL 2008

threats from sub-brands potentially diluting MTC’s brand message. They found that customers had a different perception of the brand, depending on what package they subcribed to – either pre-paid, contract, or the subscription offering. In order to build a concise brand, innovative and relevant, both offerings had to be relegated to mere pay plan descriptors and the market segmentation became focused on consumers’ lifestyles instead. They devised an entirely new company philosophy built around four internal values – as opposed to the client’s original 24 – and focused on solving brand architecture conflict and proposed ARPU generating features to contracts and prepaid users alike. “Designing a simpler, more impactful

identity reflected the needs of a customer spoilt for choice,” says Holley. Once they are confident they have rooted out the main problem, Black sets in motion strategies of re-branding and re-positioning. Archary points to the kind of qualitative research done for seda, the Government’s Small Enterprise Development Agency. This was a challenging mandate and an unusual one – a Government agency whose sole aim was to promote and foster entrepreneurial flair. (It’s usually the other way around.) So it made sense, therefore, that the private sector needed to step in! If you want to appeal to entrepreneurs, you need to think like one. seda had a mandate to create jobs and

they weren’t filling quotas. They had big budgets and many consultants. The products they were providing – a complete set of information, coaching and training on starting and running a business – weren’t clearly packaged and Black’s research found that there was a problem of internal staff communications – the regions didn’t have the power to interact with the head office. And, as with many corporations, the marketing was left to the marketing department and there was no overall vision for staff to embrace. “We needed to do a thorough research of the organisation, including faceto-face interviews with a broad range of employees as well as “mystery shopping” at branch level (going undercover!),” says Archary.

AGENCY PROFILE

We quickly established that seda was faced with the daunting paradox of turning a 500-employee state-driven organisation to think and act with the speed of a nimble enterprise,” says Archary. Black needed to review the entire product offering and the brand architecture. The other challenge was to improve internal communication so that employees became more reactive and more relevant. Black had been briefed by the board of directors to conduct the necessary reviews and essentially transform the body into a truly market-focused and effective organisation. “We unpacked their business structure and helped them change the way they look and how they sell themselves. We developed brand workshops and set out to re-balance the brand, by adding a more human, more flexible dimension to seda,” says Archary. This shift required seda to embrace a more retail-orientated type of business model that would maximise its position in the value chain and play to its strengths. Black suggested a re-alignment of seda products and services along four key business lifecycles: development, growth, maturity and decline. This new architecture was brought to life with a fresh and colourful look and feel that positioned seda as a friendlier and more approachable, business dedicated to helping other businesses to grow. Says Archary: “Employees often don’t understand the challenges the company faces. Sometimes they need to be taught simple things like how to answer the phone or to sell a product by understanding its value better. We offer more than just branding and design.

We like to say we are not in the business of design but rather in the design of business. After this we can conclude where you actually are and where you want to be. We show them the gap.” Like most advertising agencies, Black believes in corporate social responsibility and at the moment are doing work for the Adelaide Tambo Trust, Zanele Mbeki’s charity and other women’s community groups. Looking to the future, Black hopes to further entrench its branding expertise offering all sorts of other services and is looking northwards. Already they have opened an office in East Africa and are finding partners in Nigeria and other parts of West Africa. This is where their innate skills of immersing themselves into the culture of a company or country stand them in good stead. Archary takes pride in the fact that his agency doesn’t have a marketing budget – all work comes from word of mouth. Focussing on particular sectors pays off and Archary believes that Africa’s future lies in tourism and communication, areas that Black is strong in. In the meantime budget cutting on the research side here in South Africa has led to a resurgence and growth in the industry of brand identities and corporate profiles. Black isn’t complaining.

will be the ambassador for our country, carrying the symbols, the hopes and the aspirations of our nation to the far corners of the globe…” – Nelson Mandela – SAA brand “You’ve improved the quality of our onboard product and standards. You’ve encouraged us to improve daily and your support means the world to us. With your help we are now world class. For this we thank you.” – Khaya Ngqula – SAA lounge look and feel rollout “With the revamped Voyager look and feel, we can now claim our place in the world with excellent innovation, simple language and realigned people, reflecting our proudly SA roots.” – Khaya Ngqula – SAA Voyager “Thank you for initiating the process of opening our minds to a fresh start and a new beginning, centred around a new corporate ID that is fresh, bold and strong, and which projects an image of an entrepreneurial but international business.” – Andrew Sprague “I have seen many strategic and brand proposals in my career in Europe and the

US, and the thinking you have put forward for SAIL is up with the best.” – John Newbury, chairman of SAIL and ex-chairman of Pentagraph “Some gifts can never be repaid. Thank you.” – Zanele Mbeki – First Lady of South Africa “seda contracted Black to work with us to develop seda’s brand positioning and they have provided high quality of work and have exceeded our expectations. seda is looking forward to complete the other phases of the project. Black has been professional and delivered on their promises.” – Wawa Damane – CEO, seda “Black Brand Strategy & Design did a fantastic job of hand walking both the SA Travel Centre Management Team and the franchisees from an entrenched position about our old trading brands. Their approach won the hearts and minds of the franchisees as they presented facts based on thorough research. The jewel in the crown was when the re-branding process concluded by delivering a fresh, arrogant look anchored on solid value systems.” – Thulani Nzima – CEO,South African Travel Centre (SATC)

Client references “… now that our nation is free, it is appropriate that the airline’s new livery should reflect the colours and design of our new national flag. South African Airways will now have the advantage of being a true flag carrier representing the free spirit of our colourful and diverse land. The airline

The ANNUAL 2008 — 103

IDEAS

ACTION

RESULTS

Your Affordable Marketing Solution Our Expertise:

• • • • • • • • •

Developing and executing marketing strategies Managing marketing budgets Designing and producing marketing materials Media Planning and auditing Managing public relations Managing promotions and advertising Brand stewardship Managing and recruiting marketing staff Developing and updating websites

We’d like to become your marketing partner (and come to your Chrismas party) Kim Forsyth: 011 803-2040 • [email protected] • www.futuremarketing.co.za

IDEAS

ACTION

RESULTS

AGENCY PROFILE

Black River FC (Cape Town) Type of Agency: Fully intergrated specialising in ATL Number of accounts/clients: 4 Biggest spending clients: Ooba, Canterbury Accounts won in 2008: Ooba, Canterbury, propertygenie. co.za, Harrington street boxing gym Accounts Lost in 2008: None Company Ownership: 100% locally owned Number of staff: 3 Billings: R1.4-million Key awards in 2008: None Contact details: Physical address: 3rd Floor, The Terraces, Black River Park, Fir Street, Observatory, Cape Town key agency staff: Creative director: Darren Mc Kay Account director: Alex Du Toit Art director: Martinique Treadaway key moment in 2008: Opening doors and winning the Canterbury account. The agency in 50 words: An agile, free-spirited agency that prides itself on creating surprising, intelligent, effective and attractive advertising. It has a relentless energy to provide perpetual excellence through communication and service. Above all, we love to WIN!

“If you want to make a big splash you need to throw a big rock.” Audacious words from a fledgling agency comprising just three people? Not when between them they have won every award there is to win – Cannes, D&AD, Loeries, The One Show, you name it. Diamonds do come in small packages after all and here is no exception. Each armed with impressive local and international exposure, the paths of Darren McKay (creative director), Marty Treadaway (art director) and Alex du Toit (account director) converged on the threshold of Black River Football Club (Cape Town) (Black River FC 021) in January 2008. As founder and chief magician, Darren describes their flavour, “A fair amount of voodoo goes into making great ads and an agency. Our magic Potjie is a potent mix – a

Martinique Treadaway, Darren McKay, Alex du Toit

cup of talent and experience, five cups of energy, eight cups of passion, five cups of risk (we don’t do middle ground), eight cups of hard graft and a sprig of parsley for perfection.” But don’t be fooled, this colourful description overlies a steely will to win, because that is what it is all about, says Marty. “We are a high-end agency that will deliver the goods. We believe in winning. We want our clients to win and we want to win awards to showcase our talent and to attract the best young creatives in the industry.” Along with their sister agency up north, they form part of The Jupiter Drawing Room (South Africa) & Partners group but with a special mission and modus operandi – Darren says they are a little agency with big clout. The goal is to exploit the creative opportunities inherent in the smaller business arena and to get really intimate with the South African context by exploring the varied textures of our multicultural environment. H e e l a b o r a t e s : “ We t a p i n t o entrepreneurial spirit, we partner little companies and grow them into the market by infusing them with vision and assisting them to realise their potential. This is definitely the most exciting part of advertising, although when established companies launch a campaign it is an opportunity to refresh too.’” Marty adds that many agencies get lazy and churn out the same old ideas for their clients instead of capitalising on these opportunities. She also offers a remedy: “Hire us. We are hungry and dynamic. We are driven to excel and we promise to take our clients to places they have never been – go big or go home.” Their hearty appetite has resulted in an already impressive array of clients including Ooba (formerly MortgageSA), Springbok apparel makers Canterbury, the

Harrington Street Boxing Gym, Nandos Western Cape, Virgin Energy Shot and Propertygenie.co.za. With creative output high on the agenda, it is no surprise that their viral and print campaign for Propertygenie. co.za has been snapped up by the BBC for their best Ads 2008 reel. Darren sums it all up: “When you have a great campaign on your wall and you know it’s going to happen you get up whistling – it’s a fantastic feeling.” A propitious start to what looks like a bright and creative future as a wellrespected medium-sized company, “With lots of great clients, where it is fun to work and where great inspiration is justly rewarded,” he says. And they have a mission: they are passionate about South Africa’s economic and cultural prospects and are keen to use their media influence to generate positive change. Marty explains: “We have a voice and we can help turn negative perceptions into positive attitudes – we are committed to doing this.” Client references “Black River FC is a passionate, fun, yet efficient and hard working agency. They are able to successfully combine practical and innovative ideas across the marketing communication spectrum. Their attention to detail has paid off to maximise our media standout.’ – Megan de Maar, Ooba “The team is exceptionally capable, fresh and values relationships highly, which is refreshing. We are partners and friends in dreaming about and building my brand. They are always flexible and available. I feel like they love my brand and what it stands for – they are fans, supporters and partakers – it’s cool!” – Donovan Miller, Gym Manager, Harrington Street Boxing Club

The ANNUAL 2008 — 105

AGENCY PROFILE

Black River FC (Johannesburg) Type of Agency: Full-service, Number of accounts/clients: Six Biggest spending clients: Nando’s, 1st for Women, 1Lifedirect Accounts won in 2008: Incredible Connection Accounts lost in 2008: None Company Ownership: 100% Locally owned independent Number of staff: 26 Billings: R101-million Key awards in 2007: • Cannes Finalist Print and Poster for 1st for Women “Do you think she is pretty” • Bronze Loerie TV – Nando’s



Double Thigh Campaign “Vernon: jeanpant. Koekemoer you, Double Thigh is kwaai” • Silver Pendoring Beste Klinreel Nando’s Mediterranean Flavour “ Die smul sonder die brul” Contact details: Janine Allem Email: [email protected] Ahmed Tilly Email: [email protected] Key agency staff: All staff Key moment in 2008: Winning Nando’s The agency in 50 words: Black River FC believes that if a client has a problem, we will find a creative solution. Everything we have produced over the past 4 years has made our clients richer! The same work has performed well in awards locally and internationally. Great creative sells. Yes we’ve all heard it, all claimed it, yet Black River FC believes it with such fervour, we have turned down business when the prospective client hasn’t shared the same philosophy.

Black River FC should be considered a relatively small boutique agency, but size can be misleading, especially in this case. Here is an agency that truly thinks big; has big ideas and seems to be pretty adept at offering big solutions for big business. ‘Big boutique’ springs to mind after a morning in their offices at 44 Stanley Ave 106 — The ANNUAL 2008

shopping precinct where the atmosphere is quite different to that of most northern suburb agencies. The team insist that’s because they’re one of the very few ‘authentic’ agencies around and this is reflected firstly in their choice of location. “This venue is consumerism at its best. We could have chosen another location but this keeps us in touch with what is real; it ensures that we don’t forget where we work and live and who our consumers are,” says Janine Allem, head of the Client Service team. “We have a more classic ad agency atmosphere in what is considered part of the CBD. And we will always stay in a retail environment.” In its fourth year, the agency has reached a tipping point according to executive creative director Ahmed Tilly: “We’re here to stay. The industry has accepted that we’re not a fly-by-night and we are definitely poised to expand into something bigger.” The agency maintains its emotional links to The Jupiter Drawing Room (Cape) but has become a fully-fledged independent agency. This has created a dilemma for Ahmed and his team however, who all want to take the opportunities on offer to grow, but are determined not to lose their intimacy with their clients, staff and work:

“Our quality does come from our size,” admits Ahmed. “The solution is to attract work that attracts good people. Ideally we want to maintain the same number of clients but only keep those who respect us and who will pay a premium for quality work, enabling us to grow without forfeiting our close relationships.” Allem agrees that the quality of work is essential: “When agencies lose interest in clients’ real needs, then clients lose interest in agencies. If we are growing organically, this helps to constantly re-ignite the flame. The more success our clients have, the more success we have. “We’re not focused on re-inventing the way an ad agency operates. We put all of our energy into thinking about our clients’ business and how we can make a difference for our clients. That’s where the excitement lies.” Tilly agrees: “Agencies should focus less on positioning themselves as unique and more on the clients’ needs. Doing things differently is part of the job; it’s a hygiene factor; if you’re not doing that, you’re failing your clients. “Our position is that we’re authentic, honest and transparent and sometimes that feels revolutionary in this industry where all sorts of gimmicks apply, but if we do something revolutionary it will be on our clients’ business, not on

agency operations.” And clients seem to like this approach. The agency has seen enormous organic growth from clients this year, with Nando’s, for example, delivering briefs for the International market. Awards are important to Black River FC and they have their fair share of statues for a young agency, but Tilly is vehemently opposed to the local industry’s reliance on ‘scam’ ads to secure awards: “We have never produced a scam ad; they are a disservice to clients, creatives and the industry as a whole. “And don’t let creatives get away with the old ‘pro-active’ ads story either. Proactive ads are the laziest work possible and irresponsible of a creative department that should be putting all its energy into making real jobs interesting and delivering amazing creative work on genuine campaigns without breaking the rules by lying and cheating.” The agency has excelled creatively on their clients, especially Nando’s and 1st for Women – clients who understand the need for creative work and have benefited hugely from it. The team at Black River FC is accessible, energetic and engaging and clients are enjoying the enormous benefits that f low from this relationship. This agency is on the brink of something big. Watch this space.

AGENCY PROFILE

“The more success our clients have, the more success we have” 01. 1Life Direct print ad

02. 1st for Women print ad

03. Nando’s TV ad

04. Mini Gun print ad

The ANNUAL 2008 — 107

AGENCY PROFILE

Blue Moon Corporate Communications (Pty) Ltd Type of Agency: Corporate Communications • Integrated Employee Engagement • Events Number of accounts/clients: 10 key Clients • 20 Project Clients Accounts won in 2008: Absa, Great Basin Gold Accounts lost in 2008: None Biggest spending clients: Edcon, Discovery, Volkswagen SA, Sasol Technology, Airports Company SA and the Recording Institute of SA (SAMAs) Company Ownership: 25.12% Black owned Number of staff: December 2007 – 35 August 2008 – 44 Billings:

01.

Financial year 2007 – R41 million Key awards in 2008: None Contact details: Tel: +27 11 721 4700 Michelle Caldeira Email: [email protected] Physical address: 98 Oxford Rd Houghton Estate Johannesburg Key agency staff: Executive creative director: DJ Grant Creative director: Moray MacLennan Executive producer, events: Deana Heslop Executive producer, employee engagement: Sarah Leftwich Marketing director: Mpho Nkadimeng Managing director: Michelle Caldeira Key moment in 2008: • Winning the internal Absa employee engagement account. • Creating and producing the best MTN SA Music Awards yet – 17.8ARs The agency in 50 words: Collaboration and inter-disciplinary exchange are our tools for designing creative communication that is solutiondriven and totally relevant to our clients’ needs. Directed by our values – fresh, true and brave – our highly experienced, cross-functional teams customise integrated employee engagement programmes and events to suit the target audience, whether internal or external.

Blue Moon’s philosophy and approach to business can be summarised in a single, yet eloquent word: cake. “What makes Blue Moon tick?” ponders managing director Michelle Caldeira. “I’d 108 — The ANNUAL 2008

have to say it’s all held together by our love of cake.” Although there’s a mischievous twinkle in her eye, the analogy she’s sketching is an astute one. You see, this creative corporate communications agency loves to celebrate – its clients, its successes, its employees and their little joys in life. You could say that the sparkle of joie de vivre permeates the company right down to molecular level. And therefore, even the most vaguely special occasion means it’s time for cake. “We have a passion for fresh, true and brave ideas,” explains Caldeira. “We enjoy challenging ourselves. Our success lies in our environment of collaboration and consultation. We have an appreciation of each other’s talents – it takes all of us to make what happens, magically happen.” This spirit of dynamism and progressive thought permeates the ideas hub that is Blue Moon. Its 44 employees, in the production and creative departments, get a kick out of doing things in new and different ways. Blue Moon started out in 1989 as an events company and in 2000, decided to re-evaluate its business model to incorporate integrated employee engagement as a complementary business stream. Today, its client list includes Edcon, Airports Company South Africa, Discovery, Volkswagen SA, the Recording Industry of South Africa (for the South African Music Awards) and Absa. With its pay-off line, “Engaging people through creative exchange”, the company certainly practises what it preaches. “Everyone at Blue Moon is creative,” Caldeira declares. “There’s no such thing

as ‘your idea’. Ideas fly off one another. It’s not ego-driven – it’s all of us together. Creative ideas coming to fruition requires a partnership – the producer needs to understand the spirit and ethos of the creative, and interpret it. There’s a crossover between the two walks.” On the internal communications side, Blue Moon specialises in facilitating conversations with employees within a particular organisation. This engagement with employees can be aimed at making a difference in behaviours, creating awareness or addressing change management scenarios. The key, she says, lies in not lecturing people about what they should and shouldn’t do. Blue Moon draws its inspiration from an old Chinese proverb: “Tell me and I’ll forget; show me and I may remember; involve me and I’ll understand.” A picture does, indeed, tell a thousand words and creates involvement. One of the innovative ways in which Blue Moon interprets and communicates a client’s strategy is through illustrations such as route maps and process maps to engage employees. At first glance, these resemble large, colourful cartoons depicting a bustle of activity. However, their content is painstakingly researched and the pictures are compiled in such a way that they illustrate a story about the reality and strategy of that particular business, aiming to forge a creative connection between the employee, their role and company objective. The cartoon format breaks down barriers and is warmer, more inclusive

and more accessible than a conventional organogram. “We can take a huge amount of complicated information, reduce it to its simplest level and make it easier for people to understand,” Caldeira explains. “Placing all the required data into one picture makes learning more memorable.” Creative director Moray MacLennan elaborates: “When portraying the big picture in an organisation, the best way to show it is through a visual, not through verbosity, so that people can see themselves in relation to it.” Adds executive creative director DJ Grant: “Pictures are a cue to storytelling and articulation. Once employees start to tell a story that involves themselves, they feel a greater sense of belonging and come alive. They are psychologically hooking into the organisation.” The ultimate aim is for employees to feel a heightened sense of belonging, loyalty and commitment toward their employer, and to not only live the brand but to allow the values to penetrate into their behaviour and foster integrity. As Caldeira points out: “Storytelling creates conversations, and conversations create understanding.” Naturally, getting the employee to buy into any corporate engagement process requires emotional, intellectual and physical involvement on his/her part – which can be challenging in an organisation whose staff component is deeply segmented in terms of psychographics, demographics, economic status and language. Blue Moon is a communications firm

AGENCY PROFILE

02.

03.

01. Trudy Mofutsanyana, Moray MacLennan, DJ Grant, Deana Heslop, Mpho Nkadimeng, Michelle Caldeira, Lynne Normanton and Sarah Leftwich 02. You Tube style video used to engage Discover leadership 03. Discovery conference thematic 04. Absa leadership campaign 05. Edcon customer service campaign

rather than a training company, Caldeira emphasises, which guides staff in what they have to do in their jobs to achieve the company’s vision. Brand and values both tell you how to behave, and we have to engage with top management on the strategic vision that an employee has to understand. “We create tools for managers. The manager has been found to be key to successful employee communication, but some lack communication skills, so we empower managers to speak to their staff.” “The key to our success in employee engagement is our own engagement in the process,” says Grant. “We also have a journey to take in any particular company. One of our skills is successfully, and with integrity of purpose, engaging those senior people and finding out what they really need to say to their employees. Our challenge is to remain in touch with our own journey and thread.” Adds MacLennan: “What makes us particularly effective is the way we link all the elements together – we unify the employee base behind a set of ideas and goals for the organisation.” This extends to instilling the same message in all forms of communication within the company, so that the repetition helps to ingrain it in employees’ consciousness. There is naturally some reluctance on the part of top executives to bare their company’s soul and problems and be brutally honest, and MacLennan terms this half-baked approach a “Barbie band-aid”. “They want to position themselves and market themselves, rather than reveal themselves.”

04.

Of course, a lack of openness will hamper any intervention in burrowing to the root cause of the problem, as Blue Moon needs to understand exactly what the company’s DNA code is before it can untangle the strands. “We attract brave clients, not prissy ones,” says Caldeira. “You need big balls to do proper integrated employee communications!” They pride themselves in creating sustainable results for their clients, as is evident in the measurable improvement in employee perceptions that have been recorded by many of their clients. These results are attested to in the case studies which Blue Moon have in their portfolio. Creative synapses firing on all cylinders, the crack Blue Moon team routinely comes up with ideas that are often startling in their ingenuity. One such creation was an employee annual report for ACSA, packaged in a model aeroplane box. The document’s cover was made up of stickers, which then had to be stuck into the annual report. Apart from being a fun and user-friendly concept, it fell neatly into line with the company’s strategy of “building a model company”. “Instead of the usual e-mails and memos, we use media that surprises people,” says Caldeira. They also conceived a novel interactive board game for Edcon’s merchandise executives, and have also used new media such as YouTube-style video clips to get core messages across. Another fun idea was making students available to be at the beck and call of consultants at the Absa call centre for a

05.

The ANNUAL 2008 — 109

AGENCY PROFILE

06. Edcon HR road ahead 07. Great Basin Gold route map 08. Great Basin Gold “think, say, do” icons

day. Staff had only to ring a butler bell and they could have their car washed, photocopies made, a fax fetched, and so on. Having helpers there to make them feel special and recognised, and to make their lives easier, demonstrated to the staff, in a light-hearted way, how they should treat their customers. When Deutsche Bank wished to hold a recruitment drive, Blue Moon decided that a fun way to introduce students was by using a combination of Sudoku and the “speed dating” principle in the interview process. Their work with Sasol Technology’s monthly employee induction process won a project award at that company. This involved a variety of practical, visual and interactive exercises and activities that had to keep new employees attentive for the one-day orientation period while retaining the integrity of the message. Great Basin Gold – not your traditional mining company – asked Blue Moon to develop a communications programme to encourage employees to buy into its new, progressive approach to mining. Based on the premise that people are defined by what they think, say and do – and organisations are defined by the actions of their people – Blue Moon introduced a campaign that encourages and equips all Great Basin Gold employees to examine their own conduct as well as the values and practices of the organisation in terms of the simple axiom and campaign identity, Think, Say, Do. The programme involved an interactive launch and extended into safety awareness, induction route map material, a new company newsletter and internet cafés that link Great Basin Gold’s operations in South Africa, the USA, Mozambique and Canada. Events make up a significant portion of Blue Moon’s work, and key among these is the one-stop shop the company provides for the MTN SA Music Awards. From coming up with the creative concept and designing the new brand identity to hosting the nominees party and the glitzy main event, televised live on SABC 1 – Blue Moon does it all. This involves planning and coordinating the entire awards show and the events 110 — The ANNUAL 2008

leading up to and following from it, from the invitations right down to the set, the videos, the scripting, the rehearsal of artists and presenters, the wardrobe, the technical aspects such as sound and lighting, the animation and the after-parties. Here, again, seamless synergy between creative and production is integral to the event’s success, as a consistent look and feel needs to be maintained for the sake of harmony and continuity. Working within predefined parameters, they have to come up with new and innovative ways of staging the awards every year. Even more of a challenge is imparting that elusive “wow” factor to both the audience at the Sun City Superbowl and the viewers at home. “Telev ision audiences are ver y sophisticated and TV-literate,” says MacLennan. “People have seen the MTV Music Awards and the Grammys on TV, and we have that to live up to. Luckily, the technical expertise we use locally is of as high a standard as that of international shows.” I n 2008, t hei r ef for ts paid of f handsomely: the MTN SA Music Awards live broadcast notched up a massive 17.8 ARs and a 52,7% audience share – the largest television audience ever recorded for the event. Discovery is another major client and Blue Moon recently had great fun organising its year-end street extravaganza. This carnival-like procession through the streets of Sandton to the Convention Centre, led by a marching band, saw employees designing their own masks and outfits. Staff members allowed their imaginations to take flight in flamboyant style, and competed for individual and team prizes. Blue Moon also has a knack for highly personalised and customised events. For example, instead of hosting a conventional new car launch, they delivered Audi A6 vehicles to selected executives, with a restaurant address pre-programmed into its GPS and brand ambassadors on hand to unobtrusively welcome the couple for a special evening out. “We can customise to the client’s requirements – big, spectacular events or chic, intimate events,” relates Caldeira.

06.

07.

08.

AGENCY PROFILE

09.

10.

11.

15.

14.

9 - 13

MTN SA Music Awards 2008

14 - 15

Discovery employee event

12.

13.

“We love both types. Even a small event is huge for us, and we take great care with aspects such as first point of contact and first impressions, right down to registration, décor and food.” It’s not hard to deduce that, almost 20 years since it opened its doors, Blue Moon remains fresh, funky, progressive and young at heart. “We reinvent ourselves all the time,” says Grant. Close your eyes and you can almost hear the tiny explosions of creativity

that snap, crackle and pop through this potent communications company on a daily basis. They love learning new ways of communicating old things, they love la dolce vita – oh, and they love cake. By this one will have gathered that Blue Mooners are people who savour the sweetness of life and their work, and who clearly relish not only having their cake and eating it, but gleefully licking the spoon used for the icing as well. And their satisfied clients, of course, are the cherry on the top.

The ANNUAL 2008 — 111

15671 SAPPI adS UD R 13/10/08 13:26 Page 2 C

M

Y

CM

MY

CY CMY

K

AGENCY PROFILE

Boomtown Type of Agency: Strategic Brand Agency Number of accounts/clients: 20 BIGGEST SPENDING CLIENTS: Coega, NMMU, Eveready Accounts won in 2008: Cacadu District brand Accounts lost in 2008: None Company Ownership: 100% locally owned independent Number of staff: 35

02.

Billings: More than R20 million Key aGENCY STAFF: All key moment in 2008:

01. Glen Meier (CD), Robyn Rütters (AM), Neil Hart (MD), Andrew Mackenzie (CD), Luvuyo Bangazi (BD),

Anja Clarke (senior designer), Janine Ellis (traffic), Shaun Martin (financial manager)

Refocusing our 14 year-old advertising agency into a new strategic brand agency with fresh vigour and vision. Winning two major pitches in one month. Contact details: Tel: +27 41 364 0180 Email: [email protected] Email: [email protected] The agency in 50 words: Boomtown is a strategic brand agency with an emphasis on delivering high-quality creative output with a business-driven understanding. We have excellent talent, a determination to do well and creative energy to burn. We’ve been in business for 14 great years doing through the line brand communications.

This top agency has the creative acumen, business ethic and versatility to meet the key challenges facing customers in today’s business and marketing climate outside of Port Elizabeth, where it has made a major impact. “We’re a strategic brand agency that is values-driven and determined to achieve business results through good, solid creative work,” says director Neil Hart. It’s an approach that Boomtown has taken since it was established 14 years ago in another lively phase of South Africa’s history – 1994. Unlike most large agencies, Boomtown is structured into smaller multidisciplinary teams of creatives, client service and strategy working in the same group. “We find that this works incredibly well as each member of the team holistically understands what is going on with

their clients,” says Neil, a graphic designer, who was fresh out of university when he founded Boomtown. The agency also offers public relations as an integral part of its business of brand building, with another team of four offering this service to customers. Honesty, integrity, fairness are all nonnegotiables in their business. “Our style philosophy revolves around fairness and values-based business practices. We are here to produce exceptional creative work at a fair price.” Or as fellow director Luvuyo Bangazi puts it: “We want our work to deliver for our clients, so we spend their resources as if they were ours – responsibly.” Part of their tough standards approach is never settling for second best and ever seeking improvement. “We have cut our teeth on the tight budgets of the Eastern Cape and, as a result, have learned how to deliver extra value. Now we are able to offer this aspect, unique in our industry, to a national client base.” So while Boomtown is growing nationally, it is also systematically working towards a three-year plan that will seriously enable it to become the brand agency of the year. “We know that to become a recognisable force in this industry we need to win awards. It’s a case of watch this space,” says Neil, whose clients like VWSA, Eveready, Nelson Mandela Metropolitan University and Coega Development Corporation, will be none too surprised when accolades come Boomtown’s way.

Client references “I enjoy working with Boomtown because they produce high quality work, sometimes at very short notice, and can be relied upon at all times, especially in a crisis. They’re professional and willing to go the extra mile and beyond for a client.” – Cacadu District municipal manager Ted Pillay “Some of the unique characteristics of this agency are its adaptability, flexibility and visionary approach. When dealing with Boomtown, it feels exactly like we are their only client and its entire creative and strategic focus is on us.” – Roland Williams director: communications, Nelson Mandela Bay Municipality

03.

04.

Boomtown has the ability to accurately predict a market trend, properly research an environment, and give insight into strategies and policies. The personal touch and personality makes it a true pleasure to work with their team.” – Nelson Mandela Bay Municipality communications director Roland Williams “Boomtown is one step ahead with their high standard, good quality and aesthetically pleasing work which takes international marketing trends into consideration.” – Nelson Mandela Bay Tourism chief executive officer Fezekile Tshiwula

02. Nelson Mandela Bay Tourism

brand building campaign

03. Space logo and interior design 04. Eveready Fosho

Boomtown has grown 35% in the past financial year signalling this agency’s intent of spreading its value-driven wings into South Africa’s city of gold

“Boomtown is very good at exactly capturing or conveying the customers’ message through their excellent graphic design.” – VWSA Service marketing co-ordinator Mfundo Piti The ANNUAL 2008 — 113

AGENCY PROFILE

The Brand Union Type of Agency: Brand, strategy, design, engagement Number of accounts/clients: 35+ Accounts won in 2008: Kulula, Momen & Pizza King, Absa, African Banking Corporation, Momen & Pizza King. Rean, Cornerstone Insurance, Dangote, Nedbank, Neotel. Accounts lost in 2008: None Biggest spending clients: Kulula, Momen & Pizza King, TDS, Cornerstone Insurance, Unity Bank, African Petroleum, Transaction Capital, Autopage Cellular, TDS Directory Services, Kerzner International (including One & Only Restorts and Mazagan Resorts), Road Accident Fund, Rogers Brand Engagement Company Ownership: 70% WPP, 30% Southern Place Investment (100% owned by Karl Socikwa) Number of staff: 73 in Johannesburg Billings: Exceeds R60 million from the Johannesburg office Contact details: The Forum, 5th Floor, 2 Maude Street, Sandton Private Bag x16, Sunninghill 2157 Key agency staff: Chief executive creative officer: Anthony Swart Managing director: Anisa du Plessis Executive creative director: David Lett Marketing client director: Fiona Hitchcock Finacial director: Farhana Waja Key moment in 2008: Internal staff alignment behind The Brand Union values and methodology; employment of new managing director and finacial director; continue expansion into Africa The agency in 50 words: The Brand Union is the realisation of WPP’s amition to build world’s leading brand network. The agency delivers brand-led business growth through a philosophy of master brand building. It distinguishes itself through its unique growth, direction and protection (GDP) strategy, which helps organisations understand where they are in the brand cycle, and tailors appropriate solutions accordingly.

114 — The ANNUAL 2008

01.

If you were to sum up The Brand Union’s philosophy in a simple catchphrase, it would be “brand-led business growth”. That’s the mantra that underpins every aspect of the consultancy’s functioning, and the reason why, in an increasingly brand-conscious world, it continues to travel an enviable upward trajectory. Equally adept at summarising The Brand Union’s ethos are the words, “global expertise”. Indeed, the restructuring of the agency last year, which took place alongside its name change from Enterprise IG, ensures that it is now, more than ever, closely aligned to an international network with standardised processes and a global culture – and this assures clients the very best in global thinking. “The changes we undertook last year made it an exciting time,” says CEO Anthony Swart. “We are now truly an international brand agency, more easily able to interact with our global counterparts. Plus, our new identity has given us a strong sense of who we are, what we do and how we do it. That’s means a lot to our people.” One of the most significant changes made, Swart continues, is the introduction of a new methodology. “This is the foundation of everything we do, from the way we take client briefs, to how they are interpreted and delivered to client,” Swart explains. The new seven-step procedure is more intensive than a four-step process previously undertaken, with a stronger

emphasis on exploring and researching the brand and its environment and validating the brand concept, followed by an evaluation of the execution. Swart reports that this new approach resonates with clients, and is a strong differentiator in the marketplace. Since many of the brand designers and strategists in South Africa got their start at the erstwhile Enterprise IG, it’s easy to understand how its process was replicated time and again, making it a rather generic offering. Added to this, the methodology also serves as a guideline for a more intensely thoughtthrough, appropriate and strategic way of addressing brand problems. “This has made it possible for us to improve our delivery to clients, and to pull in international expertise and knowhow more easily,” Swart maintains. That’s something that works both ways, with several of the Johannesburg office’s members gaining international exposure at the consultancy’s branches around the world. For example, former Johannesburg managing and strategic director David Blyth has relocated to London, where he now joins Everystone, a specialist strategic consultancy within The Brand Union stable. “This has given us a great opportunity to bring in new talent,” Swart comments. Joining the team are new managing director Anisa du Plessis, whose long history in brand marketing at blue-chip organisations such as MTN and Absa has granted her

excellent experience in client liaison, and strengthens The Brand Union’s offering in this area. Financial director Farhana Waja, who replaces former chief financial officer Jonathan Davies, is another newcomer. Davies himself is moving within the group, having developed the systems required for the smooth implementation of the new methodology. The results speak for themselves: while 2007 was “a very successful year” for The Brand Union, 2008 has continued to build on those accomplishments. Swart reveals that top-line business performance in Africa and South Africa has remained positive, and growth in these markets is likely to continue with profitability improving. “Our business is now almost equally balanced between South Africa and the rest of the continent in terms of revenue,” he says, alluding to The Brand Union’s offices in Cairo and its presence in Lagos. Swart takes pride in the fact that The Brand Union Johannesburg consistently outperforms the targets it is set as part of an international group. His accent on business performance is reflected in The Brand Union’s approach, which aims to drive clients’ growth rather than gain creative kudos. “It’s not that we don’t think creatively – the fact that we are massively creative is proven by the work we do for our clients, and how it benefits them,” he says. This is borne out by client opinions. “The Brand Union’s creativity and ex-

AGENCY PROFILE

01. The Brand Union Executive team: David Lett,

Anisa Du Plessis, Anthony Swart, Fiona Hitchcock



and Farhana Waja

02. The African Romance Identity is inspired by

ecution towards the development of our brand truly reflected their professionalism, passion, enthusiasm and above all, pride in what they do,” says Kago Mmopi, corporate communications and public affairs manager at DTC Botswana, for whom The Brand Union created a corporate identity, including various communication elements, when the organisation was a newly formed entity. His sentiments are echoed by Venetia Howes, marketing manager at Silverstar Casino, who describes the consultancy’s work in developing the Casino’s brand and corporate identity as “very thorough. Every aspect of the business was researched in detail and provided the casino with a really solid brand. As a management team, we’ve worked closely with The Brand Union for the last year and have developed a very good relationship. We feel they understand, live and breathe our brand, and they’re very passionate about it.” Meanwhile, Shayne Elliott, head of business development at EFG Hermes, commends The Brand Union for walking the company through a process that started with the definition of company culture and aspirations. “This was more than a graphic design process, and what impressed us most was the level of interaction and respect they had for our own thoughts and ideas. We felt it was very much a collaborative effort… Any change process is difficult, but The Brand Union made it easy for us.” Swart notes that the consultancy’s primary focus is on creating a strong brand for clients, one which sustainably mirrors the organisation’s values and purpose. This sets the tone for other brand communications, which are often campaign-driven. The Brand Union’s work with Kulula is a case in point. South Africans have come know to this brand as a major player in the airline arena, although it has made inroads into financial services with the introduction of a credit card, and plans to extend into other areas, too. This stretch has been made possible by restructuring the brand’s primary identity, so that it accurately portrays the new Kulula in all spheres where it is active. Says Swart, “Kulula is a unique and memorable brand, which is largely type-driven. We’ve recre-



facets of reflective light in a perfect cut diamond,



while the visual language conveys Africa’s



warmth and radiance and heritage in its



earthy tones.

03, Silverstar, an exceptional brand that is loved

by staff and patrons for its uniqueness and



point of difference!

04. Green Zone is an innovative concept that sets a

new precedent in convenient, efficient banking



and financial consulting, with the full inventory



of the products of all the brands available to



the customer in a single space

05, kulula’s an iconic South African brand which

has a youthful, independent and somewhat



irreverent culture. Repositioning the kulula



brand to retain this differentiated value set into



new markets and sectors was a challenge



eagerly taken up by The Brand Union

03.

02. 02.

04.

05.

The ANNUAL 2008 — 115

AGENCY PROFILE

05.

ated that type in a fresh, modern way which retains the brand heritage, while giving it the scope to move beyond the airline space, and which allows it to apply its values set to areas with which it has previously not been associated.” Kulula CEO Gidon Novick says The Brand Union’s insights were strategic, bold and innovative, and have resulted in the creation of a strong, fresh new look for the kulula.com master brand, and the various sub-brands forming the foundation of its business strategy. “Our new brand architecture has given us a platform to extend our brand, based on our core value of refreshingly simple value, for many years to come.” The ability with which The Brand Union’s people address such complex brand challenges is proof of the consultancy’s depth of experience and expertise, which Swart believes is greater than that of any of its local counterparts. “The people in this business understand how to deliver value to client brands by leveraging our process methodology. This, plus our global experience, sets the stage for brand-led business growth.” Swart reiterates that The Brand Union is not just about smart design – rather, it’s the choice of companies who understand how the appropriate application of their brand can lead to improved performance. Another hallmark of the agency is its ongoing emphasis on generating bright ideas, and crafting them beautifully – whether those ideas relate to strategy, visual identity or application. Importantly, those ideas are always 116 — The ANNUAL 2008

carefully considered to suit the local environment. As Swart puts it, “As a global network, we’re unified – but we’re certainly not uniform. Ideas may be based on international insight, but we make sure they’re locally relevant.” Of course, if ideas are The Brand Union’s currency, then its people – the custodians of those ideas – are its greatest asset. Although Swart’s embedded knowledge in the business is of inestimable value, as is the experience of fellow directors Anisa du Plessis, Farhana Waja, David Lett (executive creative director) and Fiona Hitchcock (managing client director), Swart insists that it is the management team that drives the day-to-day running of the business. The team comprises representatives from each function of the agency (including client service, strategy, graphic design, architecture, design, retail interiors, engagement, marketing, HR and finance) whom Swart credits for driving the agency’s culture. The breadth of The Brand Union’s scope means that it must be able to accommodate a multiplicity of personalities, which it does admirably. That may be because they’re united by a culture that encourages them to be gutsy, grounded, curious and inspired, and the result is that it’s become a home to a range of thinkers, from experimentally inclined graphic designers with no formal training to focused strategists. Take McDonald Musimuko, for example. The Alexandra-born graphic designer was honing his skills at the Imagination Lab (an initiative between Vega and CAFÉ) when his talent was spotted at an exhibi-

tion. Musimuko was invited to join The Brand Union in January, and became a permanent member of the team in July. “The Brand Union is like a welcoming family,” he says enthusiastically. “We work in an atmosphere where people share ideas and help each other.” How does Swart see this environment operating into the future? “At a macrolevel in South Africa and the rest of the continent, there’s a growing understanding of brand, and how the appropriate application of brand strategy and design can immensely benefit a business,” he responds. “Because of this, the market for brand consultants has grown consistently over the past decade, and continues to do so.” That said, competition in the industry is also growing, and has increased significantly over the past eight years. But Swart remains unconcerned, repeating that the introduction of The Brand Union’s unique methodology is a great differentiator. That will be useful, given that even though the industry may be riding high at present, the global economic turmoil

is bound to take its toll eventually. Swart is realistic about this, acknowledging that opportunities are likely to have slowed by 2009. “Established players who are able to offer true value will be best positioned to cope with the slowdown,” he opines. How is The Brand Union preparing to take on those challenges? One of the major areas of focus, into the future, is brand engagement, where Swart believes there is massive value to be derived for clients. He predicts that there will be greater emphasis on brand experience, as well as internal brand engagement processes. “We expect significant growth to come from experience and engagement,” he asserts. Geographic growth is also anticipated, continuing on the foundation for expansion into Africa that has been laid in the past eight years. “The continued objective of this consultancy is to remain a leading African-focused brand consultancy, based in South Africa, leveraging global expertise and an international knowledge pool,” Swart concludes.

C

M

Y

CM

MY

CY

CMY

K

AdFocus2008_Brand_Union_FA.pdf

C

M

Y

CM

MY

CY

CMY

K

10/8/08

4:01:58 PM

AGENCY PROFILE

Coley Porter Bell South Africa Type of Agency: Branding and design agency Number of accounts/clients: 17 clients Accounts won in 2008: Cape Town Tourism, Kauai, Spier Wine and Leisure, DSTV, Morgenster Wine and Oilve Oil, @ Source Food Products, Fairview Wine and Cheese, TOKARA, Moonlighting, @Home, Cape Town Film Studios Accounts lost in 2008: None Biggest spending clients: Not disclosed Company Ownership: CPB is a joint venture between CPB London (WPP-owned) and Ogilvy SA Number of staff: 18 Billings: Not disclosed Contact details: Tel: +27 21 447 3270 Email: [email protected] Key agency staff: Managing director: Tabatha King Strategy director: Mathew Weiss Creative director: Janet Kinghorn Design director: Vicki Peter Design director: Carla Kreuser Client service director: Donna Christie-Gibbon Key awards in 2008: The company’s creative work won a Silver Loerie for Moonlighting Film Production marketing collateral, a Bronze Loerie for application of its own corporate identity, five finalists and one book entry for best work done across the WPP global group and, a Merit Award in The Art of Design Show and not least, a shortlist certificate in the prestigious Cannes Design Lions for a design campaign done for homeware store @home Key moment in 2008: Officially ringing in the arrival of CPB SA in March

Specialist branding and design agency Coley Porter Bell South Africa makes brands beautiful. A joint venture between Ogilvy South Africa and Coley Porter Bell London, a well-established agency, made famous for its identity and packaging work with Pernod 118 — The ANNUAL 2008

Ricard, Cadbury and Tesco, Coley Porter Bell SA is set to make a big splash in the local design market. Any doubt that the word “beautiful” may hint at superficiality is soon removed by the company’s managing director, Tabatha King. Having worked in Ogilvy’s team for 15 years, Tabatha has a natural instinct for what will work and sell. It is plain to see why she was selected as chief of this sexy young agency as the true nature of beauty is a subject close to her heart. “Beautiful brands are brands that sell,” she states in her characteristically direct style. “By beautiful I mean that they are beautiful in their identity, in their packaging, in store, in the home, the office or in fact anywhere they are destined for. “Beauty is truth and character, it has a magnetic quality that draws you in and plays on your mind. True beauty stands out from the crowd and stays in your memory.’ Coley Porter Bell is focused on design and creating brand identities that translate across all possible visual elements. This can make or break a brand, explains Tabatha. “Design is the purest expression of a brand. At a glance you have to be able to under-

stand what a brand stands for and want to buy into it.” A major coup for the company is the presence of Mat Weiss, its planning director who hails from Coley Porter Bell London and has impressive international experience on brands like Nike, Cadbury, GSK and Coca-Cola. Mat’s input adds international expertise to their local flair and Tabatha believes this is a powerful combination. “Our strategic strength comes from London, and keeps us in touch with global brands and design trends, while our creativity is all local talent, SA born and bred.” Having positioned themselves in the gap between large design agencies that are mired in processes plus long turn-around times and corner hot shops that lack strategic clout, they have in their arsenal a powerful strategic tool called Visual Planning. This process offers matchless value when it comes to creating winning brands and Mat points out, “We are able to seamlessly link brand strategy and design, which you don’t often find under one roof.’ As the name implies, Visual Planning® places heavy emphasis on imagery. Mat continues: “It makes sense for us to work strategically in a visual medium because

our output is visual. The process is highly collaborative so we work closely with clients to distill a brand down to its visual essence. From this we build the visual equities that will distinguish a brand from its competitors.” He adds: “This disciplined approach eliminates wheelspin from the creative process and usually results in creative work being right first time round.” “Branding has become something of a formulaic science for many marketers,” says creative director Janet Kinghorn, “however I think design can, and should, play a much more important role in branding,” she adds. “We’re not just here to tick the boxes and make things look pretty. We’re here to keep the conversation between brands and consumers fresh, interesting and rewarding.” For a start-up, but perhaps not surprisingly given the fact that their office is crammed full of some of South Africa’s top talent, the company has also excelled creatively. Shortly after opening they won two Loeries, a silver and a bronze. Tabatha says they are particularly proud of the bronze. “We won it for the design of our own office interior, which all of us contributed to. I believe this demonstrates that our commitment to making brands beautiful

AGENCY PROFILE

01. Illustration from Spier calendar highlighting social issues

starts at home.” In addition Coley Porter Bell SA has been awarded a Cannes Design Lions shortlist certificate (one of eight in the country), a Merit Award in the Art of Design and a place in the WPP Annual, a prestigious book featuring best creative across all communication disciplines from WPP agencies around the world, a promising beginning for an agency that is only six months old. Tabatha and Mat attribute this flying start to their talented people. Their team includes design directors Vicki Peter and Carla Kreuser. Together they have 15 years of experience and have won a multitude of awards, working on local and international brands including Sainsbury’s, Maybelline, Canary Wharf, Musica, Woolworths and Design Indaba. Head of client service Donna ChristieGibbon adds another string to the Coley Porter Bell SA bow with her unique combination of skills and experience. Although she has more than a decade of business experience, her passion for the industry began with a degree in graphic design. “Our growth will be carefully managed,” says Tabatha, who believes in working with “fewer, better people.” In her mind this means that clients always have direct access to the best. “We will never be under-resourced but nor will we carry unnecessary layers. It’s our way of keeping the best team close to our clients and their business.” With their eye firmly on making the brands of South Africa beautiful, their levels of enthusiasm run contrary to the challenges posed by a tough economy. “It’s the best of times to be opening shop,” says Mat. “A recessionary environment forces us to run lean and work smart for our clients. Inevitably the upswing will come and when it does, our disciplined approach will enable our clients to take maximum advantage of it,” he concludes. All in all Coley Porter Bell SA is a new force to be reckoned with, bringing experience, passion and dedication to the table and they want to work with likeminded companies. “We like smart clients who don’t

hire a dog and then bark themselves. They need to respect our expertise. Our work and credentials demonstrate that we are right up there. We don’t like drama, mess or fuss. We just love getting on with the job, with each other and with our clients,” states Tabatha.

Client references “Cape Town Tourism is thrilled to have Coley Porter Bell as our design partner.They are a perfect fit in terms of creativity, innovation, dedication and passion for Brand Cape Town. They have really made our brand beautiful and we look forward to working with them to get every single Capetonian fall in love again with their City.” – Mariëtte du Toit-Helmbold, chief executive officer, Cape Town Tourism

02. Chivas Regal packaging

“I haven’t been inspired by design in a very long time. Until now. Coley Porter Bell has a way of putting a unique, powerful spin on well-worn categories.” – Charles Back, Fairview Estate “CPB understands the Kauai brand. They are as much part of our company as the next Kauai employee. Every decision is made as a team and we have complete confidence that they will continue to take the Kauai brand to new heights.” – Herman Redelinghuys MD, Kauai Health Food & Juice Co

03. Award winning packaging for Kotex

04. Coporate Identity for a creative writing company

The ANNUAL 2008 — 119

AGENCY PROFILE

Cross Colours Consultancy (Pty)Ltd Type of Agency: Multi-disciplinary, through the line Number of accounts/clients: 8 main, other smaller and pro-bono Accounts won in 2008: Mercedes-Benz SA After-Sales Accounts lost in 2008: None Biggest spending clients: Sasol, Nando’s Company Ownership: Directors Number of staff: 35 Contact details: Tel: +27 11 459 0600 Key agency staff: All Key awards in 2008: 2 silver Loeries 1 bronze Loerie 1 bronze New York Festival Key moment in 2008: Spent time on the development of our 01.

people. Seeing the fruits of those efforts is the most rewarding part of the business The agency in 50 words: The agency continues in its vision to be seriously creative. To explore profound and sound solutions for clients’ brands and their businesses

In an industry that chases after clients and covets awards, Cross Colours stands out like a Rubik’s Cube in white sand. “We’re chilled,” says managing director and one of the founders, Adelle Wapnick. The agency generally keeps a low profile and its client base hasn’t changed much since 2007. Yet it proves that – when you take it in your stride – the good things find you! It’s expecting to up its revenue through organic growth. And, while Cross Colours doesn’t spend much on entering awards, it walked away from this year’s Loeries with two silvers and a bronze. Cross Colours has formed longlasting relationships with clients based on the consistent deliver y of great

120 — The ANNUAL 2008

creative work. The launch of a new Nando’s brand this year, the Peri Deli, tested the versatility of this small multidisciplinary agency. It came up with the concept, name and designs for the delis themselves, as well as the packaging. Cross Colours also collaborated on the interiors. At the same time it continued to roll out promotions for high-profile clients like Sasol and Jack Daniel’s, and information design for Oracle and Mercedes-Benz SA After-Sales. “We have an opinion, which means we’re not always easy to work with,” says Wapnick, “but we have attracted clients who like the fact that we tell it like it is.” She focuses on ‘strategic partnerships’ whereby Cross Colours helps clients to look ahead, and isn’t afraid to push back if their own ideas aren’t useful. “It simply has to be a transparent relationship based on equal status,” she insists. This authenticity in relationships begins inside the agency itself. It has a strong culture that is almost tangible as

we walk out of the boardroom and tour the office. Wapnick appears to have a light ‘equal status’ relationship with everyone and she points out the small HR department, which is unusual for an agency of this size. Somehow she manages to steer any conversation, about any aspect of the agency, back to its people. And refreshingly she doesn’t bandy the word about as if it pertains to some abstract concept rather than living beings. When they founded Cross Colours, Wapnick and two partners, Joanina Pastoll and Janine Rech, were disappointed in the indifferent attitude the advertising industry had toward people. In response they’ve built an agency that looks after its people – and as a result, few leave. As a small testament to the growth opportunities, a former PA is now an accounts director who will be involved in the start-up of a branch in Cape Town. Wapnick says the company consciously seeks out people who are self-aware, and open to be challenged

on any level. “The only people who don’t survive here are those that aren’t willing to go on a journey of discovery and grow, both professionally and personally.” This holistic approach has led to some rather unique policy decisions: “When a designer once began talking about documentary film-making, we offered to sponsor a camera,” says Wapnick. “How could we not encourage her to seek fulfilment?” Wapnick believes Cross Colours’ people, who combine creativity with integrity, are simply the best reason to hire the agency. The agency has sometimes questioned awards, which is really as controversial as questioning Castro in Cuba. And yet it’s had two good showings at the Loeries. Two silvers and a bronze this year was something of a coup. Two of t he medals related to t he exciting Floyd’s Barbershop concept from America, which Cross Colours continues to develop. So has success changed the

AGENCY PROFILE

02.

03.

agency’s mind about the whole awards issue? Not really. It’s concerned that too much pro active and pro bono work is awarded, which has little relevance to the growth of the market. However, on this basis, she can still revel in the agency’s success and be proud of the Cross Colours entries – as each one was created from a brief, to contribute to the client’s brand and bottom line. The agency will continue to enter awards but simply won’t divert money away from people development or anything else deemed more important. In this, as in many other things, it seeks perspective. “There’s life outside advertising and we try to see the bigger picture,” says Wapnick. “We take our clients’ businesses seriously but try not take ourselves too seriously!” In a stressful industry she concedes that this search for balance involves conscious effort: “We have to remind ourselves that it’s not war and when our clients bring in any stress or panic, we try to put it into perspective too. It’s when we stop stressing that the creativity flows.” T his “bigger pict ure” philoso phy leads Wapnick to read widely and seek out new trends. She encourages people to also look well beyond advertising. “Politics can affect the way we do things

04.

just as much as the growth of new industries,” she says. “We talk about embracing the worlds we live in, and those we don’t live in, because communication is really about imagination and possibility.” The agency has good BEE credentials and, for now, it’s focusing on skills development rather than ownership. “We offer a lot of internships and we’ve trained up a lot of juniors,” says Wapnick. “We are considering ownership but it’s a decision we will take very carefully. We are determined that no one be undermined in the process.” Such important issues are discussed with the Cross Colours board that is chaired by a valued mentor, Zuko Kubukeli. He has a PhD in Human Biology and is a heavyweight in the investment arena. The agency’s executive committee (which includes the founders and directors, Andrew Broom and Shona Danckwerts) meets with the board four times annually and Wapnick describes their relationship as “hard-working and honest.” In its own way, Cross Colours is going multi-provincial and multi-national. A small satellite in the UK has been focusing on servicing Nando’s but has more recently become involved in internal marketing campaigns for other clients. The agency is also now poised to open a branch to serve

05.

new clients in the Cape. The agency is also not complacent about the future of advertising as the television light starts to f licker. Wapnick notes that the medium is already playing a much diminished role in Europe. The trend could be a while coming in South Africa but, in preparation, Cross Colours is expanding its capabilities in multi-media and is already offering enhanced services for web and mobile advertising. “Right now we use the platforms that are right for our clients and right for the idea,” says Wapnick. As ever, the agency has one foot in the practicalities of ‘now’ and another in the world of possibilities. But then…Cross Colours is exactly what you get when you mix down-to-earth tones with sky-coloured ideals and imagination.

01. Cross Colours’ people 02. Nando’s new international website 03. The Virgin Money Credit Card Welcome Pack 04. Collateral for Sasol’s TechnoX science fair 05. Cross Colours’s designs for PeriDeli included uniforms as well as decor

ThE ANNUAL 2008 — 121

AGENCY PROFILE

DDB South Africa Type of Agency: Full service Number of accounts/clients: 25 Accounts won in 2008: McDonald’s, OKI, Symantec, MTN Fifa, Vale Accounts lost in 2008: None Biggest spending clients: McDonald’s, Unilever, Honda, MTN Group, Life Healthcare Company Ownership: 100% locally owned. 30% black empowered Number of staff: 50 Billings: R240 million (estimated) Key awards in 2008: 1 Cannes Grand Prix 1 Gold Clio 3 Bronze Clio 1 Pinnacle 1 Gold Eagle 1 Silver Eagle 2 Silver Loeries 3 Bronze Loeries Contact details: Tel: +27 11 267 2800 Website: www.ddb.co.za Key agency staff: Glen Lomas Emmet O’Hanlon Gareth Lessing Paul Binikos Key moment in 2008: Cannes Grand Prix win. McDonald’s win. The agency in 50 words: Number 3 in the creative league table. Number 1 for passion. In a league of its own for creative thinking.

DDB’s new, larger premises in Bryanston are already packed to capacity with teams hard at work – a reflection of the agency’s energy and vigour as it beds down one of its most successful years ever in SA. This is an agency that has truly transformed itself from ordinary to extraordinary in a very short space of time, in the process nabbing some big clients and growing its established relationships. The agency is abuzz with activity and this certainly won’t slow down in the lead-up to 2010 as it prepares campaigns for two of its clients and key sponsors of the world cup matches: McDonald’s and 122 — The ANNUAL 2008

the MTN Group. DDB SA CEO Glen Lomas says: “We’re forming partnerships with big clients who want long-term relationships and who trust us because we’re a thinking, planning agency, strong on strategy with great creatives who deliver. They know we will all be under the spotlight in 2010 and they are walking that road with an agency they trust.” Managing director Emmet O’Hanlon also believes the agency’s success lies in its philosophy of clear thinking: “Our focus is on straightforward, logical solutions. The level of Strategic thinking and planning in South Africa varies wildly but overall I feel that the discipline has never

been properly developed in the way that creative has. Too many times, clients are confronted with inadequate analysis of their problems and badly defined or over intellectualised solutions. Planning should be all about making complicated things simple and easy to deal with”. “We have an extremely good planning department that ensures that all staff understand strategy. We have no client service staff. We want people who manage clients’ brands and deliver against that strategy – and clients who trust you enough to take a few risks every now and again.” “We have an extremely good Planning department and take pains to ensure that all staff are involved in strategy develop-

ment. That is why we do not have a Client Service Department, we rather have an Account Management one. This is because we want people who actively manage the clients brands and business rather than take orders. This is how you develop trust with clients over the long term and end up with strong relationships where they are prepared to take risks with you because they respect the agency”. Lessing says: “It’s been a year. And what a lekker year it’s been. I race pigeons and every year before race season starts I plan and plot ‘till late at night. What am I going to do this year to win more races? But very quickly all my preconceived ideas fall away as I get to know my pigeons by

AGENCY PROFILE

To advertise cheaper flights from 1 time Airline, we placed a car in the OR Tambo Airport parking, right next t the passenger walkway. What made this car unique was that it was covered with fines and warnings which read: Parking Time Exceeded. Parking Time Violation & To be towed. it also had wheel clamps on the front and back, as well as an array of parking fines on the windscreen. A sign above read: Paying less for flights means you can stay on holiday longer.

being with them day to day.” “Having great pigeons and knowing them well makes turning them into champions effortless. I hope my fellow DDBers don’t mind but it’s the same as my pigeon loft. I quickly found myself surrounded with great people. Let them roost in a nest of creative support of the whole agency and of course the unique culture of the best network in the world. And they very quickly realised what champions they really are. Great talent is easily realised when you are given support, freedom and trust.” “My creative’s are all amazing people and are so talented. And creating great work with them has been nothing but great fun. Fly my little champions, fly.” To

complement the agency’s creative strengths, account management has just recently seen Paul Binikos being promoted to head up the department. Paul’s relationship wiht Gareth and the creative teams is essential for the seamlessness clients need between account handling and the creative product. Paul comments: “It’s not about doing what your client needs, or just getting a job done; it’s more about partnering with our clients, giving professional service, understanding their business problems, challenging them and making sure we deliver work that is remembered and talked about, and of course having fun while doing so. This understanding has to be crystal clear in account management – we’re strategic

partners in developing the best creative product that will work most effectively with our consumers.” Surprisingly forthright and honest in his dealings with staff and clients, Lomas is upbeat about South Africa and buoyant about DDB’s future here, but he doesn’t pull punches either: “We don’t compare ourselves to other agencies in SA, but compete with the world-class standards set in other DDB agencies around the world. We find the internal debates in South Africa rather petty and prefer to stay away from them.” Always looking ahead, the agency has invested heavily in a mobile telephony platform that allows more interaction between

consumers and companies through the mobile medium: “We’re focusing on mobile telephony into the future and have established a specific unit to research and work on these possibilities,” says Lomas. Lomas talks about mobile being in the same state now as television was in the 1950s: “No one mastered the relevant, creative use of the channel until the seventies. It’s the same situation mobile is in now and we want to be the first agency that really cracks engaging advertising on mobile across the region.” There are also plans afoot to bring Tribal DDB to SA. Tribal DDB is a top 10 international digital marketing agency with a strong reputation for strategic thinking The ANNUAL 2008 — 123

AGENCY PROFILE

and excellent creative work. Lomas believes there’s a big gap in the market for an agency with Tribal’s qualifications and they’re looking to partner with someone locally to develop the brand here within the next 18 months. Growth is always on the agenda and, as South Africa increasingly becomes a stepping stone for big clients wanting to penetrate Africa and the Middle East, that’s certainly a focus of the DDB network. Clients like MTN Group and Unilever need work delivered across these markets and DDB’s network is extensive. Using existing DDB offices in key markets and large independents where 124 — The ANNUAL 2008

necessary, the agency boasts one of the strongest networks for delivering results in the region. It is represented in 20 countries from Senegal, Saudi and Sudan to Turkey, Tanzania and Tunisia. DDB has f lourishing partnerships everywhere it seems including potential satellite offices in Durban and Cape Town where they are proposing partnering likeminded agencies in 2009. With growth and expansion as immediate goals, it has recognised the desperate need to attract and train more local talent. It is working against the tide to reverse the brain drain by attracting foreign talent to the country to help grow and develop local

talent – Lomas and O’Hanlon themselves cases in point. “We expect people to learn from us and to take these skills to other agencies and even other industries. One of our former staff members is now the marketing manager of Nandos, for example. We don’t see this as a problem but as increasing the available talent and we expect people to move and grow,” Lomas says. To this end, the agency makes good use of its global network and frequently sends both creatives and management on courses in Europe and the United States: “The interaction with other people in the network is invaluable. Our staff need

to experience communications in other markets; seeing the standards at work in other markets inspires them, improving the standards of work here.” But they’re also finding it easier to attract talent, given their new position in the creative stakes and the acquisition of enviable clients: “We’re always interviewing, but have to wait for new business to be able to bring in the people who want to work here. “We never have a worry in this respect – especially after our Cannes Grand Prix for the Energizer campaign and given Gareth’s management style – we have lots of talent in the queue to work here.”

AGENCY PROFILE

Client references “DDB really live our brands and are an integral part of our business.” – Rob Laggar, VP marketing, Unilever “In all my walks of life, I generally want to stick around people I can trust, people who make sense, people who are passionate, people I can go to war with! They can rather lose awards but win a competitive battle in the market place! DDB represents all of that.” – Sydney Mbhele, global marketing director: deodorants, Unilever “DDB go above and beyond the call of duty in every way. Proactive work that leads to winning global ad awards, creative brilliance that shows an amazing understanding of the brand and most importantly, people who actually care about the brands they work on. It’s a privilege to have DDB as our agency.” – Jason Cederwall, Energizer SA The ANNUAL 2008 — 125

AGENCY PROFILE

Draftfcb South Africa Type of Agency: A full-service marketing communication agency group offering the complete spectrum of the traditional ATL, BTL and TTL services, new media and strategic expertise, social marketing, and corporate and brand public relations solutions. Number of accounts/clients: 260 Accounts won in 2008: Vodacom Retail, Gidani (Lotto), V&A Waterfront, Décorland, Transnet Pipes, Nicorettes Accounts lost in 2008: None Biggest spending clients: Vodacom, Toyota, First National Bank, Tiger Brands, Distell, Santam Company Ownership:

01. Draftfcb South Africa’s Group Executive Committee (from left): James Holland, Ashley Bacon, Neil van der Weele, Lerato Ndoro and Nkwenkwe Nkomo

50.1% Interpublic Group (IPG) 26% Bourasque Advertising Investments (BBBEE Group) 23.9% Staff (11,5% black staff ) Number of staff: 700 Billings: R3.1 billion Key awards in 2008: Cannes: 1 Silver, 6 Finalists Loeries: 6 Gold, 8 Silver, 11 Bronze Clio: 3 Finalists Pendorings: 4 Gold, 2 Silver, People’s Choice Award Apex: 2 out of 3 Gold awards D&AD: 2 Listings Contact details: Tel: +27 11 566 6355 Fax: +27 11 566 6664 Physical address: DRAFTFCB House, Pin Mill Farm, 164 Katherine Street, Sandown, 2196 Postal address: PO Box 78014 Sandton, 2146 Key agency staff: Every single individual Key moment in 2008: There were two: • We were thrilled to be ‘re-awarded’ the ‘Lotto’ (Gidani) account , which we lost two years ago when our then-client, Uthingo, lost the bid to manage the lottery process; • Our awards performance this year again highlighted our creative strength, particularly at Loeries, where we were the 2nd best performing group. The agency in 50 words: Draftfcb South Africa focuses on producing outstanding creative communication that captivates the hearts, souls and minds of South African consumers. This has made it the continent’s leading marketing communications company providing integrated solutions across all channels of communication, through a single point of entry.

126 — The ANNUAL 2008

2008 has proved to be an outstanding year for Draftfcb South Africa. Not only has it continued to perform in the new business arena, its ongoing commitment to creative excellence has again been recognised at award ceremonies worldwide. The Johannesburg agency won arguably the most important, and biggest, account to move this year when it was awarded Vodacom’s Retail business. This was followed by Gidani (Lotto) – another sizeable win. Draftfcb Cape Town won several Johnson & Johnson brands, Van Schaik Bookstores and the V&A Waterfront, while Draftfcb Durban added Décorland and Transnet Pipelines. It also took on considerable design work for several major international hospitality groups. The group’s Africa network continued to roll out work for the Moneygram and SC Johnson accounts on the continent, outside of South Africa, and is now responsible for their advertising business in 15 and 11 countries respectively. On top of this new business, the agencies won Silver at Cannes (after a Grand Prix and Gold in the previous two years), and shone, again, at three of the most important indicators in the South African industry – The Loerie Awards, the Millward Brown Impact Liking Scores, and the Apex Awards. A strong showing at The Loerie Awards 2008 saw Draftfcb South Africa rank second as a group for that competition. On the Millward Brown Impact Best Liked Ads lists for 2007 (published in the first quarter of 2008) it achieved seven out of the 20 most liked ads in the Developed Market category and seven out of the 20 most liked ads in the Emerging Market grouping. This is a remarkable achievement

given that the group’s agencies achieved considerable success in previous years. In 2005, the group dominated the liking lists with four out of the top 10 most liked ads in the Developed Market; and four out of the top 10 in the Emerging Market. Its performance in 2006 topped that when its agencies were responsible for four out of 10 of the most liked ads, including the two top-placed ads, and a phenomenal nine out of 20 best noted ads in the Developed Market. This year at the Apex Awards, the group was awarded two out of only three Gold awards made. In the Launch category, Draftfcb Johannesburg took Gold for the Toyota Yaris campaign while Draftfcb Cape Town was awarded Gold for Savannah ‘The Cider House Rules’ campaign in the category known as ‘Sustain’. “Another year of success for South Africa’s oldest agency,” says Group CEO Neil van der Weele. Draftfcb offers through-the-line advertising including TV, radio, print, outdoor, design, promotions, interactive, PR, CRM, sponsorship, social marketing, investor relations, financial and healthcare, through offices in Johannesburg, Cape Town and Durban, as well as a network of agencies in 25 countries across Africa. In addition, the agency has access to Draftfcb’s global network which covers 110 countries. Its integrated model allows it to develop a single strategy and creative theme for a campaign and apply them across all relevant channels of communication, through a single point of entry. Here, one broad creative idea can be threaded from above-the-line television commercials to promotional campaigns, to web initiatives, to a relationship

marketing programme, to a sponsorship leveraging task – and back again. While the group has been offering its clients fully integrated communications solutions for many years now, the global merger of Draft and FCB gave it access to other sophisticated data and CRM capabilities, as well as leading-edge technologies and proprietary tools, including ROI (Return on Ideas), Insights to Incite, and The Wheel. The group has also launched MyOffice, a new state-of-the-art, custom-designed operating system across the group. This has already greatly improved efficiencies and is proving its worth as a management tool. Van der Weele says Draftfcb South Africa’s focus is to produce outstanding creative communication that captivates the hearts, souls and minds of South African consumers. This has made it the continent’s leading marketing communications company providing integrated solutions across all channels of communication. “Proof of our ability to deliver accountable solutions and build South Africa’s favourite brands is our outstanding performance each year at the Apex Awards for Effective Advertising as well as on the Best Liked Ads lists published by respected research house, Millward Brown Impact,” he says. According to Van der Weele, the group’s core values are critical for shaping the group’s philosophy: “Our core values are what keep us consistently evaluating our performance, and striving to do better,” he says. These are: • We are committed to pioneering the leading edge of marketing communication.

AGeNCY PROFILe

02. Draftfcb Cape Town’s television campaigns for Distell brand, Savanna, have tickled the nation’s funny bone for a number of years now; the concept has also translated successfully into several other media including the web (www.savanna.co.za).

• We employ only ‘magic’ people. • We put creativity ahead of everything, except accountability. • We insist on respect, honesty and integrity. • We have passionate attention to detail. Draftfcb also has a Management Manifesto which highlights the management team’s responsibility to grow and develop the company, and all the people within it. All managers, collectively and individually, commit to: • Continually str ive to create an environment in which its ‘magic people’ thrive. • Regularly recognise and incentivise outstanding individuals. • Remain focused on growing and developing its people. • Ensure that communication is always open and transparent. • Always be approachable. • Never accept discrimination in any form.

• Be intolerant of those who do not perform. • Bust a gut to develop great systems and processes that improve quality and ensure efficiency. • Defend its clients’ brands 24/7. • Tirelessly build the Draftfcb brand. • At all time be great ambassadors for the company. Draftfcb South Africa has a strong track record for meeting its clients’ marketing and business objectives. It is, and always has been, truly accountable, and it is this accountability that clients value and appreciate. The high regard in which clients hold the agency is reflected in the amount of time they stay with the group. For example, Toyota has been a client for 47 years, AJ North for 44 and Distell 42, Adcock Ingram has been with the group for 35 years, while SC Johnson and Kraft for longer than 15 years each, and Vodacom has been a client since its launch more than 14 years ago.

03. The corporate identity and launch campaign developed by Draftfcb Durban for the upmarket Seaton Delaval residential estate was elegant, stately and effective.

The ANNUAL 2008 — 127

AGENCY PROFILE

04.

Adds Group Executive Creative Director, Ashley Bacon: “Building brands that are genuinely respected and admired in the South African marketplace is all about creative work that captivates the hearts, souls and minds of South African consumers. At Draftfcb we are very focused on this and have a history of doing it exceptionally well. Hence our clients tend to stay with us. “We are all very committed to producing brave, but accountable creative that is relevant to the South African marketplace and believe that the benchmark of our success is our clients’ business performance. “Consequently, we are fiercely proud of our clients, who, not surprisingly, make up some of South Africa’s most-loved, top brands.” The agency’s Group Executive Committee comprises just five people – Nkwenkwe Nkomo (Group Chairman), Neil van der Weele (Group CEO), Ashley Bacon (Group Executive Creative Director), Lerato Ndoro (Group HR Director) and James Holland (Group Financial Director). However, they are not the most important company employees. “Being in the service industry, an agency 128 — The ANNUAL 2008

05.

is only ever as good as the people in it and one of the agency’s core values is ‘We employ only magic people’,” says Group Chairman, Nkwenkwe Nkomo. “Our success is directly dependant on the quality of the talent that works at our agency, so every single individual at Draftfcb is key.” The group continually wins recognition for its investment in people – in 2007, it joined blue chip companies like Shell SA, ABSA, Microsoft and, interestingly, clients Vodacom, Metropolitan Life and Pfizer on the list of Top 25 employers in the 2007 edition of BEST Employers™ South Africa, compiled by Corporate Research Foundation. No other South African advertising agency or marketing communication company made it onto the Top 25 list. It has repeated this performance in 2008. It also took first place in the National Business Awards’ ‘National Investor in People’ category. “We are very focused on attracting and retaining the best talent from across the marketing industry and we really are fortunate to have exceptional talent across our group. This ultimately reflects on our client’s brands,” says Nkomo.

Not only does Draftfcb South Africa have numerous training programmes – both formal and informal – for advancing its own employees, it invests in future skills for the advertising and communication industry through its partnership with The Imagination Lab. And, through its extensive Corporate Social Outreach programme, it is contributing towards a safer and healthier environment for underprivileged children. Here, it works with Hugh’s Haven in Johannesburg, the Peninsula School Feeding Association in Cape Town, and Sethani in KwaZulu-Natal. Draftfcb South Africa was established 82 years ago. In 2005, the group concluded a broad based black economic empowerment deal when Bourasque Advertising Investments acquired a 26% stake in the agency. A subsequent transaction, concluded in January 2007, resulted in the creation of an employee trust, which holds a 23.9% share in the company. Through this trust, more than 30 black staff, as well as 30 white staff, own shares in the company. This transaction brings black ownership of the group to 37.5%, and South African ownership to 49.9%.

When it comes to the broader business environment, Draftfcb South Africa is acutely aware of the increasing pressures that its clients’ marketing personnel are under to deliver results, and know that those results are directly related to the work it does. It believes it must be accountable for the return on ideas that it generates, and this is why accountability is so central to its philosophy. “The speed at which clients need to bring products to market, or react to competitors, is increasing exponentially, and ad agencies need to be able to deliver on this. We understand how important it is for our clients to be able to deliver on time, and we are always looking for ways to improve our efficiencies so that we are able to deliver at an ever increasing pace. We have to be proactive about this,” comments Van der Weele. “Finally, the South African advertising industry is facing its toughest challenge yet, and it’s all about people. The industry is facing a severe skills shortage across the board. It’s vital that we attract the right calibre of employees, and nurture an environment that stimulates their creativity.

AGENCY PROFILE

06.

07. 04. Vodacom’s first Gold Loeries came in the hotly contested Television & Cinema Commercials category

in 2008 when this ad featuring the catchy phrase ‘We’ve been having it’ received the nod from the



judging panel, and in the Radio Category for a campaign entitled ‘Drop It, Umbrella’. Both ads were



developed by Draftfcb Johannesburg, Vodacom’s marketing partner since the company opened



doors over 14 years ago.

05. A dazzling television commercial by Draftfcb Johannesburg kicked off Vodacom’s new soccer

08.

Our culture is critical in terms of retention. We have also put a big emphasis on upskilling all levels of staff through ongoing training,” he says. In the short term, Draftfcb South Africa will address several areas intended to gear up its employees so that they offer better consumer insights and channel planning and, through this, a better creative product. These include more sophisticated consumer insight capabilities, more sophisticated channel planning capabilities, and through this an in-depth understanding, right across all staff of the agency, of interactive media and more sophisticated usage and interpretation of data. At the same time, its growth strategy as a group has always been to focus on ensuring the success of its existing clients, and developing new skills and offerings to meet, and exceed, the needs of their brands. This, of course, has enormous benefit for all the new business that it secures, making certain that new clients become old clients, and that the client-agency relationship is a mutually beneficial one that lasts. Client references “The relationship between Vodacom and Draftfcb is one that is conducive to producing

09.

great work. It is one where we provide a clear articulation of key consumer problems and the business strategy. We then rely on the agency to develop the creative strategy and idea that best dramatises that strategy.” – Vodacom Managing Executive: Marketing, Enzo Scarcella “Draftfcb provide full through the line communication solutions based strongly on brand and market insight. Their ability to synergize communication through the line as well as to provide accountable creative solutions which often also prove to be best loved South African ads are why we have had such a long standing relationship with them.” – Distell Brandy Group General Manager Marketing, Siobhan Thompson



sponsorship campaign during 2008. The ad featured soccer legends of old as well as heroes in



our time. Teenage Dlala, Phil Masinga, Linda Buthelezi, Excellent Walaza, Moses Spandeel, Siphiwe



Tshabalala, Mark Williams, Neil Tovey and Bryce Moon all starred in this homage to the jive of



Sophia Town. The ad even included respected referee Ace Ngcobo and showcased the beautiful



game in a much stylised rendering.

06 - 09. Long-standing client, Toyota SA, continues to reap the benefits of Draftfcb Johannesburg’s ability

to win the hearts and minds of South African consumers while First National Bank offers viewers



pragmatic economic advice in this straight-talking television commercial, it too from the



Johannesburg agency. Draftfcb Johannesburg has also produced award-winning work for



Tiger Brands products over the years, including these for Rally Car Wax and Panado.

In January 2009, Neil van der Weele will take up a new appointment within Draftfcb Worldwide as Regional President: Digital and Transformation for Asia Pacific. He will relocate to Asia Pacific. Nkwenkwe Nkomo has been promoted to Group Executive Chairman and John Dixon to Group Chief Executive.

“In our partnership with Draftfcb we’ve focused on our brand principles and collectively we’ve moved the Game brand into exciting new areas. In our two years we’ve seen tremendous growth in brand awareness and sales, and we look forward to growing the brand together in the years to come.” – Game Marketing Director, Mark Turner The ANNUAL 2008 — 129

AGENCY PROFILE

elements Type of agency: Communications and advertising Number of accounts/clients: 15 Biggest spending clients: Gauteng Provincial Government (E-Government Portal)

Accounts won in 2008: Gauteng Provincial Government

(E-Government Portal), City Power, NGN Accounts lost in 2008: 2 Company ownership: 100% black owned Contact details: P O Box 1429 Bramley 2018 Tel: +27 11 833 2600 or +27 11 788 1488

Email: [email protected] Website: www.elements.co.za Agency billings: R48 million Key awards in 2008: None Number of staff: 29 Key agency staff: Chairman: Louis Seeco

Chief executive officer: Neil Marais Key moment in 2008: Decision to expand countrywide and open

The economic storm may be raging elsewhere but in Newtown the sun is still shining brightly and elements has in fact upped its revenue!

8 new branches.

The agency snapshot in 50 words: As an advertising and marketing agency,

elements strives to understand the dynamics of the industry and the target market. Its

approach is always informed by the day-today experiences that people go through in

their contact with brands wherever they may be. elements has developed its own unique

modelling through its approach to traditional advertising and niche marketing built on the

following benefits to clients: a distinctive un-

derstanding of the diverse communities living across our great land, relevant and ground-

breaking creative, unique understanding of

traditional and alternative media disciplines and brand building capacity.

While some agencies offer costly research on black township markets – elements offers the markets! It’s 100% black owned with a diverse, multi-cultural staff complement. The agency has been founded on the philosophy that culture and heritage simply cannot be separated from the way people interact with brands, and its messages are inspired by the sights and sounds of the streets where its

130 — The ANNUAL 2008

audience lives. Most of the team members remain rooted in their communities – offering what the agency calls an umbilical cord to society. For the past 13 years, elements has blazed the trail for authentic black agencies and it remains committed to its majority black audience. However, it’s now so secure in its identity that it can begin to look forward to a colourblind future. The founder and majority owner of elements, Louis Seeco, has just smashed the agency’s own mould and appointed a white CEO. Seeco was conspicuous by his

absence when The Annual arrived for a visit. It soon became clear, however, that he had chosen not to attend our meeting as a sign of faith in Neil Marais, who has been running day-to-day operations since July. The history of the relationship between the two men makes for a great South African story. As a youngster in Alexandra Township, Seeco displayed a host of talents, not least the ability to run a mile in less than four minutes. He was awarded a Johnson and Johnson scholarship, which

allowed him to finish his schooling at the prestigious St Johns College and complete his tertiary education at Wits. It was when he finally joined the organisation that he met Marais, who was then marketing manager. The pair struck up a friendship that defied their respective positions and apartheid attitudes. “We got to know each other over drinks”, recalls Marais, “sometimes in sports clubs and sometimes in shebeens.” They parted professionally but kept in touch over the years. While Seeco established elements, Marais went

AGeNCY PROFILe

on to become part of the team that took an obscure chewing gum, Stimorol, and made it a market leader. He had already been semi-retired for nearly three years when Seeco pulled him back into corporate life this year – with an exciting mandate to take elements where it has never gone before. Marais laughs about a party to mark his arrival: “I thought it would be a gathering of about 30 people – but it turned out to be a lavish affair for 250 with French champagne, a band and a praise singer.” The anecdote enforces a sense of welcome that pervades the elements offices in Newtown. Orange-toned wood abounds and light floods into the wide open spaces – but the real warmth comes from the people themselves. They smile and hug and shake hands when they meet one another and there’s a general sense of togetherness that is not exclusive, but rather sucks you in. Bonding is a priority here and a massive bar and table area – the shebeen – takes pride of place on the top floor. It’s open for drinks at the end of the week and the entire agency gathers here to share breakfast and just chat

every second Friday. We meet with both Marais and his colleague and business developer, Craig Makhuba. While Marais is careful not to be seen as a “saviour,” Makhuba reveals that his arrival at the agency has given it a morale bounce. “When Neil came we really needed a paradigm shift. We were stuck in a way of thinking and caught up in micromanagement. We needed a big-picture thinker who could see the possibilities.” Marais brings 30 years of business experience but he has no agency experience. He sees this as a strength that ensures his objectivity; having always been on the client side of the fence, he understands that their primary concern is to grow brands and push sales. One of Marais’ first mandates is to oversee an ambitious growth plan. The economic storm may be raging elsewhere but in Newtown the sun is still shining brightly and elements has in fact upped its revenue! It’s now poised to spread its wings across the length and breadth of the country and will be launching no fewer

than eight satellites with partners in the various provinces. Six of these – to serve clients in Cape Town, Durban, Kimberley, Bloemfontein, the Eastern Cape and Mpumalanga – will be up and running by the end of 2008. The regional satellites will begin by serving public sector bodies, following the success of such delivery in Gauteng. elements has been behind catch phrases such as “world class African city” and it’s already done much to raise the profile of brand “Gauteng.” The expansion via satellites will enable other provinces to benefit from the goodwill generated by its campaigns. elements has recently signed a partnership deal with an agency in Nigeria, to help clients who wish to extend their reach into the rest of Africa

as well. Marais is also tasked with moving the agency boldly into the private sector. It has a strong reputation and proven track record when it comes to public sector accounts, but its acquisition of private accounts has lagged behind. “It’s a priority right now and we are already quite close to securing a substantial private account,” he says. He’s excited about the possibilities because elements is uniquely positioned to build brand equity for clients who have been let down by other agencies. “It’s simply inconceivable that products such as shoe polish, used predominantly by black men, are marketed with copy written by white females,” he says. “Just look at a well known beer brand that was killed by packaging that made it look like

The ANNUAL 2008 — 131

AGeNCY PROFILe

fizzpop.” Marais has many more examples and is scathing about agencies that create irrelevant and obscure adverts for black audiences. He mentions in particular an advert featuring a symbol that recently won a Loerie. “What does the award mean? We didn’t understand the advert so you can bet the people in the low LSMs it was targeting didn’t understand it.” What elements does instinctively understand are attitudes to spending that haven’t been fully appreciated by the industry. For example, it knows there are people living in shacks with significantly more disposable income than the Sandton elite. It recently employed a designer at high cost who chose to live in a hostel for next to nothing and catch taxis to work. Mukhuba talks about shacks filled with plasma screen televisions and Gucci bags. “For many black people, their home is a place to live, it’s not an investment and they spend their income on other things that give them status.” His grandmother worked for menial wages and lived below the advertising radar her entire life – and yet when she died she left her family R80 000 in a suitcase. “Just because people don’t qualify for credit cards doesn’t mean they don’t have cash,” says Mukhuba. Marais says the agency also offers an approach that appreciates the segmentation and nuance in black society. “Our logo is a calabash, and the interesting thing about them is that each has a lid that is designed to fit that calabash and that calabash only. Our messages are tailored to the market and to the brand.” elements is extremely wary of current research methods used to uncover township attitudes. “Black respondents are often polite and they will tell the researchers what they want to hear, but it doesn’t reveal their true alignment,” says Mukhuba.” He points to the example of a PAC rally before the first democratic election: “People flocked to the stadium and they told journalists that they loved the message and they loved the PAC … but when they were asked who they were going to vote for – it was Mandela! He was the real brand they were

132 — The ANNUAL 2008

actually buying.” So, instead of traditional research, elements advocates knowledge underpinned by real experience. Seeco has launched a research house based on his philosophy that communicators need to immerse themselves in the communities they’re talking to. A couple of years back he packed up his desk and went to live

in shanty towns across the country, to observe how different communities interact with brands. A book outlining his personal “Brandpilgrimage” will be launched shortly. Despite its understanding of black markets that is needed by private sector clients, elements’ location hasn’t helped it to acquire those clients who are more at

home in Sandton than in Newtown. For this and several other reasons the agency reluctantly has taken a decision to move to Rosebank. Makhuba is passionate about the regeneration of Johannesburg and talks enthusiastically about developments in Newtown, such as the restoration of the old turbine hall. However, he admits that the beautiful building that

AGeNCY PROFILe

elements is housed in is not the perfect space, specially in bad weather. “We didn’t want to move to Sandton – so Rosebank was a perfect solution,” adds Marais. “And we’ve found a place with a great space for the new shebeen!” Once again, this willingness to relocate points to an agency that is confident in its community-based identity – it no longer needs to be propped up by its location. Certainly, the pictures of the glory days in Sophiatown and the “Newtown” spirit will make an even bigger impact in the northern suburbs than they do in the city. Despite its move, elements also remains committed to social transformation in traditional black areas. Surrounding the boardroom table we are sitting at are more than a dozen pieces of brightly coloured African art and, surprisingly, they turn out to be the

works of schoolchildren in Alexandra. The children have been paid for the paintings, which are set to be auctioned at a benefit dinner. The funds raised will be ploughed back into youth development in the township. It’s fitting corporate social investment given that Seeco himself was identified as a youngster with massive potential and miniscule opportunity. The projects that elements run are dedicated to the memory of Seeco’s late friend, Vincent Tshabalala, who was shot by apartheid

police in the 1980s. He was a martyr for his belief in equal education for all. While it’s relocating and expanding, elements continues to serve its core clientele of public agencies in Gauteng. It’s helping the province to work toward its ambitious goal of halving poverty and unemployment by 2014. The agency’s relationship with Gauteng is now entering its third year, and it continues to perform all the marketing and communication functions for its investment arm. The agency isn’t gearing up for the new digital media explosion because it’s already fully immersed in the new technologies. It’s currently designing and building a dynamic new online portal for Gauteng, which points to its extensive capabilities. The portal will be an allencompassing hub – where residents can book their driver’s licence test; pay their traffic fines and municipal bills; plan their travel in the province; read government news; and apply for a job. The portal will also be available at walk-in-centres across 20 priority townships in the province, to allow those who don’t have internet access to interact with the government. In addition elements is working with an initiative to help small retailers in townships formalise and grow their businesses. It provides education and financial support but not many of the worthy candidates know about it. One of the agency’s innovations, therefore, has to been to make signs for businesses that have benefited, to signal to other entrepreneurs that there is help available. Among a host of the agency’s prominent new clients is a municipal service provider that came on board in June. elements has spearheaded a print

campaign to educate consumers about power issues, and also position the utility as a caring agency that won’t let vital services be affected by electricity blackouts. Being 100% black owned has opened doors for the agency but it insists that it still has to pitch hard – even for government tenders, where its track record is so solid. “Sometimes our identity actually works against us,” reveals Marais. “Public agencies are afraid of becoming too chummy with their service providers and being seen as nepotistic.” Working with public service agencies and their limited budgets has helped elements to master the art of maximising brand equity within constraints. “We can get much more out of a year-long campaign with print and outdoor, than a one week TV campaign that eats the whole budget,” says Mukhuba. The agency also prides itself on being proactive. “Our clients ask for help in one area,” says Marais, “and soon we’re offering solutions for other parts of their business. External and internal communications are sometimes offered in different tenders but we believe they are inextricably linked and will mix the two in a costeffective strategy.” So elements will continue to be a strategic partner for the province even as it grabs opportunities elsewhere. In fact Gauteng residents have elements to thank for an anticipated windfall in 2010: it engineered the pitch to FIFA, and bagged the much-hyped first and last games for the province. In this and in all of its campaigns, elements has proved itself to be nothing less than a world class African agency.

The ANNUAL 2008 — 133

AGENCY PROFILE

Euro RSCG South Africa Type of agency: Above the line Number of accounts/clients: 8 Biggest spending clients: Reckitt Benckiser, Sasfin Bank, Volvo Accounts won in 2008: Sasfin Bank, Volvo, PNet Accounts lost in 2008: It’s early days Company ownership: Havas Partner Contact details: Lynn Madeley, managing director Tel: + 27 11 5493600

Email: [email protected] Agency billings: Not disclosed Key awards in 2008: Silver and Bronze Loerie Number of staff: 26 Key agency staff: Managing director: Lynn Madeley Creative director: James Daniels Planning director: Stuart Walsh

Managing director 4D: Shelley Hoines Key moment in 2008: Opening our doors The agency snapshot in 50 words: Making change inevitable

134 — The ANNUAL 2008

There is a decidedly French feel to Euro RSCG’s Bryanston-based offices – from the wallpaper to the very French looking table lamp and delectable cupcakes, you could be forgiven for thinking you’d stepped in to a Parisian office. Peer a little further and the bottles of Verve Cliquot neatly lined up in the coffee cum bar area confirm your initial impression. Euro RSCG opened its doors in South Africa in December 2007 with just eight people. Fast forward nine months and the personnel count has jumped to 26. The agency is an affiliate of Euro RSCG Worldwide, the fifth-largest agency network in the world. Euro RSCG is one of France’s two leading advertising brands with a network extending across 75 countries. The network had a rough few years but a new management team saw it return to full strength in 2006. Since then it has been named agency of the year by leading trade publications in both the United States and the United Kingdom. What makes Euro RSCG South Africa interesting is the down-to-earth nature of its three founding directors; managing director Lynn Madeley, planning director Stuart Walsh and creative director James Daniels. The trio makes a dynamic team.

The easy banter between them points to a certain comfort and confidence in their relationship with each other. The team are determined that the agency will “not baffle with bullshit”, as Madeley succinctly puts it. Adds Walsh: “Refreshingly, we think, we’re able to admit that we’re an advertising agency rather than a ‘communication specialist.’” “We tell our clients to be honest about their brands and we try to follow the same advice,” says Madeley. “As an agency we think it is important that we live our brand and practice what we preach.” The three partners have had sufficient experience within the ad industry to know what they’re talking about. Madeley has worked in London, Asia and Africa on everything from diamonds to soap powder as well as a stint as a management consultant specialising in marketing in Hong Kong. Walsh joined the ad industry as a writer “but succumbed to the dark side some years ago” when he switched disciplines to become a strategic planner. “I’d read a lot about Euro RSCG’s philosophy and was very impressed with the agency so when Lynn approached me about teaming up to form Euro RSCG I was eager to

join the network.” Creative director James Daniels spent his first seven years in advertising with The Jupiter Drawing Room, seeing his fair share of creative success. He reveals that the three partners are putting their hearts and souls into this new venture. “We’re not perfect but we dream of that perfect Nirvana, where people have a great time doing great work,” he says. The founders share this common dream to create an advertising agency with a difference, one where respect and honesty permeate all aspects of the business. In fact, even the design of their offices and meeting areas has been inspired by this principle. Using glass and open spaces, even their internal architecture is transparent. In fact they take great pains to stress what they believe is their biggest selling point: that they’re honest enough to admit they don’t know everything. The partners believe they have chosen the right people to join the agency: people with grit and soul. “We’re intending to grow young creative talent because, quite honestly, we’ve had enough of the big ego in this business,” reveals Daniels. Walsh agrees that there is no place for egos at Euro RSCG but says they’re striv-

AGENCY PROFILE

ing to build respect for each function and what each employee brings to the agency. “Respect has to start at home,” he says. “It starts with the way an agency views its own staff. If you see your people as nothing more and nothing less than employees, then your agency will be condemned to being viewed in a similar light by both its employees and its clients. However, treat your staff as partners with rights as well as duties and you start building mutual respect and solidarity.” Madeley, Walsh and Daniels are all strong characters and say they have accepted that there will be times when they have differences of opinion. Similarly, they expect to have differences of opinion with their staff at times. “I want to hear people’s opinion,” says Daniels, “I want to push their buttons and I want them to push mine.” He believes it’s important that the agency creates a positive environment for staff to work in. “You can’t intimidate people into doing great work,” he opines. According to Walsh, their dream for EuroRSCG South Africa is to create a great place to work where staff are liberated to achieve their full potential. “My ultimate goal in advertising is to win

the Deloitte best company to work for award,” he says. The agency has an impressive array of clients considering it has been in business for less than a year, including Reckitt Benckiser, Sasfin, PNet, Cardies, Cadbury, Jaguar, Air France, Sanofi-Aventis and PSN. A number of these are global accounts. Although Daniels and his creative team were hoping for a Gold at their first Loeries earlier this year, they ultimately went home with a silver and a bronze. In addition the agency has been awarded both a first and second place in the Ad of the Month awards. “We’re on a big drive to win awards,” admits Daniels. “We believe it’s important in order to attract both the right clients and the right people to the agency.” However, the drive to win awards, they admit, is second to the need to create great ads which place the product or service as the hero. “It’s about telling people about fantastic products in a fantastic way,” says Madeley. “We never forget that we exist in order to sell things or to achieve a change in behaviour.” Daniels believes that many ad agencies fail because they place too much

emphasis on the creative team, and forget about the vital role played by other specialists within the business. “Ideas should and can come from anybody within the agency,” adds Madeley. “We feel so strongly about this responsibility that we have even structured our employees’ remuneration in such a way that it correlates directly to their contribution to the business. A creative person should be as responsible for the client relationship as the account management person, and account management should be as responsible for coming up with great creative ideas as the creative team.” She maintains that one of the biggest problems facing the ad industry is negotiating that balance of creative work so that both the agency and the client are comfortable with it rather than allowing either to manipulate the work to their own agenda. Walsh argues that the biggest problem facing the industry is a lack of respect. “We have to re-earn the respect of clients by re-establishing ourselves as experts with their business objectives at heart,” he says. The agency’s size counts in its favour: all three founders are integrally involved

in all aspects of the business, which means decisions are made rapidly. They are cognisant of the need to manage future growth in such a way that it still allows them this hands-on approach. EuroRSCG 4D Euro RSCG 4D is the world’s largest marketing services and digital agency, built on a philosophy of driving the overall brand experience through promotions, merchandising, and experiential marketing. According to managing director Shelley Hoines, “It’s an agency that marries our clients’ requirements for so-called integrated communications with the Euro RSCG philosophy of Creative Business Ideas.” With 118 offices in 42 countries, the agency’s mission is to take brands and connect them to people in the most imaginatively effective ways possible. 4D won the Volvo account during 2008 in a highly competitive pitch and was a Loerie finalist with radio advertising for the brand.

The ANNUAL 2008 — 135

AGENCY PROFILE

The Fearless Executive

01. Hayden Hochfelden, Peter Kgagara,

Bonolo Sekhukhune, Marion Baker,



Terry Behan, Karin Botta

02. Internal campaign, Neotel

Type of Agency:

03. Royal Enfield

Brand agency Number of accounts/clients: 12 Biggest spending clients: Cell C, Reliable Music Warehouse Accounts won in 2008: Cell C, Reliable Music Warehouse, IDC, SABC, Orange Accounts Lost in 2008: None Company Ownership: Terry Behan 49% Melanie Leisegang 36% Bonolo Sekhukune 15% Number of staff: 10 Billings: Approx: R5 Million Key awards in 2008: Asia-Brand Leadership Contact details: Tel: +27 11 447 5854 Fax: +27 11 447 5846 Website: www. thefearlessexecutive.com key agency staff: Terry Behan, Bonolo Sekhukhune key moment in 2008: Being short-listed on a lot of pitches without putting forward initial contact. The agency in 50 words: The next battlefield is that of compelling, engaging and lasting customer experiences. Ownership of this experience is holistic, that is to say it is no longer the domain of the marketing team but that of an entire organisation. Today’s customer look past the clever advertising and the sexy payoff lines, they look for depth of experience. Today’s businesses need to respond and ensure that their people, processes, leadership and the overall organisational culture is geared toward delivering on what the brand is promising. The Fearless Executive is in the business of making this happen for our clients.

01.

A lot of revenue may be going up in smoke due to tough times but, at the old firehouse in Northern Joburg, business is booming! That’s because it houses The Fearless Executive – with just the type of people who you call in an economic emergency. Says chief executive officer Terry Behan: “Brands have to work harder to keep business and extend market share. More than ever, they have to keep their promises. And that’s where we come in as brand integrators.” Behan and co-owner Bonolo Sekhukhune speak about their business as if it’s been revving for the seven years since its launch – and is now pulling off at warp speed. “Our business has gone nuclear in terms of market response,” says Behan. He’s excited about new clients such as Cell C and Reliable Music Warehouse because they’re “challenger” brands. The Fearless Executive is itself a challenger that suddenly finds itself in the same ring as the big branding houses. Initially growth was based on cold-call marketing and word of mouth but now the agency is regularly winning major accounts on open tender. In the days between our meeting and the publication of this article, IDC, SABC and Orange were signed up as a new clients. The agency is built on the understanding that, with very few unique selling propositions out there, today’s customers are looking past sexy pay-off lines for an experience that is deep and lasting. “Advertising campaigns do their job and turn people into potential buyers – but, as soon as they pick up a phone or enter a shop, they have a bad experience and all that brand equity is lost,” says Behan. He says companies are waking up to the fact that brands can come undone if they are not communicated and implemented internally. Sekhukhune says they not only develop training plans for frontline staff but encour-

age different departments in an organisation to treat each other as customers as well. “Another challenge is to make clients aware that, while brand integration is a leadership driver, their leaders aren’t all in management positions.” This type of branding extends well beyond the marketing department and even HR becomes instrumental to reward good brand behaviour and punish the bad. It also extends beyond internal people to the re-engineering of processes and touch-points across the organisation. The Fearless Executive has traditionally integrated other people’s strategies but part of its “nuclear” growth has been a move into the initial phases of brand strategy and design as well. “Our experience as implementers gives us a huge advantage because we know what works,” says Behan. “PHD strategies are often too complicated and they don’t consider ‘brand stretch’. For example, banks are becoming emotional and aspirational but are they really all your best friend? If you stretch the brand too far it loses credibility.” On the other hand, he says hotels can amass detailed information about client preference and can in fact become places where everyone knows your name. Ultimately the agency’s philosophy is that while brands should be conservative when it comes to making promises – they should be overawing, overwhelming and completely over the top when it comes to delivery. There’s been a clever play on the link between the agency’s physical location in the refurbished firehouse and its job to save “brands that are burning”. But it may not be a bad thing that The Fearless Executive is now poised to move premises. “You won’t believe it but the new place is called ‘The Refinery’, says Behan, “which is great because with our new focus on strategy we’ll be forging brands well into the future.”

02.

03.

The ANNUAL 2008 — 137

AGENCY PROFILE

FoxP2 Type of Agency: Through the line Number of accounts/clients: 26 brands/10 clients BIGGEST SPENDING CLIENTS: Brandhouse Beverages, Entyce Beverages, Coronation Fund Managers Accounts won in 2008: South African Dairy Project, additional Brandhouse brands, Property24, Netads24 Accounts lost in 2008: None Company Ownership: 100% local Number of staff: 12 Billings SQ Key awards in 2008: Finweek’s Small Agency Of The Year 2008 10/10 Finweek rating (the only agency out of over 100 agencies rated to achieve this). AA Finweek Creative rating ( highest score) 5 Gold, 3 Silver, 2 Bronze Loeries (the most Golds out of any agency at the 2008 Loeries) Finished in 2nd place on the 2008 Loeries table, as endorsed by the Creative Circle Finished first overall at the 2008 Creative Circle Ad Of The Year Awards First place in the Creative Circle Ad Of The Year Magazine category, as well as first place in the Experiential category. Key aGENCY STAFF: All Key moment in 2008: Finweek’s Small Agency of The Year with a 10/10 rating – the highest rating of more than 100 agencies scored. Contact details: Tel: +27 21 424 4802 Email: [email protected] The agency in 50 words: An ideas laboratory with the freedom to mutate. Unrestrained by traditional agency structures, FoxP2 is able to find the most effective solution to a client’s marketing problem and work with the most effective partners to execute that solution.

The all-white décor of FoxP2’s new offices on trendy Kloof Street evokes a sense of tabula raca, a space where anything is possible. And this is exactly what it is – a laboratory where the science of creativity is applied to deliver disproportionate returns on clients’ investments. 138 — The ANNUAL 2008

01. In the Lab are, left to right, MD Charl Thom and creative directors Justin Gomes and Andrew Whitehouse.

“The freedom to mutate” describes the free-styling approach that has won this team the reputation of breathing fresh life into brands. “To mutate,” says joint-creative director Andrew Whitehouse, “is to adapt to what’s right for the time and we will do whatever is appropriate to a specific brand and brief. What works today, won’t necessarily work tomorrow.” The success of this approach is evidenced by the fact it made local advertising history as the youngest agency to rank second overall at the Loerie Awards in 2008. It also took home the most Gold Awards. These accolades follow hot on the heels of finishing first overall at the Creative Circle Ad of The Year Awards and scoring an AA creative rating at the Finweek Awards – the highest score achievable. So 2008 has been a significant year. Managing director Charl Thom elaborates: “We had a fantastic start to the year. It began with us winning the Finweek Small Agency of the Year, where we were also the only agency out of over a hundred scored to achieve a perfect 10/10.” Their flair is raking in business and new accounts that include property24.com, more business from existing client Brandhouse and a substantial, long-term South African Dairy project. And if this doesn’t make them an attractive partner what will? Charl doesn’t hesitate: “As the Finweek report showed, we are, pound for pound, the most creative agency in the

country, and this creative work is developed off of insightful strategic platforms without exception. Our structure enables us to work closely with clients on a one-to-one basis, there is no red tape and they have access to the top level on a daily basis.” Aside from 100% personalised service, the chemistry lies in their synergy, Justin believes. “The three of us share a common vision and are of one mind in our approach. We are all on the same path and I think that this results in a pure product.” Home grown and internationally polished, this trio is refreshingly humble about their stellar rise to the top. But there are no stars in their eyes and, while savouring their recent triumphs, they realise that fame itself is fleeting and only good, consistent hard work will result in sustained growth and success. Seasoned creatives with solid industry experience, Andrew and co-creative director Justin Gomes are no strangers to winning prestigious international and local awards. But how did they get overseas and why did they come back? Andrew explains: “After Dulux won marketer of the year on the back of our ‘Any Colour You Can Think Of’ campaign, we were head-hunted by TWBA Paris and a few years after that, moved to the US to work at Lowe New York. We got quite frustrated with the industry bureaucracy over there and decided to come back to rugby, boerewors and good advertising.” Charl, the business brain and strategic

mastermind, has worked with both local and international heavyweights but really showed his entrepreneurial metal when he started up a Cape Town business unit for Grey Worldwide. Over time he grew it from a one-man, one-brand band into a significant through-the-line agency with prestigious brands such as Heineken, Amstel and Tanqueray in its stable. FoxP2 was born when Andrew and Justin landed back in Cape Town in late 2005. “With passion, optimism and a healthy level of naivety, we set out to build the business off a zero base,” recalls Justin. “Charl joined us on April Fool’s day 2007 after a long courtship and a lot of coffee.” The triumvirate was complete with Charl adding his strategic and media prowess to the already established creative mix. As a small agency they have the luxury of agility and the ability to offer innovation beyond the borders of traditional advertising. “We want to feel free to do what’s right for the brand without getting tied into rigid internal structure like an in-house TV department,”’ Justin continues. “Our core team offers brilliant client service and comes up with the ideas and concepts and when it comes to execution we have the freedom to choose the best people for the job.” A tight-knit team of highly talented individuals comprise the permanent structure of the agency. Their group-mind yields the spot-on strategies and stimulating concepts

AGENCY PROFILE

02. ‘Moonwalk’ – Loerie Gold winning work for National Geographic

Kids magazine encouraging parents to ‘Take Them There’.

02.

03. ‘The Ocular Cavity’ – Loerie Gold winning work for



brandhouse highlighting the dangers of drinking and driving. 03.

FoxP2 is famed for as well as providing the core functions such as creative, traffic, account managers, DTP and tea services. Add to this a cherry-picked and diverse team of freelance specialists who are ever ready to work with FoxP2 in doing whatever it takes to actualise the ideas. Through this approach FoxP2 is able to harness the talents of South Africa’s leading creatives for the benefit of their clients, with the capacity to offer epic 60-second corporate ads or more quirky, leftfield mutations that really cut through the clutter. This simplicity is achieved by placing a brand under a microscope and analysing its DNA, then the team works towards identifying the essence of the marketing “problem” and then synthesising the perfect solution. Charl expands: “A ‘problem’ can be the need to regain market leadership, grow market share or it can be the fact that your company is already number one and needs to stay there. We work with our clients to identify exactly what

they want to achieve, then we get to know them so that we can gain those important insights that help us to create engaging advertising that touches people’s lives.” With a bright future ahead, FoxP2 is aiming for sustainable growth, picking up business at a pace that enables them to maintain the levels of client contact and product quality that currently defines them. Andrew feels the time is ripe for success and that the re-emergence of start-ups globally is a key development in the industry that finds synergy with the fact that many brands that were previously aligned are no longer finding benefit in this. “Alignment ignores the product that individual agencies put out so the UK branch of an agency may represent a client brilliantly but may not do such a great job locally,” he says. He feels that alignment is bad for clients and bad for the industry as it breeds inertia saying, “it should be a competitive industry, you should know that the agency next to you is doing great work and if you don’t deliver you can lose the

brand. Competition keeps standards up – it’s a really healthy trend.” Client references “Fox brings a rare combination of insight, creativity, commercial sensibility and simplicity to our brands. They also combine that ‘small agency’ attention with an ability to comfortably handle big FMCG brands. Add in their innate decency as people and a refreshing maturity about the work and you have a potent result as evidenced for us both at awards ceremonies and at the till.” – Steve Miller, marketing director, AVI Group “If I had to rate FoxP2 on a scale of 1 to 5 (1 = excellent, 5 = poor) on issues such as creativity, communication, customer service, contribution to our brand and the quality of our working relationship, they would score either 1 or 2 for all categories with an overall ranking of 1.” – Avi Shachar: Chief Executive Officer, ISCA The ANNUAL 2008 — 139

AGENCY PROFILE

Grey South Africa Type of agency: Through-the-line creative agency Number of accounts/clients: 12 Biggest spending clients: British American Tobacco, brandhouse, Visa, Procter & Gamble, GlaxoSmithKline Accounts won in 2008: None Accounts lost in 2008: None Company ownership: 25,1% Bongani Khumalo, 74,9% Grey Group (which is owned by WPP) Contact details: Innesfree View, 2 Harris Road Cnr Katherine Street, Sandton

Tel: +27 11 293 6200

Fax: +27 11 293 6206

Email: [email protected] Agency billings: Exceeds R120 million Key awards in 2008: Cannes Gold – Geronimo Condoms Cannes Silver – Cuddlers Nappies

01. 01. 01. 01. Cannes Shortlists – Apartheid Museum, Max Health Pet Diet, Post-It Super Sticky

D&AD Silver Pencils - Geronimo Condoms

One Show Bronze Pencils - Geronimo Condoms One Show Shortlist - Geronimo Condoms Clio Bronze – Nokia Face of Africa

Clio Shortlists -- Geronimo Condoms, Post-It Super Sticky London International Silver Statue - Geronimo Condoms Loerie Gold – Spitz, Grey Corporate AV

Loerie Silver – Shark Life, Post-It Super Sticky, Apartheid Museum

Loerie Bronze – Cuddlers, Spitz, Apartheid Museum

Number of staff: 84 Key agency staff: Chief executive officer: Tim Byrne

Executive creative director: Mike Barnwell Managing director Johannesburg: Dallas Glover

Managing director Cape Town: Kelvin Holmwood

Chief financial officer: Ahmed Loonat Key moment in 2008: The appointment of Tim Byrne as chief executive officer The agency snapshot in 50 words: Grey South Africa has a burning desire to be the best midsized agency in the country, and is taking huge strides in

this direction. The agency prides itself on two things – the

quality of its thinking and the quality of its implementation. This better enables it to help clients accelerate their brands, which in turn accelerates its own brand.

140 — The ANNUAL 2008

If 2007 will be remembered at Grey South Africa as the year a fresh gust of creativity whooshed through the agency, revitalising it with fresh energy, then 2008 will no doubt be thought of as a time of fine-tuning services and entrenching the agency’s philosophy of brand acceleration. Leading this process is Tim Byrne, who took over from previous CEO Ann Nurock (now heading Grey Canada) in May. Byrne’s 24-year career in advertising has seen him amass impressive experience in client service, planning, new business and strategy at agencies like Ogilvy, Lintas, BLGK, Bates and The Jupiter Drawing Room, which he’s supplemented with a consulting stint in South Africa and Nigeria. All of which places him in an ideal position to “take Grey South Africa to the next level”. But what, exactly, does that mean? “When Grey was sold to WPP in 2005, it became one of the world’s last major network agencies to join a holding company,” Byrne notes. “Now that it’s well established within the WPP fold,

it’s become more focused on creative performance. Globally, the organisation is going through a renaissance that has seen it change more within the last year than during the past 12 years, according to global CEO Jim Heekin.” South Africa’s response to the call for more creativity hinges on bringing on board more qualified and experienced individuals, in order to offer a proposition that’s compelling, competitive and current. As a result, Byrne opines, Grey is fast gaining a reputation as a network to be reckoned with. Dynamic and future-facing are two of the words he uses to describe an agency which is clearly gathering momentum and pace. Underpinning that pace is Grey’s “brand acceleration” philosophy. While the agency offers a comprehensive suite of communications services, this differentiating ethos is about the organisation’s ability to drill down into those that will prove most useful in propelling clients’ brands forward. “Our goal is to create a single, unified view of the brand, especially if there are a number of different agen-

AGENCY PROFILE

cies working on different aspects of brand communication. With this in place, we use a brand compass to identify the optimal route for the brand to follow, then galvanise the services needed to make sure it shuttles along this route within the allotted timeframe and budget.” It’s a strategy that has borne fruit for brands like Mazda, where having a single brand view proved key in successfully launching nine new products in 18 months. Says Mazda marketing manager Doreen Mashinini: “It’s been wonderful working with Grey South Africa: as a young creative team, eager to try new things, they’re responsive to our requirements. The brand has definitely benefited from the input of like-minded people.” Amstel has also benefited: Grey South Africa re-launched the brand when it became part of the brandhouse stable. Aquafresh, meanwhile, has been grabbing consumer attention through the use of Lucas Radebe as brand spokesperson, and the agency’s work with Pringles has seen the brand recently enjoy record-beating July sales as it continues to go from strength to strength. Also noteworthy is a campaign that took Tanqueray from a previously unknown brand three years ago, to the major player in South Africa’s premium gin sector. Clint Hess, marketing manager at brandhouse, commends the agency’s ability to generate innovative marketing initiatives, like last year’s sponsorship of the TV series, The Apprentice, and securing the brand as an onboard option with British Airways. “The brand has grown phenomenally,” Hess says, attributing its success to a number of factors; among them Grey’s ability to forge strong relationships and foster intimate understanding of brands. “This is largely thanks to the presence of a dedicated stra-

tegic business unit servicing brandhouse in Cape Town.” Grey South Africa further undertook activations which helped Centrum maintain its position as South Africa’s favourite multi-vitamin brand, and has signed on to assist Visa leverage off its first-time sponsorship of 2010 FIFA World Cup South Africa. Byrne believes that brand acceleration will be instrumental in garnering new clients. “We’re also looking at expanding our offering,” he adds. “Our current through-the-line services will be supplemented with additions like digital marketing, design and customer relationship management, which we anticipate will be on board within the next 12 months.” At the same time, the focus on building a creative profile continues. Byrne admits that 2008 has seen the agency fallen somewhat from the creative heights reached in 2007, but he says that the pressure is back on to find the fresh, the new and the fascinating. In the meantime, an accent on building a more robust structure will help the agency maintain excellence in the complex through-the-line space. Byrne believes that the downfall of many agencies trying to marry traditional media with below-the-line channels is the fact that they have separate producers for electronic and print ads, but no one with the expertise to make exciting ideas for activations a reality. This is where Grey South Africa is headed: at present, the agency’s creative department comprises a single pool of flexible thinkers, jacks-of-all-trades who are as comfortable and skilled at scripting a TV ad as they are designing a website or digital mailer, or even creating a theme for an event. Ultimately, though, the vision is to have a full-time activation production

department which will be able to address the practical problems associated with creating consumer engagement opportunities – where to source staff or equipment, for example, or discerning the great ideas “on paper” from those that will translate into impactful practical executions. “This support will give our creatives, especially those accustomed to working in the above-theline space, complete confidence.” If that’s something to look forward to in the future, what sets Grey South Africa apart right now? “We think. And we do so much better, both strategically and creatively, than many of our competitors,” Byrne answers. And the best opportunities for brand acceleration are most likely to arise out of great ideas. He’s looking forward to introducing this ethos to new clients, as Grey South Africa is currently on an aggressive drive to acquire new accounts. Byrne is not fazed by the current tough economic conditions, nor does he expect them to be an

inhibitor in this regard. “We’ve had some minor cutbacks, but most clients want to ride out the storm rather than decreasing advertising and marketing spend too drastically. They don’t see what’s happening as a major aberration. On the contrary, with most other companies tightening advertising spend, many of our clients see this time as an opportunity to accelerate their brands.” So, while the market for pitches may be quiet at present, Byrne’s prediction is that it will gain more attention later in the year. And Grey South Africa will be ready. “Right now, we’re not looking to be one of the Big Five agencies; rather, we want to be one of the best in South Africa’s mid-tier section, and our aim is to establish our credentials here. We’re ideally positioned to handle clients with billings of R20 million to R40 million per year, because with this type of financial resource we can really make brand acceleration a reality,” he concludes.

The ANNUAL 2008 — 141

AGENCY PROFILE 01. Howard Simms and Sarah Lamond

Hammer Live Brands

02. Johnnie Walker Red Label in the Carlton Hotel,

Marshalltown

03. Red Bull Box Cart, Jan Smuts Ave, JHB 04. Red Bull BC 1, Orlando Ekhaya Power Station, Soweto

Type of Agency: Strategic brand activity Number of accounts/clients: Project-based work – currently 6 Biggest spending clients: brandhouse beverages Company Ownership: Howard Simms, James Barty, Alistair King, Jenny Ehlers

01.

Number of staff:

portant to establish a relationship with a strategically strong company. This way they get to know the brand architecture and to develop the insight that enables the execution of events that really express the brand. Successful events are built on attention to detail.” With his keen interest in the relationship between brands and subcultures, Howard has a natural affinity for this work. Add to this his 16 years of production and logistics experience and it is plain to see that the KingJames Group made the right choice in partner when they decided to venture into the events arena. Although completely autonomous, this partnership gives the Hammer team excellent access to creative and strategic resources. It also ensures that they know what they are doing when it comes to integrated campaigns and translating the elements of an above-the-line campaign into experiential reality. He explains: “Consumers don’t like confusing messages; we work to ensure congruity across campaigns.’ With a host of amazing events bearing testimony to their aptitude, Sarah Lamond, general manager, believes that it is the strength of their team that gives them the edge over other agencies. “We have a wealth of experience behind us that stands us in good stead to take any challenge from a client and convert it into a successful event or execution. We have become known for our ability to source and transform spaces most people would be too terrified to consider as a venue. “We have an incredible work ethic and a lot of integrity. This overflows into our approach to running the business; we are very transparent in our billing. We don’t do agency mark-ups or take rebates.” Their magic is made by a core team of nine people who share a broad range of expertise. Solid technical and logistical talent means that they have the ability to invent the most creative ways to employ technology to serve the brand and event. On the other side of the spectrum, the client service team double as project managers, which means that one person is in charge from brief to execution so nothing gets lost in translation. Howard adds: “We all have an excel-

9 Billings: Not disclosed Key awards in 2008: None entered Contact details: Tel: +27 21 465 3511 Email: [email protected] [email protected] key agency staff: Howard Simms, Sarah Lamond The agency in 50 words: We create activity for global brands and ensure congruity across all levels of a campaign. We are dedicated to superb results and will ensure a unique and satisfying delivery for you and your consumers.

Sub-cultural experiences, exclusive launches and credible brand events are what Hammer Live Brands specialise in – in fact, any live event that provides consumers with an authentic brand experience falls within their scope. Managing director Howard Simms believes that live events form an integral part of the marketing mix. “Consumers are bored and very perceptive. Brands need to be able to engage directly with their market through authentic experiences. “ Hammer Live Brands is a strategic brand activation company that executes powerfully effective events aimed at winning hearts and converting neutral consumers into brand loyal shoppers. To date, their expertise has worked well for heavyweight brands such as Red Bull, Nike and Johnnie Walker. In addition they enjoy a successful relationship with TV production company Rapid Blue, for which they provide event support for large-format television shows such as Crazy Games, So You Think You Can Dance and Up and Under. And while events are generally run on a project basis, Howard points out the benefits to brands when it comes to forming long-term relationships with their events agency. “If you want to achieve consistency through the line, it is im-

02.

lent grasp of brand strategy and we’re a bunch of young, enthusiastic, stylish people who are all highly motivated. Most importantly we do what we do because we thoroughly enjoy it. The future is unknown. We want to grow but in the right way. We are discerning about our clients. We need to work with people who share our headspace.

Client references “We love working with Hammer Live Brands. They are proactive and innovative and have really improved the way we run primetime television shows like So You Think You Can Dance.  They are not just an eventing company, they bring with them years of experience and they understand that in our business time is money!  Their client service is excellent, and over the years, they have become trusted suppliers and friends. – Beatrice Joubert, Rapid Blue Productions

03.

“I have worked with Hammer Live Brands for two years and have yet to be disappointed in the team. Their professional attitude, absolute willingness to go the extra mile and unbelievable work ethic has made every single event done through them an unforgettable experience, both for myself and for my consumers.” – Anneke McKenzie, Johnnie Walker Red Label, brandhouse Beverages “Red Bull South Africa has been collaberating with Hammer Live brands on their medium and large scale events/projects since around 2002. They have proved to be an invaluable eventing partner on events such as Red Bull Downhill Extreme, Red Bull Box Cart Race and Red Bull BC One to name a few. They are a pleasure to work with, always finding the right solutions to a problem and making sure that the job is done to the highest standard. They feel like family, making sure that they treat the brand as their own and only the best will do! Besides that, we have so much fun working together it would be hard not to imagine them as part of the team. – Dani Ewing, National events manager Red Bull South Africa

04.

The ANNUAL 2008 — 143

AGENCY PROFILE The Hardy Boys’ staff on the decks of the agency’s new building in Riverhorse Valley, a conservancy area near Durban, with senior management below (from left): Marco Guidotti, Dale Tomlinson, Geoff Paton, Tracey Williams, Debbie O’Reilly, Hazel Bartlett and Craig Harris. The cow is a spin-off from the agency’s successful launch of Ola’s Moo ice cream in this country.

The Hardy Boys (Pty) Ltd TYPE OF AGENCY: Specialist agency NUMBER OF ACCOUNTS/CLIENTS: 38 BIG SPENDING CLIENTS: Unilever SA (Pty) Ltd, SA Home Loans, Miladys, Rainbow Farms (Pty) Ltd, Spar ACCOUNTS WON IN 2008: Vaseline Petroleum Jelly, Huletts, Amalgamated Appliances,

The innovative architecture and interior design of The Hardy Boys’ new building has attracted great interest. One of the features is this glass meeting-room known as The Pod.

Nouwens Carpets, Castellano Beltrame, Simply Cereal, Smirnoff (just announced) ACCOUNTS LOST IN 2008: Belgotex (resigned) COMPANY OWNERSHIP: 100% Owned by The Hardy Boys Investment Trust. Dale Tomlinson is sole beneficiary of the Trust. NUMBER OF STAFF: 80+ BILLINGS: R345 017 852 Net Revenue: R67 215 599 KEY AGENCY STAFF: CEO: Dale Tomlinson Creative Director: Geoff Paton Strategic Directors: Adam McKeon, Debbie O’Reilly Production Manager: Hazel Bartlett Business Analyst: Craig Harris Financial Controller: Tracey Williams Business Unit Heads: Dave Slater, Hayley Veschini-Schmitz MD, THB Australia: Marco Guidotti CONTACT DETAILS: Unit 3 River Junction, 10 Hippo Park Avenue, Riverhorse Valley East, Durban, 4017; PO Box 712, Umhlanga Rocks, 4320 Tel: +27 31 533 9000 Fax: +27 31 533 9200 [email protected] KEY MOMENT IN 2008: Being awarded global responsibility for Vaseline Petroleum Jelly by Unilever. THE AGENCY IN 50 WORDS: The Hardy Boys is a ± 80-strong group of idea generators, strategic thinkers and passionate problem solvers. We are channel-neutral and work across all creative disciplines, partnering happily with the best of breed when necessary. We work across a diverse mix of blue chip clients that utilise us on local, pan-African and global needs. We do not compete with other agencies, but fiercely with other brands!

144 — The ANNUAL 2008

The Hardy Boys is an independent Durban-based advertising agency. Its maverick reputation and unconventional approach belie its serious attitude to business and nimble response to market trends. The agency is staffed by hungry, passionate people who burn the midnight oil to help brands sing. Established 14 years ago, The Hardy Boys directs its efforts towards problem solving. The agency has specialists who integrate different media to provide holistic solutions for brands across different platforms. The Hardy Boys’ roots are in packaging, but the agency has diversified and its 80 staff members have expertise in a number of mediums to deliver totally integrated campaigns. The agency has grossed-up billings of around R345-million a year, which translates into net revenue of almost R70million. Clients include Unilever, Rainbow Chickens, British Airways, Miladys, Ola, SA Home Loans, Huletts, Russell Hobbs and Nouwens Carpets. The Hardy Boys places special emphasis on the balance between strategic and creative work and constantly reinvents itself to meet the changing needs of marketers. As the genesis of the agency was design and packaging, The Hardy Boys

wanted packaging to reflect its intimate understanding of brands and their consumer relevance, using design as an intimate communication medium as opposed to design for design’s sake. The growth of the agency and the fact that it was soon awarded classic communication campaigns saw a dramatic change in the skills set. Staff extended themselves to embrace a range of disciplines and partnered with others. “We picked up on the new activation buzz and became known for conceptualising and implementing 360degree campaigns,” CEO Dale Tomlinson says. The Hardy Boys registered the term “Brand Centric” and repositioned the agency as a business that would get to grips with essential brand issues and then propose the appropriate mix of disciplines to effectively deal with those issues. Whether it’s design, in-store activation, new product development or classic communication, the brand and its needs are placed firmly at the centre of the agency’s offering, and the solution is not limited to the skills resident in the agency. This appreciation of the value of partnerships has given The Hardy Boys international exposure. It helped create totally integrated campaigns for brands

such as Vaseline. Working alongside Bartle Bogle Hegarty in New York, The Hardy Boys in 2007 was responsible for repackaging, creating TV and print campaigns and developing the activations for Vaseline across Africa and the Middle East. The brand experienced a 45% growth in sales, making it Unilever’s fastest growing personal care brand. The Hardy Boys’ Strategic Director Debbie O’Reilly says handling accounts like Vaseline reinforced the agency’s commitment to business accountability. “It’s enormously gratifying work, but it’s also a huge responsibility which we don’t take lightly. In the advertising industry it’s easy to put flash over substance. We pride ourselves in doing exactly the opposite,” O’Reilly says. The Hardy Boys also represents BBH on the British Airways account across the same region. Another success story was winning the SA Home Loans business in a five-way pitch. The win further secured The Hardy Boys’ position as an agency able to handle sizeable and complex pieces of business. The agency worked closely with the client through the new Credit Act, several interest rate increases and a property slump. SA Home Loans CEO Kevin

AGENCY PROFILE

Penwarden has this to say of his successful partnership with The Hardy Boys: “A few years ago we found ourselves bereft of coherent marketing strategies, with a confused and ageing brand identity and an advertising message that lacked originality and spontaneity. The Hardy Boys was asked to present its credentials to take over the account in competition with some big name agencies. Its pitch was professional, filled with great ideas and suggestions for a modified brand image, all delivered by an enthusiastic team who showcased their research and knowledge of our industry and their ability to evolve and transform our corporate identity.” He adds: “Dealing with The Hardy Boys is a delight because of the incredible chemistry generated between our teams … there is no question that The Hardy Boys over-deliver.” The Hardy Boys is responsible for SA Home Loans’ entire R32-million communications strategy. By energetically servicing blue chips, including Unilever brands like Ola Ice Cream, and other top companies like Miladys, Spar, Rainbow and Farmer Brown, to name a few, the agency has shown a substantial growth in turnover and increased profits. Bigger revenues have enabled The Hardy Boys to fulfill its plan to establish itself as a serious player in South Africa and a centre of brand excellence in the AMET region. It is now possibly the third largest independent agency in South Africa. The Hardy Boys has invested in new offices which it occupied in January 2008. The offices are designed to facilitate greater client interaction, host brand development workshops and provide a stimulating, creative environment that would hold its own anywhere in the world. In the last 18 months the agency has seen a dramatic change in the type and calibre of work it has attracted, from a project-based, below-the-line focus to more holistic, long-term, integrated campaigns. A key example of this was its appointment as the global lead agency for Vaseline Petroleum Jelly, working with BBH in New York and London. Another example is Huletts, South Africa’s leading sugar brand. Huletts has moved from using The Hardy Boys for its packaging needs to handling its entire account. Having developed the brand blueprint and essence, the agency is now creating integrated through-the-line campaigns and has repackaged its entire product range. The success of the integrated activation campaigns that the agency produced on an ad hoc basis for Shield and Axe over the past few years has resulted in The Hardy Boys being appointed to do all the regional work for Axe, Shield (men, women and teens) and Dove aerosols until 2010. Sheila McCarthy, Unilever Vice-President Brand Building – Personal Care & Ice Cream, has this to say about the agency’s work: “It shows sharp, relevant and original consumer insight, and superb executional quality. As an agency The Hardy Boys is on top form and able to compete not only with the top South African agencies, but also with global agencies, having won global work in the Unilever world. All this and The Hardy Boys still remains refreshingly down-toearth and fun to work with, never having succumbed to the arrogant self-important posturing of some of the big boys.” In 2007/8 The Hardy Boys won international acclaim for work done for SANBS and was a VUKA finalist. But the team at The Hardy Boys fervently holds

that the success it enjoys is but an adjunct to the success of its clients. In an unpredictable economic climate, the agency believes it has to be at its clients’ side, fighting hand-to-hand against competing brands. Strategic Director Debbie O’Reilly says: “There are the traditional marketing challenges that clients are aware of and are dealing with, and then there are those that come from the left field – unforeseen and disruptive. These provide unexpected threats and opportunities.” To deal with these, the agency has put a premium on being flexible, responsive and prepared to reach out to find the skills depth and diversity to handle sizeable campaigns. Says Creative Director Geoff Paton: “We are obsessed with building brands, whether they be FMCG or service brands. We understand the diversity of consumers and that it takes new and unconventional ways of engaging them. We are also acutely aware that consumers discard brands the instant they no longer deliver on their promise or meet their needs.” Tomlinson says The Hardy Boys is at pains to be good at working across varied brands, across complex geographies and under demanding client and consumer expectations. In order to do this, the agency has invested in key disciplines: strategy, creative, finance and production. The agency recently restructured, shifting from a relatively small management team to a two-tier structure that ensures brand consistency across all channels and executions, while at the same time providing organisational flexibility. The senior team comprises lead representatives from each key discipline – strategy (Adam McKeon and Debbie O’Reilly), creative (Geoff Paton), finance (Craig Harris and Tracey Williams) and production (Hazel Bartlett). This team functions across all clients and brands and is essentially a resource to the agency. In the next tier are business unit heads and creative heads who are each responsible for a portfolio of accounts. Below them is a rich pool of talent that works across various disciplines, accompanied by a sizeable technical unit of specialists as well as a team of three strategists. The Hardy Boys’ desire to grow is inextricably linked to finding answers for its clients. The agency emphasises its channel-neutral approach and operates from the simple belief that every brand starts with a great idea. Says Adam McKeon, fellow Strategic Director at The Hardy Boys: “When brands are built on outstanding ideas, value is created for shareholders, consumers are engaged and employees inspired. It is our task to find equally great ideas around which we can build compelling, relevant and engaging campaigns. Whether the campaign’s objective is shortterm volume gain, long-term brand build or new news – the campaign must create some residual benefit for the long-term well-being and perception of the brand.” Obviously The Hardy Boys is also getting this right for Rainbow. Their Marketing & Customer Director Scott Pitman says, “The Hardy Boys’ attention to detail is excellent. Adherence to timing is strong and, most importantly, creative solutions are constantly being driven. The concept of curiosity is always at the top of their agenda, and is evidenced by their ability to drive new formats, finishes, shapes, design and ideas in an innovative and powerful way. The Hardy Boys will partner and add value to all aspects of your business.”

Vaseline is a big Hardy Boys’ brand, and one of the client’s recent briefs was to extend usage from lotions to creams in the AMET regions where skin needs special care in the extreme climate. The ongoing campaign runs across a 360º media spread.

The Hardy Boys recently took activations to new heights on behalf of Axe deodorant. The agency created a band called the The Cheesegirls which has released singles and music videos which have been enjoying prime time airplay.

Branding – starting with packaging design – is at the roots of The Hardy Boys. With the aid of the agency’s advice and standout design, these and other new Farmer Brown chicken offerings flew out of supermarket freezers.

The Hardy Boys did a complete makeover on SA Home Loans’ communications, from creating a warmer visual identity to more empathetic advertising across every conceivable medium.

The ANNUAL 2008 — 145

AGENCY PROFILE

Initiative Media South Africa (Pty) Ltd Type of Agency: Media strategy, planning and buying agency Number of accounts/clients: 60 big spending clients: South African Breweries, Investec, SA Home Loans, Metropolitan, Taste Holdings Accounts WON in 2008: South African Breweries, Ferrero South Africa, NWJ Wholesale Jewellers, Tracetec, Merensky, Nintendo, Varisty College, Perfetti van Melle, Dairy Consumer Education Project. Accounts lost in 2008: None Company Ownership: Interpublic Number of staff: 36 Billings: R500 million Key awards in 2008: None Key agency staff: Managing director: Marc Taback Managing partner: Hilary Lindsay (Initiative Media Durban) Director: Moses Maseko Business & strategic director SAB: Lisa Matthewson Business head, SAB: Jill Taylor Channel strategy director: Leigh-Ann Motan Channel strategy director:

SAB Pitch Team left to right : Hilary Lindsay, Lisa Matthewson, Sarah Dexter, Marc Taback

Wendy Carruthers Contact details Tel: +27 11 780 6200 Email: marc.taback@ sa.initiativemedia.com key moment in 2008 Winning the South African Breweries media business. The agency in 50 words Initiative Media is the South Africa office of Initiative Media Worldwide, the largest global media services company with an international network unparalleled in its ability to offer client partners co-ordinated media management in all the major advertising markets around the world.

146 — The ANNUAL 2008

The catch of the year stor y must be how Initiative Media won the South A frican Breweries media account – almost doubling its business. “We were seen as the dark horse among the agencies that pitched,” says Initiative Media managing director Marc Taback. “We were the smallest agency among the five short-listed and our pitch team delivered a brilliant strategy and outstanding presentation.” Marc hands over the telling to Lisa Matthewson, strategy director at Initiative Media, who formed part of the SAB pitch team. “What distinguished us from t he ot her agencies was our

insightf ul analysis and imaginative and comprehensive strategy,” says Matthewson. “We did a classical case study, starting with thorough desk research and consultation of focus groups. These gave us our big idea, which was the glue for the whole pitch.” The whole concept was presented in the form of a music video, which obviously wowed the SAB pitch judges. “It went down as a huge hit with the SAB marketing team,” says Matthewson. “It covered everything you would expect from a strategy presentation – research, media modelling, strategic business plan, implementation, execution of all

briefed requirements, plus a whole lot more. It has been a great highlight for me personally and the most satisfying time of my professional life.” Taback says the new business division, created specifically and exclusively for the SAB media business, is called SAB media studio@initiative media. A specially created new logo has the SAB and Initiative Media logos merge into one showing the strong partnership that has been formed between the two companies. “You need a substantial team for a business of that size,” says Taback. “Many clients, especially the larger ones, often feel they do not

AGENCY PROFILE

SAB media studio@initiative media Team and SAB Marketing Communication Team. Back row: Vanessa McKay, Moses Maseko, Collin Khumalo, Jill Taylor. Middle row: Marc Taback, Eric Williams, Nada Carlisle, Bradley Strydom. Front row: Hilary Lindsay, Lauren Stevens, Lisa Matthewson, Melanie Nicholson, Lisa Green

get the attention they deser ve from their media agencies. That is why it is imperative for us to have a dedicated team, in order to prevent that feeling of neglect and to satisfy their justified expectations.” Winning the SAB account has reenergised the whole agency, says Taback. Initiative Media, with offices in Johannesburg, Cape Town and Durban, is the South African office of Initiative Media Worldwide. It also has links to off ices in Kenya, Nigeria and Ghana. “Our national and international links give us an invaluable advantage in our main areas of activity: media research,

strategy, planning and buying. Media communication is a highly competitive industry and Initiative Media’s global proprietary technologies and research establish a new playing field for clients. A competitive advantage is based not only on knowledge, but on its application as well,” says Taback. 2008 has been an outstanding year for Initiative Media especially after the loss of Unilever in December 2007 due to international re-alignment. “We have picked up more than R280 million in new business in 2008. Initiative Media is a very top-of-mind innovative media agency at the moment,” says Taback. The ANNUAL 2008 — 147

AGENCY PROFILE

Interbrand Sampson Type of Agency: Strategic branding and design Number of accounts/clients: 25+ BIGGEST SPENDING CLIENTS: Access Bank, Telkom, Medscheme Accounts won in 2008: Jubilee Insurance (East Africa) CBA (East Africa), Old Mutual (East Africa), Kraft, Chartered Marketers, Constitution Hill Trust, Sun Coast, Clover, Afrox, Cresta Hospitality, TWP, Tiger Brands, KWFT, Britac Accounts lost in 2008: None Company Ownership: The group company is locally owned with BEE as per marketing charter East African partnership 50% regionally owned West Africa partnership 50% regionally owned Number of staff: 28+ Billings: Billings have continued to grow at over 70% year on year since 2006 Key awards in 2008: None Key aGENCY STAFF: Executive chairman: Jeremy Sampson Group chief executive: Douglass de Villiers Strategic director: Victor Rangaka Operations director: Blake Anderson, Executive director – Africa division: Christopher Koller Chief executive – Interbrand Sampson Inside: Angela Bruwer Managing director – Cape Town: Erica Morgan-Tanton Key moment in 2008: Establishing Interbrand Sampson Inside as the specialist internalisation consultancy Establishing the West African joint venture for Interbrand Sampson in Nigeria Establishing the Cape town office of Interbrand Sampson Establishing specialist branding services agreements with Deloitte Consulting Creating an Interbrand Group-wide knowledge group to serve clients in Africa using more than 12 specialist global offices Contact details: Tel: +27 11 327 2815 Email: [email protected] The agency in 50 words: The Interbrand Sampson Group provides the hub for Interbrand in Africa. Based in Johannesburg, with offices in Cape Town, Lagos and Nairobi, we are part of the global network with more than 35 offices around the world, providing global best practice adapted to local conditions.

148 — The ANNUAL 2008

01. Back Row (left to right): Angela Bruwer, Blake Anderson, Erica Morgan-Tanton, Christopher Koller

Front Row (left to right): Victor Rangaka, Jeremy Sampson, Douglass de Villiers

They created the Nedbank “N” and the SAB beer mug, and turned the leaping Springbok the right way around in the logo. Thirty-five years down the line, strategic branding and design agency Interbrand Sampson (IBSA) is still going strong – and so are many of the designs it came up with decades ago. Executive chairman Jeremy Sampson established the design consultancy Jeremy Sampson Associates in 1973, before working in London from 1987 to 1992. He returned to Johannesburg and formalised the agency’s long-held links with the Interbrand Group and in 1994 Interbrand Sampson (IBSA) was formed. Today, it holds the distinction of being the oldest strategic branding agency in the country, and is a vital cog in what is arguably the world’s leading branding and design consultancy. Over the past year, IBSA been spreading its wings and undertaking a substantial amount of work in Africa, taking advantage of the exciting opportunities unfolding on the continent and the fact that brands are increasingly becoming regional and global. With more than 35 offices around the world, including the newly opened Cape Town office, they are well positioned to follow their clients, counting MTN, Deloitte and Microsoft (the world’s second most valuable brand) among the leading lights in their stable. Since the MTN Group extended its African and Middle Eastern footprint to 21 countries, IBSA has the advantage of being able to implement branding projects using its recently established regional offices in Nairobi and Lagos. “But it’s not just about following cli-

ents,” stresses Doug de Villiers, Interbrand Sampson group chief executive. “It’s also about being a catalyst and helping our other global operations manage their brands in our areas. As custodians, agencies need to have strategic brand knowledge to maintain the standard and integrity of the brand in Africa and beyond.” Simply put, “a brand is a promise made and a promise kept”. Sampson says that branding is a common language around the world and the key to a successful brand is for it to be seamless and for all the touchpoints that impact stakeholders to be consistent, wherever it is taken geographically. It is, however, somewhat flexible, he adds – “about 70% is consistent, while 30% can be adapted to local conditions”. At the moment, Africa is largely unconquered territory, and there are various drivers at play when it comes to different parts of the continent. “This means you can’t go in with a South African mindset and a South African solution,” explains De Villiers. As such, part of Interbrand Sampson’s unique offering is that it undertakes projects with multinational teams of excellence drawn from around the world, with each individual contributing a different perspective toward reaching a solution. Key to this process is the use of global subject-matter experts (SMEs), who provide strategic input into brand development. Flowing from this, a specialist unit has been established called Interbrand Sampson Inside, focusing on the internal aspects of branding within a company and headed by Angela Bruwer. Not only does the South African operation benefit from its international network, but “we’re also exporting experience – they like the way we work,” says De Villiers. “We concentrate on up-skilling resources in East

and West Africa, so that local thinking, combined with our expertise, produces the best results for the client.” The respected industry players at IBSA are regularly invited to address universities and organisations around the world on branding, with the current focus being on creating centres of excellence in Africa. An aspect to consider is that certain international brands, such as vehicles from China, do not necessarily play well in the Western market but are deemed suitable for Africa, and Interbrand has an office in China that can add its perspective and share local knowledge. Another differentiator is Interbrand’s renowned brand valuation process, with its results captured annually in its survey of the top 100 Best Global Brands, in conjunction with BusinessWeek magazine. The reputation of a company is symbiotic with its brand, and can certainly influence its bottom line, says Sampson. Although brands are intangible, they are frequently a major source of corporate value – with the percentage of a company’s market capitalisation attributable to brand value often being far higher than its tangible assets. Think “brand” and many people see only a logo or trademark, but Interbrand Sampson is adept at delving beneath the surface and defining the DNA of a brand. This means that measuring the effectiveness of a brand cannot purely be done around awareness – reputation has many components and a damaged image, for whatever reason, could turn investors off. “Having a strong brand is not a shoo-in for success,” cautions Sampson, “and success in market performance is also no guarantee.” Therefore, it is important for a company to live the brand and be an ambassador for it, from the security guard to the CEO. In addition, a product may be easily copied or imitated, so it is important to hone the emotional side of a brand, to encourage the consumer to build a relationship with it. “Function is crucial but it’s a given; what you need to ask is: does the brand relate to you and make you feel good?” says Sampson. “At a restaurant, for example, it’s a combination of the food, the ambience and the experience. If the branding is persuasive and covers every touchpoint, you will return to a relationship or service that you like.” Despite the current economic squeeze, De Villiers says it’s actually the ideal time to invest in strengthening one’s brand and making sure it doesn’t drift off base.

AGENCY PROFILE

“It’s a good opportunity to acquire market share if you spend wisely. It can help companies refocus in recessionary times. Nike bought media at a time when others were pulling out, and look how it boosted them.” Sampson confirms this notion: “Recession or no recession, when times get tough, the strongest brands fly.” In terms of trends, new technologies are increasingly driving consumer behaviour, the world is getting smaller, and customers are getting younger and more informed. “Gone are the days when you get into a consumer’s head at the age of 20,” notes Sampson. “They are conscious of brands at a much younger age.” Adds De Villiers: “Marketing needs to be cleverer to respond to this, and brand symbiosis will become increasingly important.” Sampson agrees: “I think we’ll be seeing more joint ventures and co-branding. Finding the right fit for your brand can help you reposition, and more brands will be joining up if they can strengthen their offering and explore new market sectors.” Projects on the boil for IBSA include helping Nigeria’s Access Bank to expand outside Africa, as well as other work in West and East Africa. A fascinating challenge is helping reposition “Brand Turkey” prior to the country’s envisaged entry to the European Union, assisting Turkish companies in becoming global brands. In addition to MTN and Microsoft, IBSA’s new clients in South Africa include Afrox, Montecasino, Sun Coast Casino, Constitution Hill Trust, Cresta Hospitality, Clover, Tiger Brands, TWP, Sasko and Joburg. The consultancy also created the visual and verbal identity for Sky’s new Southern Africa Direct travel channel, including the station sign-off, printed material and website. In doing so, it integrated an African feel with a modern theme. “The ability to link business and brand strategy to design is important,” says De Villiers. “The brand mustn’t end up schizophrenic, but focused and totally crisp,” agrees Sampson. The environment at Interbrand Sampson is a stimulating one, with the agency enjoying low staff turnover, and its employees being given the opportunity to travel and work on “dream projects”. They are certainly living up to their ethos of “global best practice, supplied locally”. Professional brand building is often like “selling thirst, then water”, and all indications are that, by following their clients into Africa and beyond, Interbrand Sampson is on track to strike an oasis.

02.

04.

03.

05.

06.

08. 2-8. Elements of work done for the new identity of

Southern Africa Direct, Sky TV’s new travel



channel, launched in the UK and Africa

07.

The ANNUAL 2008 — 149

AGENCY PROFILE

Ireland / Davenport Type of Agency:

01.

Advertising agency Number of accounts/clients: 10 BIGGEST SPENDING CLIENTS:

01. BMW ‘Diver’

BMW, Investec,

02. Nashua Mobile ‘internet-lessness’

The Coca-Cola Company South Africa Accounts won in 2008: Investec, Iron Brew, Glaceau vitaminwater, Coke Zero, Graham Beck Accounts lost in 2008: CTM, Castle Lite, Sarita Company Ownership: 60% Mamalu, 40% Ireland / Davenport executives

02.

Number of staff: 36 Billings: R46 million Key awards in 2008: 1. Creative Circle Wins 2008 - February 2008, Television, March 2008: Outdoor, April 2008: Television June 2008: Print 2. Cannes 2008 – Radio finalist 3. Loeries 2008 – A Silver and 3 x Bronze Loeries 4. One Show – 3x Merit Awards Key aGENCY STAFF: Founding partner: Philip Ireland Founding partner: John Davenport Managing director: Susan Napier Head of strategy: Jason Knight Business unit head: Nathalie Keevy Business unit head: Bronwyn Krige Business unit head: Avril van der Merwe Financial manager: Sharon Bergman Production director: Will Smith Key moment in 2008: 1. Being appointed on the Investec account (October 2007) 2. The making of two new TV commercials for BMW – BMW M3 “Test Pilot” and Efficient Dynamics “Diver” 3. Creative Circle Wins 2008 - February 2008, Television, March 2008: Outdoor, April 2008: Television June 2008: Print 4. Becoming the third most awarded South African agency at One Show 5. Being invited to our first global pitch by BMW AG and winning against four other international advertising agencies Contact details: Tel: +27 11 463 2252 Fax +27 11 463 2232 Email: [email protected]

There’s a champagne feel in the Bryanston offices of Ireland /Davenport three years after its first celebratory beginning. The agency that became the ad story of the year for winning BMW SA -- the country’s most prestigious automobile account -- after being open for less than three months, began with a hoopla that raised impossibly high expectations. Yet the fizz remains. Keeping the agency small with a rich pool of talent and on the cutting edge of the industry has paid off and the accounts keep coming. ”I am glad we are living up to the expectations and have kept up the momentum,” says managing director Susan Napier (formerly Ferguson). “We value and reward our staff, work in partnership with our clients and have a deep understanding of the brands we work on.” Business performance in 2008 has remained steady and in fact produced another first for the agency when it was invited by BMW AG to pitch on a global BMW project. Competing against four other international agencies, Ireland / Davenport won the pitch in April. Another feather in its cap is the repeat business it gets from existing clients. “For us it is proof that we deliver on the promises made.” says founding partner John Davenport. The agency was awarded its first brand by The Coca-Cola Company South Africa in December 2007, and have subsequently won both the Iron Brew and Coke Zero accounts. “Creative intelligence” sets the agency apart, says Jason Knight, head of strategy. “Strategy has been ill-defined in the industry for a long time and is traditionally research based. We have a strong belief

that effective strategy is not only through integration but also collaboration with the creative department and creative thinking. For us it is the blend of intelligent, structured brand thinking with creativity that builds and sustains brands and we call this creative intelligence. “Another challenge we see is the integration of disciplines while maintaining brand consistency and strategic integrity. We face this challenge head on, on a number of clients and feel that we have not only delivered on our role as brand custodians but continue to think of news ways of bringing consistency of message to our consumers.” At Ireland/Davenport there is a culture of cross-pollination of ideas. There is little distinction between the different “silos” of creative, strategic and project management, but rather a mutual respect for and collaboration between the three disciplines. As part of its CSI programme, the agency works with the Soweto Rugby Club, a project they clearly all enjoy. The campaign started with a print campaign that has snowballed into something much bigger. As well as securing the initial goals of growing the club’s player base, the campaign has brought corporate sponsors to the club in addition to establishing it firmly in the minds of sporting bodies both locally and internationally. And while the agency acknowledges the “challenging” current economic climate, it only serves to strengthen their resolve to stay ahead, remain innovative and to continue being focussed. They see the economic slowdown as a good shakedown of the industry. But there can be no false moves – “We haven’t over-stretched ourselves,” says cofounder Philip Ireland, “we are managing

our growth and remain a grounded business. We look after and value our clients and their business. After all, the best business is the one you already have.” Three years down the line, Ireland/ Davenport are entrenched in the industry and highly regarded, something they never take for granted. “Our long-term goal is to earn trust, authority and respect. This is something that has to be earned over a period of time,” says Ireland. Client references “Of all the agencies we have worked with they are probably the most professional and well equipped. It has been a very good experience working with them. They definitely have a thorough strategic insight into our business and they are able to translate it into creative output.” – Hazel van der Lith, marketing manager, Scooters Pizza “Ireland/Davenport was appointed as our above-the-line advertising agency three years ago and was then appointed as our below-the-line agency at the beginning of 2007, as they clearly demonstrated the ability to understand the tonality and innovativeness that has contributed towards making BMW the premium brand that it is today. “This strategic understanding has continued to grow and has contributed towards BMW becoming one of the top 10 favourite brands in South Africa. This was achieved through their sharing of our passion for the BMW brand, working as a team and by ensuring consistent relevant quality creative work” – Shane Howarth, manager: marketing communications, BMW South Africa The ANNUAL 2008 — 151

AGENCY PROFILE

JIGSAW Experiential Type of Agency: Experiential engagement marketing Number of accounts/clients: 29 BIGGEST SPENDING CLIENTS: Philip Morris, Nintendo Accounts won in 2008: Chesterfield, PUMA, Rania Grandslots, Kauai Accounts lost in 2008: None

01. From left standing: Carissa Matthews, Zane van

Company Ownership:



JIGSAW is owned by ORD Holdings Shareholders include Grant Rightford,

Rooyen and team Johannesburg

02. Team Cape Town

01.

Mike Orrey and Comfort Nzama. It is a level two contributor to BBBEE with an estimated 78% score rating Number of staff: 30 Nationally Billings: Not disclosed Key awards in 2008: None Key aGENCY STAFF: National general manager: Zane Van Rooyen Client services director: Carissa Matthews Business development manager: Kirsten Marriott Key moment in 2008: Being awarded the opportunity to manage the Old Mutual Retail Revolution Awards. This involved bringing suppliers on board to showcase new cutting edge technology and retail innovations brought in from Europe, creating many firsts for South Africa. Contact details: Cape Town: +27 21 531 1027 Johannesburg: +27 11 234 5500 Durban: +27 31 312 4321 THE AGENCY SNAPSHOT IN 50 WORDS: In an age where consumer reaction to traditional messaging methods is reaping dismal rewards, JIGSAW Experiential is an experiential marketing company that focuses on building a relationship with consumers by managing the consumer experience. We’ve adopted a non-traditional, modern marketing practice to enhance the consumer’s personal and emotional association with the brand. This increases advocacy, loyalty and ultimately creates a long-term relationship between the consumer and your brand.

02.

JIGSAW Experiential was started in 2000 by Zane Van Rooyen (with the help of the vision of Grant Rightford of ORD Advertising) as a marketing company specialising in brand activation for FMCG. As “consumers” turned to savvy “prosumers”, pressure from brands for more meaningful interaction increased. JIGSAW quickly expanded to meet that demand, becoming experts in experiential campaigns using different methods and media. It now employs 30 people and has offices in Johannesburg, Durban and Cape Town. Its client list includes big names like Puma, Nintendo, Kauai, brandhouse, Pinnacle Micro, Marlboro, Stuttafords and Woolworths. It often works closely with agencies (recent associations include Joe Public and Lowe Bull) as part of a larger client campaign. JIGSAW’s growth reflects the changes in the way brands communicate with their markets and it shows no sign of slowing down. 2008 was intended to be a year of consolidation but has exceeded all expectations. “The way that consumers make purchase decisions has changed the way that brands are spend-

ing their money,” says Van Rooyen. “The emphasis has gone from mass ‘intrusive’ marketing to a more one-on-one approach. This has meant more demand for expertise like ours.” They’ve seen a change in the attitude of their clients, too. “This year has been particularly exciting creatively because brands are getting more adventurous and more willing to strike out into the unknown” says client services director, Carissa Matthews. “Working closely with the marketing teams at Puma and Nintendo, sparking off each other and creating something great, has been magical.” JIGSAW Experiential puts its success down to one simple fact: other methods of reaching consumers aren’t working. Van Rooyen points to the 1% returns provided by many direct marketing campaigns “and that’s successful?” Consumers no longer trust traditional advertising to be telling them what they need to know. Now, because of things like PVR and citizen journalism, they don’t have to be exposed to it.

In the search for new and better ways of talking to markets, not everyone understands what experiential actually means. “It’s not just about fancy visuals or samples,” says Van Rooyen. “Creating a restaurant that looks like a rain forest is not experiential, it’s just clever décor. Experiential would be getting consumers to create the menu and then keep changing it according to their opinions. It’s all about maximising that one chance you get when you come face to face with a consumer. Your impact at that moment will decide whether they become your brand user or not.” One statistic he cites is that people remember 10% of what they read but 90% of what they do. “JIGSAW manages the personal and emotional experiences of a brand. That’s how to build long-term relationships with your consumers and how to harness the power of word of mouth. People talk about good experiences to other people. They become advocates for your brand.” Business development manager Kirsten Marriot says the way their teams work is an important part of the success of their operation. “A company like ours cannot be hierarchical. We’re all about creating emotional responses so each employee has to be part of the energy. Some of our client portfolio managers work only on one or two accounts, which they stay with for years. They become one with the brand, which leads to some truly inspired, measurable work.” As traditional channels become less effective, Van Rooyen sees only increasing success for companies like JIGSAW Experiential. “You have to pull not push, go for quality not quantity. Instead of grabbing attention you have to give it. Fundamentally there is a shift from talking ‘to’ markets towards talking ‘with’ them. In that way you have a chance of making an impact and that’s what we help brands to do. In today’s market place, just fitting in is failing.” The ANNUAL 2008 — 153

AGENCY PROFILE

Joe Public Type of Agency: Full service (Strategic, Media, Abovethe-line, Below-the-line, Design) Number of accounts/clients: 16 big spending clients: Clover, eBucks, Tracker, Spier Wines and Nintendo Accounts WON in 2008: HTC/Leaf, Roman’s Pizza Accounts lost in 2008: None Company Ownership: 50,1% IPG, 26% BEE, 13,9% Staff Trust Number of staff: 50 Billings: R176 million Key awards in 2008: 4 Gold Loeries 3 Silver Loeries 4 Bronze Loeries 1 Loerie Craft 2 One Show entries into Annual 1 Clio entry into Annual 1 Cannes Finalist 3 Pendoring Gold Awards Overall Pendoring Prestige Award Silver and Bronze Eagle Key agency staff: Gareth Leck, Pepe Marais, Laurent Marty, Liezl-Mari Long, Xolisa Dyeshana, Khuthala Gala, Maciek Michalski, Hester Robb Contact details: Tel: +27 11 301 5570 Fax: +27 11 301 5571 Physical Address: Design Quarter, Office 201, Leslie Road East, Fourways, Johannesburg 2055 key moment in 2008: Being ranked fifth overall agency at the Loerie Awards 2008. The agency in 50 words: Joe Public’s positioning is “For people. By people.” It perfectly embodies the company’s philosophy and approach, which are based on strategically relevant communication developed by a diverse, passsionate and hands-on team of people who strive to stay in touch with the needs of the “man on the street.” Joe aims to meet clients’ business objectives by consistently delivering creatively standout communication. Because if it isn’t breakthrough, it won’t cut through.

154 — The ANNUAL 2008

Dictionary.com defines public as “of, pertaining to or affecting a population or a community as a whole”. That definition is entirely in line with Joe Public’s ethos, a philosophy that’s summed up in the company’s positioning: “For people. By people.” In fact, “people” is a word you’ll hear often in conversation with Gareth Leck and Pepe Marais, the agency’s co-founders. They speak with passion of the people who make the agency, their talent and the need to foster more such talent in the industry. And while it may be terribly voguish for companies to describe their employees as their “greatest asset,” you can tell that this isn’t a twee cliché that Joe Public mouths along with the herd; rather, it’s one of the factors that sets them apart from their peers. Joe Public is an agency that aims to do work that is “in touch” with the man on the street. An agency with a proven track record when it comes serving its clients by building brands that are esteemed by the ordinary people, rather than the advertising fraternity alone. As such, many of the brands on Joe Public’s books enjoy the status of recognised market leaders within their respective fields. Long-standing clients Clover, eBucks, Tracker, Spier Wines, Robertson Winery and kalahari.net are all testimony to the fact. Says Marianne

Fraser, head of marketing at eBucks, “We have an excellent working relationship with Joe Public, who always treat us as a valuable client. They are truly passionate about our account and are always challenging themselves to outdo themselves. We really value their ability to not only put great campaign strategies together, but also to convert those strategies into effective creative outputs.” Unsurprisingly, Joe Public grew with their clients’ brands over time and today the agency boasts a full-service throughthe-line offering that features divisions for branding design, brand strategy, media planning and buying, and above-the-line as well as below-the-line advertising. In fact, as an employee at Joe you’ll often find yourself working “across the line,” “above, below and on top of it,” as brands are intentionally managed with the consumer’s overall experience in mind. The differences between “then” and “now” may be small, but they’re apparent: While Joe Public remains down to earth and intent on creatively standout executions, there’s a greater focus on strategy. This change has arisen from the realisation that deep insights are the key to forging true connections with consumers. “We’re all about keeping up with the consumer, and in the light of this we’re more aware than ever of the power of strategically relevant communications to add value to

our clients’ brands. As a direct result our creative work is always backed by solid strategic thinking. And our strategic thinking is religiously backed by research into our target audience,” says Leck. The ultimate link between strategy and creative, though, Leck believes, is the people who make that creative come alive. We’re back to the importance of people, and the treasure of talent hoarded by Joe Public gives it a major plus. Leck speaks glowingly of the experience amassed by Joe Public’s department heads: there’s Liezl-Mari Long, who heads above-the-line creative, and her below-the-line counterpart, Xolisa Dyeshana. Maciek Michalski heads design; Khutala Gala and Hester Robb are client service directors, and Laurent Marty is the agency’s strategic director. All have been in the industry for 10 years or longer, and so have proven track records as the cream of emerging talent; and they are all distinctly hands-on in their approach. (You only have to visit the agency’s website at joepublic. co.za to appreciate the importance this company places on individualistic outlooks and contributions.) It seems Joe Public is also actively cultivating the next crop of industry rising stars: Leck tells with pride how both the Young Creative Award at this year’s Loeries, plus the Pendoring Prestige Award, “were taken home by two of the youngest members of our team”. “There’s a big focus on development

AGENCY PROFILE

01. 01. As part of Spier’s “Art in Wine” positioning, Joe Public’s latest commercial for the brand begs the question: “What does your art say about you?” 02. Single-minded product demonstration with a distinctively local flavour, for Clover Long Life Milk

here, because it’s our people that make us unique,” says Marais. “We’ve implemented rigorous systems and policies to guide their growth. We know that our talent is superb, but we also want our individuals to be well-rounded.” 2008 has been a very satisfying year for the agency from an awards perspective. Joe Public’s design division was recognised as the best in the country, while the agency’s overall awards tally secured it a fifth place at this year’s Loeries Awards. It also did a clean sweep at the Pendorings – where Joe finished top of the table with three Golds as well as the overall Prestige award. There’s always been a strong focus on creativity at Joe Public: and as was the case in the early days, this is the agency’s hallmark. Leck and Marais admit that this focus became a little lost when the agency adopted more corporate practices, but it’s been brought back to life with a very definite bang. “It is important for an agency to be run like a business – but it is vital to remember that creativity is our reason for being. It’s our driving force. We believe if work isn’t breakthrough, it’s simply not going to cut through.” If 2008 has kept the creatives smiling, it’s been good for the suits, too. Leck reports

that the agency has achieved growth of 25%, by picking up annualised billings of R50 million. Its participated in some very exciting pitches, and won most of them. “But we’ve also resigned some clients. Our goal is to work with people in a partnership, and partnerships can be like marriages: if you choose the wrong people, they don’t work. Our aim is to work with clients whose values align with ours,” Marais says. No one wins if you’re working to opposite ends, he continues. South Africa’s ad industry may consistently rank among the world’s best, but he and Leck believe there is huge room for improvement. “It’s hugely ironic – clients will often say they want to be associated with an award-winning agency, but they’re not necessarily prepared to take risks. This tendency stifles creative thinking,” Leck comments. But the agencies are at fault too, he and Marais agree. Pricing continues to be an issue – agencies cut media commissions for clients, but in so doing, they undervalue the intellectual capital they bring along in terms of brand building. At the same time, slashed commission put pressure on margins, which impacts the salaries that can be paid – and smaller salaries, of course, hinder the ability to attract and retain top talent.

Marais also worries about the lack of professionalism in the industry. “Few people will consider advertising as a profession, because it still has somewhat of a Mickey Mouse reputation,” he opines. “Again, it’s the fault of the agencies. We’ll only get around this by acting as respected partners to our clients, and running our operations in a way that gives people a sense of security and makes them feel well looked after, both internally and externally.” That may help with another common industry problem: staff retention. Leck, meanwhile, along with many other leaders in the field, would like to see the industry turn its attention to the controversial issue of “free pitching” for new accounts. And his view for the industry’s short-term future? He anticipates a cutback in client spend which will put all agencies under pressure but is confident that Joe Public as well as other “innovative players” will weather the storm. “Our vision is to be the number one homegrown agency. “We’re also aiming to double our revenue growth by the end of 2010; and to double our creative achievement by the same time. Yes, it’s ambitious goal, but if we carry on as we are now, we’ll be well on track to meet these targets.”

02.

The ANNUAL 2008 — 155

AGENCY PROFILE

The Jupiter Drawing Room (South Africa) & Partners Type of agency: Brand holding company for The Jupiter Drawing Room (Johannesburg), The Jupiter Drawing

Room (Cape Town), Black River FC (Johannesburg), Black River FC (Cape Town) and

MetropolitanRepublic. The Dukes of Urbino.Com and DDB (South Africa) are licensed associate members of the group.

Number of accounts/clients in group: 77 Biggest spending clients in group: MTN, Edcon, Absa Accounts won in 2008: 19 Accounts lost in 2008: None Company ownership: 100% locally owned independent Contact details: Graham Warsop ([email protected])

Jupiter House, River Park, 42 Homestead Road, Rivonia, 2128

PO Box 4651, Rivonia, 2128, South Africa Tel: (011) 233 8881

Fax: (011) 807 3254 www.jupiter.co.za

Group billings: R1. 9 Billion Key awards in 2008: Cannes: Grand Prix (Print) Silver (Media) and Bronze (TV)

One Show: Silver Pencil

Clios: Gold and 8 Bronze Statues D&AD: 3 Entries into Annual Epica: Gold 5 Silver 2 Bronze World Press Awards: Bronze

London International (Nov 2007): 4 Gold Statues 2 Silver

New York Festivals: 4 Gold Silver 2 Bronze Loeries: 4 Gold 7 Silver 18 Bronze Eagles: Gold Silver 4 Bronze

APEX: Effective Advertising Silver

FinWeek AdReview: Campaign of the Year for

MTN (Jupiter (Jhb) and MetropolitanRepublic) FinWeek AdReview: Newcomer Agency of the Year: MetropolitanRepublic Number of staff: 469 Key company staff: Graham Warsop (Chairman)

John Warsop (Managing Director)

For key staff in group companies please refer to individual company profiles Key moment in 2008: Seeing the focus on building an enviable team of

creative entrepreneurs rewarded with The Jupiter Drawing Room (South Africa) & Partners being crowned SA’s most creative agency group.

156 — The ANNUAL 2008

Jupiter group chairman Graham Warsop places great faith in creative entrepreneurs

Just two years ago The Jupiter Drawing Room (South Africa) & Partners was mid-sized with a great reputation and good billings. Today it stands as SA’s most creative agency group and the largest independent on the African continent. It has even bigger, global plans up its sleeve if industry rumour is on the mark. There’s no denying that there’s a very successful strategy at play here and Chairman Graham Warsop calls it ‘the wilful collaboration of creative entrepreneurs’. Certainly if one looks at the composition of the Jupiter family (which now comprises Jupiter (Jhb), Jupiter (CT), Black River FC, MetropolitanRepublic and most recently DDB (SA)) there’s no denying both the ‘creative’ and ‘entrepreneurial’ success. The most recent partnership, with DDB (SA), is a good example of the benefits derived from the collaboration Warsop

speaks of. DDB (SA) solved one of Jupiter’s most intractable strategic challenges – how to remain 100% locally owned and yet have the ability to offer major clients a first-class global servicing network. The deal Warsop struck in 2007 was for Jupiter shareholders to acquire a majority stake in DDB (SA), with the remainder of the agency in the hands of local shareholders and management. This meant that all the agencies in the Jupiter family had access to DDB’s global network with no loss of independence. It also gave DDB (SA) a much needed 30% BEE equity stake through MSG Rimani. “We recognised the enormous potential of DDB (SA),” says Warsop. “Glen Lomas and Emmet O’Hanlon were already in the agency and we believed if we could compliment their considerable skill sets with the right executive creative director, the agency would soar. We introduced them to Gareth

Lessing, suspecting they would become a formidable trio.” Indeed they did. Within one year the agency demonstrated one of the most remarkable turnarounds in SA advertising history. There were substantial new business and revenue gains but also a stellar creative revival, with the agency rocketing from obscurity to a top three place on the South African individual agency creative table. Along the way the agency picked up a Cannes Grand Prix, arguably the biggest award in world advertising. Glen Lomas, CEO of DDB (SA), says, “In horseracing terminology, 2008 was the year that DDB finally hit form in South Africa. However, it was not just a stroke of luck – a rank outsider coming in at long odds – this has been a planned approach to rejuvenate the DDB brand and get her race ready. Our partnership with The Jupiter Drawing Room (South Africa) & Partners over this period was undoubtedly the catalyst to this change. They have been our mentors, our supporters and our champions and we are very grateful for everything they have done for us.’ Other members of the Jupiter family are also quick to acknowledge the value added at a group level. Renee Silverstone, CEO of Jupiter (Jhb), says, “One cannot underestimate the value of having our need for a global network tackled at a group level. It would have been exceptionally disruptive if the management team in Jupiter (Jhb) had to try and resolve this challenge instead of placing their focus on our clients and the work.’ The growth of the group through ‘the wilful collaboration of creative entrepreneurs’ has seen the founding of different agencies of varying sizes intended to cater for the diverse preferences of clients. In the process, a formidable talent pool has been quietly assembled. This says Jupiter (CT) MD Kevan Aspoas “is one of the group’s greatest assets. With the utmost sensitivity to client conflicts, we are able to tap into an amazing talent pool. There is a real sense that we are here for each other and all work for the common good of the family.” Alison Deeb, Jupiter (Jhb) MD, also sees the skill sets in the various agencies as providing a valuable resource base across all disciplines. “Today we are a group of over 450 people who make up this wonderfully eccentric, energetic and non-conformist brand.” Paul Warner, founder of Metropolitan-

AGENCY PROFILE

This Jupiter house-ad ran in this year’s Cannes Lions Dailies to an international audience. It proudly proclaims Jupiter’s South African roots.

Republic is an enthusiastic advocate of business being conducted in a non-conformist way and cites the Metro/Jupiter (Jhb) model for servicing the MTN account as a unique example of two full service agencies working in collaboration harmoniously. Whilst each agency brand has its own-

distinct personality Warsop identifies certain unifying characteristics: 1. Each agency in the family has a strong work ethic and a profound belief in the value of original creative thought, to mould consumers perceptions and build strong brands.

SOUTH AFRICA’S TOP 5 MOST CREATIVE AGENCY GROUPS CLIOS

ONE SHOW

D&AD

2900

2700

900

4000

3300

900

14 700

Ogilvy Group

400

450

300

3750

5750

300

10 950

King James Group

100

900

500

3000

3025

400

7525

BBDO Group

450

450

800

900

3000

5600

Draftfcb Group

300

300

600

1500

1725

4425

The Jupiter Drawing Room (SA) & Partners

CANNES LOERIES EAGLES

TOTAL

2. MSG Rimani, our BEE partners, have played an important unifying role and continue to provide acumen and wisdom. 3. A focus on real work rather than scam work. In spite or perhaps because of this latter perspective, The Jupiter Drawing Room (South Africa) & Partners wears the crown as SA’s most creative agency group – Jupiter agencies having achieved the remarkable feat of finishing top of the table in every one of the big global awards shows in 2008. This brings us back to the depth of talent that is clearly evident across the group.

“We have a four-phase strategy in place,” says Warsop, “Phase one is simple; seek to gather the most formidable talent in the industry into the Jupiter family. This will enable us to offer clients a level of work and service that’s unsurpassed in the industry.” Rumours abound in the industry about what next for The Jupiter Drawing Room (South Africa) & Partners and Warsop has a knowing smile when questioned about phases two to four of the master plan. He looks content, but there’s a bustling energy under the surface that promises to cause ripples in 2009.

(Source: SA Creative Circle Creativity League Table as at Nov 2008)

The ANNUAL 2008 — 157

AGENCY PROFILE

The Jupiter Drawing Room (Cape Town) Type of agency: Integrated communications agency Number of accounts/clients: 20 Biggest spending clients: Woolworths, Windhoek, Sanlam, Hyundai Accounts won in 2008: Windhoek, Elizabeth Arden, Virgin Energy, Oakley

Accounts lost in 2008: None Company ownership: 100% locally owned independent agency Contact details: Email: [email protected]

Physical address: 3rd Floor, The Terraces, Black River Park

Fir Street, Observatory, Cape Town CT 3000 Agency billings: R333 million Key awards in 2008: D&AD – Acceptance into Annual One Show – 1 Silver Pencil

Loeries – 2 Silver, 6 Bronze Epica – 1 Gold

4 Bronze Eagles

1 OHMSA Award – Retail Furniture Category Number of staff: 123 Key agency staff: Chairman & managing director: Kevan Aspoas

Deputy managing director: Claire Cobbledick

01. Kevan Aspoas, Managing Director

Creative director: Livio Tronchin

opportunities in 2010 and the implications of BEE. Says managing director Kevan Aspoas, “We have hosted these dinners for five years now and as a result we have great access to senior business leaders and are taken seriously in the business world.” It is this type of savvy that has seen Jupiter CT mushroom from a tiny startup 14 years ago into what Kevan calls “one of the biggest legitimate agencies in Cape Town”. “In fact,” he continues, “we might be at the tip of Africa but we are on the top of the world.” This refers to the international prestige it enjoys, not only in terms of awards collected, but because several of his senior team members are sought-after judges at international shows attracting international clients “We are a globally recognised brand and research proves that Jupiter is the topof-mind agency for marketers in South Africa. Surely,” says Kevan, “this alone

Executive creative director: Ross Chowles

Creative director - design: Joanne Thomas Financial director: Kevin Duke Key moment in 2008: Winning the Windhoek account The agency snapshot in 50 words: We are the leading agency in Cape Town and

the leaders in integration in South Africa. We continue to win awards and grow our client

base, despite tough economic times because we understand business. We contribute to

our clients’ bottom line by producing highly effective creative work that sells.

What do Helen Zille, Raymond Ackerman and Clem Sunter have in common? They are but three of the luminaries that have been keynote speakers at Jupiter (Cape Town)’s exclusive ‘Managing Director (MD) dinners’. These occasions aim to bring top academics, politicians and business leaders together to discuss what MDs will be faced with in the future, such as

158 — The ANNUAL 2008

serves to recommend Jupiter as the business partner you would choose to help you raise the profile of your own brand? “If this is not enough,” Kevan is not modest, “marketers buy into Jupiter because we do great creative work and are quite sexy. We have the most awarded design studio in South Africa over the past decade.” He pauses briefly to vent about agencies that generate advertisements purely to win awards. He calls this myopic and damaging. “It erodes their own credibility, casting a pall over the ethics of agencies in general. Mainly it erodes the faith between agencies and clients.” But, first and foremost, Jupiter CT is a business and it serves the business needs of its clients. The fact that its people wrap themselves up in creativity and have that kind of image is because they understand that that is how to drive consumers and sell an advertising agency. Kevan makes this clear. “Clients come in here and they listen to us, they

put their money down and they take us very seriously. Why? Because we will positively affect their business. At the end of the day we are mass salesmen and it is our job to help generate sales. So the important thing for us is to deliver – day in and day out. And we do, that’s why our clients trust us.” At Jupiter, awards and satisfied clients all begin with strategy that Kevan calls the great liberator. He explains: “A watertight strategy gives you the freedom to express, and you know your creative is going to be spot on because it is based on good business sense. “And,” he laughs, “everyone has a sell-in angle and ours is that we are the only truly integrated agency in South Africa. Lots of agencies will tell you about 360 and integration but their business models are flawed because of internal cost structures. Often clients get double mark-ups on work supposedly being done by one agency.” Not so at Jupiter CT, where all work goes into one studio and through one cost centre. Here the creative directors are able to spread their skills and vision across media to arrive at the best mix for the client. He continues: “Our model blurs the line, which is why we won the Grand Prix for integration at the previous Loeries. We are leaders because we have a business model that works.” Another outstanding characteristic of Jupiter’s business model is that they truly cultivate their clients. Kevan explains: “We don’t rush out and do lots of pitches. If we do a pitch it is because we really want that client, have analysed the brand and are fairly sure we will win. “We aim to take on one piece of business every 18 months. We then take time to build the relationship, and interrogate

AGENCY PROFILE

02. Design Indaba 11 - Programme covers

the product before starting to really enhance the brand.” Breaking their own rule they had added two new clients by June 2008 – Windhoek and Elizabeth Arden. Most of the clients they select are brands that need reinventing. A case in point is Hyundai that eight years ago ranked 28th passenger car brand in South Africa and are now ranked third. Over four years they have done the same for Sanlam, literally transforming the brand. Where it once was only a mainstream, middle-market brand, it is now an investment house with appealing portfolios rivalling industry giants, such as Old Mutual, across all market segments – from LSM 1 to 10. And then they get chosen. “Woolworths walked in here over a weekend. We are a great fit,” Kevan relates. “Previously their advertising wasn’t delivering to the same level as their product. We have tried to close this gap and make sure the ads surprise the consumer as much as the products do when they arrive on the shelves. We are on a real journey with them, they are a wonderful client,” he concludes. To transform a brand takes total im-

mersion and the staff at Jupiter CT really live their brands: they all drive Hyundais, they buy Woolies and, Kevan indicates the latest addition to the coffee trolley, “now we will always have a Windhoek available for our clients”. Jupiter CT doesn’t stop there, believing that it’s not enough to simply eat, sleep and breathe their clients, they also need to ensure that they are positioned to offer their clients premium service, so they established a niche agency in Johannesburg, the Black River Football Club. Kevan explains the rationale. “Cape Town hasn’t changed since 1994, which means that we run the risk of becoming irrelevant unless we tap into the dynamic change that is happening in South Africa. They have been open for three years and we’ve grown them with high-profile clients like Nandos, Mini, Virgin Money and First for Women.” The success of Black River FC shows that Jupiter CT has overcome any challenges other agencies may face by embracing the change, says Kevan. “It is such a fantastic agency and one of the sexiest agencies in JHB. They are doing very authentic work with a 70% black staff com-

plement. It’s proving that you don’t have to make apologies and that you can actually fit an agency with a very skilled team that matches the demographic profile of the country, and it works.” Another business this innovative team has launched is Cocoon, an intellectual property company that generates ideas and products. Kevan states that a natural byproduct of developing strategies and campaigns is that you generate more ideas, so it seems natural to register them and sell them to clients. There are quite a few of these in the pipeline but most all are still works in progress and are currently confidential. Kevan is excited about this venture and says, “It gives us greater dimension and showcases our business brain.” “Prosper”, a short-term insurance company, is the first brand to be launched from this ideas team. Going forward, Kevan and his team aim to apply their awesome talent and formidable business knowledge to the aggressive pursuit of international clients, to bring their work to Cape Town and to push local advertising expertise into the spotlight of the world stage.

And they certainly have the energy and drive to do this, says Ross Chowles, executive creative director, “It’s 14.5 years down the line and we are still having fun.” Client references “Elizabeth Arden is an international company with fast-paced demands and challenges and we needed an agency that could assist us in achieving our brand’s communications objectives. With the technological proficiency which The Jupiter Drawing Room (Cape Town) has in terms of fast turn-around, high-end service and key creative teams, we have found them to be the agency of choice.” – Renay Lotz, marketing director, Elizabeth Arden “My relationship with Jupiter has developed into a real partnership with both parties being mutually accountable for the success of my brands. Jupiter are just as passionate about my consumers as they are about my brands. This passion drives incredibly high levels of creative output.” – Adam Marks, marketing manager: Bushmills and Slate for brandhouse

The ANNUAL 2008 — 159

AGENCY PROFILE 03. Firewise poster campaign

04. Musica Nintendo Wii

160 — The ANNUAL 2008

Outdoor campaign

AGENCY PROFILE

05. 05. Hyundai i10 “Moments” TVC 06. Bushmills “win this classic MG” promotion 07. Sanlam SPI print campaign

06.

07. The ANNUAL 2008 — 161

AGENCY PROFILE

The Jupiter Drawing Room (Johannesburg) Type of agency: Integrated communication Number of accounts/clients: 14 Biggest spending clients: MTN, Absa, Jet, Edgars, Sasol Accounts won in 2008: IMC, Discom and Arthur Kaplan Jewellers Accounts lost in 2008: None Company ownership: 100% locally owned independent. Jupiter (Jhb) is 56.9% black-owned as defined by the DTI BEE Scorecard and Codes of Practice. Contact details: Tel: +27 (0) 11 233 8800

Fax: +27 (0) 11 233 8820

Email: [email protected]

Physical address: Jupiter House, River Park, 42 Homestead Road, Rivonia 2128

Postal address: PO Box 4651, Rivonia, 2128 South Africa

Website: www.jupiter.co.za Agency billings:

The Jupiter Drawing Room (Johannesburg), bursting at the seams in a building Key awards in 2008: FinWeek AdReview: Campaign of the Year for MTN* that housed half the number of staff just Cannes: Silver Lion (Media), Bronze Lion (TV) a year ago, is an extraordinary agency: D&AD: Two Entries into Annual despite its phenomenal growth in the last Clios: 6 Bronze statues two years and the threat of recessionary Epica: 5 Silver, 2 Bronze times ahead, it has laid plans for yet more New York Festivals: 4 Gold, 1 Silver, 2 Bronze growth – and is refurbishing a building to World Press Awards: 1 Bronze house the teams that will follow. Loeries: 4 Gold, 2 Silver, 6 Bronze Jupiter (Jhb) CEO Renee Silverstone *MTN is serviced jointly with MetropolitanRepublic is not naïve about the local industry and is Number of staff: aware that only careful planning and great 226 vision will ensure continued success in Key agency staff: the future: “Times are tough; investing in Non-executive chairman: Given Mkhari the future of our clients by adding greater Chief executive officer: Renee Silverstone value is the only way to ensure both our Chief creative officer: Graham Warsop clients and the agency continue to grow Managing director: Alison Deeb into the foreseeable future. Chief strategy officer: Haydn Townsend “This is no time for cutting back. Key moment in 2008: In hard times, you have to be bold, conKey client brands all recognised in their respective categories in the Top 10 Brands Survey, proving that tinuously adding value to your products creative advertising is effective advertising and that and services to increase your attraction great creative work is what differentiates the agency for customers.” – as evidenced in awards won by Jupiter (Jhb). Against this backdrop, Jupiter (Jhb) The agency snapshot in 50 words: has restructured its executive committee In the business of creating big ideas that change with the addition of three new members consumers’ perceptions and encourage the promoto enhance the existing value that the tion of clients’ brands and products. This is achieved agency offers clients: Development Dithrough an integrated communication offering via rector Veronica King, Media Director various touchpoints, including advertising, design, Sushma Sharma and Production Director digital, brand activation, PR, guerrilla marketing Hazel Neuhaus. and more. Jupiter (Jhb) Managing Director Alison Deeb says: “Studies have shown that R1 billion

162 — The ANNUAL 2008

periods of recession can actually be good opportunities to gain competitive advantage by stealing share of voice, but agencies have to work in closer relationships with clients during these times and offer even more support.” To make this possible, King has been mandated to focus on developing skills and recognising talent and she will be mentoring and coaching employees throughout the organizsation: “My vision is to help people maximise and leverage their full potential. Coaching is an important support structure and by tailoring and personalising support to the managers and the individuals within the teams, coaching becomes an important tool to help improve both the individual and the business.” The appointment of Sharma brings media and channel planning back into the agency: “With a range of new technologies available and increased specialisation, the industry is more complicated than ten years ago. Traditional “above-the-line” media are still the most used and powerful, but currently there is also a span of content with a host of digital (and soonto-be digital) options. “As a media strategist I have always worked closely with the creative department, I see the two as inseparable. I want to move beyond traditional plan-

ning and create a complete brand journey by moving media upstream in the planning process and continuing to work with the creative department for more innovative ideas.” Neuhaus will be streamlining efficiencies and ensuring uninterrupted quality in production processes across the agency, given its vast number of retail and high volume turnover clients. In addition to the new exco members, Jupiter (Jhb) has expanded its offering to ensure it has a totally integrated approach and Matthew Barnes now leads the digital division to focus on delivering key digital strategy to clients as part of the initial strat planning. The design department has also been boosted with new Head of Design Celina Guimaraes, whose extensive design experience is set to grow the creative product emerging from this department. Silverstone says this additional support for clients ensures that Jupiter retains a leadership stance: “Our five largest clients demonstrated the power of brand building at the Business Times Top Brands Survey this year, with Absa, Edgars, Jet, MTN and SAA performing exceptionally well in the top ten tables. “MTN in particular demonstrated a remarkable leap in the tables, moving from 16th position in the Overall

AGENCY PROFILE

“Jupiter has been an agency of record with Edcon for more than 10 years, the sole agency for four. For our money “Nobody does it better”. Professional, aligned, creative and forgiving. We are a demanding client and invariably Jupiter outperforms our requirements.” – Stephen Ross, CEO, Edcon

“The High Value Proposition Campaign was a seminal one for us as contract users are valuable to attract and retain. The campaign produced by the team was a true demonstration of their capability to handle a fully integrated campaign of size and complexity. The thinking and creative execution was fresh in the category and the execution was outstanding – to quote Stuart Dobson our Senior Marcoms manager responsible for the team effort: ‘Your proactive nature to everything has been phenomenal, more so than I have ever experienced in all the agencies I have worked with over the years, thank you for being there every step of the way.’” – Richard Field, GM Marketing and Communications

A true test of creativity – the agency’s in-house HIV policy poster became a superb opportunity to showcase the work produced for its clients.

Favourite Brand category last year to 8th this year and closing a considerable gap in the Telecommunications Category by filling the number two position. Furthermore, MTN was voted in the Top 3 for best advertised brands alongside Coca-Cola and Vodacom.” Creatively, the agency continued on its winning ways, with an impressive performance at Clios, D&AD, Cannes and the Loerie Awards. It was SA’s best performing agency at the London International Advertising Awards, the Epica’s (a European awards show open to SA agencies for the first time in November 2007) and won 3 of only 6 radio Gold medals awarded globally at the New York Festivals. Jupiter (Jhb)’s impressive creative performance made it the major contributor to The Jupiter Drawing Room (South Africa) & Partners being crowned SA’s most creative agency group.

In addition, the agency was once again voted the industry winner in the 2007 Deloitte’s Best Company to Work for Survey (Telecommunications, Media, TV, Radio and Press category.) This is the 4th year running that the agency has featured in the Overall Top 25 Best Companies to Work For in South Africa – an achievement unprecedented in the South African advertising industry. Amidst all of this achievement, the agency made the largest commitment to young creative talent this country has yet seen with its sponsorship of a brand new VEGA Imagination Lab that was launched in the Jozi inner-city. The agency has made a three-year commitment to the project, with start-up costs of more than R500 000 and a further R600 000 per annum. In addition, Jupiter staff invest over 100 hours of academic input each year.

These same staff are very active in their support of The Tomorrow Trust (uplifting those infected by the HIV epidemic), Childline SA, The Food and Trees for Africa Soweto Greening Project though which Jupiter (Jhb) planted almost 400 trees and Boystown (a probono account). It is this combination of hard work and big hearts that has made Jupiter (Jhb) the unparalleled success story of our times.

“Jupiter has a dedicated team of people that have immersed themselves in the complex Sasol world and have become part of the family, all striving to build the brand and positively impact on our reputation. It is a true collaboration of efforts and I certainly feel like they are an extension of the marketing team.” – Bronwyn Watt, Sasol Group Brand Manager

Client references “Working with an agency that is as creative and committed to their work as Jupiter is very inspiring...and challenging, may I add. Long may this continue.” – Happy Ntshingila, Absa Group Executive, Group Marketing

The ANNUAL 2008 — 163

AGENCY PROFILE

JWT South Africa Type of Agency: Full service communications agency Number of accounts/clients: 25 big spending clients: Nokia, Ford, brandhouse, Kelloggs, J&J, Nestlé, De Beers, Unilever, Shell Accounts WON in 2008: African Banking Corporation (ABC). Green Cross Shoes, Glen Tea, Johnson & Johnson (Savlon) Accounts lost in 2008: Financial Mail Company Ownership: 30% BEE, 70% JWT Group (Owned by WPP) Number of staff: 155 Billings: Not disclosed Key awards in 2008: One Show Gold Key agency staff: Chairman JWT SA: Kenny Setzin Chief executive officer: Modise Makhene Managing director Johannesburg: Judy van Dam Managing director Cape Town: Jim Faulds Creative director Johannesburg: Dave Strappini Creative director Cape Town: Conn Bertish Contact details: Tel: +27 11 806 8000 Fax: +27 11 806 8050 Physical Address: JWT House, Homestead Place, Cnr 12th Ave & Rivonia Rd, Rivonia Email: [email protected] Email: [email protected] Email: [email protected] key moment in 2008: Celebrating 80 years of JWT in South Africa and recognising that “we are not good because we are old, but we are old because we are good – good at adapting to change, good at reinventing our brand and good at developing new offerings. Look out for our new shopper methodology.” The agency in 50 words: JWT is an ideas-based, channelagnostic agency group. Our diverse team is passionate about doing great work that builds our clients’ brands – work on a mix of local, regional, pan-African and global brands; work that consumers choose to spend time with. In addition to an ever-improving creative profile, JWT is renowned for its strategic planning strength and its exceptional account management talent.

164 — The ANNUAL 2008

Ideas are universal, and cultural diversity brings a nuanced approach to those prized “lightbulb” moments of illumination that advertising agencies thrive on. So says Modise Makhene, who joined JWT South Africa as group CEO in 2006. Having lived both in South Africa and in the USA, he is well acquainted with the value that a melting pot of ideas can bring to the creative process, and has set about instilling a culture of diversity at JWT that goes beyond BEE compliance. JWT – formerly J Walter Thompson Company – started out 144 years ago in the USA, and has been operational in SA for 80 years. Two years ago, Makhene faced the daunting challenge of walking into an old, established agency and shaking it up. “Clients are more demanding than ever of advertising agencies, and we realised at JWT that we had to take stock of that and interrogate how we do business,” he recalls. “So we spent 2007 looking inward, seeking closer engagement with clients and getting to know them better, and aiming at ultimately not losing any accounts and also gaining a vote of confidence by getting more business.” Another key element was to recognise the shortage of skills in the industry, and reconfigure how the agency recruited tal-

ent, adds Makhene. Attracting high-calibre talent, empowering them and surrounding them with like-minded individuals is critical to business. In addition, a candidate must be right not merely for a particular account, but for JWT as a holistic entity. “We aim to create an environment that feeds their passion – high-calibre feeds highcalibre – giving them ample territory to play around with.” A coup for JWT has been winning the account of African Banking Corporation, a pan-African corporate and merchant bank that will boost the agency in further strengthening its African presence and experience. “What I’m looking at is developing our own insights into the market on the continent,” explains Makhene, who travels around Africa regularly in a bid to understand what makes its heart beat. “In doing so, we also glean interesting insights that we can bring to bear on other clients.” One of the future growth areas in Africa is, without question, cellphones. Nokia, South Africa’s seventh most popular brand overall and by far the country’s favourite cellphone brand, according to the 2008 Ipsos Markinor/Sunday Times Top Brands Survey, is one of the accounts JWT recently won globally. “We understand the emerging market,

and Nokia could see huge potential in tapping into that market. We are developing keen insights into the continent – we have offices in Nigeria, Cote d’Ivoire, Ghana, Kenya, Tanzania, Uganda, Mozambique, Zimbabwe, the DRC and are about to sign up in Madagascar.” When it comes to the communications space in which advertising operates, Makhene says that TV, radio and print have been well served, and “now we all need to get on with being proficient and prolific in creating work around digital and mobile platforms”. The two Ps in that equation are equally important, he stresses – some players are not taking time to understand the consumer’s wants and needs, and are being prolific on the digital stage without taking care to be proficient at what they’re doing. The result, sadly, is decidedly low-end fare. “It’s important to see what media consumers are using now and what’s around the corner, and how they interact with these channels. Only then can you be prolific via campaigns that work. It’s not like a lottery to win awards; the client must see a return on their investment immediately and measurability comes into play.” While the West goes ga-ga over digital, in Africa it’s mobile platforms that will dominate, with cellphone penetration said to be

AGeNCY PROFILe

90% in South Africa but only about 25% in Africa as a whole. This figure is, however, expected to rise to an average penetration rate of 45% by 2011. “Countries like SA and Botswana bring the continental average up, but still it is low,” says Makhene. “Out of 900 million people in Africa, almost three-quarters are not connected – hence the great opportunity for growth.” Clearly, the communication possibilities are staggering and JWT is making strides in achieving proficiency in both the digital and mobile space. In addition, instead of chasing the alluring youth market, JWT is keeping pace with it, thanks to Youth Dynamix, its Youth specialist. Makhene says the benefits of being part of a global network are vast, enabling the local operation to tap into a pool of knowledge and expertise from the Americas, Europe and the BRIC countries (Brazil, India and China), with the experiences of the latter often being particularly relevant to a developing economy like South Africa. “It means we don’t have to constantly reinvent the wheel,” he says. Of course, what JWT South Africa brings to the table is equally valuable: the unique experience of operating in a country where first world and third world coexist.

Never really having been an agency to enter awards contests, the rejuvenated JWT recently resolved to put its creative performance to the test – within reason. “It’s predicated on good work, and if it ends in creative awards, then it’s a bonus,” reasons the CEO. In 2007 that stated intent was converted into reality relatively quickly, with Ad of the Month and Loeries being the pleasing result. This year, the JWT Cape Town’s poster campaign for Jabula Wigs & Wefts scooped a gold medal in the design category at the One Show Design Awards in New York. Makhene cautions against clients cutting back on their marketing budgets, in anticipation of tough economic times. “Those days are gone. The equity of the brand matters so much more – you can’t cut budgets at a whim. The consequences will come back to haunt you. Marketers should rather focus on how to stretch that budget.” JWT’s Johannesburg managing director, Judy van Dam, says that a highlight of the past year for JWT was the Ford “Ubuntu” commercial, which she says resonates well with consumers and with the South African psyche. It was named the Creative Circle TV advertisement of the year. There was also the successful Bar-One “It’s easy to spot a Bar-One man” campaign,

the Smirnoff campaign for brandhouse, as well as corporate social investment work for De Beers. Other campaigns include the through-the-line launch of Foundry Premium Cider as well as Smirnoff and J&B campaigns for brandhouse. The balance of its impressive client portfolio includes the likes of Unilever, Kellogg’s, Nestlé, Shell, J&B, Bayer Healthcare, Panarotti’s Pizza, Johnson & Johnson and, of course, Nokia. The managing director of JWT Cape Town, Jim Faulds, is particularly proud of the innovative pro bono national campaign the office recently implemented to raise funds for, and create awareness of, the International Campaign to Ban Landmines. Foosball (or table football) machines were installed in pubs, featuring several players missing a limb, and there are plans to extend the drive nationwide. For the future, JWT is intent on seeking ever closer engagement with its clients, attempting to live in their world and seeing itself as an extension of them. “As an agency built on strategic planning, we need to find the insight that drives the client’s business,” declares Makhene. “Once we find it, we rally around it and engage the clients directly. We delve into their DNA and hook into it – that’s what we’re about.” The ANNUAL 2008 — 165

AGENCY PROFILE

King James Group Type of agency: Integrated Number of accounts/clients: 22 Biggest spending clients: Brandhouse (Johnnie Walker, Bells, Baileys); Allan Gray; Steers; Ackermans, Parmalat Accounts won in 2008: Triumph International, Freeworld Coatings,

Rose Foundation, Eyeballs Mobile, Hang Ten, Cremora Light, Oanda Oil (Nigeria) Accounts lost in 2008: Windhoek Company ownership: 100% local ownership Contact details: Tel: +27 21 465 3511

Contact: James Barty

Email: [email protected] Agency billings: Agency income based not billing based Key awards in 2008: 3 Silver Lions, 1 Bronze Lion, One Show

Bronze Pencil, 1 Grand Prix Loerie, 3 Gold

Loeries, 6 Silver Loeries, 4 Bronze Loeries, 3 One Show merits, 1 D&AD merit, Bronze One Show Pencil

Number of staff: King James Group – 108 Key agency staff: Alistair King, James Barty, Charles Mat-

terson, Greg Cameron, Jenny Ehlers (King James RSVP), Kassie Naidoo (King James

RSVP), Bruce Wright (Mnemonic); Howard Simms (HammerLive Brands); Nicola Nel (Atmosphere Communications), Anthony

Murray (Proof); Lucinda Dare (Dare Media) Key moment in 2008: Turned 10.

Ranked 2nd at Loeries.

Expansion into publishing and content ownership.

This wildly successful and somewhat maverick agency turned 10 in January 2008. They celebrated with a huge party entitled “Remember” and the publication of an impressive book commemorating every step, person and event along the way.  It was a landmark occasion that gave them pause to reflect. And what they saw was good – a past bearing testimony to enduring creativity, to their powerful business acumen and to the value they add to their clients. 

166 — The ANNUAL 2008

Says James Barty, group managing director: “Our achievements and our journey is something we are immensely proud of.” He is somewhat misty eyed, “Imagine looking back over 10 years and realising that you still have three of your first four staff members and three of your first four clients. That really means something.” To add to the festivities, this year has been their most creative year ever… an auspicious launchpad for this agency going forward.   To keep the next decade as interesting, there is a re-energising afoot, including some of the most creative moves

these two have ever made. Four moves, to be exact. You see James and Alistair King, group executive creative director, are spurred on by an eternal restlessness that doesn’t let any dust settle on the floor of their agency.  “It’s exciting times,” says Alistair. “There is a hell of a lot going down. Everything is changing as we speak.” The first change addresses the speculation that King James is ripe for a buyout – that this fiercely independent team is entertaining an offer. James confirms, “yes, we are considering a global affiliation. However anything we decide to do

will see Alistair and I retaining control of our business. We have a lot more to achieve personally with our brand and our business and we certainly won’t compromise our independence in this next stretch of our journey – we have fought too hard for it.” Any partnership they entertain will be structured somewhat differently to the traditional agency deal. “The retention of control while forming a powerful allegiance with a global player that will help take the KingJames brand to the next level is now attractive to us – we have reached a point in our business where we are

AGENCY PROFILE

01.

02.

01. Allan Gray - Beautiful (Won Loerie Grand Prix, 3 Gold Loeries, Silver Cannes Lion) 02. Allan Gray Billboard (Won Gold Outdoor Loerie). Assembled with 6000 puzzle pieces over 4 weeks 03. Cape Argus Aids Stat - Won Silver and a Bronze Lion, One Show Bronze Pencil, Gold Loerie, Gold Eagle Award

03. The ANNUAL 2008 — 167

AGENCY PROFILE

04. Eveready Batteries

sexy enough to attract a partnership on our own terms.”   Simultaneously, they intend to announce a partnership with a black-owned ad agency. James explains: “We have always been committed to having a black partner but it has taken some time to find the ideal match. The agency will become part of the KingJames group and will expand our brand in significant ways.” Forever insatiable, new partnerships are still not enough for this pair. No sir! They have broader horizons to explore. Alistair describes the bigger picture: “We are seeking more interesting ways to express the KingJames brand. So this year we started a book publishing company that will publish important Southern African literature.” Of course, as is their habit when selecting colleagues, they chose as a partner literary heavy-weight Shaun Johnson, noted journalist, editor, author and founding chief executive of The Mandela Rhodes Foundation (Cape Town). Together they head up Johnson & KingJames Books, which is already sourcing material.   Alistair is enthused: “We have also bought a significant stake in One Small Seed™, a pop culture content brand that we have long admired. At its heart, it’s the most stylish magazine around, but it has big and spectacular ambitions that we want to be a part of.  “Getting into content ownership is really significant for us – we don’t want

168 — The ANNUAL 2008

05. An ad featuring Casey B. Dolan caught eating Steers food, disguised as heat editorial

to be passive observers of popular culture. We want to be in the middle of it, helping to mould and create it.” Amazingly, in among all this planning and negotiating, KingJames still managed to have a brilliant advertising year. “2008 has been our best creative year ever, which is weird, because last year was our worst. We are currently ranked as the secondmost awarded, single agency in South Africa. All our awards have been for longstanding clients and are really cherished,” Alistair is ebullient. “We are creatively growing stronger as we are getting older,” he concludes. The quantum creative turnaround was due to a renewed, fiery aspiration to blaze their own trail. Alistair describes the process. “A lot of the motivation was born of frustration over industry measurements. We do not want to resort to the cheap tricks that many agencies adopt to get creative recognition, so we put all our energy into driving ourselves, and our clients.” The result has been some high-profile work that has cleaned up at the awards. “Allan Gray (Cannes Silver and Grand Prix, Gold and Bronze Loeries) have been awesome. They made decisions that 95% of clients would not have. We had the determination to push harder, and they had the faith in us to follow. That’s what real advertising is about.” And they weren’t the only clients to benefit – as kulula.com, Cape Un-

ion Mart, Steers and the Cape Argus will testify. He is quick to point out a paradox: “When our agency achieved a growth of 45% in a single year (2007), we were exhausted and not particularly happy. We decided to stop pitching and to throw all our energy into being better at what we do; making communication. That resulted in the work that we are currently most proud of. Taking our focus off industryimposed benchmarks freed us up to be the agency we wanted to be.” James agrees and attributes it to their insatiable need for continuous improvement. “We are not content to settle and this creative performance is evidence of exactly that, it is the ultimate expression that we won’t accept mediocrity or safeness.” From a business perspective, 2008 year is a year of renewal and, while the first six months mirror last year’s performance, James is conservative about the final year-end outcome. He offers some advice to clients in these turbulent times: “Be brave – but that doesn’t mean necessarily increasing spend – it’s about embracing bold ideas and exploring new ways of achieving objectives.” In terms of accounts won and lost, they were disappointed to see the Windhoek account go but are inspired to add Freeworld Coatings (Plascon and Midas/Earthcote), Eyeballs Mobile, Alliance Group and projects on Cremora Lite, AD

Spitz and some Nigerian-based business. In addition they have enjoyed some good organic growth with existing clients.  It’s the Freeworld Coating win, however, that the team believes will bring the best out of the group that has long claimed true integration as its best asset. With the account client-serviced out of Johannesburg, strategy, PR and web out of Cape Town, and creative development out of both offices, the best resources from the whole group have been pulled together to manage this account. “Geography is of no consequence any more,” says James. “We’ve broken down the barriers between disciplines, and now also between cities. We can pick and choose the right team for any client, from anywhere in the agency group.” With a strong core team now in place, the Johannesburg agency has also attained significant traction, adding both business and a healthy tally of creative awards. Discussing business performance, Alistair is passionate in his views. “Obviously, we want our business to grow, but please don’t rate my company by how much it has grown. We value the work we do and the spiritual health of the company more than growth. Growth is no measurement of quality.” But James is a Scot, and the money man in the business. “This year we probably won’t show great growth but we are having our best creative year ever, so the chances of us converging the

AGENCY PROFILE

06. kulula.com/SATS TV – Won 2 Silver

07. Cape Union Mart Store Card - Won 2 Silver Campaign Loeries, Silver Cannes Lion, Campaign Bronze Eagle Award

Campaign Loeries

two sends a strong message to the way people judge and measure the industry. Growth is flattery for shareholders – it can be short-lived and even make your business unwieldy. “We are not immune to the broader economic woes and we are experiencing some downturn on the back of that. The second half of 2008 and into 2009 will see us come under increased financial pressure and the agency does anticipate a softer financial performance.” He asserts that what makes a brand is not its size but is more about how interesting and dynamic it is, which is why KingJames has decided to expand laterally rather than chase constant vertical growth. Also, by branching out into publishing, content and popular culture, KingJames will become one of the biggest honey pots for creative talent in South Africa. As the head creative Alistair is understandably excited. “We are creating a really dynamic work environment here. Our people won’t just be making ads. They will be able to explore their creative talents and develop themselves in a range of creative fields.” In fact they are so convinced that the people they employ are premium that they are reluctant to name key staff. He ex-

plains: “When other agencies go recruiting they come to us. I can’t blame them; I would too. We have built a really solid senior team, many of whom have been in the company almost since its inception. They share our values, ethics and our way of working.” Aside from a matchless pool of creative and intellectual capital these new ventures will attract, what else would make a company want to work with KingJames? “We are one of the few agencies around that can deliver truly integrated campaigns,” states James emphatically.   He continues: “We place a lot of emphasis on relationships with our clients. It is important that we like each other, respect each other’s opinions, and jointly pursue great ideas.” Single-minded about delivering strategies and communications that work for their clients, they hold the view that “there is more to advertising than advertising”, says Alistair. “We are looking elsewhere to get inspiration, all in the name of becoming less predictable in our advertising and communication. If you want formula ads, then we’re not the right agency for you.”    New ideas harvested from their sorties into popular culture and publishing will benefit clients and be put to work

by the seven agencies that comprise the KingJames Group. Positioned to offer  fully integrated, through-the-line service, this multi-award winning community of strategists and creatives has been cherry picked through the years, as Alistair and James have carefully partnered with the best-of-breed agencies in media, promotions, PR, digital and brand activation.  So, watch this space as the KingJames brand readies itself to cross lines, cultures and media to transcend the constructs of traditional advertising and marketing. Client references “Allan Gray’s first Grand Prix Loerie for TV would not have been possible without KingJames’ creative talent, which also helped us rake in awards for print and outdoor! However, their creativity and sense of what makes a brand singular does not compromise on their strategic strength that has seen the Al-

lan Gray brand really gain ground in the financial arena.” –Tracy Hirst, marketing manager, Allan Gray “Brandhouse Beverages have been clients of KingJames since their inception 10 years ago and they have become the cornerstone of our local agency network. Our brand portfolio with them has grown both organically and through new business allocation over the years. This growth is reflective of our confidence in their ability to consistently produce fantastic creative work that delivers results. The strength of our relationship is rooted in their strong client service ethic, commitment to and understanding of our brands, business and market dynamics, and the consistent, open engagement from James and Alistair.” – Gavin Pike, marketing manager, Brandhouse Beverages

The ANNUAL 2008 — 169

3271 Crane Ad.indd 1

10/22/08 12:36:35 PM

36:35 PM

AGENCY PROFILE

Leo Burnett Group Type of agency: Leo Burnett & Red Nail – TTL, activation, retail and design

Starcom – media strategy, planning, buying and implementation

Manning Selvage & Lee – Public relations, corporate communications

Number of accounts/clients: 37 Biggest spending clients: Nedbank Retail, Procter & Gamble,

Coca - Cola, Philip Morris, Samsung,

South African Post Office, Fiat and Sasol Oil Accounts won in 2008: Samsung (media), Glocell (media), Sasol Oil (PR), Harmony (PR)

Accounts lost in 2008: McDonald’s (creative), Ferrero Trading

(media), Plascon (creative), BDFM (PR) Company ownership: Koni Media Holding – 51% Publicis Groupe –

49%

Contact details: Tel: +27 11 235 4403 Agency billings: Group billings R600 million Key awards in 2008: Creative: New York Festival finalist –

Salvation Army; London International –

Mercedes Benz & Salvation Army; World

Press Awards: bronze & finalist – Salvation Army and Mercedes Benz

Media: Roger Garlic (gold) for Procter & Gamble + three other finalists Number of staff: 100 Key agency staff: Chief executive officer: Groovin Nchabeleng Managing director, Leo Burnett: Chris Wildish

Managing director, Starcom: Gordon Patterson

Managing director, MS&L: Amanda Singleton

Managing director, Rednail: Anita Prendergast

Key moment in 2008: Celebrating MS&L and Starcom’s 80% success rate in new business achievements, and

their selection as strategic hubs internationally in Africa.

The agency snapshot in 50 words: We are celebrating the 73-year anniversary of Leo Burnett internationally and 51 years in

South Africa, producing outstanding creative solutions. We are a proudly African agency with an international pedigree.

Having recently celebrated 50 years of doing business in South Africa, Leo Burnett’s longevity can be traced back to a simple yet priceless ethos: its people-focused approach to advertising. The South African Leo Burnett Group comprises five business entities – advertising and communications firm Blueprint, through-the-line agency Rednail, fullservice advertising agency Leo Burnett, strategic communication specialists Manning Selvage & Lee (MS&L), and media planning and buying agency Starcom. CEO Groovin Nchabeleng says 2008 has been a productive year, listing South African Airways, Samsung, SA Post Office, Nedbank, Sasol, Intersite and CNBC Africa as examples of significant pieces of business won, activated or retained. The group’s international parent, established in Chicago in 1935, has a presence in 150 countries. Nchabeleng says Leo Burnett’s philosophy has remained unchanged from its founding days: “Our focus is people – people talking to people”. This philosophy was top of mind when the Leo Burnett agency’s latest pro bono work for the Salvation Army, having identified child trafficking as a critical issue. While heightening public awareness of sex slavery, the stark, hard-hitting campaign, offering children in various age groups for sale, snagged a bronze Loerie in the Outdoor and Ambient Media category, a Creative Circle commendation, a merit at the OBIE Awards, and a finalist position at the New York Festival Awards. Leo Burnett Group was also involved in conceptualising an anti-xenophobia

campaign in the wake of the 2008 attacks on foreigners, with celebrities and other well-known personalities donating their time and services for the cause. An example of the progressive ideas on the boil within the group, is a campaign for Mercedes Benz conceptualise by Arc, the group’s global activation agency. Going beyond traditional advertising, Arc elevates brands to a digital or physical experience. For Mercedes it meant making available black C-Class vehicles to movers and shakers in its 18-to-35 target market, with other peers witnessing them arriving at parties in style. “It’s a way of putting brands in the hands of consumers. And it’s measurable,” explains agency MD Chris Wildish. MS&L’s new leadership team’s repositioning of the agency, one whose inner core is founded in strategic counsel, is beginning to bear fruit. MS&L is proud to have been the strategic communication consultant on Sasol’s BEE deal, Inzalo. This transaction, South Africa’s largest BEE transaction to date, closed four times oversubscribed. Most recently, MS&L was a key partner in the launch of the Western Union International Money Transfer Service in South Africa with ABSA. The successful launch programme resulted in the agency taking up the role of Western Union’s lead agency in Africa, with responsibility for communication activities in all of

the 49 African countries in the Western Union footprint. Rednail, for its part, takes pride in the fact that its heart and soul is resultsdriven, category-defying creative output, for all its clients. Thinking beyond the obvious and prizing “smart” ideas is a hallmark of media agency Starcom, says SA managing director Gordon Patterson. Starcom offers new technologies to “complement, empower and liberate existing media platforms, and not threaten them”. One of these innovations is quick response (QR) 2D barcoding, recently test-driven by the Sunday Times and The Times, which provides instant cellphone access to audiovisual communications. “Technology usually scares people but we look at technology from a consumer perspective,” Patterson points out. “It’s the cutting edge, not the bleeding edge.” He predicts that with the advent of technologies such as personal video recorders (PVRs), “people will be determining their own prime time and consumers will be able to avoid advertising in greater numbers. Therefore, even greater engagement will become the objective.” Engagement is critical to the Leo Burnett Group’s ethos and what makes it stand out from the pack, CEO Nchabeleng believes, is the fact that it goes beyond facts and figures to isolate the human factor when unlocking a brand’s essence.

The ANNUAL 2008 — 171

AGENCY PROFILE

Letsema Communications Type of agency: Strategic communications and events Number of accounts/clients: 20 Biggest spending clients: Denel Aviation, Powertech, Shell SA Accounts won in 2008: Almost all accounts are new Accounts lost in 2008: Institute of Directors Company ownership: 100% Black-owned, Isaac Shongwe and Derek Thomas

Contact details: Tel: + 27 11 300 6400 Agency billings: Not revealed Key awards in 2008: None Number of staff: 8 Key agency staff: All Key moment in 2008: The rebirth of the company in April The agency snapshot in 50 words: Letsema Communications comprises four

divisions: enterprise development; PR and

strategic communications; design and production; and event management. The company’s focus is on providing communications that

are completely aligned with clients’ business strategy, in line with its view that building

relationships with today’s demanding consumers is key to success.

Effective communication is about building and maintaining relationships: Trish Riley, managing director of Letsema Communications

Although Letsema is, in essence, almost 20 years old, the agency of today is vastly different from its forerunner. The agency first operated as Tish Stewart & Associates PR (TSPR), offering a niche service focused on PR for financial and institutional organisations. The first step in the turnaround came when Tish Stewart sold the company to its current owners, and in March 2007, Trish Riley took over as managing director. Riley immediately undertook a significant restructuring programme that hinged on the creation of a highly skilled client service department. Letsema further increased its scope to become a full-service agency, which now has four divisions:

172 — The ANNUAL 2008

enterprise development which focuses on helping SMMEs develop the market knowledge and communication skills they need to take their (usually production- and operations-oriented) business to market. PR and strategic communications remains the agency’s core function, although it has also established a design and production division that is able to provide marketing collateral for clients, from pamphlets to ads. Because Letsema is an accredited advertising agency, it is also able to place ads on behalf of clients. Finally, specialist skills in event management enable the agency to organise a range of events for clients, from comprehensive product launches to conferences.

What makes Letsema unique, maintains Riley, is the agency’s approach to PR. “The discipline has evolved entirely – it’s no longer an add-on; an ad hoc press release or a quick get-together that can be arranged by a junior member of the organisation,” she opines. Rather, successful PR is entirely aligned to clients’ business strategy. “PR consultants now act as advisers or counsellors to management. We are their eyes and ears in terms of managing reputation and diffusing crises.” This is more important than ever, given that consumer attitudes have changed. No longer are companies in the driver’s seat. Consumers are more aware and more

selective, and they’re increasingly basing purchasing decisions on factors such as whether the company has a reputation as a good corporate citizen, or if they share a relationship. This is where PR comes in, says Riley; it’s about ensuring that communication is a two-way street between consumers and corporate, and building and maintaining that relationship. South African PR agencies still have some way to go before they hone this skill, she believes, but we stand out from international peers in other areas. “Our industry is more ethical, for example.” A thorough understanding of new media channels is another factor underpinning Letsema’s approach. New platforms,

AGENCY PROFILE

like blogs and wikis, secure the consumers’ power and ensure that their voice can be heard around the world. “If someone has a bad experience with a brand, it’s not only their friends who are going to know about it,” Riley points out. “It takes just one blog posting to affect the brand’s reputation internationally.” It’s this grasp of the finer nuances of how PR is changing that gives Letsema a competitive edge over far larger industry players, Riley says. “We were thrilled to be told by one of South Africa’s leading journalists that, in his opinion, we rank among the country’s top five PR companies,” she enthuses. That’s quite an accomplishment, especially as there are just eight people on the Letsema team. But Riley points out that the agency’s small size works in its favour. “We’re able to build deep relationships with clients, based on personal service. In fact, our size enables us to function as the client’s marketing arm. And, because we’re small, we don’t have many overheads, which makes our solutions cost-effective.” Letsema’s team-based approach is highly collaborative and is rooted in collective effort. Riley gives her personal input to each account, and each client further benefits from the insights of specialist writers and highly skilled client service staff. Meanwhile, a back-up team provides research and media monitoring services. “We have taken great care to select staff

“We have taken great care to select staff who are independent thinkers; individually responsible; and who are enthusiastic believers in our clients, their work and their messages.”

who are independent thinkers; individually responsible; and who are enthusiastic believers in our clients, their work and their messages,” Riley states. Each team is aware of the importance of adding value, and won’t implement an initiative unless they can prove that it will have a visible positive impact on the client. Offering fresh ideas is another key priority, and to this end, the teams hold regular brainstorming sessions, both to think up innovative strategies that will augment client communications, and to generally up the agency’s creative thinking. Letsema also keeps a close watch on international trends, so teams are always able to suggest new ways of doing things. This approach has seen Letsema grow

its client complement from six, at the beginning of the year, to 20, including the likes of Powertech, Shell SA and Denel Aviation. Letsema’s work on behalf of ChemCity perhaps best demonstrates its prowess: when the agency won the account from one of its far larger rivals, the business incubator, a division of Sasol, had enjoyed very little exposure in the media. That’s changed drastically, with Letsema having secured coverage worth millions of rands, and an average of six to 10 articles, detailing the projects which receive assistance from ChemCity, appearing in the press monthly. Says Anje de Clercq, business analyst responsible for communications and branding at ChemCity: “Letsema Communications helped us align our PR and branding strategy, and their flexibility and adaptability have proved a major asset in the entrepreneurial environment where we operate.” Riley believes that if current trends persist, PR will shortly play a more important role in the marketing mix than advertising. “PR has always been seen as the more credible communication, and in today’s economic climate, where consumers are more savvy, they’re more likely to trust this communication than an ad,” she asserts. The advent of PVRs adds to her argument: in a world where consumers never have to see another ad if they don’t want to, it is of vital importance for organisations to build relationships with their publics – and this is where PR has

an enormous role to play. It’s not surprising, then, that Riley is confident that Letsema is poised for significant growth going forward. “This has been a momentous year for us, especially as we have revolutionised our approach,” she comments. Difficult though it may have been, Letsema’s restructuring has created a platform for expansion, with the right skills and philosophy in place. Riley reports that the agency is gearing for the future by identifying the expertise required to make it a force in the PR landscape tomorrow, and this means implementing a more concerted focus on new media channels. At the same time, Letsema has pinpointed the industries of tomorrow that Riley believes will provide the most scope for growth. These include a greater focus on corporate social investment activities and the financial services sector, where PR consultants have an important contribution to make in terms of keeping consumers informed about legislation and understanding their options. The 2010 FIFA World Cup South Africa™ will also provide exciting opportunities for communication, as all South African companies – even those that are not directly involved with the event – will need to find ways to benefit from it. At the same time, Letsema is also seeking to increase its events division. All told, exciting times are ahead for the agency – watch this space.

The ANNUAL 2008 — 173

AGENCY PROFILE

The Lowe Bull Group Type of agency: A full through the line communications Group that consists of a collective of independent communication specialists:

Lowe Bull JHB (Brand agency) Lowe Bull CT (Brand agency) Initiative Media SA

LOERIES 08 6 x Bonze

YOUNG GUNS 1 Gold

PENDORING 08 1 Gold

Mick & Nick (BTL)

Lowe Bull Jhb:

OIL (Strategic Consultancy)

Finalist for Jhb agency of the year

Longtail (Digital)

Frank Wonderment (Design) Number of accounts/clients: Lowe Bull JHB – 18 brands Lowe Bull CT – 27 brands

Initiative Media SA – 54 Brands Mick & Nick – 6 brands

Longtail (Digital) – 35 brands (mostly project based)

OIL (Strategic Consultancy) – 30 brands of which some are project based

Frank Wonderment (Design) – 3 Brands Biggest spending clients:

AD REVIEW 08 LOERIES 08

Gold Craft, 2x Silver, 2x Bronze CLIO 2008 2 x bronze

D&AD 2008:

Entry into Annual CANNES 08: 1 Shortlist

Number of staff: +/- 150 people Key agency staff: Chairman & chief executive officer: Matthew Bull

Unilever

Chief operating officer: Rod Wilson

SAB

Group managing director: Wayne Naidoo:

Coca-Cola

Metropolitan

Johnson & Johnson Accounts won in 2008: SAB Media

SAB: Castle Milk Stout Tracetec

Rama: Global project

Nokia: Global project Nike BTL

Lowe Bull Johannesburg Managing director: Sarah Dexter

Lowe Bull Johannesburg executive creative director: Rui Alves

Lowe Bull Johannesburg deputy managing director: Claire Du Plessis

Lowe Bull Cape Town managing director: Jason Slinger

Lowe Bull Cape Town executive creative director: Kirk Gainsford:

Hansa BTL

Initiative Media SA managing director:

Onse

Marc Taback

Perfetti Media NWJ Media

Key moment in 2008:

Accounts lost in 2008:

Ranked No1 Creative Agency Group in South Africa, Finweek ‘08

Schweppes Valpre

The agency snapshot in 50 words:

Unilever Media

Lowe Bull is an ideas company. We create high

Company ownership:

to the targets our clients have set them. That’s

Nike (DTP)

33% IPG (International)

20% The Real Deal Trust (Local – PDI) 6% Local shareholders (PDI)

41% Local shareholders (non-PDI) Contact details: Cape Town:

+27 21 431 8900

Johannesburg: +27 11 780 6100 Agency billings +/- R500 million Key awards in 2008:

value ideas that propel the brands we work on our purpose, primary and secondary.

We are fortunate that, within our group, we also have the expertise to execute those ideas across a wide range of platforms, from electronic to

point of purchase, from design to digital, from media to promotions.

Importantly though, it’s not just about what we do but how we do it. We believe the journey is as important as the destination, so we seek to have enjoyable partnerships with our clients,

Lowe Bull CT:

not master/slave relationships. We know many

Voted Cape Town Agency of the Year

refuse to do that.

AD REVIEW 08 CLIO 2008

1 silver and 1 bronze ONE SHOW 2008 1 bronze

174 — The ANNUAL 2008

other agencies treat clients like slaves, we just We are broad-minded, and open-minded and

that is reflected in our philosophy of Liberation

– we have created an environment where people are free to be themselves, to be individuals.

WE PRODUCE GREAT CAMPAIGNS Scalpel please and let’s wade right in shall we? The Lowe Bull Group was responsible for probably one of the biggest media talking points in 2008 and one that certainly made global headlines. Says the group’s irrepressible and charismatic boss Matthew Bull people in advertising are forever being told to think outside the box and occasionally, just occasionally a creative agency will succeed in giving this hackneyed phrase real meaning as it did with its audience and ARgrabbing “Meet Wally’s Heart” project, which kept TV viewers across South Africa riveted, and made broadcasting history to boot. The Heart and Stroke Foundation SA wanted to give the country a wake-up call, showing people just how at risk they were, and underlining how a healthy lifestyle can help prevent the disease. Lowe Bull hit upon a radical plan of action. If people could see what they were doing to their hearts, might they not take better care of them? And by “see”, the agency meant precisely that. It would organise a world first, as South Africans got to watch open heart surgery – live. “We wanted to challenge people to rethink their lifestyles,” explains Lowe Bull business director, Vanessa Vosloo. “The idea of allowing people to witness live open heart surgery was really left-field. On the odd occasion, we almost backed out ourselves! What made it frightening was that this was real life, something we couldn’t script, and of which we couldn’t ensure the outcome.”

The patient, Wally Katzke, was soon to become a household name, as he joined a team of experts on a week-long drive to raise awareness about heart disease. On the day of the surgery, viewers watched Wally’s single bypass surgery on a live video inset During the two-hour broadcast, the show’s SMS tickertape was inundated with messages. The agency, broadcaster, and doctors involved have since received hundreds of requests for the show’s rebroadcast. And that world class idea and execution (used purely in the advertising sense) culminated in what Bull calls a fantastic year. So what’s happened? Bull takes a deep breath and leans into it “A new spirit and a new leadership and a real belief system that everyone here now buys into. Let me be honest, a little morality and previously held high principles were not being adhered to here in Johannesburg and there was a sense that were in the business just to create work that was just going to win awards. “Many agencies are in and fall into that trap. The truth is we have a duty to create great work for all of our clients all the time and that is exactly what we are now doing. All I ask for is continual progress. If we have a group of people that is constantly looking for that then we are a great agency.” Bull is particularly proud of the small Mick and Nick below the line agency who he says are unreasonable about the quality of the work they do. This small unit is developing an enviable reputation in the business. One piece of work that is worth

AGENCY PROFILE

mentioning was for the Hansa beer brand and a competition developed to win a non-executive seat on the Hansa Board of Approval (HBA) which was the big idea behind an above the line campaign. “Response to the competition was nothing short of phenomenal,” says MD Michelle de Gouveia, Two weeks into the promotion, over 200 000 SMSes had been received, and average weekly sales had reached levels usually only seen over the December period. The competition offered the winner a seat on the HBA board, with an annual salary of R600 000. Consumers entered by SMSing the code from their Hansa Pilsner or Hansa Marzen Gold label or ring pull. Another bright star in the firmament is the e marketing and online strategic consultancy longtail. Bull remains convinced that this is where the future of advertising lies and testimony to that is a more than adequately filled order book and industry and client accolades. The basic premise of the business is helping South African companies make the internet work for them. longtail provides companies with toplevel insight and strategies that will not only work for them in the online environment, but also neatly dovetail with their offline thinking. The tools used in the solutions include: search engine optimisation, linking strategy, pay-per-click advertising, online advertising, email marketing and ongoing communication, viral marketing, Web PR, online reputation management, affiliate marketing, blogs, podcasts, social media networking, e-recruitment and Internet privacy, security and terms and conditions. Their focus on research

for latest industry trends; the rigorous analysis, interpretation and reporting of results, assists them in delivering on total business objectives. But is hasn’t all been smooth sailing. Earlier this year the group’s media arm Initiative Media under the stewardship of the respected Mark Taback resigned the Unilever business. It could have sounded the death knell for any company. Bull picks up the story: “We had just received the best review we’d ever had and were then told to repitch for the business. We declined and there was an opportunity for those working on the account to move to the newly appointed agency. To a person they all stayed and we would have kept them on whatever the case even if it meant taking a financial bath.” Bull and Taback’s unwavering belief in their people paid dividends. It wasn’t long afterwards that they won the SAB media account. Bull says after an experience like that he knows that the entire group can handle any challenge that comes their way. Yes says Bull, his agency did not have its best Loeries on record but in the same breath points out that his agency has won the event three times out of the past seven years. Bull says he stands by his decision not to enter what he calls a smorgasbord of work for no real purpose apart from the glory. He says he’s particularly excited by work in the pipeline for big banker brands like Skip and Sunlight. The agency though remains one of the big creative hitters with an international footprint. A lot of project work from the Lowe mother ship in London is done

from South Africa – Nokia and Unilever – and its international successes have not been shabby. At the beginning of the year the group secured four wins out of its seven shortlisted finalists in the 2008 Clio Awards. The wins were split between the Cape Town and Johannesburg offices, with Cape Town securing a silver award for Cape Times “JFK” and a bronze for Cape Times “Soweto Uprising” (both in the print category), while Johannesburg took home two bronze awards, for Axe “Blackboard” (also in the print category) and “Answering Machine” (in the radio category). So where to now and what does 2009 hold for the industry. Bull does not hold back on the hyperbole. “Now that we have the infrastructure in place the next six months are the most important in the agency’s life. We have to make sure that we have significant revenue and control of our costs for next year because let me tell you its going to be tough in every sense of the word. But we’ve produced great work which is important ammunition to win quality awards and hold on to our excellent people. Bull believes that the lag that everyone in the industry was talking about in the first six months of 2008 arrived in August. “There is no doubt that budgets are being cut. The first 6 months will be a bitch....then we believe there will be a recovery....after elections there will be we think a natural bounce” And will 2010 provide the panacea and the ointment? Bull is not that confident. “There is a lot of global uncertainty

and I don’t care what people say we are still uncertain at this stage as a country about the 2010 World Cup and the ushering in of a new president. Advertising is going to go through a hard time which makes it critical that agencies do excellent and relevant work – something which we at Lowe Bull are confident about delivering.” And the agency philosophy? Notes Bull, “That is a critical question. We are unlike some of the bigger agencies who produce great advertising (at times), we produce great campaigns. Most of our big award winning stuff has been for multifaceted campaigns for the likes of Axe, Redds, Nandos and Dulux. The secret here is to have significantly big ideas over a period of time. That is what we do and do brilliantly. So leading on from that with so many agencies to choose from why should you hire Lowe Bull? Roars Bull:“We’ve got the best talent in the business pound for pound and we have a team that harnesses that talent better than anyone else.

The ANNUAL 2008 — 175

AGENCY PROFILE

McCann Worldgroup South Africa Type of agency: Communications Group (advertising, media, activation, digital/CRM)

Number of accounts/clients: 18 Clients Biggest spending clients: Telkom, L’Oréal, General Motors, SABC, Nestlé, MasterCard, Microsoft

Accounts won in 2008: United International Pictures, Tiger Brands (assignments), Nestlé

(assignments), Sony Ericsson (assignments), Telkom (assignments),

Nelson Mandela Children’s Fund, Foodcorp (assignments), Pikitup, Brown Forman, City of Johannesburg/Siyavuma Marketing Accounts lost in 2008: SAB (Castle Milk Stout) Company ownership: 49% Zwelakhe Sisulu, Staff Share Trust, Women’s Groups 51% Interpublic Group of Companies (IPG) Contact details:

01. Left to right: Martin Hummel, group chief executive McCann Worldgroup, Festus Masekwameng, creative director McCann Erickson,

Alistair Duff, director of strategic development McCann Worldgroup, Sandile Mkhasibe, exeutive creative director Momentum McCann,



Wayne Parry, managing director Momentum McCann, Vanessa Pearson, executive creative director McCann Erickson, Nazeer Suliman,



managing director Universal McCann and Andrew Shuttleworth, managing director McCann Erickson.

Tel: +27 11 235 4600

Fax: +27 11 803 6696

Website: www.mccannworldgroup.co.za

WE CREATE DEMAND THROUGH COLLABORATION

Agency billings:

Testimony to the new energy sweeping though McCann Worldgroup, the communications holding company for McCann Erickson (advertising), Momentum McCann (activation) and Universal McCann (media), is the amount of time it takes to set up a group photograph. Every member of the executive team has a strong opinion on order, style and art direction which is also punctuated by continual chatter and laughter. None of that was evident three years ago when the agency group by its own admission was reeling after its South African BEE partners cashed out. That had a serious impact on the bottom line and industry perception. Head office acted swiftly and brought in dyed in the wool New York and London ad man Martin Hummel who embarked on a serious round of consultation with anyone who would take a steak lunch with him at a well known Sandton grill house. He took careful notes, asked probing questions and began re-building the pedigree agency group, CV by CV and client by client. Hummel, who candidly talks about his departure at some point – his family resides in London – can be well pleased with the people he’s hired and the changes they are busy ringing in. From nowhere the agency is back in the top 20 countrywide and in the top ten in Gauteng agency rankings. In 2009, Hummel plans among other things to grow aggressively in the digital and CRM spaces, with an eye on the burgeoning healthcare sector. He modestly says he’s trending in the right direction. It would be more accurate to say McCann Worldgroup has struck out on an aggressive path and knows

Unpublished as per IPG policy Key awards in 2008: Pendoring Gold and Silver (Ambient and Poster)

4 Loerie Finalists for X Box ‘Die Trying’ (photography, press

and radio) and General Motors, ‘Opel Corsa Campaign’(Ambient) Number of staff: 104 Permanent Staff Members Key agency staff: Martin Hummel, Group Chief Executive, McCann Worldgroup Andrew Shuttleworth, Managing Director, McCann Erickson

Vanessa Pearson, Executive Creative Director, McCann Erickson Festus Masekwameng, Creative Director, McCann Erickson Nazeer Suliman, Managing Director, Universal McCann Wayne Parry, Managing Director, Momentum McCann Sandile Mkhasibe, Executive Creative Director, Momentum McCann

Wim Spronk, Executive Creative Director, Momentum McCann Key moment in 2008: McCann Worldgroup’s restructure and subsequent turnaround was the highlight for the Company in 2008.

In the beginning of 2007, the Company was losing clients, people and money. By 2008, the Company had partnered with Zwelakhe Sisulu and restructured its communications offering.

The active recruitment of new management and key positions within the operating companies drove the transformation of McCann

Worldgroup. The focus ideas, local relevance, integrated solutions, creativity and people have created a new vibe in the place. The agency snapshot in 50 words: Our reason for being is to generate demand for our clients’ brands. At McCann Worldgroup, we create big ideas for our clients. We

then set about bringing them to life through multiple forms of communication. We are able to do this through collaboration

across our best-in-class companies, McCann Erickson (advertising), Universal McCann (media), Momentum (activation) and MRM (digital/CRM).

176 — The ANNUAL 2008

exactly where it’s going. Hummel concedes that 2009 is not going to be a walk in the park, or even a drive in park (the agency did win a sizable chunk of GM business). He says: “You have to see the market in terms of consumer confidence, interest rates, and other leading economic indicators. The general consensus is that we’re heading in the wrong direction. But there is a potential upside in our business. In the current climate, some clients are investing greater marketing funds, and more cleverly. Take GM, for instance. The brand is unwavering in a market that is significantly down in terms of vehicle sales. With integrated communications programs, GM is building share. We are resonating with consumers who are now thinking differently about GM’s trademark vehicles, Chevrolet and Opel, with consistent messages across every consumer touch point.” Alistair Duff, Hummel’s strategic brain, chips in. “Our Company has brought an element of logic to the brands. There is more focus on where models should be in the market and through the retail-driven Red Tag campaign idea we have actually created a property around the word sale.” So what is at the heart of McCann’s retooled offering? Hummel is single minded in his answer: “We exist to create demand for clients’ brands, through the seamless collaboration of communications disciplines. If we’re not doing that then something is wrong. Award show trophies are not our reason for being, these serve to recognize our success in cleverly engaging consumers to think and act differently. Creativity remains a critically important driver for demand creation, as it is the key discriminator for effective communication.”

AGENCY PROFILE

02. McCann Erickson: “Only Afrikaans and SA music”

03. Momentum McCann: Telkom gives internet





RSG campaign

Duff plays up the role of insight in the communications mix; how important it’s become and why it’s at the centre of the Group’s thinking. “We feel the market has under-delivered on this and when we hit hard economic times it’s even more important. If you speak with clear knowledge and understanding to a product or service benefit you are going to be in a better position to grow brand value and grow sales. “ Duff talks about a concept called creative capitalism raised by Bill Gates which essentially says it’s no use sitting on ten percent of the market and trying to suck it dry and not looking beyond that sector to grow and activate it. That’s another principle underpinning the new McCann Worldgroup. So what were the key moments in 2008? Hummel talks about seeing the talent he’s recruited finally beginning to gel and a steady increase in business, both organic and new. He’s also happy with the Company’s ability to conceive, develop and execute big, integrated, brand-defining ideas. Duff’s cerebral take on that is to position the group as a thought leader. He echoes sentiments from McCann Erickson’s Executive Creative Director, Vanessa Pearson, who believes much of the work coming out of ad agencies these days looks and feels the same. Says Duff, we have to be looking beyond the norm. “There is no doubt that McCann Worldgroup is doing just that.” With things going so well, what are Hummel’s personal plans? “We have some exceptional people in place to take the Company to the next level of growth and excellence. My successor will be a

04. McCann Erickson: Did I really see that? Nestlé outdoor campaign

users the power to do it all

far more talented and capable individual than me. I’ll know when it’s time to leave when I can walk out the front door of our building, not return, and no one will realize I’ve departed. And that time may be approaching.” Momentum McCann This is the unit where client rubber hits the road. MD Wayne Parry and his team use the mantra that measurability is the future of advertising and that budget fatigued clients want to know how their money is working and how many ears and eyes are being engaged. Parry defaults to the agency group’s watchword insights and believes once that is mined for and found, it can be activated across all delivery platforms. Parry says the next big thing in digital marketing is a concept called “Phygital” marketing, where there is a link between the digital world and tactile experience. “It’s the coming together of the digital and the physical space, it pulls everything together. Clients often have a great brand and great positioning but no one is able to pull all of that together seamlessly. Many agencies back off this space. We don’t.” Momentum is particularly proud of work it did for the Isuzu brand this year that capitalised on the load shedding crisis. It helped conceptualise and market something called the TIG a truck integrated generator, the thinking of which said the brand was integral to a 24 hour business for a fleet manager and that the vehicle delivered on this positioning, whatever problems were thrust at it. McCann Erickson Driving radical changes at the above

the line agency has been MD Andrew Shuttleworth, along with creative heavyweights Vanessa Pearson and Festus Maswekwameng. Shuttleworth says the starting point was to make sure that the right executive team was in place across all disciplines. “We knew we had to implement a cultural change and we asked questions like what type of people can we work with and not. That included asking what clients wanted to be with us and who we wanted to be with. Pearson picks up the narrative: “We also asked what was the best way to make us stand out in an overtraded market and the best answer was our ability to gather, process and interpret insights. Few agencies are putting their money behind this. We say we are in the business of demand creation through inspiration.” Masekwameng says great creative work can only be generated through great creative briefs which come from unique and penetrating insights. “It’s unpacking the market in a different way with a different approach which allows us to create a consumer reaction. The agency is particularly proud of its unique research called Township Stories, which is giving fresh insight and data into the country’s most important new market.” Pearson says the best work is still to come, but the agency is particularly happy with outdoor work done on the Nescafé coffee brand, in which a strategically placed billboard is cut open and reflects the natural landscape – the idea of which is to allow drinkers to own the morning moment. It’s clever, creative and tactical. The agency is also responsible for the

delightful print and billboard campaign for Afrikaans radio station RSG that gives a language twist to songs and bands. For instance, Genesis become Gene-sies. Universal McCann The agency wants to be seen as more than just a traditional media agency and says MD Nazeer Suliman who’s been in the job for just over a year. His first 12 months have been about fixing basics and over-servicing clients in an industry environment he describes as deep, tough and muddy. “We’re in the business of finding connection opportunities. We want to connect brands with consumers in relevant and meaningful ways.”Again that group mantra insights is used and then developing them to find real connection opportunities. Suliman says these days everything is a connection opportunity whether it be a mouse-pad, an i-pod holder or a table cloth. Obviously within strategic parameters and based on consumer insights. We’re embarking on a huge culture change in line with our curiosity model – which defines our culture, inspires our people, guides our thinking and which shapes our work. We ask why? We interrogate and we have fun. So far he’s happy with organic growth but is confident more business will come through the door in the next year. Suliman is more bullish that most about 2009 seeing more government capital expenditure which will give communication more space and more spend.

The ANNUAL 2008 — 177

AGENCY PROFILE

MediaCompete Type of Agency: Large media agency – Channel Planning – Implemetation – Trading Number of accounts/clients: 32 big spending clients: FirstRand, MTN Group,Nokia, VW, AUDI & SEAT, Coca-cola Company, Proctor & Gamble, Ford / Mazda Accounts WON in 2008: Tracker, Dell, VW Accounts lost in 2008: None Number of staff: 80 Billings: R2.1 billion Key agency staff: Chief executive officer: Paul Wilkins Managing director: Britta Reid Deputy CEO: Rogene Hoosen Director: Adriaan de Buck Director: Edwin de Lange Director: Suraya Pillay Director: Deborah Schepers Director: Teryy Wharton-Hood Director: Bongani Khumalo Chief financial officer: Ahmed Loonat Contact details: Tel: +27 11 293 6302 Fax: +27 11 293 6303 Physical Address: Innesfree View, 2 Harris Road, Cnr Katherine Street, Sandton Email: [email protected] Website: www.mediacompete.co.za The agency in 50 words: Employees = Better happier people Consumers = Targeted ROI driven media Clients = Better value and investment focused on ROI Suppliers = MC should be greatest share of mind Partners = People we prefer to do business with – like-minded

178 — The ANNUAL 2008

AGENCY PROFILE

MediaCompete chief executive officer Paul Wilkins is not allowing the economic downturn to dim his outlook for the Agency. “We are fortunate in that we are part of an international organisation with inherent strengths, and have access to proprietary tools that create competitive advantage for our Clients by allowing us to determine when to speak to consumers at the right time and place and when they are in the right mood.” South Africa is protected from the worst effects of the financial crisis compared with most European countries in that there was still huge spending on infrastructure – to be paid for by a legacy of repeated tax surpluses – that kept money flowing to other areas of the economy, it had escaped the worst effects of the subprime crisis and its motor exports are buoyant. “Most consumers are still spending, although at a decreased level, but retailers are discounting big time,” says Wilkins. He was shocked by some of the effects of the recession he had seen on a trip to the UK in August. The rate of insolvencies has doubled there in the past six months, he says. Also, there is the Soccer World Cup. “But we must not expect too much. Experience elsewhere in the world has been a deluge of positive reporting immediately after the award to a country is made, and then there is a perceived hiatus and people are disappointed and critical that promised benefits did not materialise. That has been the experience of all the other countries.” Wilkins says he expects single-digit deflation for CPP to set in in the advertising industry until the third quarter of next year. “During this time the planets will align in our favour because condi-

tions for trading will improve. More media availability means you can buy more for less, or cut costs. Some media owners are up to 40% undersold. I believe spending will decrease 10% for the remainder of the year and by 15% to 20% in the first half of 2010.” Traditional media is likely to take share away from newer technologies like brand activation in the downturn, says Wilkins. “Bear in mind that much of the population has had TV – and electricity – for only about 10 years. TV is seen as a point of information and of entertainment. But the biggest area of opportunity must lie with mobile. It is the single biggest communication medium in our country but nobody has cracked it from a marketing perspective. It goes to the poorest of the poor and the statistics are that every household has more than one phone.” The rest of the developed world has moved relatively quickly to online, but in Africa cellphones were likely to leapfrog the computer. “As the screens get bigger, so mobile will take over,” says Wilkins. Marketers need to be careful about niche marketing, such as on satellite TV channels. “In fact we should be mass marketing rather than niche marketing – you need to market more to make more money. You can never physically know who will buy your product. If you target narrowly, you could be aiming at only 40% of your potential market. And if you remain static in your targeting, you will always be aiming at a market that is ever diminishing. Therefore the pool is continuously getting smaller,” says Wilkins. MediaCompete is structured on a pod basis, where staff are grouped in teams consisting of people with different skills

and with each pod headed by a director. “But there is a cross-over between the pods to form a matrix of information sharing. Otherwise people get stuck in silos and don’t speak to each other. This way our pods literally blossom into the f lowers that the pods portend.” The system is “not cheap, but it is effective because a Client knows all the time who is working on it’s account”. The agency motto is “People First, Better Results”. “That applies across the board in our approach to our staff, our partners, clients, media owners and consumers at large,” says Wilkins. “If you focus on the people, you will get the results you want.” Another of MediaCompete’s unique strengths is its econometric modelling service. “It is extremely useful and flexible. It can give you likely sales, footfall or awareness, or alert you to the need to change duration. Basically it tells you where you get the best bang for your buck. It also does portfolio management, so that a client with more than once brand will get a picture of how advertising of one will affect others. We also offer scenario planning where we will sit around a table with the client, the creative agency and the research house,” says Wilkins. MediaCompete had a good year – Wilkins puts growth at 20%, with billings having hit R2 billion. “We are easy to do business with because we listen. We offer innovative thinking on communication tempered by the experience of knowing what works. Our job is to tell clients what they can afford to spend by having the proven systems to show what works,” says Wilkins.

The ANNUAL 2008 — 179

AGENCY PROFILE

The MediaShop (Pty) Ltd Type of Agency: Media Number of accounts/clients: 280+ big spending clients: Absa, Cell C, Shoprite Accounts WON in 2008: Around R130 million Accounts lost in 2008: None of any significance Number of staff: 130 Billings: About R3.1 billion Key agency staff: Everyone plays their part, and contributes to the whole Contact details: Tel: +27 11 258 4000 KEY AWARDS in 2008: Voted Best Media Agency for the 5th consecutive year by media owners according to AdReview. KEY MOMENT in 2008: Waiting for it... The agency in 50 words: “Open 24 Hours... No problem!” The payoff line that embodies MediaShop’s philosophy and attitude, and its promise to clients.

Established in 1988 to take advantage of the gap in the market, The MediaShop is the oldest existing media independent in South Africa. Founded by Dick Reid and John Barham, the agency was formed to provide media services to smaller agencies, an area which traditionally had not been serviced. Reid and Barham sold the agency to FCB/IPG International in 1997. In the same year, Harry Herber joined The MediaShop as managing director. Herber, formerly the managing director of FCB Johannesburg, is regarded as an icon in the industry and 180 — The ANNUAL 2008

has a long and successful media career behind him. Since assuming the helm Herber, now group managing director, has been instrumental in ensuring that the agency recruits experienced media directors with the result that The MediaShop is renowned for investing in heavyweight employees. Just short of half of the agency’s shareholding has since reverted back to local shareholders from IPG International. The past two decades have seen advertising, and media, in particular, experience a

significant change. Today it is the norm for advertising agencies to outsource their media to media specialists such as The MediaShop. Since 1997 the media independent industry has blossomed, standing The MediaShop in good stead. Year-on-year growth has been steady, with the business regarded as one of the most sustainable media independents in the country. Like 2007, 2008 has been a good year for the agency. It is moderately up in terms of billings. According to Herber, billings were buoyant until the middle of the year,

as a result of fiscal drag, which is typical of the advertising industry. He anticipates that the economy will turn in April or May 2009 but that the advertising industry will only start seeing improvements towards the end of 2009. “I’m not concerned about 2008,” says Herber, “it’s 2009 that we need to be worrying about.” Having said that, he is confident that with the company’s business fundamentals solidly in place, The MediaShop is well placed going forward. “We’re a sound business and in spite of rising rates and declining adver-

AGENCY PROFILE

tising revenues, we believe we’ll be able to successfully navigate most storms.” The agency’s critical mass works in its favour. As one of the largest media independents in the country, The MediaShop has an impressive client base with more than 400 accounts. Less than 15% of the agency’s billings are dependent on its sister agencies. What makes The MediaShop stand out is its understanding of the communications industry as a whole? “We understand how to implement effective solutions that will ensure a product or service is more successful than its competitors,” points out Herber. “We don’t only look at the traditional ways of doing things and we’ve got a pretty good understanding and handle on new media and new ways of doing things. The business is fortunate to have the intellectual capacity to deliver unique solutions.” Herber refuses to spotlight any particular staff members, saying that the entire 130person strong team at The MediaShop is key and is critical to the ongoing success of the business. “For a number of years now we have focused on employing high-level people. We employ significantly more than the average number of heavyweight strategists, all people with extensive experience and knowledge as well as passion and innovation. We refuse to hire any weak links as we recognise that each and every customer touchpoint is critical,” he says. “We aim to offer our clients a consistent philosophy, approach and attitude, irrespective of who they deal with.” For the same reason the agency has adopted the mantra, ‘Open 24 hours … No problem!’ Herber explains that this is both an attitude and a promise. “We are very cognizant of the fact that perception is critical. Our customers therefore don’t wait for the phone to be answered or wait for a meeting to be planned, for example. They have access to key decision makers 24

hours a day, seven days a week. We don’t allow staff to switch their cellphones off at night as we are all available to clients 24 hours a day. In this industry, the ability to make rapid decisions is critical.” Clients also have the confidence of knowing that The MediaShop has a stable base of knowledgeable employees. With a staff turnover rate of less than 6% – significantly lower than the industry average – The MediaShop not only attracts the right people, it keeps them too. There is no doubt that this people focus has paid off for the agency. For the past few years The MediaShop has managed to win more than half of the new business it tenders for. Herber attributes this to the fact that the agency is intent on working smarter, trying harder and being more innovative in order to deliver increasingly unique solutions. The agency’s philosophy is grounded in a firm focus on ethics and integrity, attributes that Herber holds dear. “I’m not interested in bullshit,” he insists. “This business is founded on good client relationships, all based on an honest and transparent premise.” Core to The MediaShop’s philosophy are 20 non-negotiable attitudes and behaviours, all premised around ethical and respectful behaviour. According to Neil Schreuder, GM marketing of the Shoprite Group, the agency does live its philosophy. “We have been working with The MediaShop for almost seven years now,” says Schreuder. “They have become real partners in our business, understanding the value we place on smart, tough negotiating with suppliers and the media industry as well as having the ability to work at the speed that retail necessitates. The MediaShop is a media agency that walks their talk in terms of ability, integrity and passion.” In addition to its head office in Johannesburg, The MediaShop has offices in

Durban and Cape Town. The agency is structured in such a way that larger clients have their own dedicated business unit allowing for focus and consistency, while the balance of the business is structured in business units with a senior member of staff at the helm of each unit. According to Herber, the advertising communications industry continues to experience change and is rapidly hitting a crossroads. “The industry is in a rough space at the moment,” he says. “Billings are down and both media owners and agencies are stretched. There is a desperate need for more training and fresh new blood, but no money to achieve either goal. In the short term there is no light at the end of the tunnel and the current situation will continue to be exacerbated.” He admits that he is becoming cynical (“it comes with age,” he grimaces) and asks rhetorically, “Why would a marketing director running a billion rand business listen to a 25-year old strategist straight out of an advertising school? The industry urgently needs to invest in people for the long term.” Herber believes that the industry will splinter. “Communication is starting to consist of too many multi-faceted areas of specialisation. I don’t believe that in future it’s going to be possible to keep all those people and all these specialisations under one roof. There is no doubt that full-service agencies are going to have to reinvent themselves, given the pace of change we are seeing in technology and how it is affecting marketing demands and consumer behaviour.” The MediaShop has a number of exciting new ventures in the pipeline. It will be investing in various new media ventures providing bespoke solutions to individual briefs. “Even in media the challenge is to become more specialised,” says Herber. He is not perturbed: “Change is exciting: it keeps us on our toes,” he concludes.

The ANNUAL 2008 — 181

AGENCY PROFILE

Mercury Type of Agency: Media – strategy, digital, creative Number of accounts/clients: 17 (Excluding 21 government departments) Accounts won in 2008: • GCIS (re-awarded tender until 2010) • The Agency for Marketing and Advertising • MGM Brand Construction (Consol, Easylife Kitchens) • Mutual and Federal • Hermes Multimedia • Gauteng Provincial Government (GSSC) Accounts lost in 2008: None Biggest spending clients: GCIS, Telkom, SARS Company Ownership: 90% Black owned / 100% South African owned Number of staff: 29 Billings: R547,205,597 Contact details: Tel: +27 11 502 1000 Fax: +27 11 880 2731 Key agency staff: Chief executive officer: Tamoledi Selane Chief operating officer: Morne Ebersohn Head of clients service and strategy: Johan Prins key moment in 2008: Being re-awared the GCIS Account – Mercury became the first agency to win the business three times. Private sector billings increased. Became the first media agency to launch a television campaign. The agency in 50 words: Mercury is a black-owned media agency that stands out for its unique, streamlined operations – by eliminating the divide between media planning and strategy, the agency is able to offer fast, cost effective and impactful media solutions.

Mercury stands out from its media planning and strategy peers for a number of reasons, starting with its empowerment credentials. In an industry predominantly populated by internationally affiliated players, Mercury rang the changes when, in 2003, it became one of the country’s first black-owned media agencies to be formed in 10 years. 182 — The ANNUAL 2008

Then there’s its unique approach to media strategy and planning that has seen it swiftly surpass the R300 million target set for its first three years of operations and double billings every year since. “We’ve been fortunate, but we’ve also worked tirelessly to ensure that our clients are well looked after and cared for,” comments chief executive officer Tamoledi Selane. Perhaps that’s why most clients have reappointed Mercury more than once. In fact, longterm relationships seem to be a Mercury hallmark – almost all the staff members who joined the agency at inception remain there today. But back to that unique strategy. Johan Prins, head of client service and strategy, explains that when Mercury was first established, media was actually intended as an adjunct service to brand strategy. It wasn’t long, however, until media became Mercury’s prime concern – and the agency wasted no time in exploiting the rich opportunities coming its way. To emphasise this new direction, the agency rebranded in 2006 – its former name, Mercury Media, was simplified to the current Mercury, while the agency was positioned on a global scale. Internally, a restructuring took place so that Mercury was now geared primarily towards media and strategy, with a lesser focus on creative development. The new positioning was encapsulated by the statement “Delivering Audiences.” Prins points out that this statement has a

dual implication: first, Mercury delivers the target audience to the client by developing focused insights and information based on research. Then, having ascertained just who’s using the client’s product or service, and how they consume media, Mercury is able to deliver the client’s message. “Although many media agencies focus simply on getting clients’ message across, we believe that both aspects are equally important,” Prins comments. Mercury therefore combines data from a variety of sources and studies with past learnings and case studies to weigh audience characteristics and the requirements of the message against the strengths, weaknesses and costs of various platforms, and this enables to it to put forward the best possible solution to the client. “It really is about solving problems,” says chief operating officer Morne Ebersohn, “The problem being one that relates to the collection of data and distribution of information.” Within these parameters, the solution shouldn’t be confined to a question of above- or below-the-line channels. Rather, it’s about finding the best means possible for the client to interact with the public. And although TV, radio and print have proved themselves immensely efficient at promoting such interaction, sometimes it’s necessary to look beyond the obvious: for example, will it be more effective to flight a brand ad during a certain television programme, or will more people take

note if the programme is actually scripted around the brand? Or is it necessary to think even more laterally – would the brand story translate well into a book? Ebersohn puts it this way: “We’re media neutral. Rather than force a project onto a specific media platform, we’ll fit the mechanism around the requirements of the project.” Mercury has proven the effectiveness of this approach several times. When Cresta Shopping Centre approached Mercury with the aim of building its brand among its target audience (females aged 35-45 and 16-18 year-old teenagers), Mercury departed from a tried and tested strategy of radio and print ads to draw attention to shopping hours, exhibitions and promotions, all aiming to up the number of visitors. Instead, Mercury implemented a product placement strategy, with Cresta becoming a familiar sight on the local soap opera, Egoli. This not only helped to build the brand, but also granted exposure for tenants and established the mall as a centre of choice. At the same time, regional press, media and outdoor continued to draw attention to specific messages, like events, extended trading hours or special promotions. The result? Year-on-year turnover increased by 13%, while occupancy rates reached 99%. A similarly successful campaign was developed on behalf of the national Department of Housing. Here, the aim was

AGENCY PROFILE

to draw attention to the challenges the department experiences around creating housing for the population in a manner that would include all South Africans, and not only the poor as the most affected, while combining high-information messaging, sustained and long-term frequency and audience interaction with the campaign. These requirements were met by developing a 26-episode television series in conjunction with the SABC. Each 30-minute episode looked at a different aspect of the crisis, and programmes were supported by additional promotional coverage on SABC stations and radio interviews. At a cost of less than R6 million, the campaign reached 87% of the target audience, and the series is being reflighted at no extra cost. Added to this, a new series is being created, while e.tv has expressed its desire to air the series. Ebersohn is careful to spread the credit for successful campaigns. “The fact is that campaigns only work because we, our clients and our partner agencies work together well. Good media ideas come from us, our clients and our partners.” According to Selane, Mercury’s unique structure plays a big role in its ability to meet customer requirements. Typically, agencies employ a lengthy chain with different people overseeing buying, planning strategy and implementing schedules. It’s not uncommon to have upwards of 10 people working on a single account – a situation that, much in the same way as a game of “broken telephone,” can lead to a fragmented brief: one person takes the brief from the client, another determines the strategy, yet another interprets that strategy in the form of a schedule, and still another negotiates media buying. “Clumsy” is the best way to describe such an approach – especially when you consider that the average industry turnaround time is two weeks. Mercury, on the other hand, has integrated strategy and planning functions, so that a single person is responsible for every aspect of the account. The benefits are manifold: for starters, with one person handling all areas, their knowledge of the business is truly comprehensive, rather

01. Building houses in the Breaking New Ground

project with the Department of Housing is part



of Mercury’s CSI initiative

02. The Breaking New Ground project involves the

community and sponsors like Mercury – when



South Africans work together they can make



a difference

01. 02.

02.

05.

The ANNUAL 2008 — 183

AGENCY PROFILE

03.

than disjointed. There’s no passing the buck; never will a client be told that their account manager can’t answer a particular question “because that’s not my job”. More importantly, turnaround time is reduced dramatically. As example, Mercury has retained an average turnaround time of 72 hours on GCIS campaigns (from receiving the brief to being on-air for the first time). Margins for error also decrease: for example, Mercury has worked with GCIS since 2004, and since that time has not made a single agency error with schedules or placements. “Our clients are complex, and they have complex problems that require quick decision-making,” Selane points out. “By consolidating the flow of our processes, we’ve ensured that each employee understands every step of what we do, so that if something goes wrong, they can fix it quickly.” Also important is the fact that employees receive training in every medium – you won’t find specialists in digital, TV or any other channel at Mercury, rather individuals who are well-versed in the strengths and weaknesses or all media. “Think about it: if you’re best acquainted with TV, you’ll never take the risk of suggesting another channel to a client – even though TV might not actually pose the best solution,” Ebersohn says. Specialisation is also rather shortsighted, given that most clients employ multiple platforms. But perhaps the single most important spinoff of Mercury’s consolidated approach is the fact that it promotes accountability – and that’s a big one, in the agency’s books. Trust is cherished, whether it’s trust between the media owners who help make things happen,

04.

or trust shared with the client. “Our motto is, always act in the client’s best interest,” Prins states. All told, the agency’s aim is to “make it simple, get it right without the drama, and deliver the right stuff,” Ebersohn says. He adds that Mercury strives to understand clients’ business and needs completely, with the result that Mercury has developed a finely honed ability to talk to a range of consumers, for a range of clients that extends from government agencies such as SARS, Shosholoza Meyl and GCIS to corporates like Consol, Indwe Risk Services, Pharmaline, Brand Leadership, Prominent Paints, Mutual & Federal and Avbob. The broad spectrum also assured that Mercury is as skilled at creating a call to action among upper LSMs as it is at targeting consumers in LSMs 1-6 – a skill that’s lacking among many other agencies. Testimony to their ability to do this is the fact that, with only one exception, Mercury has made the shortlist of every account it has pitched for. To ensure that clients ensure an understanding of the process, Mercury has introduced a number of education initiatives, like the Amazing Radio Race (where clients are able to experience each step in creating material for a radio ad) and New Media Fridays, where various channels are invited to present their latest media offerings. Selane, Ebersohn and Prins share the view that client education is crucial; in fact, they maintain that one of the most critical issues facing the industry is that of remuneration structures. “Clients need to realise that this is a costly business. Agencies that let clients pay zero commission

are making their money somewhere else, perhaps off media owner discounts – but the reality is that somewhere, clients are being shortchanged.” Another issue which begs closer examination is that of agency ownership. Why, asks Selane, are so many companies intent on employing agencies with international affiliation – especially if their operations are limited to South Africa? “This is a false barrier to entry for many agencies. The truth is that South African organisations derive more benefit from an agency that understands what makes this nation tick,” Selane opines. Linked to this is the issue of transformation, still taking place too slowly. Mercury has tried to make a contribution in this area by employing black-owned creative agencies and production houses where possible, but Selane believes that much work remains to be done. What does the future hold for the agency? While the trio admits that it’s unlikely that growth will continue at the same pace, Mercury will, nonetheless, continue to enjoy exciting prospects. “The next stepping stone is Durban and Cape Town, and from there into Africa. Our past growth has been organic, but with our processes now firmly entrenched, we’re ready to embark on an aggressive client drive,” Ebersohn says. Selane adds that it’s important not to lose sight of the bigger picture: “South Africa obviously offers a lot of opportunity at present, while it gears up for the 2010 FIFA World Cup South Africa, but we need to look beyond this. Our long-term goal is to commit to the future of this country, both economically and politically.”

03. This is the second year Mercury has assisted

with sponsorship of building houses in the



Breaking New Ground project

04. BNG houses are a minimum of 40 m2 with

a shower and toilet

184 — The ANNUAL 2008

290x26

.&3

We knew you’d read this

A mere 39 people out of every 100 South African’s will read a magazine today. That makes you part of a very exclusive and somewhat illusive group of people.

290x265.indd 1

And yet, we knew precisely where and how to get you to think about this message. We’re Mercury, South Africa’s fastest growing media company. Thanks for paying attention.

10/7/08 3:31:50 PM

AGENCY PROFILE

MetropolitanRepublic Type of Agency: Full Service, through the line Agency, with in-house post-production facility and bespoke creative media planning company. Number of Accounts/Clients: 8 Biggest spending Clients: MTN (TJDR), Liberty Life, Stanlib and MonteCasino Accounts won in 2008: Liberty Life, Stanlib, MonteCasino and Stuttafords Accounts lost in 2008: None Company Ownership: 100% locally owned independent Contact details: Tel: +27 11 807 4714

Email: [email protected]

Website: www.metropolitanrepublic.com Agency Billings: R104 million Key Awards in 2008: Creative Awards CANNES 2008 1 Bronze Lion

CLIO AWARDS 2008 3 Bronze statues

INTERROGATE THE BRAND UNTIL IT CONFESSES

Two entries into Annual

At arguably the hottest and most exciting stand-alone ad agency in the country, staff likens founder and uber-creative Paul Warner to film-spy Austin Powers. MetropolitanRepublic has just installed the country’s first agency tele-steaming laser facility into its Rivonia headquarters, allowing it to send commercials directly to broadcasters at the push of a button. It dramatically cuts down on time-to-air, which is of course one of the most valuable new currencies in advertising. The reason for this is that entrepreneurs and founders, Paul Warner and Peter Khoury, decided to build the first-ofits-kind-on-the-African-continent, full service post-production company. Says the business minded Khoury, “Having our own edit suites, multiple recording studios and Flame suites enables us to timeously deliver multi-million rand television commercials, radio spots, documentaries and AV’s for our clients at half the cost and in half the time.” Take a look at the various commercials produced for MTN, which vary from R5 million to R5 000. So when an ad is ready to go, staff would like the diminutive and dynamic Warner to stand behind a blinking console and say in the right comedic accent, ‘Start the Laser”. They’re resisting – for the moment – dressing him in purple velvet and ruffles! He’s taking the ribbing well but in the same breath explains the investment will increase his ability to produce more tactical advertising and also to get ads to eyeball that much quicker. Nowhere is that more important than with their biggest client MTN, that they affectionately refer to as the “yellow client”, which is playing in an increasingly commercially robust space and where time-specific deals and offers are critical to the brand’s ongoing success and profitability. Warner, who has shed his image of advertising’s

D&AD

LOERIE AWARDS 2008 3 Gold Loeries

1 Bronze Loerie 1 Silver Loerie

2008 NEW YORK FESTIVALS 1 Silver

Effectiveness awards

Silver Apex for MNT “Go” Campaign Adreview recognition

Newcomer Agency of the Year Campaign of the Year – MTN

(MTN is serviced jointly with Jupiter (Jhb)) Number of Staff: 41 Key Agency Staff: Founder and chief creative officer: Paul Warner Executive creative director: Pete Khoury Managing director: Thando Dingaan Head of strategy: Sophie Mayer

Creative director: Lapeace Kakaza Creative director: George Low Key Moment in 2008: MTN bursting into 8th place in South Africa’s Favourite Brands Survey, for the first time in the brand’s history. The Agency snapshot in 50 words: We are doing something new here. Think collaboration, not com-

petition. Think vibrant, eclectic talent pool with strategic-minded

creatives that move the sales needle. This is a scam-free zone. With

full in-house post production. Also, we just started a high-end creative media planning company, Metropolis. Watch this space.

186 — The ANNUAL 2008

creative bad boy can be well proud of how his vision of a new independent advertising agency has taken root; boasts a staff of near 50 and is responsible for azure- blue chip clients including MTN along with recent wins Liberty Life and Stanlib.   So let’s reel back 18 months, before MetropolitanRepublic was voted newcomer ad agency of the year (2008) by the authoritative AdReview survey. Warner talks of wanting to start something different and new in advertising where there was more participative staff energy on accounts and where brand measurability and performance were paramount. Over dinner one night Warner was asked by industry doyen Graham Warsop, group chairman of The Jupiter Drawing Room, what he would most like to do if he could wave a magic wand. Warner flipped open his laptop and blew Warsop away with his vision of a new type of agency called MetropolitanRepublic. Within a week a deal was struck. A few weeks later Warner moved his then, tiny agency into the most technologically advanced 3 storey stand-alone building in the heart of the Rivonia, making MetropolitanRepublic the most savvy agency in the country. With an initial staff compliment of less than 30, they began work on the MTN business that they service for Jupiter, and he set about re-invigorating the brand, whose messaging had become a little disparate. The agency’s hard work, underpinned by new strategic thinking,  culminated in the now famous Clap ad for MTN that is being talked about as one of the great South African television commercials of modern times. Interviewing Warner and his coterie of managers is no easy task. They all have strong opinions on issues and the conversation takes tangents and then tangents from tangents.

AGENCY PROFILE

01.

01. This AV received a standing ovation, a second re-run and a Gold Loerie. It was produced at our in-house edit suite for a fraction of the cost. The AV tells a story, it weaves a real-life situation into a memorable and relevant brand message: Own your Life with Liberty Life

02.

02.

Over the festive period traditionally our competitors flaunt bikinis, sun and dancing animals. This year we wanted to create sincere, authentic connections with the nation. Our insight was that people travel back to their families over the festive season. We shot the commercial in a small fishing village with no actors and no props. Everything you see in this commercial is authentic, all the people from the actual community are used to enhance the integrity of the advert and the message is simple and clear – this Christmas, reconnect with your family and your community. MTN was personally thanked for uplifting the community of KassiesBaai in Arniston. Long live the community table

But out of the high energy chatter comes one clear thing – they’re obsessed with building brands and making sure that advertising is a serious business tool. Warner talks of a massive learning curve in the beginning and the realisation that an ad agency was a lot more than just the creative guys. He’s both salutary and praiseworthy in his admiration and respect for all agency disciplines and prides himself on the fact that he’s gathered a group of people together who all have the same vision. So where did they come from? Warner

openly says many other young agency people who were becoming disaffected with more traditional and hierarchal models were gladly poached. But he’s also hired a second group of people who had not previously been in advertising but bought into his thinking. He proudly talks of employing the “cream of the crop” in the industry. But it’s low-fat cream in the most metaphorical sense. There is multiple staff participation on business with a high degree of cross-account multi-skilling. If a receptionist has a strategic insight or a bean counter has a

brainwave, it’s taken seriously. One of the more serious aspects of MetropolitanRepublic is its negative attitude towards awards. An emphatic Warner, who has won countless gongs in his time, says: “We don’t do proactive work and creatives are bred not to enter awards but to come up with business solutions. I have no proactive budget like many other agencies do and my message to my studio teams is if you are going to become famous then you have to do a lot more work and solve financial

problems for brands.” Warner says his agency has become a big fan of the much undervalued Apex Awards that recognise business effective advertising. Another question; does an ad agency still need one big high profile leader? Warner lets his team pick that one up. Says head of strategy Sophie Mayer, “My job is to keep Warner honest. If you respect others’ abilities and talents then team synergy wins the day. Paul’s name is not on the slate. We live up to our name of being a republic. We have put decisions to a vote and he

The ANNUAL 2008 — 187

AGENCY PROFILE 03. The handwritten letter that MTN received from the Chairman of the Kassiesbaai Fishing Union, thanking them for their generosity of spirit. All proceeds from the advert were directly pumped back into the community. Reality advertising at its best creating sincere and authentic connections with the public

03.

has lost before. That, we believe, ensures the best solution for the client. The ego driven ad agency is no longer relevant.” So if that’s the tight operating philosophy, how has that effected and affected business performance in 2008? MD Thando Dingaan concedes that life in the first full year has been tough as a start-up. “We’re running hard every day but

188 — The ANNUAL 2008

we’ve won significant new business including Stanlib, Liberty Life, MonteCasino and the department store Stuttafords. Our plan going forward is to stay small and contained for a few months and to suck it in. And then exhale and grow some more.” Dingaan also lets slip another key attribute to the agency’s success story so far: “It’s critical that our personality fits with that of the client to the point where we’re happy

to interview them as they must interview us. When you join MetropolitanRepublic we become part of your family and you become part of ours. We want relationships to continue for decades.” To that point Khoury,“Since taking on Liberty Life and Stanlib we’ve produced little work for consumer consumption, but we have built “brand-worlds” first. We’ve worked internally with brokers and with staff before unfolding any advertising. We need to get under the skin of our partners and that takes time and commitment from both parties.” All management members concede their big challenge going forward is not being known as the MTN agency. Notes Khoury: “Eighteen months and we know we’ve reached a successful tipping point with the brand, it’s put us on the map and we’ve been a key stakeholder in repositioning and consolidating the brand. We’re now in a position to use that success and do the same thing with other clients. We’ve spent much time now debating our own brand, who we are and we have a clear vision and direction for this agency.” Sophie Mayer uses an in-house phrase that she calls “Metro-Magic” in which the agency is a client’s measurable “sales needle” – offering a sustainable commercial and competitive advantage. The group philosophises about the right and the wrong appeal in terms of advertising, with the wrong advertising actually reducing the sales of a product. In order to get that appeal right Mayer unveils the agency’s four “P’s” that underpin its strategic approach: “Preparation is critical. You have to strip the product down to its DNA and bare essentials and make sure that you are doing the same to its competitive set. We say here at MetropolitanRepublic that you have to interrogate the brand until it confesses. You have to get the right truth from the brand, otherwise you are directionless. “Then comes positioning. By that we mean once the brand has been punched in the gut and vomited up a confession we use that insight to reposition and reformulate. The imagery might not be pleasant but that’s the hard approach that is needed if advertising solutions are going to be effective.” Mayer also talks about the personality aspect of a brand and what images are associated with it perceptually and even peripher-

ally to guarantee that it will be noticed. The agency has formed an alliance with one of the globe’s leading brand thinkers, Hollander Michael Jansen, and his concept of brand prototyping. And then perhaps the most important of the “P’s”– the priceless factor. Mayer explains: “We have to ask this key question, the messaging that we’re disseminating, is it priceless? Does it make you gasp, is it memorable and will it run for 35 years. We’re not in the business of developing a campaign that runs for three months then it’s gone. It’s about capturing the philosophical essence of a brand and making it do something, changing attitudes, perceptions or even behaviour.” Mayer says it’s about creating mass movements (a recently trademarked proprietary strategic positioning tool). “It’s our job, we believe, to start them. Movements go on as long as kindred spirits are involved. Campaigns are dry and emotionally detached. Movements are organic and rooted in passion. They rely on word of mouth where campaigns rely on traditional mediums. Movements are others talking about you and having a brand conversation. Brand movements, we now know, add credibility.” The best example of this was has been the MTN work, where through its adherence to these principles has managed to garner and gain real credibility on the street. Khoury says campaigns create a you vs. us mentality whereas movements suggest that the brand and its consumers are in something together. And to illustrate the point, try this for size. Last December, while rival cell phone companies were exhorting the leisure and commercialisation aspect of Christmas, MTN drove a strategy that their product enabled families to talk to each other at this time and that it was a season to return home. A spirited and emotional campaign was developed using the citizens of the small Western Cape fishing town of Arniston. The message was spot on, the local economy benefitted from the work and the exposure, and eventually a small statue was erected to the brand and the agency by the townsfolk. That’s what creating a movement is all about. Another tactical print campaign around Women’s Day that highlighted famous South

AGENCY PROFILE

African women was so well received it led to one ad critic saying it should be used as a school teaching aid. Praise indeed and another example of creating a conversation or a movement. So what of the future for MetropolitanRepublic and why should marketers hitch their brand to this fledgling agency? The agency is adding on more strategic offerings. The quaintly named Hotel Deville is a French-themed post-production house where the decor and antiques are as exciting as the Austin Powers thing. A newly formed bespoke media planning division, Metropolis, with Sasol being it’s first large win, is also in the offering, but the overriding business imperative is to stay small and boutique. And what happens when the inevitable growth curve heads north? Warner uses the well known baboon troupe analogy. When it reaches 50 it splits in two because more than that number precludes effective communication, socialisation and interaction. While he hasn’t worked out

his troupe size just yet, it’s a useful principle to hold on to. In terms of business growth, the agency is hungry for a couple more accounts but is also cognisant of responsibilities to existing clients. Says Warner: “It’s my experience that ad agencies are always looking for more and not worried about the fish they already have. We don’t and won’t do that.” And now, the MetropolitanRepublic crystal ball for 2009. Says Warner: “The industry is by no means recession proof and we are seeing the effects of budgets being slashed. Agencies will have to deliver smarter and more cost effective solutions. Brands will also take more social responsibility and as we are building towards 2010, brands must also take more business and societal leadership because of a perceived lack of general leadership in the country. Brands have in many ways to start leading the country.” So that’s the story so far. MetropolitanRepublic has really started the laser. As Powers might say – Groovy baby.

04.

04.

To commemorate National Women’s Day in South Africa, MTN decided to donate R10 from every Samsung handset sold, to POWA (People Opposing Woman Abuse). The client brief was to create a once-off 30 second T.V. commercial with a budget of R120 000. The solution: An integrated campaign produced for FREE. The TV advert was created in powerpoint, the outdoor utilized recycled billboards and the entire campaign was produced at no cost to the client. The production, agency and media fees, totaling over R3 million, were donated to POWA. Viva MTN, Viva

05.

05. This year for Women’s Day we showcased various ordinary women who have done extraordinary

things. The response from the public was overwhelming: “If there are any history teachers reading this:



you could do a lot worse than using this ad as a teaching tool in informing your classes about these



incredible women.” – Brendan Seery. You strike the women, you strike the rock

The ANNUAL 2008 —189

AGENCY PROFILE

Mick&Nick Type of Agency: Through-the-line agency Number of accounts/clients: 6 & Project-based BIGGEST SPENDING CLIENTS: Nike BTL Accounts won in 2008: Nike BTL Accounts lost in 2008: None Company Ownership: Co-owned by Michelle de Gouveia, Mick Shepard, Nick Liatos and the Lowe Bull Group. Number of staff: 13 Billings: R6-million Key awards in 2008: Bronze Loerie for Nike Shelf Life Event Key aGENCY STAFF: Director: Mick Shepard Director: Nick Liatos Director: Michelle de Gouveia Contact details: Physical address: St Andrews Office Park Meadowbrook Lane Epsom Downs Bryanston Postal address: PO Box 69864 Bryanston 2021 Tel: +27 11 780 6358 Fax: +27 11 780 6327 The agency in 50 words: Operational since February 2007, Mick&Nick have grown rapidly. Our key ingredient being delivery: service delivery, creative delivery, results delivery. We strive to ensure that our people, processes, work and overall culture is geared towards delivering at every level and being recognised as such. ROI = Mick&Nick.

When you walk into the Bryanston offices of the Lowe Bull Group, you wonder if there any awards left for the rest of the industry. Framed certificates line every wall, shelves buckle under numerous trophies. No space for oils here. But blazing a different trail is the small but growing agency, Mick&Nick – part of the Lowe Bull stable – which is busy expanding horizons on the below-theline front. Only 18 months old, the three-way partnership between Mick Shepard, (director), Nick Liatos (creative director) and Michelle de Gouveia, (managing director), has already shown results with 190 — The ANNUAL 2008

their record-breaking promotional campaign for SA Breweries, Hansa’s Board of Approval (HBA). In one of the biggest responses in its history, SAB received a million SMSs from consumers eager to win a “non-executive seat” on the HBA. “We are very proud of what we did,” said Mick. “The campaign ran over a notoriously low volume period (winter) in June this year and two weeks into the promotion average weekly sales had reached levels usually only seen over December.” The trio’s instincts have proved sound. The agency was formed during a tumultuous period in their lives when all three, working for a large agency, were retrenched. “We decided we didn’t want to split up. We felt we had the right combination between the three of us to create something we wanted – our way,” says Michelle. “We decided to approach Lowe Bull, as their creativity and culture seemed best suited to ours. We started with the group in February last year.” Their hunch paid off and very soon they were unlocking a new source of revenue for their new partners, creating a happy and mutually beneficial “traction”. They had brought their own client, Look & Listen, with them and started doing BTL and activation work for existing Lowe Bull clients as well as their own, while strengthening existing relationships. Nike has recently named Mick&Nick as their BTL agency. They point out they are not a division of Lowe Bull, but very much an independent agency with sky-high ambitions. “Whereas this is a start-up in the making, we’re thoroughly enjoying ourselves – doing it our way. Our strength would be our relationships with our clients, under-

standing their business,” says Michelle. “And ethics play a huge role in our agency – we have secured fantastic relationships with our clients and suppliers, that hold the same values and attention to detail characteristics we do,” she says. Mick&Nick want to make their agency one that everybody would want to work for and one that every client wants – longterm staff and client partnerships, based on trust, transparency, outstanding service, attention to detail, great creative and measurable results. “With the agency being very small, we are able to provide personal attention to every project we work on,” says Michelle. “Our clients also benefit in receiving the strategic, creative and operational depth of a large agency, with the hunger and commitment of a small one. “We welcome clients that ‘give a shit’ about their business and their brand, those who come to us with a business problem for us to help solve. “Structures and processes are very close to our hearts and have been a key ingredient in starting up. Correct processes ensure streamlining of work flow, giving a sense of calm to our clients, who know that there are systems in place to support them every step of the way. “Our creative teams all sit together in an open plan office, where they bounce ideas on different briefs among each other.” Mick and Nick are involved in the strategic and creative output while Michelle is active on the operational side. Apart from everything else, they also, says Nick, have a flair for “bringing ridiculous ideas to life”. They took the Nike’s Dunk campaign to the “sneaker freaker tribes” of Cape Town and communicated the very spirit

and energy of the brand with its upbeat message of being true to yourself. The Dunk-styled café and stencil wall – where customers can design their own Nike dunk – remain as a permanent reminder of this campaign in Shelflife, one of the freshest street culture stores in Cape Town. Mick&Nick are brand-centred and set out to find strategies that will bring brand promises to life. “The point is it is lovely to make a TV ad but how do you make the brand live?” says Mick. This is a difficult time for industry practitioners, downturn notwithstanding, because, says Mick, there are too many products, too many agencies, too much of everything. How do you separate yourself from the pack? For example, it’s really hard to compete with those that are first to market. It’s almost impossible to dislodge that product, says Nick “You are fighting for space and the only way to get it is to fight harder, so the traditional broad-based approach may not be quite as effective as it used to be.” Mick believes in a shift in focus from being creatively minded to businessminded. “You need to connect with people. You can look at 5 000 paintings but there will be only a few that resonate with you. The trick is to find something that makes people connect to the brand. It’s not good enough to just be creative.” The future looks bright for Mick&Nick and plans include taking a closer look at their revenue mix. Most of their clients are project-based and they want to increase retainers – always good for the income stream and a hedge against insomnia. (Although any agency will say projectbased accounts are a welcome venture into

AGENCY PROFILE 01. In-store display and retail units were custom

built for the launch of Nike Dunk in Sportscene.

02. TV Headboy is now a Look & Listen retail icon

which regularly promotes a range of new



releases for the chain.

03. Hey, who doesn't want to do a piece of

work featuring a storm trooper?

04. Support group for wannabe superheroes, a

stunt man who's dying for a piece of the action



and the worst video store customer ever. All



highly effective ways of building the Look &



Listen 'for the fans' strategy on cinema



television and online.

05. 1 of the 6 custom sprayed taxis with the

corresponding Nike Dunk from



the Shelflife 'Be True' campaign. 6 posters were



created, each featuring a different graffiti artist.

01.

02.

03.

04.

06. The Shelflife 'Be True' Block Party plugged

directly into sneaker culture and helped further



Nike's street cred.

07. The Hansa Board of Approval (HBA) activation

allowed consumers the chance to connect



directly with the brand as they were inter



viewed for a non-executive seat on the HBA



with a salary of R600 000 for 1 year!

06.

The trick is to find something that makes people connect to the brand. It’s not good enough to just be creative. new turf and tend to keep practitioners on their toes.) They would like to grow their agency from its present size of 13 to a maximum of 30 staff with at least four retainer clients by 2010. But most of all they want to build a business that is sustainable. All three partners are blessed with an entrepreneurial flair – a talent that is becoming increasingly indispensable in a crowded market – making the agency well placed to face future challenges. Client references “Mick & Nick have a clear understanding of BLT and retail integration. The most

05.

important part is understanding how the consumer consumes media in the environment and they are good at that. “We have to meet international standards and although we are sent guidelines we need someone to do a local interpretation. They manage to get to the customer and break out of the clutter, by thinking out the box.” – George Camara, retail brand manager: Nike South Africa “We have worked with Mick&Nick for a few years and have found them to understand the essence of our brand, certainly more than any other agency at the pitch did. They came up with our current strapline

07.

of “for the fans” which captured the spirit of our brand perfectly. “I believe that our new logo and the use of the strapline on our shopping bags brought the branding to a new level. “Their work is consistently good and there is a mutual respect between us, a real partnership.” – Darren Levy, CEO Look n’ Listen “Mick & Nick have been saviours for us as we have battled to find solid below-theline creatives. We found they were able to immerse themselves in our business very easily even though it was a difficult brief – our target market ranged from the guys sitting on crates in shebeens to people

living in leafy suburbs. “They were able to put together a welltailored activation that was simple and had the touch of human truth so necessary to reach people. People tend to get complicated about these things, when in fact they need to make it real. “What I liked about them is that they are prepared to sit down and co-develop with you and there is continual contact – no problems with re-working. There is nothing precious about them. “We have done one campaign with them which broke all records and are about to begin work on another.” – Dino D’Araujo, executive brand manager, Hansa, SAB (South Africa) The ANNUAL 2008 — 191

AGENCY PROFILE

morrisjones & co Type of Agency: ‘Allvertising’ – through-theline marketing & advertising Number of accounts/clients: 12 big spending clients: Wimpy, Discovery, Southern Sun, Debonairs Pizza, Appletiser Accounts WON in 2008: Ferrero Rocher (including Tic Tac, Kinder Joy & Nutella) Incolabs (including Everysun, Tropitone, Like Silk, Innoxa, Lip-Ice, Durex, House of Gallia, Milton, Karvol & Fenjal) Accounts lost in 2008: Declined to re-pitch on the Retail arm of Virgin Mobile Number of staff: 49 Billings: R170 million Key agency staff: Managing director: Nina Morris Executive creative director: Angel Jones Financial director: Kurt Reed

01.

Creative group heads: Margarita Karvouniaris & Greg Cohen Design head: Alex Hammerl Operations director: Colleen Anderson Group account directors: Beansie Cain, Silke Jahn & Zoe Schultz Contact details: Nina Morris: [email protected] Angel Jones: [email protected] KEY AWARDS in 2008: Ernst & Young World Entrepreneur Finalists Creative Circle & Loerie Finalists. KEY MOMENT in 2008: Expanding the agency to occupy the whole building of La Roche The agency in 50 words: Creative hard sell, efficient delivery, highly strategic and results driven. Through-the-line “Allvertising” with hands-on passion from the founders. Proactive and long-standing relationships with clients. Solid growth of iconic South African brands. Founders of the Homecoming Revolution, communicators for Action for a Safe SA and deeply committed to this country. Picture captions: 01. Nina Morris – managing director and Angel Jones – executive creative director – morrisjones&co. 02. Stirring souls in London – morrisjones&co. are founders of the high profile Homecoming Revolution. 03. Catapulting Appletiser into premium desirability with the new “deliciously good” campaign. 04. Cheekily making fun of the sinkhole in Oxford Street, Rosebank.

192 — The ANNUAL 2008

morrisjones&co smells. Literally. Its signature scent wafts subtly through the reception area of the agency in Westcliff and – while you’re not quite sure what’s happening – on a subliminal level it imparts feelings of calm and confidence. Managing director Nina Morris and executive creative director Angel Jones later reveal that this is one of the ways they’re experimenting with new sensory advertising. “We’re not only harnessing the traditional five senses but looking at movement and orientation as well,” says Jones. She holds up a Polyfilla advert that Jo’burgers loved because it featured a massive hole left by Gautrain construction workers on Oxford road…one that clearly needed to be filled. It disrupted the “movement” of hundreds of thousands of motorists so how could they not take note? Perhaps this pioneering spirit is one of the reasons why morrisjones&co has a name for adverts that are big on impact. They’re also big on fun. It’s virtually impossible to watch the Wimpy “I love it when you talk foreign” or the Southern Sun “shine” commercials without smiling. “Our campaigns seem bigger because we live by the concept of allvertising,” says Jones. “We don’t move without a comprehensive strategy in place to compliment our TV work.” The agency is famous for its above-the-line campaigns but, with a staff complement of nearly 50, it also has full below-the-line capacity to extend one message across all touch-points.

There’s something else about the agency’s creative work that hits you subliminally – something real. “I think we humanise brands,” says Jones. The agency has been inspired by South African quirks. For example, before it launched the Wimpy foreign coffee campaign, morrisjones&co spoke to a range of locals who said that they were wary of ordering foreign coffee in case they mispronounced it. By poking fun at this lack of sophistication the agency undercut the intimidation – and sales soared. morrisjones&co doesn’t have a signature sound but, if it did – given the profile of its two founders – it would come from a big band! In 2001 Jones, who had no qualms about wearing “Angel” wings about town to draw attention to the agency, found the perfect partner in Morris, whose charisma and experience were matchless. The majority of shares were then held by the Saatchi brothers of London. The pair had a client base of zero and began cold calling. Just a year or so later they had built the Kulula brand, helped brands such as Hollard to explode into the public consciousness, and taken over ownership. Fast forward to 2008 and the agency is still growing amid the financial gloom. It is the custodian of big brands like Discovery, Southern Sun, Wimpy and Debonairs Pizza, and has just acquired two new accounts – Ferrero Rocher and Incolabs – without a pitch. After landing the prestigious Appletiser account, morrisjones&co has been tasked with directing the brand’s global marketing strategy.

It’s devised a tool kit that will be used in the UK, Australia, New Zealand and Japan as well as a host of emerging economies. “Who says we can’t take a map of the world”, says Jones drawing a rough sketch of the continents, “turn it upside down, and put South Africa right on top?” Despite their staggering success, Morris and Jones still run day-to-day operations and oversee each and every account. “Our clients know they can pick up the phone to Nina and me any time, which is a big plus,” says Jones. They are also happy to attribute some of the agency’s growth to what they call the “chick factor.” They multi-task; they pay attention to detail. The agency has many male staff but, under the direction of Morris and Jones, it’s not afraid of intuition. “You have to believe in this tummy that tells you something,” says Morris. Jones says when she sits around a table with her creative team they often take decisions that just feel right. They’re also sceptical of research that is too academic and will reject anything that feels wrong. morrisjones&co research is often used to test an initial gut feel. Says Jones: “We send our guys out with a camera and microphone to diverse shopping malls and they ask predetermined questions. Usually the answers confirm what we knew all along.” This intuition cuts across target markets. Jones is dismayed at the uniformity in the industry currently when it comes to speaking to upwardly mobile black men: “Everyone sells a lifestyle. They show a guy on the golf

AGENCY PROFILE

course or a guy in a fancy car.” When KWV came on board the agency’s campaign honed in on the brandy itself. It highlighted the ‘potstilling’ process, and the idea that those who don’t know what ‘potstill’ means can still enjoy its taste of perfection.” The founders of morrisjones&co are surprisingly upbeat, despite the downturn in the economy. In fact they are encouraging clients who can offer value to take this unique opportunity to grab market share. “A few months ago we launched the triple-decker promotion for Debonairs that gave it its best month of sales – ever,” says Morris. “People are reluctant to go out for expensive dinners, but that’s good news for Wimpy because they sell good food that’s really affordable,” adds Jones. They understand that, even in tough times, women love to treat themselves with “everyday” luxury items. In creating the latest Appletiser commercial, the agency therefore played up its delectableness, rather than its affordability. It has the beautiful soft feel of a designer perfume advert; it features a woman who shoots at a lush green apple on a tree and is showered in its refreshing clear juice. It speaks profoundly to female desire for health, sensuality and bliss. In contrast, “hard-sell” better serves clients who are simply looking for more return for less investment right now. And morrisjones&co is not ashamed to drive sales. “We’ve never been a precious agency,” says Morris. “The days of lovely 60-second ads with no call to action are over.” Clients are not only battling with new economic conditions but are also having to come to terms with new media. In this Morris and Jones see themselves as patient educators. The agency is set to launch a digital arm and it already offers extensive technical capabilities. A recent interactive “Sex in the City” promotion on appletiser.co.za received hits that were 207% above target. morrisjones&co is also moving fast into the mobile space, with a view to creating “edu-tainment” content to build their brands. Jones believes that outdoor will remain prominent, even while the future of television is unclear. It’s widely believed that viewers will start to download their entertainment from the net, but she’s not quite sure. “I think there will also always be that sofa chill factor that makes people want to sit back and passively receive.” Whichever mediums it will use, the future looks bright for morrisjones&co as it remains committed to human communication, innovation and results. It’s said that if your mojo is working you lead a charmed life – which is probably why this truly successful agency is affectionately shortened to mojo.

02.

03.

04.

The ANNUAL 2008 —193

AGENCY PROFILE

New World Communications Type of Agency: Packaging and branding

02.

architects /BTL Number of accounts/clients: 15 clients excluding project-based clients BIGGEST SPENDING CLIENTS: DairyBelle, Tiger, McDonald’s, SAB Accounts won in 2008: Cadbury Easter packaging, Interconnect, Friskies, Alpo Pet food, Innoxa Accounts lost in 2008: None Company Ownership: Sole ownership (Helena Pereira)

03.

Number of staff: 15 Billings: R8 million Key awards in 2008: N/A Key aGENCY STAFF: Helena Pereira, Eureka Bos, Claudine Swanepoel, Mario Pereira Contact details: Physical address: No. 1, 6th Avenue, Rivonia Postal address: PO Box 3496 Rivonia 2128 Tel: +27 11 803 5527 Fax: +27 11 803 8320 The agency in 50 words: Just over 10 years ago, New World Communication (NWC) was established to fill a niche in the market – as packaging and brand architects. Utilising the best design and technical expertise, we implement innovations in the spheres of packaging, point-ofsale campaigns and website design.

New World Communication is passionate about packaging: “It has to shout pick me up,” says owner Helena Pereira. “Our art is about those short few seconds between your eyes settling on a shop shelf and your mind making a choice.” When NWC launched in the mid ‘90s it was part of a new world in which advertising growth and technology had made a dedicated below-the-line agency possible. A decade later and the industry is moving away from specialisation and back toward offering full, diversified services.

01.

And yet NWC remains fully focused on its core services of brand development and package design. “Staying true to our passion is what gives us the winning edge,” says Pereira. She says there is often a direct correlation between package re-design and an increase in product sales. “I still get a warm and fuzzy feeling every time I see our own designs on the shelves and I secretly watch the reaction of consumers.” The field is highly specialised as, generally, there’s only a small amount of space available to communicate exactly what is being sold and to engage consumers with brand promises – not to mention to fit in the usual legal blurbs and list of food ingredients. Pereira says food packaging is unbelievably competitive and fast-paced because consumers are always looking for fresh appeal. Currently old-world style designs such as olive oils and personalised labels are popular. However, she says the general world trends are toward less clutter and convenient openings. “More than ever customers are concerned about health and quality and they like to see what they’re buying.” Pereira says South African firms are just beginning to consider smaller, eco-friendly or sustainable packages. “For now it’s only on the agendas of the forwardthinking corporations but the ripple effect is coming,” she adds. While its packaging may speak loudly, NWC is conspicuous in the world of advertising by its softness and understatement. Streaming sunlight, light music, warm wood and clean lines give a tranquil

air to the main studio. The only untidiness is on a large table that is strewn with packets and boxes. Pereira points out “before” and ”after” Friskies bags; a recent modification has seen a picture of the pet food pellets replaced with a picture of the mouth-watering fresh ingredients. “People want to know that they’re feeding their pets something wholesome,” says Pereira. Suddenly it strikes that this concept – wholesomeness – encapsulates the agency’s difference. It is situated just down the road from the Sandton business hub. And yet, despite this incredible shyness, NWC was able to bill more than R8 million last year. Pereira says the agency has grown through word of mouth and repeat business. It has a reputation for not only offering creative excellence but quick turnaround times as well. “We don’t have airs and graces, we don’t throw tantrums, and we are willing to listen to our clients instead of being arrogant about our own ideas,” she adds. So NWC doesn’t dazzle with decadence and it doesn’t boast with multiple awards hanging on the walls. But a visit leaves you with a warm and fuzzy feeling and the surety that the agency has earned all the accolades it needs – from clients who keep coming back for more.

04.

01. NWC team 02. DairyBelle double cream yoghurt 03. Epol Value Range 04. Tastic Authentic Indian Cook-in-Sauce

The ANNUAL 2008 — 195

15671 SAPPI adS UD R 13/10/08 13:39 Page 3 C

M

Y

CM

MY

CY CMY

K

AGENCY PROFILE

OMD Type of Agency: Media Number of accounts/clients: 246 BIGGEST SPENDING CLIENTS: Standard Bank, Distell, Tiger Brands Accounts won in 2008: Distell, Danone, Visa Accounts lost in 2008: None Company Ownership: Omnicom Inc 54%, Shanduka/Staff Trust 26%, Dovey/Westwater 20% Number of staff: 126 Billings: R3-billion Key awards in 2008 N/A Key aGENCY STAFF: All Key moment in 2008:

Staff at OMD’s Johannesburg offices

Vindication of our 2007 decision Contact details: Johannesburg Tel: +27 11 303 2000 Cape Town Tel: +27 21 425 8838 Durban Tel: +27 31 533 7950 The agency in 50 words: Client-focused media agency. The largest player in the volume-driven trading side of the business, with the financial clout to employ the best people and make a difference for our clients.

OMD proves that bigger is still better when it comes to media. More than ever, clients want to save on advertising time and space and – as the largest agency in South Africa – OMD continues to deliver on its negotiating clout. Even in the economic storm of 2008, it has managed to keep its billings steady at the whopping R3 billion mark. To counteract plummeting ad revenue growth, it simply increased its market share with new business. There’s been much said about OMD’s phenomenal success in just over a decade since it was launched – but little insight into what’s behind it. Co-founder Josh Dovey is loath to offer a simple formula but, when pushed, he speaks passionately about people. “We don’t employ clock watchers. We find good people, pay them good salaries, and put them in charge of their own accounts and their own destiny.” He says OMD has resisted the temptation to become inwardly focused because everyone understands its business is making clients, and not the agency, famous. As part of its corporate responsibility, OMD continues to train aspiring youngsters, even though many of them will leave. “Our philosophy is to respect them, let them learn and let them go,” says Dovey. He says the surprising upshot is that many return to the company having acquired new skills. The buzzing section of OMD’s office in Sandton is called the trading floor. A Standard Bank light-box hangs above the

team responsible for handling the bank’s business, and this structuring around exclusive units is an OMD invention to provide peace of mind to competing clients. “But it still comes down to trust,” says Dovey. “Big firms often share legal companies with their competitors, for example, and they can expect the same professionalism from us.” The volume of annual transactions through OMD is so large that half of the staff compliment consists of people dealing with invoicing and billing. “You have to get basic financial hygiene right” says Dovey. Involvement in the campaign process starts early, with OMD research and planning teams interacting with creative agencies as early as the briefing stage. They help define target audiences and the best ways to reach them. “We make sure that we get the right information from the client early on and then we can deliver on our proposition by adding insights, ideas and results,” says Dovey. “Our size helps us to get the right price for advertising space, but that follows intelligent, strategic planning.” Looking ahead, OMD is gearing up for growth in the digital and internet media area. While subscription TV is still on the rise in South Africa, Dovey believes the model of pre-packaged programming it represents is dated. He looks forward to a time when people will click and choose programs on the net and only pay for what they want. Advertising will not only have to find a new space, but will have to become

sharper and more tailored to its audience so it won’t be ignored. According to Dovey, this boom in downloading is coming – “but not next Tuesday”. He says above the line will remain important for a very long time, and sellers ignore that at their peril. Current economic pressure means the focus on return on investment is huge and Dovey welcomes the transparency in media. There is a clear correlation between money spent, the number of people who view advertisements, and sales. Dovey also believes there will continue to a healthy synergy between the creativity of advertising agencies and the careful research of media organisations: “Using the right channels to target the right market is vital – but a great ad is still…a great ad!”

The ANNUAL 2008 — 199

AGENCY PROFILE

One Digital Media Type of Agency: Media owner Number of accounts/clients: 83 Accounts won in 2008: Unilever, Tiger Brands, Coca-Cola, Rainbow, Distell, Reckitt Benckiser Accounts lost in 2008: None Biggest spending clients: Unilever, brandhouse and Coca-Cola Company Ownership: 35% VenFin 65% Management, staff and friends Number of staff: 121 Contact details: Mike Bosman Key agency staff: Chief executive officer: Mike Bosman Chief operating officer: Andrew Ridl

01.

Chief financial officer: Charles Parsons Key moment in 2008: Gaining the support of more than 75 of South Africa’s top brands. The agency in 50 words: One Digital Media is SA’s largest owner and provider of digital media at retail with more than 6000 screens in more than 1000 sites. The company is able to broadcast static or dynamic imagery and messaging to any single screen or group of screens.

Go digital or go home! This somewhat abrupt message seems to be dominating many of the international marketing headlines these days. Nevertheless, major international brands as well as brand managers of large FMCG, retail and fast food clients are rapidly moving to trap the new power of digital media at retail. The international research house, Forrester, forecasts that by the end of 2011, 90% of all retail outlets in the US will employ digital media at the point of purchase. And the way it works is incredibly simple. Essentially, advertising, training, menu board, or other store imagery content is broadcast to screens that are strategically positioned in stores. Unlike regular broadcasting, the content can be sent to the screens in advance of the time that the content is scheduled to be shown. This is done via GPRS, the internet or by satellite. The method of broadcast is determined by the quantity of content to be downloaded and the urgency of the broadcast. There is a later a “backhaul” of information via GPRS from the stores to the broadcast centre to confirm that the flighting of the content did take place. This global communications phenom200 — The ANNUAL 2008

enon is dominated in South Africa by One Digital Media. It owns more than 6 000 screens which are installed in more than 1 000 stores around the country including 134 SuperSpars, 100 bottle stores, 500 shebeens and taverns and it as installed digital freestanding display units in Pick n Pay, Game, Dionwired and Makro Liquor. One Digital’s screens are dominating retail space and they have also been appointed as preferred vendors to the 14 companies in the Foschini group, to Milky Lane outlets and to Shell. Most of the major, sophisticated South African brands now use digital media at retail. Early adopters of the medium include Unilever, Distell, Cadburys, Coke, Rainbow Chicken, Tiger Brands, MTN and Vodacom. Because every screen has its own media player, One Digital Media has the ability to broadcast static or moving imagery to any one screen or any group of screens in its network. The ability to send content to a particular screen or a select group of screens is called narrowcasting. Additionally, the screens can work interactively with cellphones to offer shoppers digital vouchers or topped-up airtime in return for their patronage. This is a very compelling prospect for retailers, brands and the 96% of South Africans who use cellphones. A study conducted by Research International in South Africa across the Spar franchise using 22 brands revealed that the brands stand out 33% more when screens are used in the retail environment and sales increase by 29% once the screens are seen by the customer. In another South African survey, 63 out of 64 brands studied showed a positive effect on sales with success tracked against scan data from the check outs – so to increase to the ap-

peal of screen advertising, add measurability. For One Digital Media, business is booming and their greatest challenge right now is managing its explosive growth. With already more than 120 top brands on board they have also been asked to advise a major UK supermarket chain and to pitch for BP’s business in the UK, Europe and the United States – which would include a whopping 6 500 outlets on both sides of the pond. Internationally, digital media at retail is huge. Wal-Mart alone has screens in over 3150 stores in the US. In China Focus Media has 125 000 screens in 90 cities in office and residential buildings. One Digital’s CEO, Mike Bosman, is a formidable businessman and marketer. He has at various stages of his diverse and entrepreneurial career served as CEO of two of the largest ad agency groups in South Africa, TWBA and FCB. Prior to that he worked at Investec in project and corporate finance. He was also the head of FCB North America, at the time a huge operation with billings in excess of $6 billion and about 3 300 staff members. His right hand man and chief operating officer, Andrew Ridl, is a young professional whose experience seems at odds with his years. While Mike wears the strategic, communications and marketing hat, it is Andrew’s technological and logistical brain that rolls out the development of hardware, software, scheduling and a massive on-the-ground work force. His credentials are impeccable and include eight years of international IT and logistics exposure at companies like Siemens, Hewlett Packard and Compaq in Europe. The two have harnessed their expertise to produce a leading-edge company that

offers some of the most sophisticated digital at retail marketing in the world. Says Mike, “We have been operating for just over two years now. An advantage of being something of a ‘Johnny-come-lately’ in the international market means that we have been able to learn a lot of lessons that other companies in the US and in Europe learnt the hard way – with their money.” “This has enabled us to leapfrog some of the technologies already in use and we are now, at least for the time-being, a generation ahead,” adds Andrew. ”Among other things all of our screens have wireless capabilities and we operate typically on shelf-edge, next to the product, in the supermarket environment”. And this is exactly what keeps Mike and Andrew interested. “The technology gets cleverer, faster and cheaper each year – the screens we installed six months ago have already been superceded by thinner, more space-age looking ones. Things move fast and we need to keep up. We constantly upgrade and improve – this is part of the excitement.” It is vital to have an incredibly agile technological infrastructure, but it is the quality of the content on the screens that sells products and brands. With the massive capital outlays that obviously characterise the business, Mike regards himself as fortunate in having business partners that can provide both financial and strategic support. One Digital is owned by management, staff and a few external investors. A 35% stake is held by VenFin, part of the massive Rupert group of companies which includes Richemont and Remgro. Mike very much appreciates their involvement. “They are brilliant partners to have,” he says. “VenFin owns portions of e.tv,

AGENCY PROFILE

02.

Tracker and Dimension Data and they used to own 15% of Vodacom, so as partners they really understand the technology space.” One Digital Media does not usually install TVs or computer monitors in store. Typically custom-built screens are used that don’t have speakers or TV tuners or even on/off buttons. Andrew underscores the differences. “TV monitors require TV licences and computer monitors require software and licences. And in-store TVs can be interfered with by staff, competitors and consumers – if you have promised brands airtime you don’t want the screens tuned in to tennis, for example. “Our screens are controlled remotely by us on the instructions of the stores. We switch them off at night and turn them on in the morning but the stores are in complete control of what shows and when. Another bonus is that the screens automatically restart after power outages; there is no need for anyone to run around switching all the screens on”, he explains. This neatly addresses the issue of lost flight time. It is estimated that South African business loses billions of rands annually due to TV and radio adverts that never flight. One Digital Media can provide a complete audit of each of their 6 000 screens each month, proving to brand managers that they have

received exactly what they have paid for. “And if there has been a technical error or a power outage”, says Mike, “we refund the brand or offer them additional flight time”. One Digital Media is primarily a media owner that advises on strategy and produces creative work. The screens come in a variety of sizes from 7 inch to 50 inch. Rear projection screens can be up to 2m by 2m, if necessary. The screens can be used as a general screen for many brands or the smaller ones can be placed at the product site on the shelf edge for targeted messaging. There are various business models that 03. One Digital Media adopts depending on how much advertising can be sold on a network. This includes the opportunity for businesses to rent or buy the screens and One Digital broadcasts to them and offers technical support – this works for fast food outlet menus and banks. Alternatively, One Digital retains ownership of the entire process from installation through to selling advertising space to brands. Or they work out a hybrid, cost-sharing and profit-sharing deal. One thing that is close to Mike’s heart is the hassle-free factor, and he and his crew take care of all the details. He explains the process, “First we meet with the stores and brand owners and sit in strategy 04. The ANNUAL 2008 — 201

AGENCY PROFILE

05.

workshops with them. We do site visits to all the stores and observe traffic flow and consumer behaviour. From this we calculate the best screen placement strategy to ensure maximum exposure and effect. Once this is sorted out, we do the installations, often at night, so there is no down time. “As far as the development of creative work goes we either get referred to the brand’s ad agency or we do it ourselves”, Mike says. “Many agencies don’t want to play in this space because content production is pretty cheap and there are high volumes of work to deal with. And it’s not highly sought-after creative work when one compares it to TV advertising. It’s more like the reinvention of the short silent movie!” Creatives also need to bear in mind the different screen sizes. “What works on a 7 inch screen doesn’t necessarily translate effective communication on a 42 inch screen. We often have to create two or three versions of the same content. We also need to cater for landscape and portrait layouts,” he points out. The main aim is to impact behaviour by persuading shoppers to become consumers or to get them to swap from one brand to another. Mike says it’s that simple, “The whole point of what we do is to increase sales and brand awareness. And there is no place to hide because we can see the return on advertising investment immediately by comparing ad flighting times to sales scanner data at the checkouts”. Experience has shown that targeted 202 — The ANNUAL 2008

06.

messages are important. For example, backto-school messages in supermarkets can be different in Sea Point and in Rustenburg. “Language is also powerful and shebeens in Jo’burg can use Sotho or Tswana while for the Cape Xhosa is probably the best choice.” Aside from content that speaks to consumers, a vital aspect of their business is technical support, Andrew continues, “We serve up simplicity – in no way must our service impact negatively on the store manager. They don’t have to think about turning the screens on and off, nor do they have to report technical failure because our support teams are permanently plugged in via PDA’s – we know a screen has gone down before the store does. We are bound by strict service level agreements with which we always comply.” Mike says that he does not expect digital media at retail to detract from other media. “Sure we will compete for a slice of the same budget but just as the internet hasn’t killed magazines, digital at retail won’t replace mainstream advertising – they have different purposes”, he says. “We tend to work hand in hand with all major agencies. Over the last year we have had to spend a lot of time and energy working with the advertising and marketing industry to introduce this medium“. One Digital Media is also involved in cellphone industry. These days there are hundreds of models of cellphones on the market and it is onerous, if not impossible, for sales staff to efficiently spend time in

07.

store with clients explaining accurately the features, benefits of each phone and comparisons between phones. One Digital has developed display stands that that hold the actual phone, as opposed to the plastic replicas so often seen in store these days. The phone is attached to the stand by a retractable cable so that when you pick up the phone the information and the pricing for that particular phone comes up on the screen on the stand.” The company employs 121 people in Johannesburg, Durban and Cape Town. “We have a solid team that includes sales staff, electronic engineers, creatives and software developers plus support and admin staff – a real mix-up of interesting people. It’s a diverse and fabulous bunch to work with”, Mike says. When you consider the impact of new technologies, it’s not hard to see or imagine how touch screens, surface computing, 3D shop windows will affect our lives. It does seem as if the possibilities in digital media at retail are limitless. Client references “As the price war unfolds while clutter and choice grow, the need to stand out on the shelf and in-store through innovative and dominant in-store solutions becomes even stronger. “In-store media represents a growth area for Unilever as this channel is relatively untapped. We chose to invest with One Digital Media In-Store Channel in 134 SuperSpar’s at ‘grass roots’ level to achieve market advantage with the objective of

driving volume in each of our categories. “We have recently renewed our contract with One Digital, taking our learnings in this new channel forward to better leverage our investment. They have proven to be a strong strategic partner, providing a high level of client service and compliance along with a willingness to better understand our brands and business needs.” – Debbi Dale, media director: Unilever, AMET South Region “One Digital Media is at the leading edge of technology with their GPRS technology and satellite navigation of the in-store screens on which you can change an advertisement in a particular store if you like in a matter of seconds! “In addition the team is entrepreneurial and innovative and always willing to do what is best for your brand. We needed screens in 80 appliance stores where we had not previously used them. Within a week, there was a plan to install the screens for us which would help to bring our brand communication to the point of purchase. “The other advantage is that you can measure your One Digital retail media investment. Most in-store media is not measurable. Their screens are much more engaging and effective than other in-store point-of-sale devices, driving higher brand awareness and growth. On Air Wick Mini the sales grew 62% – directly as a result of the screens!” – Katrien Grobler, marketing manager: HomeCare, Reckitt Benckiser

AGENCY PROFILE

08.

09. 01. Part of the One Digital Media Team, based in Stellenbosch 02. One Digital Media’s client list includes many of South Africa’s top FMCG brands 03. Screens are installed in 500 taverns around South Africa and provide community audiences

with entertainment, information, and news of promotional activities

04. Interactive mobile campaigns are going to be a part of retail marketing going forward 05. Digital menu boards will replace static back-lit menus on which products and prices

can now be changed

06. Lifting a cellphone handset causes the information about that specific phone to be

flashed on to the screen above it

07. Internationally, instore imagery is increasingly using digital media 08. Digital counter top hot spot units such as this one for Unilever add to the digital

instore revolution

09. Wireless shelf edge screens are proving to increase sales and have shown to cause

the brands to ‘stand out’ 33% more than before

10. Detailed product information can be displayed on these eye-level 7-inch and 10-inch screens 10.

11. Independent research has shown that screens at shelf-edge caused sales to increase

by more than 29%, once they were seen by the customer

11.

The ANNUAL 2008 — 203

AGENCY PROFILE

Pod Communications Johannesburg (Pty) Ltd Type of agency: 360 degree solutions-based agency Number of accounts/clients: 25 Biggest spending clients: Pod has project-based relationships with clients.

Accounts won in 2008: Approximately 80 new projects Accounts lost in 2008: None Company ownership: 25,1% CIDA (BBBEEE partner), balance owned by the staff and director trusts Contact details: Tel: +27 11 463 8858

Mobile: +27 83 676 1822

Email: [email protected] Agency billings: ± R27 million Number of staff: 17 Key agency staff: All

Chief executive officer Diane Wilson Key moment in 2008: Reaching a point where seven years of operations have culminated in the skill and experience required to take the next step forward. The agency snapshot in 50 words: Pod’s culture is one of nurturing and growth, both internally and externally. The agency’s philosophy is that it’s not about them, but about the incredible people surrounding

them – the team, clients and suppliers – and doing what they are passionate about - for

clients to grow their business, on time and within budget.

Given its name, it’s not surprising that growth is a key theme at Pod Communications. When Di Wilson established the agency in 2000, it was with an eye to fostering an environment that would nurture and empower staff, while building a solid foundation of trust on which client relationships could flourish. This philosophy has seen Pod itself grow and thrive. Pod has evolved from Wilson’s original two-man outfit, operating from her dining room, into a 17 strong 360 degree player with an outstanding reputation for delivery and a special expertise in the below-the-line space. Wilson her-

204 — The ANNUAL 2008

self has earned recognition, last year being named CEO Magazine’s Most Influential Woman in Business and Government, within the Media and Communications sector. But perhaps more telling than any accolade is the fact that the majority of Pod’s relationships with clients have endured since inception – rather impressive for an agency specialising in project-based interventions. Wilson’s background in both aboveand below-the-line advertising has proved an asset in forging an agency approach that excels in creating seamless 360 degree executions. “We found that there is often a disconnect between above- and below-the-line work,” she explains, adding that “Pod’s strength lies in the ability to interpret and translate briefs for traditional channels into exciting, integrated and effective promotions, in-store and point-of-sale materials”. This has been shown to great effect with Pod’s in-store promotion celebrating Nestlé’s 90th birthday. From branded gondola ends to blitz areas, the agency created a vibrant in-store scaleable solution to salute the business. Pod has, in fact, undertaken a variety of brand interventions for Nestlé (a client since the early days), ranging from launches to internal and corporate communications. Other clients include Nestlé, L’Oreal, Tiger Brands, 3M, Roche, Wyeth, Whirlpool, FoodState and Adcock Ingram,

among others. The agency’s experience and insight in the FMCG, corporate and pharmaceutical arenas means it has a thorough understanding of how brands operate in these environments, as well as how industry regulations impact on the retail setting. Wilson says that as Pod has grown, so it has become more strategic, rather than tactical, in approach. “We’re good at understanding the context in which a brand lives, looking at where it is now and where it needs to be, and finding the best solution to get it there,” she notes. It’s about adopting a long-term view – and never forgetting that growth is always the ultimate objective. If Wilson has a keen grasp of why and how such growth can take place, it’s because Pod is rooted in an entrepreneurial spirit. Pod’s culture is grounded in the firm belief that every member of the team can, and should, become a leader in their own area. The agency is particularly proud of its work to develop students and interns, but this philosophy applies equally to permanent staffers. “There is not one person here who does not have an essential role to play,” she insists. It makes sense, then, that there are no hierarchies, nor divisions between creatives and strategists. “I have always been amazed that we work in the communications industry and yet so few agencies actually encourage communication between

their own staff,” Wilson says. “You won’t find that at Pod – here, leaders are taught as much as they teach. Teamwork along with sharing ideas and information are non-negotiable.” Wilson reiterates that trust is an agency hallmark – the agency must trust the ability of its staff and suppliers to deliver, and clients must have faith that the agency will help attain their goals – and the environment is fertile ground for building these mutual confidences. “Scope and flexibility are bywords, and because it’s not possible to always have all the answers, strategic partnerships are important,” Wilson explains. Pod’s culture also creates a vibrant milieu for exchanging ideas. With a team that’s adept at finding the marketing sweet spot for products from coffee to intravenous drips, ideas come from all quarters, and this collaborative effort results in an enormously creative outlook. However, Wilson maintains that it is crucial to temper imaginative ideas with an understanding of the message to be conveyed, and perhaps more importantly, with the acknowledgement that these ideas have power and impact. “As an agency, we need to be accountable to the ideas we portray,” she says. “To date, we have not entered any awards. Our focus has been producing powerful, honest creative that never misses the point of the communication.” It’s Pod’s aim to work with clients that share a similar ethos, as for Wilson,

AGENCY PROFILE

03.

“it’s all about chemistry. Obviously, you need to have the right credentials and you need to know what you’re doing. But, just as a seed grows with the correct amount of sunlight, water and nurturing, magic can happen – all you need are the right ingredients.” That’s something Pod has discovered for itself, through its partnership with CIDA Investment Trust, which owns a 25,1% stake in the agency. “That means that a quarter of our business is owned by upwards of 1 200 students,” Wilson notes with pride. The relationship works, she says, because of the shared belief in empowering people and nurturing talent that extends to providing internships and training for CIDA students. Pod intends to offer an internship for students specialising in production and traffic, and in this way will not only make an important contribution to the country’s skills base, but gain a solid platform for growth itself. Any other plans for the future? “We’ve enjoyed the past seven years carving our niche and exploring where we can best add value. With this behind us, we’re

ready to take the next big step,” Wilson replies. “Our more strategically oriented approach has enabled us to bring more brands on board, while enjoying organic growth, too.” Wilson believes that in the current operating climate it is vital that agencies never lose sight of that all-important value add. The role of agencies is changing: clients have a choice of suppliers to whom they can outsource services and the accent is on extracting the most out of every cent spent. “As such, we need to become entirely integrated with brand managers’ needs and plans. We have to become more focused when offering solutions – we need to look at options that offer the most value in terms of cost, even if that means following a less conventional route. Essentially, the role of the agency has changed to that of project manager with a strategic, long-term outlook.” It’s an outlook that will assure Pod’s future growth. And, although Wilson is reluctant to reveal the agency’s plans, suffice to say they will bring about enormous opportunities for all stakeholders.

The ANNUAL 2008 — 205

It takes creative minds to turn problems into solutions or find opportunities where there are none. At proximity#ttp, we’re geared up for that. So if you want to get your brand working, give us a call - we’ll have an idea how. Contact Brendan Wade at [email protected] or call 011 447 7093.

AGENCY PROFILE

proximity#ttp Type of agency: Creative services agency Number of accounts/clients: 10 Biggest spending clients: Cell C

Hospitality Property Fund (including

The Rosebank and Mount Grace Hotels) Redgwoods (including Toys R Us and Reggies)

Accounts won in 2008: Redgwoods Accounts lost in 2008: Tsogo Sun Company ownership: 30% BEE

Balance by individuals Contact details: Mobile: +27 83 375 9689

Email: [email protected] Agency billings: R12 million Key awards in 2008: 1 Gold Loerie, 1 Silver Loerie and 1 Bronze Craft Certificate at the Loeries. 1 Gold Echo

In 2008, Stuart Stobbs, creative partner, has

also judged The Loeries Experiential and Integrated Campaign categories and Caples in

New York, and Malcolm King, creative director, art, judged the Loeries Digital category. Number of staff: 25 Key agency staff: Directors:

Brendan Wade Stuart Stobbs

Tiekie Barnard

Management Team: Malcolm King Claire Tyler

Taryn Coetzee Key moment in 2008: Win of Redgwoods

Appointment of Brendan Wade as managing partner

Winning a Gold at Echoes The agency snapshot in 50 words: The team at proximity#ttp believes that creativity can solve business problems best.

By consistently delivering more, better,

cleverer solutions than their clients request of them, proximity#ttp is redefining how agencies and the entire industry are viewed. As

creative strategists, their solutions are innovative, and unbound by any of the restrictions of traditional media, style or discipline.

On the day that we arrive to meet proximity#ttp’s new managing partner Brendan Wade and the company’s highly-awarded creative partner Stuart Stobbs, there’s electricity in the air sparked by the two guys’ enthusiasm for their new vision for the company. proximity#ttp’s previous managing partner Nici Stathacopoulos founded The Tipping Point in May 2002, and then in January 2006, joined forces with local agency group BBDO South Africa and created a local venture called proximity#ttp under license to Proximity Worldwide, a BBDO-owned group of agencies. In 2008 Brendan Wade was headhunted to join the strong creative and strategic team already in place at proximity#ttp, to provide an injection of young blood into the fast-paced, creative workplace. Wade and Stobbs have not been working together for very long, but it’s immediately apparent that the partnership works. Together, they have formulated a strategy for the company that capitalises on proximity#ttp’s existing talent for delivering innovative strategies as, or even before, the industry demands them. “We aren’t repositioning the company,” says Wade. “We’re doing what proximity#ttp has always done, which is reinventing itself in line with the needs of a fast-changing industry, and catering for, or even anticipating those changes.” Their vision for the company is based on three key influences that the two partners believe are shaping the industry at the moment. The rise of the creative studio Stobbs hastens to point out that there is irony in the fact that an element of the future of a successful agency depends on a

retro concept, but it is one that they are adamant is coming back into play. The resurgence of the creative studio in the 21st century is seeing the creation of multi-disciplinary, multimedia agencies capitalising on the strengths of creatives, architects, designers, writers and creative strategists capable of focusing not just on advertising, but on every point at which a customer experiences their clients’ brands. Consulting firms In the past, agencies had the ear of their clients’ CEOs or managing directors. Wade says that agencies have now retreated and been dumbed-down, and that respect for their services has diminished. Following this, their role has been replaced by consulting firms, which, according to Wade, are not dissimilar from the ad agencies of the past. “Consulting firms are using empirical models and tools, but the premise is the same – that they sell bright people providing commercial solutions.” Notion of what creativity is has changed In the past, creativity was defined by visual expression. Now, with the emergence of creative strategists, they’re playing in the space of ideas. “We’ve moved from thinking in pictures to creative thinking to solving business problems creatively,” says Wade. These three points are setting the stage for agencies to deliver a new kind of service that thinks in the space around brand-

ing, products and marketing, proposing and implementing creative solutions. “This vision is characterised by the kind of work we’ve been doing for our clients for a while already, but it now forms the foundation of our company strategy, and the kind of solutions we’ll be coming up with in future,” Stobbs. A strong strategic team at proximity#ttp fortifies the young blood of Wade and Stobbs’s approaches to business, and the company benefits from the backing of its heavyweight global partner, the youngest and most-awarded of global networks, as well. “True creativity can solve business problems best,” says Wade. “I believe that at this point in time, proximity#ttp is the only agency in South Africa that’s capable of providing this kind of thinking and service.” Client references “Their passion, creativity and understanding for our brand were on target and in line with our thinking. The proximity#ttp team is highly experienced and have depth in their different expertise of above, below, and through the line marketing.” – Issy Zimmerman, Redgwoods director

The ANNUAL 2008 — 207

AGENCY PROFILE

Publicis Type of Agency: A multidisciplinary marketing communications agency Number of accounts/clients: 20 BIGGEST SPENDING CLIENTS: Procter & Gamble, Renault, L’Oreal/SoftSheen Carson, SAB, sanofiaventis, Nestlé Accounts won in 2008: Medscheme and new business from Sanofiaventis OTC Accounts lost in 2008: Declined to re-pitch for Cadbury Company Ownership: Publicis Groupe holds 51% and local shareholding 49% - with Lekota Investments having 26% and local management 23% Number of staff: 64 Billings: Not disclosed Key awards in 2008: 2 Loerie finalists and Ad of the month for Lunch Bar Key aGENCY STAFF: Chairman: Francis Blitz Managing director: Marc Spriesterbach Executive creative director: Kady Winetzki Head of strategy: Tim Allemann Creative director: Kamlesh Jogee Client service director: Nicole Bruce Client service director: Nicola Ezra Financial director: Alberto Gouveia Key moment in 2008: Winning the Medscheme business; creating a new campaign platform for Lunch Bar and the continued success of our clients’ business. Contact details: Johannesburg Tel: +27 11 303 2000 Cape Town Tel: +27 21 425 8838 Durban Tel: +27 31 533 7950 The agency in 50 words: Publicis continues to enjoy good organic growth, which recognises not only our relationship with the clients, but also the contribution of the creative work to the client’s bottom line. Improving our creative output across all media types is a focus going forward. We believe in creating contagious ideas that change the conversation in favour of our clients’ brands.

208 — The ANNUAL 2008

For an advertising agency that’s been around since 1974, people may be surprised to see how vibey Publicis is – from the chatty staff to the vivid township photographs on the walls to the playful road sign outside that reads: “Putsonderwater – 50”. There’s certainly doesn’t seem to be anything staid or stuffy about this established agency. As managing director Marc Spriesterbach confirms, Publicis is not only about creating “contagious ideas that change the conversation” to the benefit of clients’ brands, but is intent on changing the conversation about Publicis itself. “We’re a Steady Eddie that’s been around for a while, but there’s something fresh in the air – a new energy. We’re metamorphosing the agency to up our game and breathe new life into the company.” Having seen the light of day 34 years ago with just one client, Cadbury, Publicis grew in stature and reputation and subsequently aligned with Publicis Groupe in 1997. The agency’s blue-chip client list today includes such prestigious accounts as SABMiller, News Café, Renault, Procter & Gamble, Nestlé, Hewlett Packard, L’Oreal and Softsheen Carson. A new global positioning based on ‘creating’ contagious ideas to change the converstation in favour of the brand’ will project a more invigorated image for the agency, says Spriesterbach. “We’re not staid, methodical or fuddy-duddy – we want to be seen as more successful, more fun, more progressive. The agency is on a drive to add to its reputation as brand builders, with a stronger focus on creativity.” Publicis Worldwide is pushing into digital advertising and recently acquired a Google

search marketing services provider, with the aim of generating 25% of its sales from the internet by 2010. Spriesterbach says that the international group is the fastest-growing interactive network in the world, having created specialised media agencies to explore the possibilities of new technologies. Locally, this will mainly impact on Publicis’s globally aligned business such as Renault and L’Oreal, but there is definitely an acknowledgement that new media platforms are changing the way people communicate, and advertising needs to keep pace. “In my opinion, the greater SA has little or no access to the internet, and where they do, the majority are interacting in a work environment. However, the fastest growing cellphone market in the world is in Africa, where the value of a cellphone in people’s lives is so much higher. For us as Africans, the mobile medium is more important in communications than computers, at least in the short term.” Media proliferation – such as the growth in television offerings that will emanate from the issuing of new pay TV licences and the migration from digital to analogue television – is also likely to have an effect. A brand really has to work for young, discerning consumers who are increasingly interacting via cellphone or Facebook, notes executive creative director Kady Winetzki, or they’ll simply dispose of it. “Companies have to change their deliverables and give consumers something truly special and original,” he says. With most teens adept at shooting photos and video clips with their cellphones and posting them on YouTube, the techno-savvy younger generation is more attuned to com-

mercials and can sort a bullshit story from a genuine one, observes Spriesterbach. “One of the key challenges facing both advertisers and the advertising industry is the massive power consumers have over creating and shaping brand perceptions, through the power of word of mouth and mass communication tools such as mobile and the Internet,” he points out. “This reality needs to be embraced though greater focus on moulding and changing brand conversations in our favour, and using consumers as part of our communication arsenal.” Enhancements in technology mean that creativity is no longer seen as the sole preserve of the communications industry, and there are clients who are intent on giving the pros a run for their money. “There is still a craft to what we do – in terms of design, layout finishes and so on – but some people are thinking, ‘I can do this on my PC – why pay?’ It’s a problem,” admits Spriesterbach. “These juniors don’t have the skill or the craft, and have blurred the line between crass and good.” Ultimately, however, there is no substitute for expertise and the value that a good agency can add to a brand. Someone like Spriesterbach, who has been in the business for 28 years, understands the market and has honed his skills through experience. Aside from this, the agency is fortunate to have a very experienced team of professionals in its employ, many of whom have enjoyed a long association with Publicis – from the CEO with 35 years’ experience in the industry and the ECD with 20 years, to several client service staff with more than 15 years apiece.

AGENCY PROFILE

01.

02.

Spriesterbach says that “advertising is, by and large, about consistency – over time, you build up and get to know the brand, and see it in different guises. All your diverse brand experiences build towards one brand experience, leading you to decide whether you buy into the brand or not.” Therefore, building brand equity over the long term is crucial. During an economic squeeze, Spriesterbach advises that “rather than being frugal, clients should be circumspect where they spend their money. Pick points of conversation and hold intimate conversations. “The global guys understand the value of marketing and advertising, and are less susceptible to frivolities of change. They are more consistent, and achieve better results.” In the case of Cadbury’s Lunch Bar, for example, the public still remembers “Much more munch” and “Makhathini”. Now, creative evolution will see Publicis taking the popular chocolate bar – voted tops in the 2008 Ipsos/Markinor Sunday Times Top Brands Survey – to the next level, with its new campaign titled “Obvious”. Other favourite local brands that Publicis works with are Brutal Fruit, whose “Magician” campaign was a hit, and News Café, whose “Splash” commercial was filmed using a high-speed camera capable of shooting 1 000 frames per second, depicting microscopic droplets. The agency has recently acquired Medscheme’s business, as well as Essentiale and ViralChoice from sanofiaventis OTC. In terms of future prospects, Spriesterbach says that clients are increasingly looking at expanding into the largely uncharted commercial territory of Africa. “We need to assess what we can do to follow our clients, and identify markets where we want to be. It’s important that we partner clients in

markets that are important to them – like we did with the shooting of a commercial for Procter & Gamble’s Vicks Lemon Plus for the Nigerian market.” Adds Winetzki: “We send key people into those markets to do research – going into people’s homes, clubs, towns, seeing what they’re eating, and basically immersing themselves in the local culture. To come up with effective advertising, we need to walk a mile in their shoes first. It strengthens Publicis to understand how the consumer feels – don’t just assume.” This year the agency has been responsible for several well-liked ads, and has clocked up strategic successes and organic growth. Having said this, there is a drive toward enhanced creativity. “We’ve restructured the creative department and employed new people,” says Winetzki. “There’s a new strategic plan and we’re re-energised. I think we’re a more dynamic and challenging agency, and more fun to work with.” Spriesterbach says that the agency has a solid international client base and good credibility with its local business, but will be concentrating on attracting more local business into its fold. “We’re also looking at adding a digital offering to our creative quiver, although it’s early days yet.” Publicis’s philosophy is aptly reflected in the colourful signed prints adorning its walls, from a book called Life – Soweto Style “They amplify what we believe in,” explains Spriesterbach, “which is understanding South Africans and appreciating the style of the people in expressing their brands.” In keeping with its distinctive lion logo, there’s a mighty roar building in Publicis. Chances are you’ll be hearing a lot more about this agency in the months to come.

03.

05.

06.

01. Cadbury Lunchbar ‘Bear’ TVC. 02. Renault Mégane Sport ‘What Power Shortage’ 03. Brutal Fruit TVC 04. Cadbury Lunchbar ‘Man Size’. 05. Cadbury Flake ‘Orange’ 06. Renault Mégane Sport ‘Flick’

04.

AGENCY PROFILE

REX Type of Agency: Design & Branding Number of accounts/clients: 12 Accounts 32 Clients Biggest spending clients: FNB, Boubyan Bank, Net#work BBDO Accounts won in 2008: ACICO (Kuwait) Boubyan Bank (Kuwait) Velocity (South Africa) Accounts lost in 2008: Two Company Ownership: 100% privately & independently owned Contact details: Rudo Botha & Olivier Schildt

01.

Telephone: 011 781 5442

“Great design has the power to impart a sense of self and direction”

Mobile: 083 322 6683 (Rudo Botha) Email: [email protected] Website: rexworldwide.com Agency Billings: Undisclosed Key awards in 2008: Silver Loerie for Identity design Number of staff: 8 in South Africa & 2 in the Middle East Key Agency staff: Rudo Botha & Olivier Schildt (Co-owners) Marc Ratcliffe (Account Executive) Kais Al Naamani (Middle East) Key moment in 2008: Two things stand out: 1 — Creating a brand with which to fight AIDS on a global scale. Working with the pioneering team from WITS and USAid was a life changing experience designing logos to save lives. 2 — This year REX started exporting skills to the Middle East and as a result have landed a mojor re-branding project for an Islamic bank. It is significant for us because it is the first project that brings to bear the full spectrum of our skills in ONE project - from brand consultancy to developing the retail solutions for the bank. The agency in 50 words: REX is a company of designers intent on delivering business solutions in the form of intelligent and inspirational design. The company carries the conviction that design is built on three fundamentals: purpose, truth, and attraction. REX operates internationally from offices in Johannesburg and Kuwait, working with clients ranging from CocaCola World Wide in Atlanta, to the WITS Pediatric HIV Clinic in Soweto.

210 — The ANNUAL 2008

Where branding meets business How branding and design can be more relevant to business is not really a question that Rudo Botha and Olivier Schildt, partners and co-founders of REX , ask themselves. Perhaps that’s because of their approach to design and creativity. “We use design to solve business problems creatively,” says Rudo, managing director. It’s an approach that has seen them develop something of a reputation as an interesting mix business consultants and creative designers. “Whenever we approach a project, we always start with the business case, or the business problem. Then we look at where design can add value in bringing about a sustainable solution,” he adds. And while many design companies will pay lip service to the same approach, few of them have the portfolio to back up their claims. In REX’s case, examples abound of what branding and design can do for business. Its Botha’s personal belief that the creative execution of a brand can bring about the restructuring of business and the birth of new vision and meaning for a company. “Great design has the power to impart a sense of self and give a company a common sense of direction and purpose,” he says. But don’t take his word for it. In the past year the company has executed a number of branding, and design projects that have delivered precisely these results to its clients. Take its work on the redesign of FNB’s ATMs for example. What started out as an initial brief to create new graphics for the Bank’s ATM interface, evolved into a comprehensive project involving the redesign of the entire platform, including

screen flows, screen design, the development of a unique terminology and design of iconography for the interface. “We realised that the project needed more than for us to slap on some pretty graphics - and we’re always energised by the challenge of adding extra value, which is what happened with the FNB project,” says Botha. Further afield, one of REX’s most exciting projects during the year was its brand construction work for Kuwait-based construction conglomerate, ACICO. The company needed a global branding strategy to provide it with the kind of professional image that would enable it to compete on a global stage But REX’s delivered far more than just a visual identity; in the process of designing the brand, it addressed the issue of organisational structure within the company. “We started out trying to visualise the company’s structure on paper and realised that this had never been done before. The company had grown different ‘limbs’ organically but in many respects the left hand was not only not talking to, but in many instances was unaware of the existence of the right!” explains Botha. In designing the visual identity, REX grouped ACICO’s many different elements together into three units under one motherbrand. “This created a structure and coherence that the business can now use to leverage its offerings across these different sectors within the industry, whilst it projects a much more honest and impressive image for the group,” he says. Indeed, this has been a quite year for branching out into international markets. “Increasingly we are operating in an offshore market, where we have been able to export our skills and services,” says Botha. “This year we have started to see just how

valuable this is, not only from a financial perspective but also from being fulfilled personally and professionally.” In addition to ACICO, REX recently landed a contract to rebrand a Kuwait-based banking organisation, and other projects for several top-line Middle Eastern investment companies and their subsidiaries have followed. This is stellar progress for a small company founded only four years ago. The immediate plan is to start building presence in the Middle East, serving Kuwait, The Emirates, Qatar, Saudi Arabia and Egypt. “We have had a wonderful response from people we have met there. The professional environment is incredibly cosmopolitan and we’ve found many like-minded people who share a similar approach to business with an all important appetite,” says Schildt. However, both he and Botha are at pains to emphasise that this expansion is not the fore-runner of a relocation offshore. “The largest majority of our work remains with South African companies and we’re passionate about the challenges that this country presents,” says Botha. In the past year the company has been kept very busy with local projects, including the creation of a modern African lighting design legend with Willowlamp, the rebirth of The Homemakers brand, an inspired animation project for Cell C Juice and iconic print advertising for Clover. “What the international exposure does achieve is to impart a global perspective on the local context, and to help us bring new insights to bear on the work that we do for all our clients. We have come back with a greatly expanded vision of what brands can do in the world. Most importantly, it has given a new hunger to chase down the kind of work we are good at and which we

AGENCY PROFILE

01. Clockwise from top left: Rudo Botha,

Olivier Schildt, Givan Lötz, Logo, Marc Ratcliffe



and Eddie Graham

02. ‘the great urban experience’ - Strategic

re-branding for Timesquare

03. Animalfarm - Corporate identity for creative

consultancy captained by Porky Hefer

04. Gallery online - New internet presence

for production company Bouffant as part of



a strategic re-branding exercise (bouffant.tv) 04.

05. Coca-Cola & Choice - Strategic branding

aimed at children under 12 in compliance with



new international guidelines

06. Thinking out loud - Markinor celebrates

30 years

07. CellC Juice - TV Campaign developed in

collaboration with Net#work BBDO to attract



a young audience to the ‘juice’ portal

08. ‘B Ready’ - Online campaign leading up to

the unveiling of Bouffant, previously Fresh



Water Films

09. Good-is-beautifull - Poster as part of

promotional campaign for Coca-Cola’s iconic



M5 project, in collaboration with Tennant McKay

Phone +27 11 706 8884 Fax +27 11 706 6080 Web time-square.co.za Address Number 3 Bruton Office Park 18 Bruton Road Bryanston Postal Private Bag X170 Bryanston 2021 E Mail [email protected]

02.

03.

06.

“There is no such thing as design for design’s sake in our world”

want to do,” says Botha. The decision to go offshore has also allowed REX to gear up while the rest of the industry in South Africa is generally gearing down. “However, we’ve always retained a conservative approach,” says Schildt. “We don’t go for 10 clients at a time. Quality of life - for ourselves and for our clients - is what we strive for.” Apart from moving into the international market, the past year has been a

05.

07.

08.

09.

watershed for REX in other ways. The company amicably parted ways with mega agency Lowe Bull, which engaged in the process of buying a share of REX the previous year with the intention of broadening the appeal and workflow of each agency. “It was great experience working with the guys from Lowe Bull but the business model wasn’t suitable for us. We now have even more conviction to pursue and deliver our own offering,” says Schildt.

Progress has also been made in heightening the level of fee extraction. “We solve the challenges right here,” says Botha. “Being able to work on the challenges clients face, between these four walls, exclusively, creates an intense engagement - one that demands the very best we have to offer.” “Performance levels have gone through the roof,” says Schildt, as the agency is obliged to work on the whole range of strategy, creative, execution and project

management challenges. It’s exciting to watch the rapid progress of this young design team, and to witness something of a design revolution. “There is no such thing as design for design’s sake in our worlda. For us, good design is built on three fundamentals of purpose, truth and attraction. It can be the most valuable tool a business has to achieve greater efficiency, greater differentiation, and greater attraction,” Botha concludes. The ANNUAL 2008 — 211

AGENCY PROFILE

02.

03.

01. durable and intelligent despite their ethereal, free-floating appearance.



Willowlamp, featuring the ‘Faraway Tree’



chandelier About Willowlamp

02. Re-purposed, re-branded packaging solution

willowlamp.com

01. Brand identity for South African icon,

Collapsible Chandeliers

for Adcock Ingram’s Expigen

03. Corporate identity programme for engineering

and construction conglomerate, ACICO, from



the Middle East

An entire chandelier can be transported in a 24 centimetre deep box

04. Studio Geography - Published work exploring

the relationship between creativity and the



environment it originates from - in



collaboration with the international design



community and published by independent



Norwegian company

Willowlamp Collection

hundreds of lengths of chain are cut and attached by hand.

05. The 2008 Willowlamp product catalogue 06. Strategic branding for salt+pepper, human

resource management consultancy to the



entertainment industry

07. xealll.com - Brand identity and strategic brand

development for creative social network,



online

05.

06.

08. Coke ReMix - Part of an international project

for Coca-Cola, inviting 125 artists from around



the globe to celebrate the brand’s relationship



with art over 125 years

09. ‘Betonoerwoud’ - Event branding as part of

Lucky Strike’s urban engagements

10. New corporate identity for Velocity Films 11. The Art of Science - One of 42 original artworks

installed in Ipsos-Markinor’s offices as part of a



brand engagement project

12. Ringing out hope - New brand identity for WITS

Paediatric HIV Clinics

13. Decidedly Duco - Repurposed packaging

solution for Dulux Duco spray paint range

212 — The ANNUAL 2008

09.

10.

11.

AGENCY PROFILE

04.

07.

08.

12.

13. The ANNUAL 2008 — 213

AGENCY PROFILE

Saatchi & Saatchi TYPE OF AGENCY: Full service NUMBER OF ACCOUNTS/CLIENTS: 31 BIGGEST SPENDING CLIENTS: Engen, Guinness, Proctor & Gamble, Peugeot, BoE Private Clients

02.

ACCOUNTS WON IN 2008: 24.com, Sanofi-Aventis, Engen International Unit ACCOUNTS LOST IN 2008: SA Post Office COMPANY OWNERSHIP: Orlyfunt Holdings – 25%

Kopano ke Matla Investment Group – 25% Saatchi & Saatchi Belgium SA – 26%

Local management and share trust – 24% CONTACT DETAILS: Tel: +27 11 548 6000 Fax: +27 11 548 6118

01.

03.

Email: [email protected] AGENCY BILLINGS: R300 million KEY AWARDS IN 2008: 1 x Bronze Lion Cannes 6 x Cannes Shortlists

Bronze Award at The One Show

2 Merit Award at The One Show

New York Advertising Festival - Bronze Medal Grand Prix Winner VUKA Television Awards 4 Loeries (1 Silver, 3 Bronze)

Ad of the Month – February, March, June and July 2008 1 x Bronze Eagle

1 x Gold Pendoring NUMBER OF STAFF: 170 KEY AGENCY STAFF: Group chief executive officer & head of Africa network: Gail Curtis Group financial director: Graham Reynolds Managing director Cape Town: Ian Young

Managing director Johannesburg & Africa network: Grant Meldrum Deputy managing director Johannesburg: Nicola Scheuble Creative director Johannesburg: Bennie du Plessis

Executive creative director Cape Town: Anton Crone Head of AtPlay: Allan Kent

Deputy managing director Cape Town: Graham Cruikshanks Head of Saatchi & Saatchi X: Susan Evered

Managing director AMComms: Ayanda Mbanga

Managing director Recruitment Advertising (Pty) Ltd: Joseph Kganakga KEY MOMENT IN 2008: Saatchi & Saatchi SA became one of only 8 “Lighthouse Agencies”, giving the South Africa operation the same status as London, Paris,

Frankfurt, Copenhagen and Dubai in a new global initiative to rocket the group’s growth.

THE AGENCY SNAPSHOT IN 50 WORDS: We don’t have a mission statement, we have a purpose:

Our Inspirational Dream: To be revered as the hothouse for world-changing ideas that create sustainable growth for our clients. Our Focus: To fill the world with Lovemarks.

Our Spirit: One team, one dream – Nothing is Impossible.

What differentiates us is Lovemarks. Lovemarks are the future beyond brands, owned by the people. What clients really care about is a Lovemark’s ability to engender Loyalty beyond Reason, and to create and sustain growth.

214 — ThE ANNUAL 2008

Saatchi & Saatchi SA earned itself a brand new status in 2008 as one of only eight “Lighthouse Agencies” in the global network, elevating the local operation to the same rank as London, Paris, Frankfurt, Copenhagen and Dubai in a new initiative intended to rocket the group’s growth. The agency earned its standing in the global community, but also regained its stature on the local creative league tables, making 2008 a year of growth and achievements for the Lovemarks team. “Lighthouse Agencies” have the responsibility of driving capability throughout the EMEA Network and this provides SA teams the opportunity of participating on a global platform with international clients, as well as attracting international business to the EMEA region – an area S&S is looking to grow. Gail Curtis, group CEO and head of the Africa Network, sees this as huge recognition for the South African operation and immense support from the EMEA region for the development of Africa as a whole. And it has been achieved alongside a strong focus on reinvention: “Saatchi had always understood the need to reinvent itself and our transformation began some time ago when our company purpose was revisited and refined to reflect and respond to sweeping changes in technology and consumer behaviour. “We identified a value proposition that could raise and create value – adding capabilities and activities while reducing and eliminating value-destroying activities and ways of working. Our future will be built around Xploring, interactive, shopper marketing, design and media for the attraction economy.” The South African operation mirrors the global brand’s aspiration and in just two years is one of the leading agencies driving reinvention among the Lighthouse Agencies. The appointments of Anton Crone, executive creative director Cape Town and Bennie du Plessis, creative director Johannesburg, have

seen the agency back on the creative league tables and winning awards. The agency won four Loeries across outdoor, ambient and digital – proving they are indeed providing new solution for clients in all areas. They had six shortlists at Cannes and took away a bronze Lion. The local office plans to make a major contribution to the Saatchi global network creatively by 2010. Saatchi & Saatchi is ranked among the top three global networks following its performance at Cannes 2008. Saatchi’s reinvention demanded that it relook human interests in the organisation and focus on attracting and replacing people outside of “traditional, mainstream” advertising: “Most of our key players are now skilled in the areas of digital, gaming, media, and PR. In the future, two out of every four employees will come from backgrounds outside of conventional advertising. We can no longer replace apples with apples, we need to replace them with digitally minded oranges,” says Curtis. Saatchi has been playing in the interactive and digital space since early 2000 and has made a major investment in AtPlay, the interactive arm of Saatchi & Saatchi, to work alongside all major clients. AtPlay has several awards under its belt and is recognised as a creative force in the digital arena. “We expect to see our massive growth continue,” says Allan Kent, recently appointed head of AtPlay. “The investment into AtPlay over the last two years has built a strong foundation for us to continue to grow and to offer our clients compelling content solutions.” 2007 saw the launch of Saatchi & Saatchi X, the retail division aimed at turning shoppers into buyers. The retail environment has changed dramatically with the convergence of economic pressure, technological innovation and the explosion of choice. Saatchi & Saatchi X recently appointed Sue Evered to head up this division and drive growth and revenue across new

AGENCY PROFILE

02. 04.

05. 01. Nicola Scheuble – deputy managing director Johannesburg, Gail Curtis – group chief executive officer and head of Africa Network, Grant Meldrum – managing director Johannesburg and Africa Network, Ayanda Mbanga – managing director AMComms, Bennie du Plessis – creative director 02. Proctor and Gamble “Facelift” print 03. International Organisation for Migration “Bars” print 04. Back row from left to right: Susan Evered – head of Saatchi & Saatchi X, Allan Kent – head of AtPlay, Graham Cruikshanks – deputy managing director, Anton Crone – executive creative director. Front row: Graham Reynolds – group financial director, Ntombekaya Nyati – regional operations director AMComms, Ian Young – managing director 05. Archers Aqua Campaign 06. Framegrab from Engen “Supporter” Corporate TV

06.

and existing clients. Ian Young, managing director of Cape Town, takes on the additional responsibility of working with Saatchi & Saatchi X globally to drive the division into the organisation: “We are seeing a true revolution in how we shop, where we shop and when we shop. Saatchi & Saatchi X is one of the most exciting developments to emerge in our industry and we are seeing huge growth opportunities by partnering with our clients in this area.” All in all, Saatchi & Saatchi has had a very busy year: it has brought the real world and real people from outside into the agency, saying goodbye to 15 traditionalists and hiring 19 dynamic new personalities. Curtis invested heavily in digital, interactive, shopper marketing and planning. “We hired people who have travelled the world, gaining life experience and insights while they plied a hundred different jobs. We started producing content. We made an animated TV series, turned the internet into a primary medium and TV & print into supportive mediums, we

created a comic strip and we proposed turning an aeroplane into a football pitch. We got the best people from the best agencies and put them together with the best people from completely different walks of life and created the creative department of the future.” Add to this Saatchi’s decision to launch Saatchi & Saatchi Sustainability – a true blue sustainability project that brings human culture and the living world into a healthy relationship. It encompasses green issues like protecting our last wild places and reducing our output of CO2, but it also includes PSP (personal sustainable project) to ensure happy people in the organisation, says Curtis. And they never forget the love: Saatchi & Saatchi globally contributes more to CSI initiatives than any other network because they believe it grows people. From a local perspective, big campaigns are under way for UNICEF, Operation Smile, Save Our Seas Foundation and others. The local office recently won the VUKA grand prix for its television ad for the International Organisation for Migration (IOM).

About Saatchi & Saatchi Part of the Publicis Groupe, the fourth largest communications holding company, Saatchi & Saatchi handles more than 40 multinational companies including Proctor & Gamble, Toyota, General Mills, Novartis, Sony Ericsson, Emirates Airline, Deutsche Telekom/ T-Mobile and VISA Europe. With 153 offices and almost 7 000 employees, Saatchi & Saatchi is known for its outstanding creative ideas that generate powerful emotional connections between consumers and products. This is a key element in Lovemarks, Saatchi & Saatchi’s unique methodology for elevating the status of brands by creating “loyalty beyond reason” and “inspirational consumers”. “Saatchi & Saatchi boasts one of the largest African networks. With 16 associate offices, we offer our international clients the opportunity of moving into Africa, with the knowledge of getting the very best of Saatchi people, expertise, quality thinking and support,” says Grant Meldrum, Managing Director of Johannesburg and Africa Network.

Client references “We here at Novartis OTC are proud to be a client of Saatchi & Saatchi, a great ideas team, truly committed to helping transform our brands into Lovemarks through the creation of deep meaningful relationships between our consumers and our brands.” – Hilton Loring, Novartis “Diageo is a big business in Africa and a very successful business. Fundamental to this success is our relationship with partners Saatchi & Saatchi. We grew the Guinness brand by 13% this year. It’s been a fantastic year and we thank Saatchi & Saatchi for its contribution to this success.” – Matt Barwell, Diageo “Love is the future of brands and agencies. Saatchi & Saatchi know this and are passionately committed to LOVE, which is what sets them apart, and what must set our brands apart too.” – Andy Peterson, P&G

The ANNUAL 2008 — 215

AGENCY PROFILE

Switch Type of Agency: Multi-disciplinary branding agency Number of accounts/clients: 181 current big spending clients: MTN, Subaru, Investec, Daily Sun, Coca Cola, Zodiac, FNB, Anahita, Transnet, Ekurhuleni, Unilever Accounts WON in 2008: MTN, North-West University, Subaru, Transnet, Telkom Media, NPC Electronics, USAASA, Werksmans, SAPPI, Harith Fund Managers Accounts lost in 2008: All of the Switch Group’s work is projectbased. As such, the agency is appointed to handle a piece of work against a defined scope. Once complete, the project comes to an end and any further requirements are negotiated separately. This means that the group never actually loses accounts. Company ownership: 26% MS Manqele 24.67% G De Abreu 24.67% LF Shiller 24.67% PC Upton Number of staff: 75 Billings: R61,033,307 Key agency staff: S’bu Manqele Gaby De Abreu Larry Shiller Peter Upton Contact details: Tel: +27 11 706 9370 KEY AWARDS in 2008: Ernst & Young World Entrepreneur Finalists Loerie Awards Finalist London International Advertising Awards Finalists. KEY MOMENT in 2008: While extremely proud of the achievements of the group in the past year, 2008 will remain memorable thanks to a number of significant highlights. One of these was entering into an agreement with experiential marketing agency Ignition, to create a marketing partnership that will combine strategic development, creative direction and event execution. The new venture, named ignition Switch, will focus on upcoming marketing opportunities in South Africa and the region, initially looking at the 2010 FIFA World Cup and associated projects. The agency in 50 words “Intrepid”: a word as relevant in describing the Switch Group today as it was nine years ago. Started in 1999 by Larry Shiller, Gaby De Abreu, S’bu Manqele and Peter Upton, Switch currently employs 75 associates in five countries, and is 26% black-owned. This multi-disciplinary brand consultancy offers its clients complete branding solutions spanning strategy, design, advertising, digital and interior architectural design. The largest independent design consultancy, in Africa – with offices in Johannesburg, Cape Town, London, Lagos, Nairobi and Dubai – the Switch Group’s “unshakeable belief in brand” has differentiated this agency both locally and internationally. As “creators, nurturers and custodians” of brands as diverse as Investec and the 2010 FIFA Soccer World Cup, Switch remains committed to enabling its clients through creative excellence.

216 — The ANNUAL 2008

Those Bryanston office blocks are fairly indistinguishable, one from the other, but if you drive along Peter Place, pause at the Coachman’s Crossing and glance north, a sign down one side of a building will catch your eye. Switch, it says. It’s not a sign that shouts out loud – it’s stylish, simple, more a tug of the collar. This is Switch, a branding agency, named for a quality of service that “causes a spark, creates a connection and forges a new pathway” – something akin to a moment of clarity. Nine years ago, founding partners Larry Shiller, Gaby de Abreu, S’bu Manqele and Peter Upton, all of whom began their careers at Pentagraph – an agency regarded as being a pioneer in the design industry and fondly referred to as the “University of Design” – decided to go it alone, using the classic principles they had been taught but sharpened with a new-found independence. Today the four–man team run an agency staffed by 75 people, acting as custodians for premium brands as diverse as Coca-Cola, Investec and MTN, with offices in Johannesburg, Cape Town, Kenya, Nigeria, Dubai and London. “We go where the work is, but we keep the work local knowing that South Africa can compete with the best of them,” says Shiller. Switch’s focus is on igniting the real potential of the brand – with start-up companies and products receiving the same amount of creative commitment as the better-established ones. “Bringing a variety of stimulating work into one’s agency is critical to incubate creativity. We therefore view our work with clients as a partnership. Just as we impart with them the branding tools and strategy they need to

succeed, so too do they give us the opportunity to stretch ourselves and find original, creative solutions,” says Shiller. Switch has assembled a team of specialists, each an expert in their field, covering all aspects of branding and design so, says Shiller, clients that arrive with nothing, leave with everything. They offer a wide repertoire of skills which include “a full roll-out” – from elements of design to full-scale strategic input, throughthe-line services to communication with both external and internal audiences. An example of this is the work they did recently for FNB when they opened their imposing landmark building west of Johannesburg. Switch designed everything from interiors to digital websites. The agency is structured with integrated specialists; skilled people who understand how to work in a collaborative fashion. But branding is still at the heart of the business. Shiller says he has watched how the art of branding and positioning has taken centre stage over the last decade or so. “It used to be that you advertised the product first and then branded it – basically you did the advertising to find the branding. Actually you need to start with the corporate identity, logo and brand essence before taking it to market.” In all creative industries, alive with talent and raw energy, it’s essential to avoid any ADD problems by staying one step ahead. Keeping on the radar screen is a priority and Shiller and colleagues hover at the cutting edge of the industry, alert to trends, receptive to innovation and “all the maverick ideas” that are so vital to the industry. Exploring the world of experiential marketing has led to a partnership with ignition, an Atlanta-based agency, signed in

June this year. Ignition was involved with the very popular Live Earth concert held on seven continents and reaching a global audience of more than two billion people.) The Ignition Switch marketing partnership will combine strategic development, creative direction and event execution and, in particular, fire up Switch’s already solid commitment to sports branding in South Africa. Switch has done some of the most memorable sports branding work in this country including the 2010 FIFA World Cup South Africa emblem, the 2009 FIFA Confederations Cup brand identity and rebranding programmes for SA Rugby, the Springboks and Orlando Pirates football club. S’bu Manqele, the group business director confesses, “We are all sports nuts.” But testimony to their versatility and professionalism is the fact that their longest standing client is Investec, a prestigious account positioned as the vanguard of success. The last year presented some challenges for Switch, which Manqele describes as a “year of consolidation” although cautions against “talking ourselves into a recession”. His approach is very upbeat and he believes a huge amount of work is coming their way, particularly with the 2010 World Cup over the horizon. Switch is strengthening the home base in anticipation: “We made sure we are geared for this with our full range of services. I believe that any great business is always prepared and ready for success.” Their recent move to offices and the decision to stay in Sandton is an indicator of the kind of confidence they have. Says De Abreu, creative director of the group: “We’ve specifically moved into office space where we can expand, ensuring we can train more interns,

AGENCY PROFILE

Advertising: Subaru

Interior Architectural Design: Zenprop

for example, and give our team the resources and tools they need to continue to produce exceptional work.” However, Switch believes the way to get through boom and bust periods is to instill an unshakeable belief in brand. This gets everyone through the hard times. Says Shiller: “It’s at times like these that brands land up driving purchasing behaviour. If you have less to spend, you buy brands you trust. This is part of the inherent strategy.” There has to be a branded approach to business, he says. Good branding, is simple, authentic, elegantly executed – the core is solid and there is no fuss. Switch is very much part of the industry and prefers to work on a united front. Its involvement with THINK, (South African Communication Design Council) an organisation which represents the design industry, is an example of their commitment to improving their lot. “We now have an agreement in force where agencies have agreed to only take part in paid pitches. There needs to be recognition of what goes into our work and that we are serious about what we do,” says Shiller. There is also some concern over skills levels in the industry. Switch has committed itself to assisting the Media, Advertising, Print, Packaging and Publishing (MAPPP) SETA in developing a new pool of quality, up-and-coming talent through collaborative internship programmes. It’s the small things in life – like pay-

ing attention to detail – that makes Switch the agency it is. Client references “We found Switch to be very creative; they followed our brief but added value to it. They helped us by telling what was likely to work or not, based on their own experiences.” “They were really easy to work with and understood what we were trying to do.” “We have had good feedback from people in our markets, they like what we are doing and say its funky stuff - coming from a bank, that is.” “We had told them to go wild and we would, if necessary, rein them in, but found we didn’t need to as they produced something edgy but not completely out there.” – Justin Andrews, niche marketing manager: FNB

Branding and Design: FIFA

“The quality of their work is excellent and their people are unbelievable. They have great ideas and are prepared to talk them through with their clients. So you get what you ask for. Their contrasts in colours and designs are good.” – Lisa Schewitz, sales and marketing manager: Newmark Hotels “Switch did a lot of work at short notice and we were very happy with the calibre of the work and speed with which they responded to our brief.” – Anthony Garstang, MTN senior manager, sponsorship and events

Branding and Design: Brandhouse

The ANNUAL 2008 — 217

Name of Agency Talk2Us Type of Agency Brand Engagement Strategists Number of accounts/clients 30 Biggest spending clients TFMC – Total Facilities Management Company We’re the product of Linda Hamman’s genius: she founded Talk2Us in 2000.

Accounts won in 2008 Anglo Platinum, Eventus, Universal Healthcare

We’re a small but dynamic organisation focused on engaging our clients’ stakeholders with their brand through the use of best practice marketing and communication tools. As Brand Engagement Strategists, we assist companies to maximise their value by developing and executing stakeholder engagement strategies, using all available tools of influence.

Accounts lost in 2008 None

Our strength lies in interpretation, transformation and imagination: we aim to make the logic meet the magic.

µh‘ê’•Š„‘Œ–„—Œ’‘Ø–ê—•˜ˆê“’—ˆ‘—Œ„ê„‘‡ê–˜††ˆ––ê‡’ê ‘’—ꏌˆêŒ‘ê—ˆ†‹‘’’Šœê„‘‡ê—„‘ŠŒ…ˆê—‹Œ‘Š–±ê…˜—ꌑêê —‹ˆêŒ‘—„‘ŠŒ…ˆê„•ˆ„ꒉꗋˆê„——Œ—˜‡ˆ–±ê…ˆŒˆ‰–ê„‘‡êê …ˆ‹„™Œ’˜•–ꒉꗋˆêˆ“’œˆˆ–ê„‘‡ê—‹ˆê„…ŒŒ—œê’‰êê —‹ˆŒ•êˆ„‡ˆ•–ꗒꌑ‰˜ˆ‘†ˆê—‹’–ˆê„——Œ—˜‡ˆ–ê„‘‡êê Š˜Œ‡ˆêˆ“’œˆˆ–ê—‹•’˜Š‹ê„ê—•„‘–Œ—Œ’‘ꕈ–˜—Œ‘Šê Œ‘ꊈ‘˜Œ‘ˆ±ê–˜–—„Œ‘„…ˆê†‹„‘Šˆ­´ê The tool of influence is communication: if handled properly, it will build relationships, which in turn will provide the opportunity to create an experience for the customer leading to brand engagement, increased market share, greater profits. That experience is what will determine the success or failure of a brand – whether it is in a bottle, a box or a burger. The common denominator is people. We assist companies operating at every business level to develop a brand culture through measurable, professional initiatives and programmes tightly focused on organisational capital, driven by its people from the inside out – and to build businesses through effective communication and the synergistic management of State of Mind, Symbolism and Stewardship – The Works!

Annual_Ad.indd 1

Company ownership Linda Hamman, Charles Nightingale, Jackie Hollick & Albert Hanekom Contact details Linda Hamman (Director) (011) 706 1849 082 491 6433 Linda@Talk2Us. co.za www.talk2us.co.za Agency billings Undisclosed Key awards in 2008 Never entered any Number of staff 12 Key agency staff Everyone at Talk2Us is key Key moment in 2008 Winning two awards where the staff of a client, Multisource, nominated us The agency snapshot in 50 words We build businesses through brand engagement: initiatives and programmes tightly focused on organisational capital, driven by the client’s people and beginning where it should begin – inside the company. A persistent positive experience for the customer, leading to a sense of belonging, is what we help to facilitate. Result – brand equity.

The Works are in our Boxes. Our thinking isn’t.

Collectively, our pertinent experience fills many, many decades, and collectively our energy racks up megawatts. Our Stewardship is inspirational and we’re hooked on what we do. And we believe it is fundamental to have fun in the process… …like playing around with the Boxes!

Ideas are gold. People are platinum. Including OUR people…

10/3/2008 3:55:07 PM

AGENCY PROFILE

TBWA \South Africa Joint creative director: Sue Stewart Type of Agency:

Joint creative director: Sasha Sanders

Communication group

Magna Carta

Number of accounts/clients:

Managing director: Michele Anderson

119

Deputy managing director: Annemarie McKay

BIGGEST SPENDING CLIENTS:

Director: Vincent Magwenya

Spar Group, Standard Bank, Eskom,

Tequila\ Johannesburg

Nissan, Neotel, Tiger Brands and Unisa

Managing director: Rizwana Bawa

Accounts won in 2008:

Creative director: Justin Wright

16

Tequila\ Durban

Accounts lost in 2008:

Managing director: Praveen Inderpersadh

3

E-Graphics

Company Ownership:

Managing director: Steve Serfontein

TBWA\Hunt Lascaris JHB, Durban

TBWA\Equator

& Cape Town and E-Graphics - 100%

Managing director: Naveen Sankar

TBWA South Africa (70% Omnicom,

Key moment in 2008:

25% Shanduka, 5% BEE Employee

Magna Carta’s three in a row win in the

Trust); Magna Carta – 66% TBWA\

Finweek: PR Agency of the year 2008.

South Africa, 28.3% management, 5.7%

Contact details:

staff share trust; Tequila\ Johannesburg

TBWA\Hunt\Lascaris Johannesburg

– TBWA\Hunt\Lascaris 90%, executive

Muzi Kuzwayo \Tel: +27 11 322 3100

management 10% ; Tequila\ Durban –

TBWA\Hunt\Lascaris Durban

TBWA\Hunt\ Lascaris Durban 100%

Eira Sands \Tel: +27 31 267 6600

Number of staff:

TBWA\Hunt\Lascaris Cape Town

496

Nicky Swartz\Tel: +27 21 417 5700

Billings:

Magna Carta

Not disclosed

Samantha Presbury \Tel: +27 11 784 2598

Key awards in 2008:

Tequila\ Johannesburg

Magna Carta – Finweek 2008:

Rizwana Bawa\Tel: +27 11 322 3100

PR Agency of the year 2008

Tequila\ Durban

Key aGENCY STAFF:

Praveen Inderpersadh\Tel: +27 31 267 6600

TBWA\SA

E-Graphics

Chief operating officer: Derek Bouwer

Steve Serfontein\Tel: +27 11 322 3100

Worldwide planning director & group

TBWA\ Equator

executive director: Marie Jameson

Naveen Sankar\Tel: +27 11 217 3444

Managing director global accounts &

The agency in 50 words:

group development: Reinher Behrens

TBWA\South Africa is a group of companies

TBWA\Hunt\Lascaris Johannesburg

that operate independently but share the

Managing director. TBWA Hunt

benefits of belonging to a larger group. These

Lascaris Jhb & Chief executive officer,

companies include; TBWA\Hunt\Lascaris,

TBWA\ Hunt Lascaris: Muzi Kuzwayo

Tequila\, E-Graphics, Equator and Magna

Executive creative director:

Carta. The Group offers services ranging from

Damon Stapleton

traditional advertising to design, digital and

TBWA\Hunt\Lascaris Durban

mobile communications, brand activation and

Chairman: James Porter

experiential marketing, and public relations.

Managing director: Richard Cassels Executive creative director: Alan Nixon TBWA\Hunt\Lascaris Cape Town Managing director: Nicky Swartz

10 Things driving our brand Lurking beneath the clichés about change, any brand owner or custodian finds a host of very real challenges. These can be met only through the judicious application of strategic principles and tools that extract the essence of apparently overwhelming changes driving business and consumer behaviour. At TBWA\South Africa it’s our job to help clients define and extract the value to be found in leading change. To achieve this, we are also evolving and taking on the challenge. This has helped us identify and refine 10 strategic approaches that will take us and our clients to 2010 and beyond. These 10 areas all speak to the driving themes of the TBWA\family: to foster innovation, encourage creativity, and guide and partner our clients through the maze of challenges. 1. Disruptive thinking Disruption has always been a part of the TBWA\DNA and business philosophy. By its very definition, disruption disturbs the status quo and turns convention on its head. Disruption is not just about doing something different for the sake of it; it’s about defining a vision that will drive growth of a brand. A genuine vision, fuelled by genuinely disruptive ideas that create a future for a brand that is not possible today. It represents a growth or movement to something bigger. Building on the successes achieved through the application of Disruption principles, we need to extend and deepen strong Disruption strategies that evolve and grow as we do, and apply them rigorously to our clients’ businesses as well as our own. 2. Reaching out with media arts Who says an advertising campaign has to be driven by a TV ad? Or even that a campaign has to be advertising? Not TBWA\. Media Arts is a philosophy that dissects, re-examines and re-defines the traditional role of media. As Damon Stapleton, executive creative director points out, with new technology comes greater options, altering the way a brand can work in and communicate with the market. In the world of Media Arts, media is anything that exists

The most important part of any vision is the people who give it tangible expression through the way they live out its possibilities every day. This is why our first priority at TBWA\ is people and ensuring our culture is at one with our vision. This is a culture that fosters collaboration, applauds disruptive behaviour and encourages unique thinking and brave experimentation throughout the company to the ultimate benefit of our clients 220 — The ANNUAL 2008

between the idea and the target audience. While Media Arts constantly evolves, the principle stays the same – to find new ways to engage meaningfully with an audience that is becoming increasingly cynical. 3. Creating freedom to explore A tangible expression of our commitment to the Media Arts philosophy is Opus, an on-site recording studio at TBWA\Johannesburg. Opened in January 2008, Opus has a full-time in-house composer, full audio suite and an edit suite for syncing sound to visual. The studio is a joint venture between TBWA\ and radio production agency One on One, itself the brainchild of partners Rina Broomberg and radio celebrity Gareth Cliff. Opus allows creatives the freedom to explore media that falls outside the traditional. A valuable tool within TBWA\, it is also a business in its own right, producing commercials for clients outside of the TBWA\ stable. 4. Taking the digital high ground We expect the drive to extract the full promise of the digital revolution will accelerate at an exceptional rate as South Africa’s mobile and broadband infrastructure takes unprecedented strides to match what is already available in developed markets. Interaction between group offices around the globe has helped Tequila\ reposition itself to bring the right mix of top-end creative, design, technical digital and mobile knowledge to the market. Managing director Rizwana Bawa says Tequila\ has been able to observe, learn and reapply the digital lessons of global markets to South Africa. “Digital is exploding globally and South Africa is catching-up as our broadband improves,” says Bawa. “Sharpening our digital strategies and skills ensures that Tequila\ remains relevant to clients and continues to deliver high-quality work.” 5. Creating consumer conversations The explosion in mobile digital technologies and tremendous consumer demand for them has driven an equal explosion in the number of potential channels for engagement. Never before have marketers been able to communicate on such an intimate level with their audiences. Opportunities to make real connections with both mass and very niche target markets are enormous. In partnership with Tequila\, convergence communicators at NXT have committed themselves to maximising these opportunities by crafting mobile digital solutions for clients. NXT is poised to deliver real value for clients in the midst of this digital explosion. It’s TBWA\’s Media Arts philosophy in action.

AGENCY PROFILE

01.

6. Putting rubber on road Transforming a philosophy and good ideas into genuine value, and value for money, requires innovation, speed and flexibility in execution. This is what all companies, including our clients, seek. TBWA\Durban has responded with a bold solution to meeting clients’ demands timeously while giving staff access to leading technology and in-house editing and post production facilities. With four editing and post production studios in-house, TBWA\ is well positioned to ensure efficient, innovative and cost-effective service to clients. 7. Earning respect and reputation Established as the market leader in South Africa, Magna Carta is aggressively targeting growth opportunities locally and in other markets. Magna Carta has established an African network that spans 16 sub-Saharan countries and has developed healthy global relationships with Ketchum and TBWA. The agency is optimistic about growth prospects in PR and remains dedicated to providing clients with specialist strategic advice and expertise needed in a business environment that is always challenging. The successful application of this approach has seen Magna Carta win Finweek’s “PR Agency of the Year” award three years in a row. The agency’s focus is on continuing to add value to clients through its many service offerings. These include a specialist media unit to address traditional and new media environments, a strong presence and skills-set across a number of sectors such as information technology, and a specialist public sector team working across a number of government departments. Magna Carta’s core competency is reputation management in the corporate, brand and public affairs spaces, underpinned by thought leadership and solid delivery. 8. Healthy living The pharmaceutical and health care market is an increasingly important sector with particular dynamics and highly specific marketing needs. TBWA\ recognized that this market

in the South African context seeks better creative strategies that can succeed within a host of regulatory constraints. As a result, we acquired Equator, a specialist pharmaceutical and health care communications agency. Together, Equator and TBWA\ intend to grow the South African market and create communication solutions that answer the clients’ brand and business needs. 9. Developing enterprising enterprises Developing partnerships and nurturing relationships with like-minded, talented and equally driven people and companies is fundamental to the TBWA\ growth strategy. It enables us to offer our clients extended value and allows both companies to learn from and grow with each other. A case in point is the establishment of a brand activation, experiential and eventing agency within the TBWA\ group. Our partners in this initiative caught our eye not only because of their specialist skills and experience, but because of their dynamic and innovative approach to business – qualities we constantly seek and encourage. 10. Teaching the Business of Art Art and business typically have a fraught and fractious relationship. TBWA\ aims to change all that with Room 13. This is a programme that introduces underprivileged children to all forms of art, from traditional painting to drama and storytelling, and teaches them how to make a business out of it. Room 13’s students in South Africa have already earned their wings, with their latest art exhibition earning them close to R100 000. Through Room 13, TBWA\ aims to launch the kids into the real world with an ability to really express themselves and give their talent an opportunity to flourish. Of course, Room 13 is neither the start nor the end of our commitment to change for the better. Other TBWA\ projects include Tomorrow’s Trust, The Haven, Boys and Girls Town, EWT and WWF.

02.

03.

01. The Achiever Banking campaign for Standard Bank is a good example of tapping into the diverse

expertise across the group to deliver a successful holistic campaign. The Campaign included ATL,



Web, Mobile and PR.

02. The Mail & Guardian Online campaign used innovative use of print media (on edible paper) to

highlight the newspaper’s brand and positioning.

03. The Adventure is Anywhere campaign for Jelly Tots literally turned everyday places like elevators into

places of adventure to capture the minds and hearts of kids everywhere.

The ANNUAL 2008 — 221

AGENCY PROFILE

thirtyfour Type of agency: Brand activation Number of accounts /clients: 10 Biggest spending clients: SAB, Grandslots (ThuoGaming SA),

Ster-Kinekor, Global Trader, Leapfrog Accounts won in 2008: Peroni, Brutal Fruit, Redds, Global Trader, Leapfrog, Kimberly Clark (Kotex) Accounts lost in 2008:

01.

02.

None Company ownership: 75% local; 25% Mvelaphanda Group through Indima Media Contact details: Tel: +27 21 480 3400

Email: [email protected] Agency billings: Not disclosed key awards in 2008: None Number of staff: 22 key agency staff: Chief executive officer: Andy Sutcliffe

Managing director, 34 Brand Activation: Morne Fourie

Managing director, 34 Sport: Grant Hillary Key moment in 2008: Doing a smart BEE deal with a future facing partner, Mvelaphanda Group. Launching 34 Sport to turn the

sponsorship leverage market on its head.

Elevated to “dream team” status at Castle. The agency snapshot in 50 words: We promise open-minded, liberated

thinking to get clients out of the rut of traditional advertising campaigns

Anyone who wants their below-the-linecampaigns to give them free TV exposure and increase sales by over 200% should call on the specialist services of thirtyfour. Need proof? Ask SAB or just Google “Back the Boks”. CEO Andy Sutcliffe moved to South Africa from the UK after selling his agency, Ignition, to international marketing giant Omnicom. Having identified a real need for innovative thinking in the local below-theline arena or, as he calls it, brand activation, he set up shop in 2007. He expands, “Compared to our above-the-line cousins, the majority of below-the-line work in the market is uninspiring.’ Using the awesome advantage of his

25 years of exposure to European brand activation strategies plus his unwavering eye for recruiting top talent, thirtyfour is set to revolutionise the way brands take themselves to market. thirtyfour positions itself as a futurefacing agency with some definite aims in mind, among them to invest in talent and insight that will deliver brilliantly simple campaigns that make a difference. So, if you are looking for more bang for your buck, this “pure play” below-the-line specialist will deliver. It is their aim to cut through the noise and capitalise on the excellent, hitherto untapped, revenue potential inherent in the below-the-line space. Says Sutcliffe, “We are a completely results driven. Below the line provides a platform for immediacy and long-term relationship building between people and brands. “But,” he cautions, “our clients have to want to do things differently.” Given its tender age, the agency has not yet garnered any awards and Sutcliffe is candid, “Awards are not a major focus for us at this stage of our growth. And we are of the opinion that the way creativity and effectiveness is defined by the traditional industry is too narrow. So as we build up our body of work and can find relevant categories that will appreciate the great results driven work we do, we’ll definitely enter.” In the meantime thirtyfour has addressed the issue of work by adding the following accounts to their current portfolio: • Peroni, Brutal Fruit and Redds • Global Trader • Leapfrog • Kimberly-Clark Poised to take these brands on are the thirtyfour creative and business teams that Sutcliffe says, “truly are a dream team featuring some of the country’s top talent” that he has brought together through a recruitment policy based on David Ogilvy’s mantra “the people with the best people win!” Topping the list are Morne Fourie,

MD of thirtyfour Brand Activation, who brings to the table incredible retail and FMCG experience; Grant Hillary, MD, of thirtyfour Sport and formerly a key client at SAB; and Richard Phillips, the creative director, who is as good as anybody Andy has worked with internationally. To add to these credentials, a recent BEE deal has seen Indima Media, part of empowerment giant Mvelaphanda, take a 25.1% stake in the business. This is a perfect fit as the group, already strong in the traditional media space, was seeking to enter the below-the-line arena. Additionally, Springbok turned business consultant Bobby Skinstad will represent Mvelaphanda on the board of thirtyfour, so there is further synergy with 34 Sport. This is a significant move and is indicative that Sutcliffe is not one to let any grass grow under his feet, as is his mission is to establish thirtyfour as South Africa’s best below-the-line agency. Over the next 12-18 months 34 Brand Activation will serve as the mothership for a fleet of satellite agencies of which 34 Sport is but the beginning. He describes his strategy, “We want to challenge convention. We’ve identified gaps in below-the-line ranging from digital and one-to-one communication to retail and experiential, where thirtyfour can make a significant difference. And do it better.” Sutcliffe believes that agencies need to understand that specialization is a positive differential in today’s new media market. “I’m amazed at the number of agencies out there offering a 360 degree integrated service. There are only a handful of agencies here that understand what this truly means.” He is upbeat about the fact that the traditional status quo is changing. “Agencies and their clients need to stop thinking of TV ads first and then working backwards from there to shoehorn in other channels. The key is to develop brand-relevant ideas and then explore the appropriate channels”, he says. Not that he thinks the age

01. Team 34 literally going below-the-line 02. Castle “Back the Boks” 8-pack renamed

“Scrum pack” for the promotion

of traditional advertising is dead. Rather, Sutcliffe sees a potent synergy between above and below-the-line campaigns, which will impact on client spend and those braver clients willing to explore the alternatives. He backs this up with solid figures, “when I left Omnicom in 2005, 64% of all revenue was derived from belowthe line- agencies”. Client references “thirtyfour are a dynamic international team that bring a refreshing focus on leveraging marketing spend to deliver measureable results to your business’ bottom line. Innovative thinking, experiential marketing techniques, a team-based attitude and a real desire to understand what makes your business tick ensure delivery of this promise from marketing execution through to your P&L statement.” – Charles Savage: CEO, Global Trader “thirtyfour comes to the table with fresh and innovative ways to rehaul traditional promotion mechanics. They truly partner with SAB on every project and provide an excellent service. They are a pleasure to work with.” – Nerisha Ganasan: executive brand manager, Castle Lager

The ANNUAL 2008 — 223

AGENCY PROFILE

Timesquare Advertising Type of Agency: Advertising Number of accounts/clients: 15 BIGGEST SPENDING CLIENTS: Daihatsu, Reckitt Benckiser, Merck Pharmaceuticals Accounts won in 2008: Vestergaard Frandsen Ecostrong Accounts lost in 2008: None Company Ownership: Kim Millar Number of staff: 21 Billings: 24 million Key awards in 2008: None Key aGENCY STAFF: Owner: Kim Millar Client service director: Mike Kane-Smith, Creative director: Gillian Bridger Key moment in 2008: Repositioning of the agency Contact details: Tel: +27 87 940 1629 The agency in 50 words: Timesquare is committed to its evolution

01.

of connecting business, staff and most importantly, its clients. There is a sense of urgency and intensity to design and create inspiring (and ideally awardwinning) work in a great environment. The agency expects this contagious energy to have a positive impact on existing client’s brands, while raising the profile and appeal of its own brand.

If the only Times Square you know of is in New York, you’re not alone. But three things are for sure: firstly, you’ll definitely have encountered work by the agency sharing this global hub’s name at some point during your day. That’s because Timesquare Advertising has a special focus on the brands that make up our urban experience, and which touch on the things we love. Secondly, once you encounter Timesquare the agency, you’ll see that it shares the vigour, dynamism and sheer go-go-go of its namesake. And thirdly, you’re bound to start to hear a lot more about it as it makes its presence felt on the local ad scene. In fact, it may surprise you to learn that the agency has been around for 18 years. In the words of managing director Kim 224 — The ANNUAL 2008

Millar, Timesquare is like a teenager, bold, brimming with energy and braced to take the next step forward. It’s taken some time to reach this point: initially focused exclusively on the medical environment, Millar combined her big-agency experience with an intimate knowledge of the healthcare industry to create a number of extremely successful interventions, ranging from campaigns to product launches and packaging design. With the laws governing advertising in the healthcare arena changing in 2002, the agency made a strategic decision to broaden its scope, and a move into advertising over-the-counter medicines established the platform for a natural progression into the FMCG space. “Our shift allowed us to hone the skills required for multichannel communication,” Millar says – which is why Timesquare is as adept at communicating to medical specialists as it is to traders, high-end consumers and momand-pop-stores. It also brought with it a desire to represent more brands – “specifically, brands we love”, Millar says. And that led to Timesquare’s repositioning in 2007, when the agency underwent a true star turn. Its in-

terest in exploring broader industries was met with a soaring response from clients, with the result that the agency experienced continued growth. This has resulted in a concentrated search for talent, and has culminated in the agency’s relocation to new premises which, according to Millar, gives true expression to its ethos. “I strongly believe that your environment influences the way you think,” she says, “so our new home is specifically designed to allow for stimulating experiences. We have a Chef’s Table, an opulent library with Nintendo Wii, as well as meeting areas and open spaces that will encourage connection and energy flow. The space mirrors the contrast of urban life, which is after all what we’re about, representing brands that target vastly different markets. After all, in a cityscape, you’re likely to find a fast food outlet on the corner, a hairdresser across the road, and so on.” It is also, she says, a space that encourages integration between the agency’s various departments (client service, creative and production), and one that also invites clients to get involved. That’s important, because relationships with clients are central to how Timesquare operates. “Love” is a word Millar scatters

liberally through conversation, because she’s adamant that the agency works only with clients who share a mutual respect and outlook, and on brands for which it has true passion. “There’s no other way. You do it with passion, or you don’t do it at all. It’s like cooking a meal – you can taste if it’s been prepared with love. By the same token, if the passion’s there, you can see it in the work we do, in the care and commitment and the attention to detail. And we invest the same energy in TV ads, point-of-sale material or print – they’re all equally important to us.” That’s an essential part of Timesquare’s energy she adds, and one of the reasons the agency is unique. Another reason is its ability to connect at all levels. “We can see where our clients are right now, and which communication solution is going to suit them best at the moment. We never lose sight of their direction and goals, but if something’s not right for them, we’re not going to suggest it. We’re not into creativity for its own sake. We want to see our clients take their business to the next level, and sometimes it takes hard, solid communication to do just that.” Timesquare’s relationship with Lombard Insurance Group is a case in point. The insurance and risk management experts requested help from Timesquare to drive business-to-business advertising. That was two years ago, and what started as a brief for a single trade ad, began with the development of a strategy that has since held together a new corporate identity and profile, internal intranet campaign, conferences and the annual Lombard Golf tournament. “Lombard’s business has grown, and we’ve grown alongside them as their needs have developed,” Millar comments. Dion Rheeder, marketing manager at Lombard Insurance Group, concurs that the relationship has been a fruitful one. “Timesquare has always been very professional in their dealings, and their knowledge about us has developed as we’ve grown,” he comments. But at the same time, when more focus is required on the brand, Timesquare can deliver. Here, the agency’s work with Daihatsu stands out. Timesquare encouraged the client to depart from its traditional hard-sell approach, instead developing a stronger brand personality, as exemplified with the most recent TV campaign for the Sirion, with its “Live Big, Drive Compact” positioning. As a result, Daihatsu has enjoyed continued success even in the current market. Timesquare’s work for other clients, including through-the-line campaigns for Dispirin, Gaviscon, Strepsils, Iams Eukanuba and Vanish, not only demonstrate the agency’s level of skills and attention to

AGENCY PROFILE

02.

03. 01. On the go… Timesquare outside their

new home.

02. A big ad for a compact car - brand positioning

TVC for Daihatsu Sirion.

03. The Amazing Race TV show creates an

opportunity to reinforce Disprin’s efficacy.



“Works fast, for people who live in the fastlane”.

04. New logo design and print campaign takes

forward-thinking, innovative Lombard



Insurance Group into the future.

05. Disprin moves away from “headache tablet”

04.

detail, but also its ability to communicate across channels. “Few agencies are able to speak to consumers across the spectrum. It takes a very different kind of communication to sell a two-pack Strepsils into a spaza store than to sell in a range of SKUs to the pharmacist. That’s why below-the-line communications are becoming increasingly important, going forward.” Millar has other ideas about where the industry is headed, and some of the key challenges that are sure to leave their mark in the future include the skills shortage and pitch processes, as well as increasing demands from clients without a concurrent increase in budgets. As a small agency, Timesquare is affected by all. So, what’s the answer? “When it comes

territory into the broader benefits of removing pain.

05.

to budgets, we have to measure the return on investment. Added to which, our growth, and the growth of our clients, have made it particularly important for us to participate in addressing our industry skills shortage, because as they up their stakes, so must we. We address the problem through mentoring, training programmes and internships.” The question of free pitching is a little more tricky, however. It becomes expensive for small agencies to redirect their resources towards pitch projects, especially when there are several other, usually larger, agencies involved. But, Millar concludes, although Timesquare is eager to bring on board new clients – particularly those seeking a more creative approach – it is very selective about participating in pitches The ANNUAL 2008 — 225

AGENCY PROFILE

Troika Imagineering Works Type of Agency: Integrated brand communications Number of accounts/clients: 17 BIGGEST SPENDING CLIENTS: Dimension Data, RAM Couriers, Sappi, Internet Solutions, Bowman Gilfillan Attorneys Accounts won in 2008: Cool Kidz Corp, Teach South Africa Accounts lost in 2008: None Company Ownership: Independent Number of staff: 22 Billings: R19 million Key awards in 2008: Troika does not enter awards Key aGENCY STAFF: Not disclosed Key moment in 2008: Launch of Interactive division. Contact details: Tel: +27 11 884 0775 Email: [email protected] Website: www.troika-iw.com The agency in 50 words: Troika is a specialised brand communications company that uses multiple media and alternative channels to build and add value to brands. “Think hard. Dream wildly. Execute flawlessly.” This mantra has served Troika well over 15 years of highly effective brand building for leading companies

“Power to the Brand”. Troika Imagineering Works’ strapline succinctly sums up what drives the Sandton-based agency. It also explains why Troika – a multi-disciplined, integrated, brand communications powerhouse – punches well above its weight in terms of creativity and delivery. “Every campaign we do revolves around a core idea that emanates from a single integrated strategy,” explains chief imagineer Graham Rothschild. “We use the platforms and channels that are right for a particular brand to power that brand.” “Clients don’t have to brief multiple agencies,” adds his partner and fellow chief imagineer, Neill Moross. “As a single point 228 — The ANNUAL 2008

of contact we can ensure there’s a consistent message to market created by one team. If we don’t have the expertise in-house – and we do have specialists in many areas – we will partner with those who do, ensuring that the brand image remains intact at every point of contact.” Rothschild and Moross launched Troika 15 years ago and they still oversee day-today operations of the 22-strong team of imagineers. The duo is actively involved at every level of the business – strategy, concept and execution. Despite its relatively small size, the agency boasts a prestigious blue-chip client list that includes companies such as Dimension Data and Sappi that have been with it for more than a decade. Rothschild and Moross are uncompromising about the quality of the work and their philosophical troika of “thinking hard, dreaming wildly and executing flawlessly”. The growth of one of their flagship clients, RAM Hand-to-Hand Couriers, is testament to the agency’s intelligence, creativity and technical capability. When the family owned business approached Troika in 2004, it was operating under the radar in a very niche market. Troika rebranded the

company and helped it to go mainstream. The result? The number of RAM vehicles on the road has more than doubled to over 600 vehicles, and research last year showed that awareness of the RAM brand had shot up significantly. This year Troika shifted the RAM campaign up a gear, putting the brand on TV. The challenge was to conceptualise a campaign that could be produced cost effectively without compromising on production values. Smart scripting, careful planning and use of digital video allowed the agency to shoot three 15 second TV spots in one day, at around half the market cost. “It’s a myth that you have to shoot on film. We used video and produced excellent quality ads,” says Rothschild. Troika’s extraordinary versatility is highlighted in a recent integrated campaign for IT giants Dimension Data and Cisco. The two companies collaborated on developing an IP telephony system for medium-sized businesses. These companies seldom have the know-how to assess sophisticated, highly technical solutions. Troika’s solution was to communicate only the business benefits and strip out unnecessary techno-jargon. It started by devising a user-friendly

name for the solution – “The Answer.” The agency then developed a logo and produced sales collateral, email banners and billboards to drive potential buyers to a website which it also designed and provided content for. Troika’s solution extended all the way to providing scripts to guide telesales staff! “It’s harder to sell technology solutions than candy or soap. You have to grasp what are often highly complex offerings, convert them to business speak and push the buttons of the sophisticated decision makers that you’re talking to,” says Rothschild. While Troika has attracted several other leading IT companies such as Internet Solutions, the agency isn’t limited to an IT niche and its client list is diverse. What many other clients share, including Bowman Gilfillan Attorneys, Sappi, Lilly and TransUnion, is a serious, no-nonsense approach to business and protection of their corporate image. We asked if this had anything to do with Troika’s own heavyweight and even manly image of a “works” where brands are forged. “I think it has more to do with our reputation for handling complex service offerings well,” says Rothschild. “We just aren’t associated with cute once-off ideas. Like our clients, we’re strategic, and it seems that this is what FMCG companies want as well as we have received a flurry of approaches from this sector in recent months.” Troika is still enjoying positive growth but, like most agencies, it has felt the economic tightening and admits that clients are mindful of costs and taking that much longer to commit to projects. “There’s pressure on agency overheads and it doesn’t augur well for service delivery and quality in the industry,” says Rothschild. But the imagineers have noticed that even economic belt tightening can open up new opportunities. “Our clients are becoming more entrepreneurial,” says PR Imagineer, Marilyn de Villiers. “They’re finding new ways of doing things and that’s very exciting for us.” Troika has also become more involved in recruitment drives that have gained new prominence. Companies are chasing after scarce skills and they have to be more careful when hiring. This, De Villiers says, has a direct impact on PR communication: “There’s more emphasis on staff – current and future – as a primary audience. Nowadays companies have to sell themselves as much as the candidates who they interview do.” In line with its strategic approach and the changing media environment, Troika is now offering interactive digital design services and has brought an experienced interactive designer on board. Moross is excited about the creative

AGENCY PROFILE

01. 01. Office door decals and screensaver

encouraging Bowman Gilfillan staffers to tread



lightly and reduce their carbon footprint

02.

02. Complete brand refresh for leading auto

retail chain

03. Providing the answer for Dimension Data and

Cisco. Naming, logo, website, billboards, brochure,



online banners

04. No subcontractors. Getting RAM’s message across

with entertaining, cost-effective 15-second TV ads

opportunities that interactive offers: “Instead of exhibition visitors leaving their business cards behind for a draw, we’ve developed on-stand, online activities that require them to log in and really interact with the brand.” The agency has also developed an advanced tool that enables clients to upload publications onto their websites so that, instead of users having to scroll through unyielding PDFs, they can control their own browsing and quickly dip in and out of the sections that interest them. Sappi has used the tool for its latest annual report and is extending its use to other publications globally. Even PowerPoint presentations can now include animation and live action video. Recently Troika facilitated the delivery of a live, interactive presentation over the web. The imagineers are in a position to lead campaigns with interactive media, but they hasten to add that it’s just one channel of communication in the mix right now. “Conventional media such as TV, print, outdoor and collateral such as hard copy brochures are still important and aren’t going to go away in a hurry,” says Rothschild. De Villiers is interested in the implications of social network sites such as YouTube for PR campaigns. “Blogging has also become a huge component of rising consumer and corporate activity,” she says.

“Because of the reach of the web, one bad blog and one bad viral campaign can literally destroy your brand. These new social channels are therefore playing an increasingly strategic role in PR today.” For years Troika has been on top of another trend that is now coming to the fore, green marketing. “Green issues have long been important to Sappi. The annual calendar we produced for Sappi last year and this year, revolve around the highly evocative theme of sustainability,” says Moross. This year several other clients embarked on internal green promotional campaigns. Troika is also helping Dimension Data to market green-orientated infrastructure. At the recent ‘Green Buildings’ summit in Johannesburg, Troika placed cardboard cut-outs of people around the conference venue. They were accompanied by blurbs explaining that they decided not to attend in person but were participating via a Dimension Data enabled videoconference… as they were trying to reduce their carbon footprint. Attendees were given saplings as gifts. The example again points to the agency’s versatility and its real ability to be a single point of contact for any brand communication. Whether it’s dealing with a single report, devising full brand solutions, or facing current macroeconomic issues, Troika Imagineering Works offers solutions that – in the words of Moross – just work!

03.

04.

“We create powerful ideas and then use the platforms and channels that are right for a particular brand to power that brand.” The ANNUAL 2008 — 229

AGENCY PROFILE

Yellowwood (Pty) Ltd Type of agency: Branding and marketing strategists Number of accounts/clients: Number of accounts varies – Yellowwood takes on clients on a per-project basis Biggest spending clients: BMW, DiData, Nedbank, Engen, SAA, Sasol, Exclusive Books, Santam, Cricket SA Accounts won in 2008: Varies – per project Accounts lost in 2008: Varies – per project Company ownership: Management and staff Contact details: Yellowwood Cape Town Tel: +27 21 880 1489

Fax: +27 21 880 1477 Physical address: Middle Building Cottillion Place

TechnoWay, TechnoPark Stellenbosch, 7599

Contact: Kay Nash, CEO

Email: [email protected] Agency billings: An average of R1-million per project and about R25-million per annum Key awards in 2008: None Number of staff: 25 in-house plus many expert consultants Key agency staff: Chief executive officer: Kay Nash

Group managing director: Ivan Moroke Chairman: Andy Rice

The agency snapshot in 50 words: Think unconventional branding wisdom. Yellowwood offers high-level brand

consulting at senior executive level and on an individual basis. There are no formulas

– just results. The business consults to some of South Africa’s top brands and designs

strategic experiences for them that are both practical and useful

Yellowwood was founded in 1997 and in 2005 Future Architects and Yellowwood were amalgamated with Kay Nash, Ivan Moroke and Andy Rice steering the ship. Nash has a history in advertising, branding design, and marketing, Moroke comes from a background in marketing, advertising and brand consultancy while Rice is one of the most respected brand and communications strategists in South Africa. It’s a team that promises – and gets – results. A company’s brand is one of

230 — The ANNUAL 2008

its biggest assets although brands are often perceived as intangible. Nothing could be further from the truth. Take away the value of a company’s net physical assets and what you’re left with is its brand value, which can run into billions of rands. It’s a formula not lost on the country’s most prominent brands, 01. plough significant resources into mainwhich taining their visibility. Says CEO Kay Nash: “We have many big clients and we work on a per-project basis – there are only small retainers. In the Cape our clients include Engen, Santam, RGBC, Media 24, Bank Windhoek, and lots of smaller clients. From our Johannesburg office we run the BMW, Nedbank, Didata, SAA Cricket, SA Incredible Connection, Sasol and Exclusive Books accounts, among others.” Group MD Ivan Moroke says: “Yellowwood has a full time crew of 25 people. However, we also like to bring in experts who work for us as strategy partners – at the moment we have about 10 of those. “Our business is about total marketing strategy in all its formats, encompassing all the classical marketing elements – segmentation, brand, architecture and portfolio strategy. We also conduct marketing training, creating systems and processes for companies in order to make them more profitable and efficient. We design experiences and plot the future of top brands. “Our task is to bring businesses to the point where they can deliver on their promises to customers. We take strategic thinking and make it both practical and useful for an organisation,” he says. Nash adds that the company also has a research function where a team garners insights and intelligence about an organisation and its market dynamics covering competitors, local and global trends – target markets that they are able to use to good effect. This research takes both a creative and formal approach. Branding is not just about changing and designing the look of an organisation. “You have to live it too,” she says. “To help clients do this, we have a highly-experienced creative team that is able to apply creativity to strategy in a way that most companies and their customers find inspirational. This team is one of

the most seasoned in the country as our philosophy is not to employ junior people. We deal at a very senior level and you can’t put a baby at the boardroom table. Our people are hugely experienced and experts at what they do. “In this business you have to be on your toes, but at the same time concepts like sharing, abundance and generosity are also important. We are not territorial. The phrase ‘A beautiful madness’ comes to mind when describing this business,” she says. Yellowwood is a vibrant place and hugely creative, but ultimately branding strategy has to evolve into implementation. The company is therefore relaxed in approach but focused at the same time. Their offices in Johannesburg and Cape give them a good national footprint, and although it doesn’t want to become too large and sprawling, it is taking on a growing

The people at the helm of Yellowwood have a great depth of experience. Kay Nash, CEO, is a well-respected strategy leader and larger than life personality in the industry. Before Yellowwood, she spent four years with Enterprise IG as group managing director and deputy CEO of Africa Middle East and steered the business through two international sales and full operational re-engineering while maintaining their local market leadership. She was also the managing director of Enterprise Connection and group marketing director of Incredible Connection and experienced the IT industry first hand as they disposed of 11 business globally and rebuilt the group. Nash served her time in the advertising industry as group head of strategy FCB for three years. She also ran her own marketing consultancy in the UK for five years. Her early

amount of international work as well. South Africa is often attractive to overseas businesses because they can attach a rand value to resources that would be considerably more expensive internationally. In terms of company philosophy, Moroke says Yellowwood believes in the interdependence of business and brands. “We are business strategists, using marketing and branding as the means to a commercially appropriate end. “We understand the impact of courage and ambition and we are attracted to clients who share our view that it is better to explore the outer limits of the possible -- and then, if necessary pull back – rather than to stay cautiously within our close-to-home comfort zone. We look for opportunities to implement changes of principle, rather than changes of degree, for therein lies serious competitive advantage. We recognise that we cannot always adopt these changes, but when the time is right our clients will be the first to do so,” he says.

career in FMCG was with SA Breweries and Cadbury Schweppes. Group managing director Ivan Moroke began his career in marketing at British American Tobacco, working his way through various divisions including sales, brand promotions, CRM and sponsorship. His move to international strategic marketing consultancy Added Value allowed him to fast-track his strategic brand marketing skills. He then moved to the agency environment as a senior strategic planner for OIL, the strategic planning and research arm of Lowe Bull Group. He soon became a board director of the agency, and OIL’s strategic director. In 2006 Moroke was made MD of Lowe Bull Johannesburg. He recently joined Yellowwood as group managing director. His experience covers diverse sectors which including banking, insurance, fuel, liquor, fast food, tobacco, groceries and soft drinks. Yellowwood chairman Andy Rice is a

AGENCY PROFILE

01. Endearmints (FMCG) 02. Spitz visual language brochure set 03. Spitz retail interior 04. Abagold super premium packaging system 05. La Croix du Sud hard cover brochure 01.

02.

03.

04.

Cambridge University graduate. His subsequent career has been spent entirely in marketing and advertising, eventually becoming director of strategic planning at Ogilvy & Mather Johannesburg. He left O&M in 1995 to establish a freelance strategic planning consultancy and

05.

founded Yellowwood two years later. Rice is one of the most respected brand and communications strategists in the country and continues to feature as one of the most influential people in the industry every year. Nash is upbeat about Yellowwood’s future.

“This business is continually re-inventing itself and that’s a good thing. Globally, branding is a dynamic business and we’re well placed, with the right skills, to stay ahead of the wave. “We do business in an unconventional way and that gets us – and our clients – noticed. That’s just the way we like it,” she says.

The ANNUAL 2008 — 231

8IFUIFS
JUT
B
CSBOE
SPBETIPX
BO
8IFUIFS
JUT
B
CSBOE
SPBETIPX
BO
FWFOU
PS
B
DMBTTJD
BDUJWBUJPO
CF FWFOU
PS
B
DMBTTJD
BDUJWBUJPO
CF UXFFO
PVS
FJHIU
CVTJOFTT
VOJUT
XF
UXFFO
PVS
FJHIU
CVTJOFTT
VOJUT
XF
IBWF
UIF
DBQBCJMJUZ
BOE
SFTPVSDFT
IBWF
UIF
DBQBCJMJUZ
BOE
SFTPVSDFT
UP
IBOEMF
JU
GSPN
TUBSU
UP
öOJTI UP
IBOEMF
JU
GSPN
TUBSU
UP
öOJTI "U
;.(
XF
BSF
EFEJDBUFE
UP
POF
"U
;.(
XF
BSF
EFEJDBUFE
UP
POF
UIJOH
HJWJOH
ZPVS
CSBOE
UIF
FEHF
UIJOH
HJWJOH
ZPVS
CSBOE
UIF
FEHF
XJUI
PSJHJOBM
FòFDUJWF
DBNQBJHOT
XJUI
PSJHJOBM
FòFDUJWF
DBNQBJHOT
EFMJWFSFE
XJUI
QBTTJPO
BOE
WFSWF EFMJWFSFE
XJUI
QBTTJPO
BOE
WFSWF #SBOE
&ODPVOUFST #SBOE
&ODPVOUFST #SBOE
$IBSBDUFST #SBOE
$IBSBDUFST #SBOE
3PBE
TIPXT #SBOE
3PBE
TIPXT $4*
$BNQBJHOT $4*
$BNQBJHOT (JH3JH
&YUSBWBHBO[BT (JH3JH
&YUSBWBHBO[BT *OEVTUSJBM
5IFBUSF *OEVTUSJBM
5IFBUSF &&WFOU
.BOBHFNFOU
WFOU
.BOBHFNFOU
;JOUP
5BMFOU ;JOUP
5BMFOU XXX[JOUPDP[B XXX[JOUPDP[B 

 



0VS
BQQSPBDI
UP
NBOBHJOH
UIF
DIBSBD 0VS
BQQSPBDI
UP
NBOBHJOH
UIF
DIBSBD UFST
XBT
EJòFSFOU
UP
XIBU
PVS
DPNQFUJ UFST
XBT
EJòFSFOU
UP
XIBU
PVS
DPNQFUJ UPST
XFSF
EPJOH
BU
UIF
UJNF
0VS
DIBSBD UPST
XFSF
EPJOH
BU
UIF
UJNF
0VS
DIBSBD UFST
UFST
FEVDBUFE
FEVDBUFE
LJET
LJET
EVSJOH
EVSJOH
TDIPPM
TDIPPM
IPVST
IPVST
BOE
XFSF
PVU
BOE
BCPVU
JO
UIF
USBEF
JO
BOE
XFSF
PVU
BOE
BCPVU
JO
UIF
USBEF
JO
UIF
BGUFSOPPOT
BOE
PWFS
XFFLFOET
QSP UIF
BGUFSOPPOT
BOE
PWFS
XFFLFOET
QSP NPUJOH
TBMFT NPUJOH
TBMFT

FODPVOUFST
FODPVOUFST
TBNQMJOH
TBNQMJOH
DMBTTJD
DMBTTJD
QSPNP QSPNP UJPOT
UJPOT
FUD
FUD
UP
UP
CSBOE
CSBOE
BOE
BOE
JOEVTUSJBM
JOEVTUSJBM
UIF UIF BUSF BUSF

$MJFOUT
$MJFOUT
XFSF
XFSF
JNQSFTTFE
JNQSFTTFE
CZ
CZ
UIF
UIF
SFTVMUT
SFTVMUT
BOE
BOE
TPPO
TPPO
SFRVFTUT
SFRVFTUT
XFSF
XFSF
SPMMJOH
SPMMJOH
JO
JO
GPS
GPS
TQFDJBMJTFE
JOTUPSF
BDUJWJUJFT
5IF
SFTU
JT
TQFDJBMJTFE
JOTUPSF
BDUJWJUJFT
5IF
SFTU
JT
IJTUPSZ IJTUPSZ ww
TIF
TNJMFT

TIF
TNJMFT


"
EJWFSTF
DMJFOU
CBTF
NFBOT
UIBU
;JOUP
JT
"
EJWFSTF
DMJFOU
CBTF
NFBOT
UIBU
;JOUP
JT
DPOTUBOUMZ
DPOTUBOUMZ
DIBMMFOHFE
DIBMMFOHFE
UP
UP
UIJOL
UIJOL
BOE
BOE
PQ PQ FSBUF
FSBUF
PVUPGUIFCPY
PVUPGUIFCPY
8IBU
8IBU
XPSLT
XPSLT
GPS
GPS
'.$(
'.$(
DMJFOUT
DMJFOUT
TVDI
TVDI
BT
BT
.D$BJO
.D$BJO
'SP[FO
'SP[FO
7FHFUBCMFT
7FHFUBCMFT
:VN:VN
:VN:VN
QFBOVU
QFBOVU
CVUUFS
CVUUFS
BOE
%FOOZ
.VTISPPNT
EPFT
OPU
OFDFT BOE
%FOOZ
.VTISPPNT
EPFT
OPU
OFDFT TBSJMZ
XPSL
GPS
DMJFOUT
TVDI
BT
.5/
BOE
TBSJMZ
XPSL
GPS
DMJFOUT
TVDI
BT
.5/
BOE
5FUSB
1BL 5FUSB
1BL ww
TBZT
$PNCSJODL
i-VDLJMZ
*
BN

TBZT
$PNCSJODL
i-VDLJMZ
*
BN


.JDIFMMF
$PNCSJODL
IBT
SFBTPO
UP
TNJMF
.JDIFMMF
$PNCSJODL
IBT
SFBTPO
UP
TNJMF
5IF
;JOUP
.BSLFUJOH
(SPVQ
PòFST
CSBOE
5IF
;JOUP
.BSLFUJOH
(SPVQ
PòFST
CSBOE
BDUJWBUJPO
TFSWJDFT
SBOHJOH
GSPN
CSBOE
BDUJWBUJPO
TFSWJDFT
SBOHJOH
GSPN
CSBOE



5IF
DPNQBOZ
IBT
B
SFQVUBUJPO
GPS
FEHZ

5IF
DPNQBOZ
IBT
B
SFQVUBUJPO
GPS
FEHZ
DSFBUJWF
BDUJWBUJPOT
UIBU
BMXBZT
BUUSBDUT
DSFBUJWF
BDUJWBUJPOT
UIBU
BMXBZT
BUUSBDUT
BUUFOUJPO
BUUFOUJPO


TVSSPVOEFE
TVSSPVOEFE
CZ
CZ
TPNF
TPNF
PG
PG
UIF
UIF
NPTU
NPTU
UBM UBM FOUFE
QFPQMF
JO
UIF
CVTJOFTT
XIP
FOKPZ
FOUFE
QFPQMF
JO
UIF
CVTJOFTT
XIP
FOKPZ
IBWJOH
GVO
XJUI
UIF
CSBOET
FOUSVTUFE
UP
IBWJOH
GVO
XJUI
UIF
CSBOET
FOUSVTUFE
UP
UIFN UIFNww

;JOUP
MJWFT
VQ
UP
JUT
OBNF
5IF
DPNQBOZ
;JOUP
MJWFT
VQ
UP
JUT
OBNF
5IF
DPNQBOZ
SFBMMZ
PòFST
iBMM
UIJOHTw
o
XIBUFWFS
ZPVS
SFBMMZ
PòFST
iBMM
UIJOHTw
o
XIBUFWFS
ZPVS
CSBOE
BDUJWBUJPO
OFFET
CSBOE
BDUJWBUJPO
OFFET


THE ROCKSTARS

The Rockstars

THE ROCKSTARS

Investing in our talent By Adelle Wapnick

The development of people in the design and advertising industry is not a high priority, but we need to give it our urgent attention if we’re to keep the words “talent” and “creativity” synonymous with our industries.

The industry today is an environment of relentless performance pressures. While this is true of most industries, the business of services relating to the delivery of creativity has become even more difficult. That’s because there is little, if any, balance.

Before, there were long lunches, golf days, commissions and mark-ups. Now there’s greater accountability, performance contracts, fee structures and tendering. Our business has become all about processes and time, rather than talent, or our greatest currency, ideas. While the latter is appreciated, and for some clients is still important, it’s no longer the most important element, as is evident in the average work that’s out there, but that’s another debate. In a state of constant change, it’s no wonder we have little time or energy to adjust the manner in which we manage our industry, our agencies and most importantly, our people. Let’s look at our people. I have to wonder why, in the time of a severe national skills shortage, we as an industry, are, one, doing very little to attract great talent, and two, as individual agencies are doing even less to inspire and retain those we do have. There are many people – tired, exhausted and uninspired – who have left in an attempt to seek alternatives. In our industry particularly, few manage and lead people in a way that allows them personal mastery within their careers. People do well, earn well, win clients and a couple of awards, but as leaders, we do little to ensure that our people are able to consistently realise the results that matter most deeply to them. And we don’t create an environment that assists them in becoming committed to their own lifelong learning. They therefore feel the need to leave, or make the decision not to enter the industry at all. And, because we’re not attracting enough talent for the relevant areas of our business, many are being put into positions they are not equipped to handle. They may have insufficient experience, 236 — The ANNUAL 2008

but the need drives leaders to place them there. There’s no alternative. As a result, the industry is weakened. On the issue of attraction, it’s fascinating that schools offering design and advertising as part of their curricula do not regularly consult with the industry to understand what is ultimately required. It’s evident from many students entering the industry that this is not happening. Schools could do an enormous amount to assist the industry. On the flip side, I find it equally concerning that as a collective, we are not going to schools sooner, to talk to learners about career opportunities in our industry. When I’ve suggested this to colleagues in the past, the feeling has been that with regards to the school guidance/life orientation curriculum, government is opposed to any interference from business, and that there is too much bureaucracy besides. One comment was that we have to focus on our businesses, that this is the job of educators. All well and good if we’re being fed talented individuals who understand what our industry has to offer. But we’re not, and they don’t. So, let’s pretend for a moment that we are identifying and attracting the best there is out there, and that they have been successfully recruited. What then? In an industry that is fairly incestuous, we’re recruiting from the same small pot of people. I’ve yet to interview anyone who feels that their agency did everything in their power to develop their talents, and to figure out the best way to transform those talents into performance. Ironically, this is what enables business to be more productive and successful. Instead, most describe their past environments as volatile and inconsistent. Some suggest fear-based, highly judgmental and critical management, and bosses who are demanding rather than curious, and controlling rather than teaching. This is a sure sign that while there may be high levels of creativity and intelligence, there’s little emotional intelligence, and little understanding of what an open, learning

organisation can achieve. This is old-style management or leadership. As Peter Senge, writer of The Fifth Discipline suggests, environments that encourage openness, reflection, deeper conversations and personal mastery are those that uniquely energise change. What with the daily challenges and changes we’re facing, it’s a wonder we have not looked to such philosophies as an alternative to the way in which we currently lead. These new forms of leadership encourage personal development in ways that we, as businesses, can benefit. Doing things differently There are many practical solutions to the problem, most of which require intervention. A good start is a climate survey in which a clear understanding of the business culture and people’s collective and individual needs are identified. Then, typically, one looks to the development of the individual on three levels: skill and competency, interpersonal relations and development of self. Skill and competence can be taught and learned, mostly through institutions, on the job experience and mentoring. This happens quite naturally in our industry. For those departments that classically don’t receive much attention though, a curriculum could be developed for maintenance or enhancement of their skills. Getting individuals to look at ways in which to develop their interpersonal skills is somewhat more complex. It may begin with a better understanding of the self and others, through, for example, personality profiling. Here, not only are traits identified, but ways in which to more effectively communicate with different personality types may also be explored. Workshops around these insights can be beneficial, as they potentially establish clarity for each individual and those they’re working with. This is where maturity in relationships can be achieved. The final step, personal development, is even more complex, as it requires selfawareness on every level. The pursuit of this deeper understanding goes to personal

mastery. This means providing a forum for open and honest communication where the individual can express his or her personal dreams, aspirations and vision, as well as any problems, conflicts or incompatibilities that may need addressing. The personal development process is also more difficult as it requires choice. No one can be forced to develop personal mastery. It can be encouraged however, in a number of ways, one example of which is executive coaching. This gives people the time and space to work in a non-biased environment, and to find ways in which to increase their competence, be more effective and fulfilled in their role, and thereby develop personally. The coaching discipline is quite practical, yet can go as deep as the client requires. There are many ways in which to seek out personal mastery, most of which are personal and private. Any way you look at it, ultimately there is benefit for the individual and the business. All these processes are time consuming and sometimes costly, and while we can’t always be everything to everyone, we need to make better efforts. There’s no doubt that by investing in the development of people, payback is guaranteed, and often incalculable. Changing belief systems and behaviours is, again, not an easy process, but what we can do is work hard at cultivating a climate in which the principles of personal mastery are practised; where it is understood that personal development is valued, even at the risk of people’s seeking their higher purpose elsewhere. It can be best done by building businesses where it is safe for people to have a personal and collective vision, where commitment to the truth is commonplace, and where challenging the status quo is required. There is nothing more important to an individual committed to his or her own growth than a supportive environment. And the essence of the strategy is easy: set an example.

THE ROCKSTARS

The ANNUAL 2008 — 237

THE ROCKSTARS

The era of honesty in marketing By Alistair Duff

It is always good to start an article with a broad statement that has the potential for a blood-curdling debate with industry experts countrywide.

So here we go; it is my belief that advertising can be segmented into two clear types over the last 100 and a bit years. In the broadest possible strokes we can divide all commercials into intrinsic and extrinsic messaging platforms.

Certainly early advertisements were fairly straightforward, “Hey! We’ve invented the light bulb, the motor car, or the electric toaster; you should give it a whirl.” Just the idea that you could light a room without risking burning down the house, leave the horses in the field or enjoy non-cremated toast in the morning was more than enough incentive to find out more. With mass production came the paradigm shift that now characterises modern advertising. Suddenly a lot of companies made lightbulbs and toasters were almost a dime a dozen (that’s inf lation for you and don’t get me started on how much a Wimpy breakfast cost in the eighties). With newfound competition, advertisers started to differentiate their various products and services through personality and tone. We had moved from the unique selling proposition (USP) to the emotional selling platform (ESP). The campaign that best exemplifies this sudden interest in character is the famous Ogilvy VW Beetle campaign. I think you could probably sell tickets to the meeting in which they presented “Lemon” as a headline. Still, marketing had irrevocably changed; the world of advertising was giving up on intrinsics and functionality and was full steam ahead on selling an image or a lifestyle. This was the birthing ground of the brand. While we may have added relationship marketing, direct and online, we remain firmly entrenched in the era of the brand. The brand has had its setbacks. It even died in 1993, when “Marlboro Friday” caused Wall Street to pen a rather hasty obituary, but it is now clear that the rumours of its death were, as the saying goes, greatly exaggerated. For those uninformed about this infamous day it started 238 — The ANNUAL 2008

with a simple discount. After spending billions of dollars on advertising their brand, Marlboro cigarettes decided to dump its existing marketing and slashed its price by 20%. The company believed that price reduction seemed the only effective way of competing against a number of discount brands that had been steadily eating away at their market share. The reaction on Wall Street was profound. If Marlboro, the icon and longest running campaign in advertising’s history, had lost faith in their brand then surely the whole notion of brands was questionable. Ironically, the death of the brand was instead the birth of the superbrand. It is a fact that the companies that came out strongest from this recession were those that had increased their spending during this period. Suddenly brands like Nike and Microsoft started to emerge as true household names. Currently we are still in the era of the superbrand, which has extended to include fashion houses, fast foods, and even personalities. Paris Hilton is a brand. She is many other things I’m sure, but she is assuredly a brand. In South Africa we have become awash with new labels since 1993 but internationally the winds of change may well be blowing once more. A strong culture of anticorporation and anti-brand fervour has been growing steadily since way back in the mid nineties. We have all heard the growing voice of dissent in the past decade. Nike, Gap and numerous other beloved icons have been tarnished by scandals around sweatshops. Americans discovered Enron had committed the greatest consumer scam of all time, creating power outages and enormous bills across the United States and on top of this they found out that their president had a wandering cigar, no matter how many times he had denied it. Over time Americans have certainly begun to lose faith in the brands that had previously been held in high esteem. The impact on advertising in the United States is

marked: more and more corporations have begun to listen to their consumers and create brand images that ref lect their new sense of responsibility from free trade to eco-friendliness. This process has been fast-tracked by the new digital revolution. W hen Time magazine announced, in 1996, that their Person of the Year was “You”, it acted as a public acknowledgement that citizens and consumers are more empowered now than at any point in history. To simply click on a mouse a couple of times and discover anything you might want to know about a company puts an entirely new relevance on the idea of being a good corporate citizen. With the current drive for companies to bring people into new online networks and strive to make their products and services part of the digital community it is prudent to ensure that the company itself has no skeletons in the closet. The much anticipated closer relationships with customers also brings with it a more honest and actionable dialogue. As an industry that should be at the forefront of future trends sometimes the easiest to predict are those already taking place elsewhere. However this is made more immediate by recent developments within South Africa. Tiger Brands, a bastion among blue chip industrials, is still recovering from a price-fix scam involving bread and medicine. The SABC is in the papers on a daily basis as their dirty laundry is aired publically. Our president in waiting has continually been involved in scandal for the last few years to such a degree that a shadow has been cast over the entire ruling ANC party. The similarities between catalytic factors in our market and those previously seen in places like the United States are striking. As South African companies and their brands formulate blueprints for a successful future in this market a moment of introspection is advised to ensure that honesty is entrenched as a key tenet of their road forward.

THE ROCKSTARS

The ANNUAL 2008 — 239

THE ROCKSTARS

Brand Activation: Coming of age by Andy Sutcliffe

“Whosoever desires constant success must change his conduct with the times” - Machiavelli, The Prince.

The future of marketing is engagement. Globally the classic media quartet of print, radio, TV and outdoor are no longer the primary drivers of any marketing campaign because they rely on a passive audience. The world has moved away from mass market, interruption-based adver tising to a more relevant engagement.

Advertising used to be a predictable one-way communication, but the new age of digital media has succeeded in disr upt i ng adver t isi ng’s t radit ional top - dow n approach and levelled out t he play i ng f ield of med ia opt ions. With the onset of satellite TV and more prog ramme and channel choices, T V audiences have become increasingly fragmented. Add to this the arrival of tech nolog ies like PV R , which ef fectively hands t he steer ing wheel over to the viewer and allows audiences the option of by-passing T V adver tising. T V, like print and radio, no longer has a st rong hold on audience at tent ion span and message f low. T he exter nal landscape demands that marketers adapt their strategies to keep pace with consumer purchase and communication habits. T he fact t hat the number of consumer brands available on super market shelves equal 14 times what they were 20 years ago, and South African consumers in metropolitan areas are exposed to an estimated 2 0 0 0 bra nd messages a day ( T NS R e sea rch Su r vey s, Joh a n ne sbu r g) mea ns t h at wh i le t he compet it ion across bra nds has i ncreased, so too has compet it ion for t he consu mer’s eyeballs. As a consequence, something relatively new and exciting is star ting to happen between advertiser and consumer below the so-called traditional adver tising radar: a conversation. T he power of brand activation is ev idenced i n its abilit y to br i ng t he spir it of t he bra nd to life a nd move t hroug h-t he-line to engage in a personal and relevant way where the target consumer eats, sleeps, works, plays, 240 — The ANNUAL 2008

shops and rela xes. Brand activation involves neit her randomly simplistic nor deg ree based “tr y me or buy me” techniques, but is sharply def ined and targeted. T he aim is to drive demand and to sell products v ia a number of chan nels including exper iential, re tail point of sale, dig ital, one-to - one communication, mobile, email, print, radio, T V, f ilm etc. To qualif y as true brand activation, it is imperative that a sale is made. The list of engagement options and inter face touch points is li mit less. R at her t ha n a t radit ional approach, a bra nd ca mpaig n m ig ht include f lying a hot-air balloon around the world; throwing a party in a park; producing content that travels virally; creating a promotional T V show; devising an interactive game that can be accessed v ia cellphones; creating an a nimated poster t h roug h lent icular tech nolog y; POS t hat is t r ig gered by sensors; or embedding a tag in a poster so consu mer s ca n dow n load infor mation to t heir phones. T he list is endless. Below-the-line offers clients a more ef fec t ive a lter nat ive to t r ad it iona l adver tising because it’s measured on conver sion a nd long-ter m loya lt y. W hile historically, the average budget split bet ween above-t he-line and be low-t he-line has seen an 80/20 ratio, t his model is fast chang ing in direct proportion to dramatic changes in the marketing landscape. For example, in the past two years SA B has increased its below-t he -li ne spend by 30% i n 2006 to over 65% in 2007. Globally, more and more brands are harnessing t he power of engagement marketing a nd i nvest i ng sig n i f ica nt ly i n nontraditional channels. As early as 2005 the world’s largest marketing ser vices g roup, Om nicom at t r ibuted 64% of its total revenue to its below-t he-line business div isions. Engagement marketing relies on a med ia- a nd cha n nel-neut r a l ap proach. Future -facing and for ward-

t h i n k i ng agenc ies need to develop bra nd-releva nt ideas f i r st, v iew i ng media cha n nels as secondar y to t he idea. It’s a signif icant mindset shift to move away f rom t he communication stereot y pe t hat has a campaign hingi ng of f a T V spot a nd t hen work i ng back wards to shoehor n an idea into the format. T he key is to maintain an impartial approach to media channels so that each campaign uses the media cha n nel most nat u rally suited to it.

Ad agencies need to apply liberated, open-minded t hink ing to get clients out of t he r ut of traditional adver tising campaig ns. Today ’s t i me - st r apped, med iaslicing and multitasking consumer has made the concept of an above-the-line only approach obsolete. Brand activation is t he answer to t he t raditional media buying top-down approach that has dominated so much of what used to def ine marketing in Sout h A f r ica.

THE ROCKSTARS

Get “wired” in Canada By Ann Nurock

W hen asked to wr ite about advertising in Canada, for the first time I truly could say that the advertising I now practice is not the advertising I was used to. When asked to write about adver tising in Canada, for the f irst time I truly could say that the adver tising I now practice is not the adver tising I was used to. Af ter three months in Toronto, I ref lect about the things that have impacted most on my li fe in t he co mmunica t io n s / b u si ness arena and by their very nature, my personal life.

Is it t he renow ned bad weat her of Toronto? No, it has been i n t he h ig h 20 s si nce we a r r ived. Is it t he Mou nt ies we hear about? No, I have yet to see one, T he Rock ies I have not yet v isited, Maple sy r up I do not eat a nd Celi ne Dion, I have not a nd do not l isten to. So wh at h as been t he g reatest impact on me, ever yone around me in a business and personal level... t he i nter net! Now t h is may sou nd l i ke ever y article one reads about this ubiquitous force t hat we all i n t he com mu nications and marketing industr y have to adapt to or we w i l l supposed ly d ie. But i n Ca n ad a we do l ive a nd d ie by t he World Wide Web a nd ever y ma n i fest at ion of it, i n ever y si ng le pa r t of ou r lives. Yes, t he best kept sec ret about t h is cou nt r y is t hat it is “w i red”. Canada, t he home of Black Ber r y, h a s a n i nte r net ba ndw idt h t h at i s comparable to its vast ness, being t he world’s second-largest countr y in size. As an aside, can you imagine that 90% of the countr y is uninhabited! Canada is a r g u ably t he most soph ist icated i nter net ma rket i n t he world w it h a 70% penetration (vs 61% in t he USA) and expected to r ise to 80% by 2011. T he average Ca nad ia n spends 43.6 hours a mont h on-line, amounting to 41% of t heir t ime. I n t he past t wo years t he web has become t he #1 destination for Canadians in t he quest to choose products and ser vices. This includes ever ything f r om r e se a r c h to conte nt /opi n ion sha r i ng to t ra nsact ional pu rchases. T h is consu mpt ion of t he i nter net is

sur pr isingly not reser ved for t he yout h. W hile 84% of Canadia ns aged 18+ a re act ive on social net work i ng, v iewi ng 828 pages per mont h, a whopping 70% of web users in t he 55+ demog raphic v isited a social net work. So you ask how t h is has impacted on my new life. Grey Ca nada der ives over 60% of its revenue f rom t he d ig ital space, as a t r u ly i nteg rated agency. There is no campaign wit hout a digital component. The people we hire, be they in accou nt ma nagement, st rateg y a nd of cou r se c reat ive, must be prof ic ient i n bot h “mass” a nd dig ital com mun icat ion, even t houg h t here a re t hose who ver y cle a rly specialise in t he one medium or t he ot her. All this makes r unning an agenc y in Canada a lot more i nterest i ng a nd challeng i ng pa r t ic u la rly oper at i ng i n a ve r y compet it ive e nv i r on ment. Don’t let a nyone tel l you Canada is a “sleepy market.” Clients expect total communicat ion solut ions t hat not on ly add ress t hei r classic consu mer ma rkets but a lso ta rget eco - sy stems i n order to achieve bra nd t ract ion, i nvolvement a nd measu rable resu lts. As I come f rom what is of ten dispa rag i ng ly k now n as a “mass backg r ou nd”, w h at r e de e m s me i s my reg u la r “Ba mbi i n t he head l ig ht s” ex pression as I embrace a nd ex plore t his new ter r itor y. My creat ives love t h is a nd d row n me i n new sites a nd te c h nolo g y r e s u lt i n g i n me of te n t h i nk i ng t hey a re t he new “Master s of t he Un iver se”. I n my personal life t he impact h a s b e e n ju st a s g r e at . W he n s hop pi n g , ye s you g ue s s e d it s hop pi n g , t he c o nc e pt of t r awl i n g t he m a l l s , of w h ic h t he r e a r e m a ny, do e s not

e x i s t a ny mor e. We le t ou r f i n g e r s do t he t rawli ng over t he i nter net a nd once t he preference is made, e it he r or de r o n - l i ne or he ad of f to ou r s to r e of c ho i c e . W h e t h e r i t i s s hop pi n g a r ou nd for b e st de a l on a T V or c he ck i n g on one’s lau nd r y at t he cor ne r d r y cle a ne r, e ve r y si n g le ne e d or s e r v ic e i s av a i l able o n l i ne 2 4 / 7.T h i s l e a d s t o t h e o b l i g a t i o n m a rkete r s h ave to b e t he r e for t hei r consu mer s. T hey a re act ively look i ng for i n for m at ion, so ove rlook i n g t he mediu m a nd not hav i ng t he r ig ht me s s a g e for t he m to e n g a g e w it h i s a m i s s e d op p or t u n it y or s a le. T he say i ng “ you on ly have one cha nce to m a ke a n i mpr e s sion” i s ne ve r t r ue r t h a n on t he we b. W h i le E B ay i s t he doyen of t he i nte r ne t i n te r m s of t r a n s ac t io n s ,

it i s t he t h r i l l of bidd i n g f u r iou sly ag a i nst someone i n Ven ice Beach or Va ncouver for a second- h a nd DV D o r a s i g n e d s e l f - p o r t r a i t of Fr i d a K a h lo (t r ut h f u l ly) w it h 10 m i nute s to g o. I wo n t h e f o r m e r i t e m b u t c le a r l y not t he l at te r. T he lu x u r y of i m me d i ac y i s e v ide nt w he n t he c ho s e n it e m a r r i ve s o n you r do o r ste p w it h i n t h ree d ay s. So, wh i le t h i n g s h ave c h a n g e d sig nif icantly liv ing in a market domin ated by t he w w w, I h ave come to realise t hat “i mpossible is not h i ng”. Unlike t he cer taint y of t he Canadian w inter to come, we can not anticipate what on li ne phenomenon is com i ng nex t, but one t h i ng we ca n be su re of, is t h at people a nd beh av iou r is ever cha ng i ng a nd no more so t ha n i n a cou nt r y like Ca nada. The ANNUAL 2008 — 241

THE ROCKSTARS

2008 and beyond by Anthony Swart

Stronger brands will weather the storm.

In thinking about branding trends and what may be around the corner in 2009, I couldn’t help but consider the past (that’s the beauty of hindsight isn’t it?) and hopefully learn from our oversights, as well as look to the future. Now I’m no soothsayer, but one thing’s for sure: times are tough and brands need to work harder than they ever have before!

With all the talk of doom and gloom in our world economy, brands and brand managers need to take heed. Consumers are cash-strapped and are more inclined to weed out weaker brands, so check your brand vitals. A brand is only valuable if it can translate consumer sentiment into shareholder value, so in this time of disease, brands must adopt the appropriate strategy to survive, that is, drawing on existing loyalty and building equity. My advice to you is “invest to protect”. Resisting the urge to slash the marketing budget is vital to your strategy. Research shows that brands with the foresight to invest more – at worst the same – in marketing and ad spend in a climate of competitor cutbacks, stand to gain the most in the long term. Brand Accountability Now that you have caught your consumer’s attention, you need to keep it. In these tough economic times, brand accountability is paramount. Let your marketing and ad spend bring the consumers to your door, but to keep them there you need to remain true to your brand promise – now more than ever you need to be able to deliver on your claims of quality and value. Remember the mantra in the minds of most consumers: “buy once, buy well”. These consumers will be expecting the best from your brand. Most purchasing decisions are driven by brand values. Whether it’s the decision to acquire a new vehicle, where they may choose MercedesBenz for being well engineered and reliable; or where the decision is to buy a new pair of trainers, they may choose Nike for their sport-engineered quality. Often it can 242 — The ANNUAL 2008

be said that consumers choose brands for their conspicuous appeal – they are sexy and would like to be seen wearing them, driving them and inviting them into their homes. Whatever the reason, brands need to be true to their offer and deliver on their promise, if not they will surely fail. No amount of advertising can correct an inconsistent brand promise! Now there may be times when brands make mistakes (let’s face it, we all do at one point or another). Be honest about them, apologise and fix them. When Lexus first launched in America, one of their first major actions was a product recall to rectify a small fault on one of their models. What was interesting here is that this recall was handled so successfully; Lexus actually established positive reputation from an ostensibly negative action. Branded Brands As demanding, experienced consumers hunt for the best, it’s no wonder that brands are combining their respective core competencies into new and desirable products and services – the branded brand. On a local kulula flight to Cape Town, I was pleasantly surprised to see that Kauai was the meal offering on board. It makes sense. Kulula is responsible for the flight and understands this business, something they know and do well, why not bring a partner on board to handle the food? The same goes for Mini and Puma. Mini has styled the “Puma Mini Cooper S” with Puma air mesh footwear technology in the car’s seats – injecting more comfort and breathable shock absorption into the seats. This is a trend that many of us are aware of, but what we may not know is the reciprocal relationships that are forming between the brands. Back to our example of Mini and Puma: you can now purchase an exclusive pair of Mini driving shoes, based on Puma’s motor sport shoe. Bentley use Breitling clocks in their cars. You can now purchase a Breitling watch inspired by Bentley’s design and adorned with the coveted Bentley logo – now that’s what I call returning the favour!

Digital Growth Unless you have been unconscious for the last decade or so, you will be aware of the massive growth in digital technology. Google, Facebook, Mixit (to name but a few) have taken over our (and more so our children’s) physical space. A word of warning – brands beware! If your brand has existed largely in the physical space and hasn’t made the leap to cyberspace, you’re in trouble. Many brands have adhered to this warning and are well on their way to crossing over – banks have adopted (and well I might say) the functionality of internet and cellphone banking. Even our newspapers have an online component. Cyberspace has created a global village of opportunities accessible by a click of a mouse. My advice to you: be sure that your brand is on the receiving end of that click! Brand Potential in Africa For many years, Africa has been known as the Dark Continent. My experience in Africa has shown that lights are being switched on. Africa has massive potential – it is largely underdeveloped, has untapped consumers, massive mineral and commodity wealth and an abundance of physical resources – Mother Africa is coming into her own! Many brands are reaping the rewards of her potential; MTN is a case in point. A couple of years ago the cell-phone giant took an educated gamble to expand their African network to Nigeria, and has been handsomely rewarded. Their network now extends over more than 16 countries across the continent. Global brands are using our shores to their advantage – Mercedes-Benz has a plant in East London that manufactures and exports right-hand drive CClass Mercs (it’s the only plant outside of Germany to manufacture these models). Regional brands, too, are increasing their footprint in Africa – Checkers, Standard Bank and even Nando’s have a firm foot in place on our continent. My advice: use our continent, and use her wisely, she has a lot to offer!

THE ROCKSTARS

The ANNUAL 2008 — 243

THE ROCKSTARS

Making radio punch its rightful weight By Aubrey Melden

Hey, what a medium!

In 1975 there were just seven radio stations, now there are a glorious 135. A powerful tool to reach into the very hearts and homes of the consumer. A tool that, by expanding into 135 stations has answered the need of consumer actualisation. A colourful mixture of national, regional and community stations with around 29 million listeners. From intimate talk shows, to up-beat music and rude humour, to urban black music and all the languages too. You name it and the astute media planner can precisely pinpoint the audience they need to reach. In an environment that is very, very personal. Where the listener is glued to it, for an average of four hours a day!

Indeed, the creative community, and its clients, have a wonderful canvas to paint upon, yet radio remains, as part of the creative arsenal, sadly the “Cinderella” medium. It only comes out, in all its creative glory, occasionally, particularly at Loerie time! In fact, this year as one judge informed me, over 70% of the winners were “Proactive” commercials. The scam ads, ads prepared by agencies (sometimes without the knowledge of clients, sometimes with) purely to up the number of awards the agency could receive. I suppose you could trace the damage back to late 1970s, when television first appeared in our homes. The creatives clambered over themselves to get their TV reels together. And in a way, who can blame them? Television is much easier to create and execute than a radio commercial. In television you have sound and pictures to help you express and dramatise your message. In radio, only sound. Only sound? I think not. Remember the little girl when asked what she preferred, radio or television? She promptly answered, “Radio.” When asked why she replied, “I prefer the pictures on radio!” What she meant was radio engaged and involved her more. It worked her imagination. Radio has been rightfully dubbed the “theatre of the mind”, yes sir, you can paint pic244 — The ANNUAL 2008

tures on radio. I call for a renaissance of good radio writing. Not the often limp and tepid stuff we so often hear these days. And if you don’t believe how good radio can be, or you need inspiration, get hold of the work of one of the most successful radio writers the world has ever know, Stan Freberg’s “Tip of the Freberg” CD Collection (www.rhino.com). More that 100 tracks including a commercial for Pittsburg Paints where he literally paints, yep paints, on radio, some of Pittsburgs’ 720 colours using the sighting of Moby Dick as a vivid dramatisation of colours including subtle shades of white, snowberry and aquamarine. In another he brings a rainbow of colours over the Empire State Building. As Stan said, “You can put anything you like into radio. And he does, including a screaming giant pterodactyl! Closer to home, you could contact John Culverwell, a director at Sonovision who runs interactive workshops, at no cost, to help clients and agencies understand and use better, the power of radio. Indeed, I owe much to John, who’s helped produce many of my awardwinning commercials. Where else can you start? You can start with the media department meeting with the creative department. As I mentioned up front in this article, often by looking at the fragmentation taking place you can pinpoint a station, and indeed a programme, within that station, where you can f light your commercial. You can actually use the tone of that precise programme’s environment to enhance your commercial. Recently one of our clients took all its TV spend and put it onto one station, in one programme. The result? A wallet-warming increase in sales of 28%! With Zam-Buk we, along with the media independent, and our client, pinpointed YFM and the late DJ and host, Khabzela. The show helped take the phrase “The Real Makoya” and spread it virally, to a state where it has

now become part of the brand’s and nation’s vocabulary. Khabzela also demonstrated, using theatre of the mind, how the legendary magic of Zam-Buk can relieve mosquito bites and also attempted to repair scratches in a “Tikkie Draai” CD! The later being hyperbole, of course! It’s a misnomer that radio is only a frequency and support medium too. By cherry picking it can have enormous impact and create cult listening. Some years back an agency produced a series of commercials that ran on one national station. The commercials followed the footsteps of a character “test-driving” a pair of velskoen from Cape Town to Durban. The character, did, as it were, “radio in”, from time to time, in a wonderfully warm and engaging Afrikaans accent, commenting on how the shoes were wearing-in and feeling, as he undertook his (f ictitious) journey. The nation followed his jovial jaunt, every step of the way, and the commercial put the shoes on the map. Accents? Too often it’s the same old voices we hear. Or bland voices that should be discarded in the casting session (Yep, you do need to cast for your radio commercials. It seems so obvious but as we are dealing with sound, painting pictures with sound, we need all the help we can get to engage our audience. Cast and discard the voices that will not cut through the clutter). Remember with the increase in stations, and radio spend (radio spend has grown from R1.5 billion to R2.9 billion in rate card from 2002 to 2008) and the enormous fragmentation in all media we need to fight hard to gain the ear of the audience. Olmeca Tequila, some years ago, gained the ear of the audience. With the lazy and lyrical voice of a Mexican. A Mexican on South African radio? Why not? Investec did it too. With a Mexican? No, it was Irish, or was it Scottish? Either way it got my ear. But the examples I have used, do go back though the years. We still have much

to do here to get the Renaissance going. It, of course, doesn’t always start with a voice. That could be the inspiration behind the idea. But, it always starts with a script. And somehow we seem to have got into a downward spiral here. Good advertising, in any medium, is there, not to “say” things to people but to “do” things to people. To move them. Too often the commercials we hear today are no more than an announcement. They tell people what to think. What to do. And we seem to assume that the audience is listening to the radio to listen out for our commercial message. They are not. They are listening for the news, the traffic report, the sport, the cranium crushing music. That is our competition. That is what we need to get past. We need to arouse their curiosity. Woo them. Surprise, delight, engage, entice. Don’t shout, no one buys from a bully. Wake them gently and talk to them as human beings. And please, if you are going to have a response mechanism in the commercial, a telephone number, or web address, don’t say it once, play with it, repeat it. Do you really imagine that the audience is sitting there, waiting for your commercial, pen poised, ready to take down the number or web address? I guess one good thing comes out of the “proactive” work that wins the awards. It does show we have talent to produce, sometimes, great radio advertising. We just need to do it, day in, day out. For a medium, that from a production point of view, it is very cheap to produce, and a good voice costs just as much as a bad bland voice. Sound effects cost buttons, and can move emotional mountains. And a bad script is, well, a waste of valuable airtime and valuable client’s money. Rise-up. Write it, rehearse it, rip it up, write it again, cast it, even pilot it -to try it out. But, above all, renaissance it. Radio, can be invasive and persuasive, it deserves to punch its weight. You can help put the fist in a silken glove

THE ROCKSTARS

The ANNUAL 2008 — 245

THE ROCKSTARS

Wanted: The digital agency of the future By Ben Wagner and Evan Milton

Online and digital marketing has been a crucial component of the marketing mix for more than a decade now.

Online and digital marketing has been a crucial component of the marketing mix for more than a decade now. Over the same time period, the internet has weathered a boom and a “bomb”, come of age in terms of business models, matured as an advertising space, and enjoyed renewed interest as a channel for direct and tailored interactions between companies and their customers.

There are also the continuing advances in online search; in video and music; and the growth of podcasting. Then there are blogs and vlogs; social networks like Facebook and MySpace; sharing services like Digg, Flickr and Wikipedia; opensource programming; and the increasing convergence of mobile and online platforms and services. It’s what ‘net-marketers’ lump together as “Web2.0”, and it’s the trend that Time gave a face when, in 2006, they glued a piece of mirror-paper to the magazine’s cover and voted “You” as the person of the year. “You control the Information Age,” they wrote, “Welcome to your world.” Given this new world – and make no mistake that it is a new world for advertising – what do we need from the digital agency of the future? Especially when “we” can mean a brand, the client, traditional agencies, direct marketers, strategists, so-called “full service” agencies, digital agencies themselves and, of course, the end user. We suggest that one place to start is right there, at the end: with the user. Remembering the user Digital agencies, far more so than traditional above-the-line or below-the-line houses, have always been concerned with the actual people who engage with the media we create. Maybe it’s because these users can mail us directly or start blogging or commenting when they don’t like something, or because we know we’ll be exposing the websites we make to 365/24/7 uptime and so they’d better be user friendly, or because we’ve been trying to sell “interactivity” from the word go. Maybe it’s because digital has always been measurable 246 — The ANNUAL 2008

or because, far too often, we’re saddled with clients who think concepts intended for print or TV can be translated to a new medium in a few days. As the trend moves away from thinking of “the consumer” and is replaced with a more human view of customers, “brand adorers” and long-term relationships with people, it is time to consider how the marketing profession handles these changes. Digital agencies are closer to emerging technologies, and should be advising on where brands, products and services need to shift their attention. Also, digital agencies have always had to understand the concerns of both the “techie” and “marketer”, and have long been working out how to maximise what we learn from measuring customers’ interactions with the marketing that we produce. The agency of the future will be built around the interactions of the future. We must be careful of speaking in clichés – terms that are so over-used that they’ve become meaningless. The creative huddles punt “the big idea”, strategists chatter on about being “channel agnostic”, media teams talk about a “360 vision” and agency finance suits drive home a “full service offering”, whatever that might mean. The fact is that agencies – whether they are digital or otherwise – need to change their thinking. The starting point must be an understanding of the product, service or brand and the people who are going to use it or establish a relationship with it. From this comes the strategy, the creative ideas and the channel decisions. What is most critical in the process, though, is that the teams involved in this process need to be truly media neutral and engagement neutral. They need to be thinking about the offering and how people will interact with it, and not about the inventory or resource surplus they hope to fill, or about how it’s been done before. The digital realm of the present is already a space where ongoing experiences between brands and individuals can be tailor-made, measured and customised on the fly to create unique customer experiences.

The digital agency of the future should be taking the lead in creating a brand-aware and consumer-conscious marketing mix that is results-driven, channel-agnostic and caters for feedback. Also, traditional agencies and clients should be recognising the value of this input it and embracing it. It is clear that the customers already are. The digital agency of the future Let’s look at this from another perspective. Note the kinds of expertise that leading international digital agencies are recruiting. Naturally, there are designers, programmers and project managers and the geek-chic designations you’d expect: “experience director”, “minister of propaganda”, “database wrangler” and the like. But consider the positions for data intelligence, geographic analysis, experiential retail-space design and community management. The point is this: the current digital agency already does more than just make websites and send emails. If it’s worth its salt, it will have a suite of solutions that cover digital marketing pillars ranging from rich media banner campaigns and search engine optimisation through to proactive PR, online reputation management and using detailed metrics to refine campaigns and show return on investment. The digital agency of the future will do even more. It will be an integrated agency that: - departs from a position of media and engagement neutrality, - offers strong creative, - is underpinned by sound technology, - is strategically led, - has an in-depth knowledge of media, - operates with a close eye on measurability. Most importantly, the digital agency of the future will be one that understands the changing dynamic between brands and the people who interact with them - and can assist clients and traditional advertising agencies in working within

THE ROCKSTARS

The ANNUAL 2008 — 247

THE ROCKSTARS

Changing the landscape of advertising By Brett Morris

I’ve learnt a lot in the past 18 months, which for me is always a good sign because if I’m learning it means I’m exploring new territory and new territory tends to lead to growth and new ideas.

S o I t h o u g h t I ’d s h a re s o m e of w h a t I’ve learnt, but f ir s t some contex t . Not long ago I was executive creative directo r of t h e l a rg e s t a d ve r t i sin g a g e n cy in t he count r y . We ha d lo ng -s tanding relationships wit h some of t he bigges t blue- chip client s around. I was working with a great bunch of creative people. We were enjoying probably the best awards and f inancial succe s s in t he a g ency ’s 80 -year his tor y. And then I lef t .

Fi r st I joi ned a client ( yes, shock a nd hor r or, a cl ie nt) i n a n e x pe r i me nt a l r ole a s t he i r c h ief c r e at i ve of f icer a nd t hen recent ly pa r t nered w it h t hem to for m my ow n compa ny. W hen I tell people t his t hey generally a lw ay s a s k me t he s a me que st ion ? “ W hy d id you do it? ” T he que st ion is t he sa me whet her t hey a re i n t he adver t isi ng i ndust r y or not, but t hey ask it for d i f ferent reasons. My colle a g ue s i n t he ad i ndu st r y wa nt to k now why I joined a client and people outside of t he industr y generally want to k now why I wou ld le ave a g o o d job for t he complete u n k now n. T hey a re bot h ver y good quest ions, wh ich I w i l l now at tempt to a n swer. Fi r st , as to t he que st ion of why a cl ient , t he a n swer is not so much about why a client, but wh ich client. T he r e i s a n on g oi n g a nd no doubt never - end i ng debate i n ou r i ndust r y about t he role and relevance of c r e a t i v i t y, h o w m u c h o r h o w l i t t l e it should be applied a nd whet her creat ive people are i n it for t hemselves or for t he bet ter ment of a brand or business. T hen I met a cl ient who wasn’t i ntere sted i n t hat debate. As far as t hey were concer ned, creat iv it y was t he most v a lu able bu s i ne s s to ol t h at t he y h ad a nd t hey wa nted to i nject it i nto ever y aspect of t heir busi ness. T h at made a lot of sen se to me. 248 — The ANNUAL 2008

A nd I t h i nk t here a re more a nd more busi nesses out t here t hat a re beg i nn i ng to apprec iate t he va lue of c reat ive t h i n k i ng i n t hei r busi ness. A nd I’m not just talk ing about adver tising, I’m t a l k i n g about c reat ive t h i n k i n g t hat focuses on broader busi ness a nd bra nd issues t hat ca n ac t ua l ly a f fec t (a nd somet i mes even deter m i ne) t he way a br a nd beh ave s or a compa ny doe s bu si ne ss. A nd t here’s good reason for t h is. D e s p ite w h at m a ny p e o ple t h i n k , creative people are not t he stereot y pic a l w ierdos w it h f u n ny clot he s a nd st ra nge facial hair – well, maybe t hey a re t h at too but t h at doe sn’t ef fec t t he way t hey t h i n k. You see t he best c reat ive people i n my ex per ience a re qu ite si mply t he be st problem solver s. T hey a re i nc red ibly foc used a nd d isc ipl i ned t h i n ker s who a re able to prov ide smar t solutions to oppor tunit ies or problems. T he fac t t hat ma ny cl ient s c hoose to on ly u se t h is sk i l l to m a ke ads, is a not her issue. T he reason agencies tend to de f au lt to m a k i n g ad s i s p r obabl y be c au se, i n m a ny c ase s, cl ient a nd a g e nc y r el at ion s h ip s h ave b e c ome qu ite t ra nsac t iona l. T here a re over elabor ate s y stem s to cope w it h t he m a ny l a ye r s of a p p r ov a l , w h i c h i s g e ne r a l l y w hy t he out put i s mo s t l y adver t isi ng. T hese relat ionsh ips don’t a l low for a deeper i nvolvement i n t he bu si ne s s i n orde r to i n nov ate a n d t h i n k b e yo n d t h e t r a d it i o n a l . I n f ac t , it ’s qu ite t he opposite. T h is t y pe of relat ionsh ip tends to encou rage a nd even rewa rd a more for mu l a ic ap p r oac h . A not he r pr oble m t h at a g e nc ie s seem to su f fer f rom is t hat t hey for m s i lo s t h at h a ve g r e at d i f f ic u lt y i n col l ab or at i n g. W h ic h g i ve s r i se to a not her never - end i ng debate a rou nd i nte g r at ion . T h i s m ay h ave some -

t h i n g to do w it h t he f ac t t h at t he se si l o s (w h e t h e r t h e y i n t e n d t o t r y and collaborate w it h each ot her o r n o t) t e n d t o b e p o p u l a t e d w i t h specialists i n a specif ic discipli ne who are not necessar ily able to t hi nk across plat for ms. But t h is is cha ng i ng. A s t he me d ia la ndsc ape c h a n ge s a nd bud get s become tig hter and brands are forced to in novate, t here is renewed appetite for st ron ger cl ient agenc y relat ion sh ips, or bet ter yet, “pa r t ner sh ips”. M a ny compa n ie s a r e r e a l i si n g t he power of employ i n g c reat ive t h i n ki ng w it h g reater dept h. A nd I t h i n k t hat a compa ny like Na ndo’s, as t hey cont i nua lly ma nage to do, is lead i ng t he c h a r ge. I t he n r e a l i s e d , w h i le wo r k i n g w it h Na ndo’s i n t h is way, t h at t h is new realm of creat ive t h i nk i ng cou ld b e f a r b et te r appl ie d a s a se pa r ate c reat ive ent it y. I mag i ne a more ho l ist ic approach to c reat iv it y i n business a nd bra nd development, look i ng beyond a st a nd a rd ised i ndust r y ap pr oac h to de velop c h a n nel - neut r a l solut ion s t h at be st ser ve t he br a nd a nd busi ness objec t ives. I mag i ne a n env i ron ment t h at brou g ht toget her c r e at ive t h i n ker s t h at cou ld c r e ate bu si ne s s fo c u se d solut ion s , r at he r t h a n ju st adver t isi n g. I m ag i ne a compa ny t h at worked bot h broadly a nd deeply, pooli ng t he ex per t ise of mu lt id isc ipl i na r y i nd i v idua ls to work toget her i n doma i nspecif ic teams. Imagine if t hese teams cou ld be pa r t ly or wholly outsou rced i n order to enable us to work ac ross a r a n g e of i ndu st r ie s a nd f i nd t he best people for t he job. I mag i ne t hat t hey wou ld demonst r ate t hei r va lue t h rou g h col labor at ion w it h cl ient s, ot her tea ms, a nd t h i n ker s f rom outside ou r ow n wa l ls. I m ag i ne t h at.

THE ROCKSTARS

The ANNUAL 2008 — 249

THE ROCKSTARS

A TV commercial for R50k…really By Brian Wright

When Jeremy visited our agency soft selling us the THE ANNUAL 2008 and why we should be in it he asked us how much it costs to make a TV advertisement.

No d oubt he alre a dy h a d a g o o d id e a but, when we said that we had done o ne fo r a s li t t le a s R50 0 0 0 fo r o ne of o u r cl i e nt s h e i m m e d i a te l y a s ke d u s to w r i te a n a r t icl e a s to h o w t hi s ca n be done.

Wit h consumer spending re st rai ned pr i ma r ily due to h ig h pet rol pr ice s a nd i ntere st r ate s, ma rketer s have got to ai m at get t i ng more ba ng for t hei r buck . Si mu lt a neously, t he consu mer/c ustomer com mu n icat ion la ndscape is consta nt ly cha ng i ng a nd adver t isers should be look i ng at t heir ex ist i ng med ia m i x a nd messages to ensu re t hat t hei r t a r get ma rket s a re bei ng engaged ef fect ively to i ncrease t he i r br a nd e q u it y a nd t he i r s l ic e of t he pie. G et t i ng back to t he topic we were asked to w r ite about: How c a n you produce a T V adver t isement for f i f t y t housa nd Sout h A f r ica n ra nd? Wel l, a low- cost product ion need not mea n low qualit y or reduced ef fect iveness. K e e pi n g cost s dow n i s r e a l ly qu ite si mple: Cut out t he f i l m c r ew, t he set bu i ld i ng , t he cast a nd t he ji ng le produc t ion a nd you a re t here! W hat you w i l l get is some c reat ive copy, a few v isuals, a lit tle dig ital animation, back g rou nd sou nd a nd a voice - over. D on’t e x pe c t one of t ho se c a r toon i n s u r a n c e a d s e i t h e r. ( “ No t s u r e i f we a r e to t a ke t hem se r iou sly? ” ) T he a n i mat ion we a re t a l k i ng about is si mple words, c apt ion s a nd a few i mages cha ng i ng shape or mor ph i ng i nto t he nex t i mage. A f u ndamental t r ut h is t hat words a re power f u l, wel l placed a nd t i med i n a low - c o s t p r o duc t i o n a nd t he message ca n be as st rong as a v isua l i n a h ig h cost produc t ion (a nd cou ld be more ef fec t ive). Scen a r ios where you cou ld ser i ously consider a low- cost adver t like 250 — The ANNUAL 2008

t h is wou ld be: - You h ave a ve r y low bud g et a nd wa nt to ploug h it i nto t he med ia exposu re a nd not t he produc t ion. - W he r e t he r e i s a c omp el l i n g a r g u me nt to u se t he br a nd - bu i ld i n g med iu m, T V. - I f you r br a nd a nd /or you r message is ver y releva nt to t he spec i f ic pro g r a m me aud ie nce a nd t he spe c i f ic t i me slot (e.g. sel l i n g Bible s du r i n g t he e pi log ue). T hen t he “Keep it Simple St upid” adver t cou ld be ju st t he way to go. T h e t r i c k i s to f i n d t h e s w e e t spot v is - à -v is t he c reat ive idea a nd t he exec ut ion of it wh ich a f fec ts t he c o s t a n d to m a r r y t h i s b a c k w i t h you r objec t ive. Not so si mple i n rea l it y wh ich is why adver t iser s a nd t hei r agenc ie s, w it h a l l t he g o o d i nte nt ion i n t he world, a l l too of ten get it w ron g. So what makes a n adver t ef fective? Fi r st ly, t he r e ne e d s to b e some k i nd of appeal, st i mu lat i ng t he aud ience to en g a g e w it h t he adve r t i se me nt. A nd t he r e ne e d s to b e some k i nd of c a l l - to - ac t i o n a nd s t r o n g br a nd assoc iat ion. T he se a re c r it ic a l f ac tor s i n t he produc t ion of you r adver t isement. I f you don’t g et t he se absolute basic s r ig ht when produci ng you r adver t ise ment, r at her donate you r ma rket i ng budget to a more wor t hy c au se. We h ave a l l seen t he se c reat ive master pieces but have no idea what or which br a nd was bei n g adver t ised. Once t he basics a re i n place, we g et i nto whe r e t he bi g buck s i n c r e at i n g a d ve r t i s e me nt s a r e: T he e nte r t a i n me nt v a lue a nd j u s t how memor able you r adver t isement is. I f you r adve r t i s e me nt do e s not stand out in some way, you are simply r ele g ate d to c lut te r, “ b ac k g r ou nd

noi se”, wh ic h you r potent i a l aud i e nc e s i mpl y f i lte r s out . T h i s do e s not even enter t he real ms of t he consc iou s m i nd but is releg ated to t he sub - consc ious t rash ca n of t he r ig ht br a i n . You don’t e ve n g e t clo s e to t he cerebr a l cor tex! E st abl ish i ng resona nce w it h you r aud ie nc e w i l l g e t t he i r br a i n s i nto ac t io n a nd o n l y t he n w i l l t he y e n g a g e w it h you r b r a nd a s you w a nt t he m to. I n su m ma r y, you need to be su re t hat T V is where you need to be a nd t he n c o n s ide r t he fol low i n g i n de te r m i n i n g t he ap pr opr i ate s p e nd o n p r o d u c i n g y ou r T V a d v e r t i s e me nt : - T h e s l ot s a r e g o i n g to c o s t you , so you ne e d to e n su r e t h at t he y a r e wel l t a r g e te d . - T V a i n’t c he ap, so g e t t he i nve stment split r ig ht bet ween put t i ng you r money i nto t he f l ig ht i n g of t he c om me r c i a l a nd t he p r o duc t io n of it . D o n’t u nde r e s t i m ate t he p owe r of repet it ion, cor rect prog ra m me t a r get i n g , ch a n nel selec t ion, as wel l a s a si n g le - m i nde d appr oac h to t he c r e at i ve - Will you r bra nd posit ion i ng be e n h a nc e d ? - Wi l l you r message or ca l l-to -ac t ion b e c omp el l i n g ? - W h at do you ne e d to do to e n su r e t h at you r adve r t i sement w i l l appe a l t o y o u r t a r g e t a u d i e n c e (a n d n o t ne c e s s a r i l y you ! )? - W i l l you r me s s a g e r e s o n ate w it h you r t a r get m a rket a nd en g age t hei r c on s c iou s m i nd s ? B e s u r e t h at y ou a r e i n v e s t i n g you r mone y i n you r br a nd a nd not wa st i n g it when pr o duc i n g you r ad ve r t i s i n g c a m p a i g n s . E n s u r e you r a g e nc y h a s t h e e x p e r t i s e a n d t h at t hei r i nterests a re a lig ned w it h you r s a nd not s ome c r e at i ve aw a r d .

THE ROCKSTARS

The ANNUAL 2008 — 251

THE ROCKSTARS

There are no laurels to rest on when the going gets tough! By Dale Tomlinson

Ok, so the gauntlet is down...

Just when everything was going so swimmingly – products flying off the shelves, buildings growing faster than weeds, executives guzzling single malts and taxis guzzling gas. Then someone changed the rules. America – land of milk and honey had a subprime collapse, oil went through the roof and maize replaced gold at Fort Knox. And get used to it – this is the new game and these are the new rules. Things will settle a little, gas will appear to be more affordable than a few months ago, you will still savour the single malt, maybe not doubles, and the consumption calculation between diesel and petrol will have been worked and reworked. But leave those rose tinted spectacles on the side table. We have to work for our rewards – no more silver platters and fewer quick wins.

I’m not sure if this is a recession or a speed bump with teeth but what this environment does do is allow talent to strut its stuff. I’m not just talking creative talent but the hidden untapped talent in every sphere of your business. Bean counters who can make the numbers dance without cutting corners, production people who discover what their “resource” is really capable of, HR people who buy better fertilizer for better people rather than watering mediocrity. Marketers will have to build brands rather than the other way round and agencies will be measured on share growth and relevance rather than own industry accolades. This is the time when marketers and agencies seriously need to sit down and find the rich stuff that will make for great solutions to new challenges. I think sometimes we forget that we both have the same objectives – we just sit in different buildings and use different tools. We should both be facing in the same direction, shoulder to shoulder, not staring at each other. The problems and the answers, for that matter do not lie between us – they’re out “there”. Agencies burn too much valuable energy impressing clients and clients equally burn 252 — The ANNUAL 2008

a lot of intellect in trying to catch us out. We’re on the same side. It is time to role up our sleeves and dig for those truffles together; no longer the route of least resistance so that we can meander our way to potential success; no more “TV is the answer – now what was your question?” So what does this mean for us? It means that now, more than ever, we have to behave like and be treated like business partners – not suppliers. The passion, skills, intuition and insights that we bring to the table are truly a competitive advantage when the ante is upped. Consumers are firmly in the driving seat. We need to appeal to them in a language and location and with a proposition that absolutely suits their current circumstance and frame of mind. Whether it’s a question of the hardpressed consumer having too little money or too many questions, we have to walk that tight rope between rational choice and emotional desire. A recent survey by a UK Horticultural Society showed that in the same period there was a 31% increase in vegetable seed sales and a corresponding 32% decline in flower seeds. Does this mean that consumers will only buy “the cheap stuff”? Not at all. It does mean though that they will be far more critical and hold brands accountable to deliver on their promise. Value is not the same as cheap. Premium brands must deliver premium performance and an expected level of emotional satisfaction. Value brands must satisfy demanding everyday needs. The smart marketers have already responded to this less-than-forgiving climate. Just take a look at how a few of our own clients have ensured that they are as relevant now as they were when there was a little more money to go around: SA Home Loans, the leading independent home provider, has used its “non-bank nimbleness” to provide its customer base with easier access to funds in a buyers’ market or simply the release of much needed funds to see them through the squeeze or

to enhance an existing home, rather than buy a new one. Rainbow Chickens have taken the simple polony or vienna – historically a tube of “pork, soya and filler pulp” and produced a range of premium 100% chicken meat products that allow cash-strapped but discerning consumers access to high-quality everyday sandwich fillers and lunch box solutions. These products under the Simply Chicken brand have shown exceptional growth and proved that chicken is not a commodity and consumers are discerning. Unilever has taken cognisance of both value pressure and environmentally sensitive issues with its international “small and mighty” roll out – offering higher performing concentrates in their homecare range that simultaneously reduce the cost of packaging and have less impact on the environment – a win-win all round. Russell Hobbs are looking at products such as their thermo kettles and coffee makers that, once boiled, keep the water at an optimum temperature for an extended period, reducing electricity consumption. What better time to launch the new Magnum Mini into South Africa so that those Magnum addicts can still get their fix in smaller portions? While the smart brand owners and service providers have got their heads around the issues, what do we need to bring to the table? That unfortunate title of “advertising agency,” that so many of us seem to be quite happy to be saddled with, has to go. It assumes that all we are capable of doing is making advertising. I’m not sure what we should call ourselves but we had better find out soon before Spielberg makes a movie about us that rivals Jurassic Park. We need to be the ideas people with a deep understanding of both the brands in our care and the complex tapestry of consumers we are trying to engage. Channel neutrality is critical if we are to step out of our comfort zones and cease defaulting to TV or “promos” as being the panacea

for all marketing ills. Only once we have cracked the “idea” and ensured that it is campaignable with the appropriate longevity that is worth our clients investing good money in – should the channel debate start. TV will put the brand in their face, sampling in their hand, online in their office or home, eventing in their leisure time etc etc. It is the correct mix of all or some of these methods of engagement that will ensure that we meet the correct long- or short-term needs – or both. That great ad for the new battery operated toilet brush that incidentally won an award for the agency but never engaged the consumer while the attached “free trip to New York” incentive drove sales in-store, would have had both “specialists” patting themselves on their backs for a job well done. The truth being that neither had ensured that some relevant long-term residual gain was made. Those days of myriads of people “doing different things” for the same brand at the same time, are over. It may suit the service providers’ immediate billing goal but has seriously short-changed the brand. I am not saying that we have to bolt as many channels together as we can. It can be a single channel but it had better be the right one – not one that simply plays to our strengths and not the brands’ needs and the consumers’ preference. Campaigns have to be integrated and single minded with consistent imagery and tone. If we don’t have the skills at hand – we need to partner. The brand comes first. To wrap up – it’s not about us, it’s about them. Those brands, consumers and clients whose resources are stretched and are desperately trying to find a common meeting point from which they can initiate a mutually beneficial and hopefully long-term relationship. Achieve that and we deser ve to be invited to the party. Let’s get “off our laurels” and do what we’re being asked for and paid for.

THE ROCKSTARS

The ANNUAL 2008 — 253

THE ROCKSTARS

Pubic Relations 2.0: How PR professionals are staking their claim on Web2.0 By DAN PINCH

Having worked at an online PR agency when the Web 1.0 bubble burst in the late nineties, and being aware that our industry has a bad reputation for breathlessly hyping issues, I’m wary of hurling another log on the Web 2.0 fire.

With that said, I honestly believe that developments in the digital media arena over the last few years are significant to the point that they are changing how PR will be defined and practised in the very near future. I’d also add that of all the marketing disciplines, PR cer tainly has most to gain from Web 2.0 – if we can determine how to use it sensibly.

But what exactly is Web 2.0? Essentially it is a kind of a PR invention in itself. Blogs, podcasts, social networking (Facebook being the most significant example in SA), streaming media (for example, YouTube videos) are all in fact a neat repackaging of features that have existed since the mid-nineties. The difference today is that these types of application have gone mainstream and the user experience has evolved thanks to broadband and the breakneck evolution of the web. Strip Web 2.0 down to what it basically does, which is sharing content, spreading messages across networks of people and having a conversation with people (for example, peers whose opinion you value or potential customers) and it becomes directly relevant to what public relations is supposed to be – that of relating and communicating with the public. We’d like to think people move into public relations because they are passionate about enabling clients to get their side of the stor y across to their audiences. We’re not there to build websites, shoot videos or hold parties (not to say we won’t, but only if it meets our clients’ business objectives) but we are there to act as advocates for our clients, enabling them to connect and communicate with inf luencers that matter to them. So it’s not that the technology of digital media and Web 2.0 is particularly enthralling, but rather it is the sheer number of people online and the new innovative ways in which businesses and brands can interact with them. And because PR does not have a vested interest in any particular channel or plat254 — The ANNUAL 2008

form, we are perhaps best placed of all the marketing disciplines to make use of the opportunities presented by Web 2.0. The reason for this is that some of the best tools for online communications are either free or very low cost and only require the time and energy to figuring out how it works. For example, Wordpress, free blogging software, is, in my opinion, far superior to off-the-shelf content management systems that companies pay thousands for to create a blog. YouTube offers free hosting for video and is designed to make that video content found and shared easily. Facebook is a spectacularly useful CRM tool and is also free to use. The only associated costs lie in the development of ideas, bringing these to life and nurturing an audience for these. W hile other marketing disciplines might see the free culture of the web as a revenue threat, it is a massive opportunity for PR practitioners as we typically sell our communication skills, and not the platfor ms we utilise. However, before anyone gets overexcited, there are some elements of concern. Do a quick search on PR 2.0 and you’ll probably find a barrage of blog posts heralding the death of PR – wired journalists feel the web has more than enough tools to dig out stories without needing the help of PR people. Examples of this in practice are applicable to a number of international brands: once they launch a product/service in one country, information is instantly available to local journalists who can immediately write about it. The story will be decrepit by the time the local SA launch happens typically days, weeks or months later. There are also many examples of how quickly bad news and criticism travels online via blogs to the point that it dramatically affects profits. Bloggers are a phenomenon that the PR industry needs to get to grips with and to be honest I think worldwide we’ve done this rather badly. Writing my own blog has really illuminated this as I have been on the receiving end of some dire PR pitches –

both local and international. The dilemma is that PRs assume that bloggers work in the same way, and obey the same r ules as jour nalists. Wrong. Bloggers aren’t being paid to write, they’re doing it out of a mixture of passion and ego, so being on the receiving end of a BCC’d press release mailout after a story has already broken is going to result in, at best, a swift delete, and at worst, a bitchy blog post read by potentially tens of thousands. Blogs have potentially vast inf luence but require special treatment and an intimate knowledge of what is appropriate to pitch as a stor y – in other words that old PR mant ra of read the publication before you pitch is now even more relevant than ever before. Pe r h ap s one of t he big ge st op p ort u n it ie s of Web 2 .0 i s for b r a nd s a nd compa n ies to create, or rat her become, t h e i r ow n m e d i a . Not n e c e s s a r i ly a s ju s t a n ot h e r c o r p o r a t e we b sit e , b u t r a t h e r t a k i n g a n e d it o r i a l a p p r o a c h a nd t h i n k i ng a b out wh a t t he out sid e world wou ld real ly l i ke t o k now about t hei r bu si ne s s or b r a nd a nd wh at t he b e s t o n l i n e t o ol fo r c o m m u n ic a t i n g t h i s s h o u ld b e . A g a i n , d e t e r m i n i n g wh at i s news wor t hy f r om t he m a s s of i n for mat ion t hat sit s w it h i n a compa ny i s a c o r e PR s k i l l: it d o e s n’t t a ke a hu ge le a p t o f ig u r e out how t o t el l a compell i ngly stor y v ia a blog, podca st (i nt e r ne t r a d io), a Fa c eb o ok g r ou p or a YouTu b e v ide o. Ju st a s i n t he “ t r a d it ional” PR d o m a i n , t h e r e a r e goi n g t o b e s o m e compa n ies a nd agencies t hat get on li ne PR a nd some t h at ju st get it s p e ct a cu la rly w r ong. I f , a s a n i nd u st r y, we’r e w i l l i n g t o p u t i n t h e h o m e wo r k a n d r e a l ly f ig u r e out how t o t r a n slat e ou r c or e sk i l l s i nt o t h is new, excit i ng e n v i r on me nt , Web 2 .0 hold s some g r e at op p or t u n it ie s. Fo r b a ck g r o u n d a n d l i n k s t o t h e topics ment ioned above visit the onli ne version of this ar t icle at w w w.at mosblog.c om

THE ROCKSTARS

The ANNUAL 2008 — 255

THE ROCKSTARS

A handful of Ps By Francis blitz

After another year in the trenches – 31 to date – I thought I might warm to my topic of “How many Ps in advertising’.

As suggested last year there are at least 4 Ps in advertising: Profit, Partnership, People, Product. However, on reflection one should probably add Prizes, Performance and Place to that list.

Profit came under more pressure this year as clients introduced new devilish ways – aided by their hired hands – the cost consultants - to restrict their agency’s capacity to make a margin. I heard of one new wrinkle which was that a leading marketer had added a rider to his fee that if tasks were not completed on time or at all the agency would not be paid. Fair enough if you have a def ined scope of work but who will objectively assess per for mance against approval procedures, research results, brief changes, subjectivity….? As one industry commentator told me, he has never seen the industr y so on the back foot as now. None of this has been helped by the global economy and our own galloping inf lation. It will be interesting to see how marketers react to this cycle of consumer belt tightening and whether agencies fall prey to the soft target of budget cuts once more. In my exper ience clients t hat resist the urge to slash ad budgets end up in a stronger market position when the cycle turns. Partnership is a concept that I fear many marketers only pay lip service to today because of either their egos or selfdoubt/experience (or lack thereof ). It’s easier to adopt a master/servant – did I mean supplier? –relationship than have an agency speak its mind. Seemingly it is only knowledgeable (even about their own limitations), open-minded clients who enjoy the benefits of a true partnership with their agency. The new generation on client side seemingly are looking to promote their careers and do not consider the legacy they will leave behind as they seek personal recognition through the ads they make. Is this a generational thing? People are one’s greatest asset and 256 — The ANNUAL 2008

managing these very different people our industry attracts can be challenging and always exciting. I believe that our industry has been hard hit by the brain drain with many of our ex-colleagues f leeing our shores to gain great acclaim internationally. This has been compounded by the fact that due to our income squeeze many smart young people do not see adver tising as an exciting industr y to join unless they want to be in the creative department. Seemingly the generational thing is also at play with lots of job hopping rather than career building – the trouble is I can’t ask Graeme Codr ing ton for verification – he has emigrated. Prizes/awards are clearly the obvious way to market your agency, but at what cost? The cost of entry is high with some of the bigger agencies spending up to R1 million on entries per annum. Seemingly it is a numbers game and if you look at the league tables for Loeries, the biggest winner had a one in t hree hit rate in ter ms of awards to f inalist (no-one knows how many entries they made) while another once creatively famous agency had a one in 10 hit rate. It would be interesting to calculate the ratio of f inalists and awards to entries. Does this preclude some agencies from competing? There is also the perennial question of doing work for awards only and not in the honest endeavour of building one’s client’s business. Again this might be a generational issue. Performance is another interesting P and one worth serious consideration from a number of angles. If one has a true partnership, I believe one should have a remuneration model that enables agencies to put their money where the mouths are by sharing in the client’s risk and success. The effect of advertising can rarely be isolated unless a client dominates a market, enjoys consistent production and 100% distr ibution, like SAB. I remember a time when we helped arrest a decline by Castle and

won back nearly 20 share points when the only marketing variable that changed was the advertising – we won an Apex Grand Prix for that. Is performance creating brand platforms that endure like we did for Cadbury on both Dairy Milk and Lunch Bar over more than 20 years – the question is: were we well rewarded? Unfortunately until there is a true partnership and a strong belief that agencies should succeed – not be squeezed financially – they will rarely get their just desserts. There are some clients who do espouse and practice not only partnerships but rewarding remuneration models but they are not legion in their numbers. I have heard of an agency being paid its incentive in share options. Place is a P worth consideration as we live in a dynamic country trying to find its identity – this is going to be an exciting journey for all of us in communications. Recently I was invited to Ghana by a prospective client and it was interesting to see how this 41-year-old democracy had evolved and how proudly Ghanaian they were with Fridays being national dress day, not casual day. Our mantra is “contagious ideas that change conversations” about brands and companies. This taps into one of our national past times – conversations – the success of the cellphone companies bears testament to this. This is something we have done for many years where we promoted the insight that all South Africans wanted to live in harmony in our ground-breaking “Fellows of the Charles Glass Society” campaigns that drew negative comment from the press of the day but drove market share as the idea took hold – we couldn’t have done it without a brave client. We did it for Cadbur y’s Lunch Bar with Makatini from 1990 until 2007 and now with the new campaign platform “Lunch Bar? Obvious!” The key thought for all of us is to watch our Ps and continue to ask lots of Qs.

THE ROCKSTARS

The ANNUAL 2008 — 257

THE ROCKSTARS

Advertising in a regulated environment By Gail Schimmel

To understand advertising in a regulated environment, and the importance of adher ing to that regulation, the best approach is to imagine advertising in an unregulated environment .

Adver tising creatives and marketers of t e n co m p l a i n a b o u t h a v i n g t o w o r k w i t h i n t h e re s t r i c t i o n s o f a d v e r t i s i n g re g u l a t i o n , w h e t h e r i n t h e fo r m of l e g i s l a t i o n o r t h e A d v e r t i s i n g St a n d a r d s Authority. Legal advisors such as myself are a gr u d g e p urch a s e a t b e s t , an d are re g a rd e d a s t h e e n e m i e s of cre a t i v i ty . B u t a d ver t i sin g in a re gul a te d enviro n m ent is a p r ivil e g e t h a t m any a d ver t ise r s s e e m d e t e r m i n e d to a b u s e .

Fo r t he c r e at i ve , t he f i r s t f lu s h of i m a g i n i n g i s pl e a s u r a bl e . Fo r a st a r t, we cou ld have sex y, A mer ica nt y p e c o m p a r at i ve a d ve r t i s i n g , a n d ma ke clever d ig s at ou r compet itor s, who i n t u r n wou ld m a ke cle ve r d i g s at u s . T h e r e c a n b e n o dou bt t h at c o n s u me r s wou ld love t he ad s , a nd t h e a w a r d s wou ld c o m e r ol l i n g i n . We c ou ld e s c he w p ol it ic a l c o r r e c tne s s a nd obje c t i f y me n, wome n a nd mi nor it y race g roups – what t he hell, we cou ld object i f y major it y r ac e g r oup s to o! We c ou ld pu nt t he poi nt s t hat we k now to be t r ue about t h e p r o d u c t , w i t hou t t h at t e d i ou s bu si ne s s of ac t u a l ly h av i n g to pr ove it , a nd we cou ld te st t he hy p ot he si s “s e x s e l l s ” t o o u r h e a r t s c o n t e n t . T he Mot he r G r u nd ie s of t h i s world cou ld ta ke a f ly i ng leap, because we’d h ave complete f reedom of comm e r c i a l s p e e c h . T h e r e ’s no dou bt , a lot of f u n wou ld b e h a d . But t a ke it a ste p f u r t he r – L or d of t he F l ie s i n adver t isi ng i f you w i l l – because you have to remember t hat not e ve r y ad ve r t i s e r i s you a nd me: f i n e s ou l s w i t h a n i n n at e s e n s e of r ig ht a nd w rong. Even i n a reg u lated e nv i r on me nt one f i nd s t h at t he r e i s always t he ma rketer who feels no ne e d to s t i c k , at le a s t , to t he b a s i c nor m s of r i g ht a nd w r on g , a nd w ho 258 — The ANNUAL 2008

has no problem steali ng f rom t he p o or to fe e d t he b ot tom l i ne. I n a n u n r e g u l ate d e nv i r o n me nt t h i s t y p e o f a d v e r t i s e r w o u l d p r o s p e r, a n d con su me r s wou ld b e su r r ou nde d by u nproven cla i ms. C ha r ac ter s such as t he i n f a mou s D r R at h wou ld mu lt i ply, a nd bog us c u res for ca ncer, A ids a n d e r e c t i le d y s f u nc t i o n wou l d b e ava i lable on ever y super ma rket shel f. Eve r y pr o duc t wou ld b e t he “ b e st ”, a n d f e w p r o d u c t s w o u l d d e l i v e r. T he f a l lou t , of c ou r s e , wou l d b e a c y n ic a l c on su me r, w ho wou ld move f rom bel iev i ng some of t he st u f f t hat t he y s e e i n adve r t i s i n g to b el ie v i n g none of it. So t he sex y, ed g y, awa rdw i n n i n g c a mpa i g n wou ld a mu se t he c o n s u m e r, b u t wou l d f a i l to m a k e sales. A nd when t hat happens, i n t he e nd it i s t he c r e at i ve s w ho lo s e t he i r j o b s . A nd it is t he con su mer s who lose t hei r money. I n a reg u lated env i ron ment, t here a re st i l l cha rlat a ns w ish i n g to e x ploit t he de s p e r ate – “ You h a v e wo n” c a m p a i g n s , “ E a r n R 15 0 0 0 f i l l i n g e nve lo p e s” s c a m s – you k n ow t h e t y p e . I n a n u n r e g u l at e d env i ron ment t hese sca ms wou ld pr ol i fe r ate , of fe r i n g t he i mp o s s i ble to t he v u l ne r able a mo n g u s , t a k i n g t he i r s a v i n g s a nd of fe r i n g t he m no r e cou r se. “ Fr e e dom of spe e c h,” t he p e r p e t r ator s wou ld mut te r, a s t he y c l i m b e d i nto t h e i r s p o r t s c a r s a n d d r ov e a w a y, l e a v i n g t h e c o n s u m e r hold i n g t h e f au lt y p r o du c t . A n d t h e wo n d e r f u l j ok e s at t h e ex pense of mi nor it y sensit iv it ies t h at c ou ld now i nc lu de r ac i a l s lu r s a n d g e n d e r b a s e d v i o l e n c e ? We ’d slowly see a generat ion emerge where i ntole r a nc e i s t he nor m, a nd w he r e we do n’t e v e n m a k e a n at t e m p t to c h a n g e t he le s s at t r ac t ive aspe c t s of

ou r soc iet y t h r ou g h set t i n g a b et te r e x a mple. So 5 0 pe ople wou ld b e a r rested for i m it at i ng a n ad? “Freedom o f s p e e c h ,” t h e a d v e r t i s e r w o u l d mu m ble , a s h e f le d t h e s c e ne . O f c ou r s e , n o t e v e r y r u l e r e l ati n g to ad ve r t i s i n g g o e s to t he noble e n d s t h at I i m pl y a b ove . T h e r e a r e r u le s t h at h ave c r e pt i nto t he b o ok s t h r ou g h de d ic at e d lob b y i n g f r o m a pa r t ic u l a r i nte r e st g r oup. T he r e a r e r u le s t h at r e s u lt f r om t he i nte r ve n t ion of gover n ment – a n i nter vent i o n , i n c i d e n t a l l y, t h a t t h e s y s t e m of s e l f- r e g u l at io n t h r ou g h t he A S A i s d e s i g n e d to a v o i d – a n d t h a t o f ten ref lect a gover n ment bee i n a gover n ment bon net, rat her t ha n a real concer n. T here a re r u les t hat made sense in t he sixties, when t he A SA was fou nded, but have lo s t me a n i n g now. A nd it ’s t he r ole of t he adver t iser a nd ma rketer to we e d out t he s e r u le s , a nd lobb y for t heir removal. But t here are also r ules t hat are cor ner stones to a soph i st ic ate d a nd mor a l adve r t i si n g c o m mu n it y – s u c h a s t ho s e a g a i n s t m i s l e a d i n g a d v e r t i s i n g , t ho s e p r o te c t i n g c h i ld r e n a nd t ho s e p r e ve nti ng t he ex ploitat ion of v u l nerable consumers. D o n’t g e t m e w r o n g . I b e l i e v e t h at f r e e dom of spe e c h i s i nc r e d i bly i m p o r t a n t a n d w o r t h f i g h t i n g f o r. Adve r t i se r s s hou ld cont i nue to pu s h t he envelope to create adver t isi ng t h at i s e xc it i n g to s e e a nd t h at c r e ates t he t y pe of compet it ion t hat one wou ld ex pect i n a f i r st world e c o n o m y. B u t i f y o u w a n t t o r u n w i t h t h e d o g s , y o u c a n’t a d v e r t i s e like a puppy – and w it h an aspirat ion to a f ir st world economy c ome s t he ac c e pt a nc e of f i r s t wor ld adver t isi ng reg u lat ion.

THE ROCKSTARS

The ANNUAL 2008 — 259

THE ROCKSTARS

Progress wiped out the Yangtze River dolphin. I bet big traditional ad agencies are the next to go. By Glen james

In fact, if one thinks about it they’ve been slowly going extinct for the last 10 years. In South Africa especially, technology has allowed a tsunami of small agencies to get started. Many of which just a few years ago found it quite difficult to attract bigger chunks of business, but are now picking up larger accounts with ease. Why is this happening?

One of the reasons is that in a smaller agency, the senior guys who started the company get involved with creating the work. Unlike a lot of bigger, traditionally structured agencies where the senior people invariable get sucked into the management of the company, leaving the creation of advertising to the mid and sometimes junior levels.

Another issue that drives clients completely crazy is the movement of staff on their business. From month to month people change on the team, never building up a level of knowledge that becomes invaluable over time. The biggest advantage at a smaller operation is that the senior people generally stick around longer because they tend to have some form of ownership. In fact, for me ownership is the defining factor between the two structures. Unlike 20 or 30 years ago, when many advertising people were quite content to have a steady job. Over the last few years one of the first issues raised at any interview is what kind of ownership is available at the agency for senior people. Of course a lot of the big agencies are finding it very difficult to accommodate these kinds of requests. We have seen the effects of this over the last 10 years, with many senior advertising executives and creatives starting their own shops to give themselves ownership. An interesting development recently was a small agency started under the auspices of a mega international conglomerate; this would have solved the issue of retaining very senior people and giving them the ownership they needed. Another nail in the coffin of big traditional agency structures is their need to cater for every discipline required by their clients. No advertising structure can maintain all the different expertise needed and still make a profit. The fear, of course, is that if you can’t supply something, the client will go our and find it themselves. Which is exactly what’s 260 — The ANNUAL 2008

been happening. The only way to solve this is to form alliances with companies that have the required expertise. If these relationships are set up fairly and transparently, they’ll work seamlessly alongside the agency, delivering a level of experience that would be impossible for the agency to supply on its own. The days are gone where a big agency can simply set up a new division overnight – besides the money not being there, the people just don’t exist. On the subject of disciplines, I was interested to notice recently during a period of interviewing senior creatives that not one of them discussed any interesting ideas in relation to the internet, or the cellphone, or a customer rewards programme, or mobile media, or…you get the point. They all sat down and proudly showed their latest 30-second television commercial or double page spread print ad. It felt like I was in a time warp. What is happening? The world’s products and budgets have moved on and big agencies are still employing people who refuse to come to terms with it. Talk to any small agency creative director and he’ll tell you about the remarkable learning curve they’ve gone through in the last five years. Advertising has become a multi-faceted industry and if your agency hasn’t got the ability to manage every aspect of the process you’ll soon be getting Mr Darwin very excited. Last week I read a marketing article published in the States that introduced an advertising concept that could do away with advertising agencies altogether. This involved the internet and a company’s customers creating the advertising they wanted to see. It is similar to the way American sitcom producers create their programmes, with story lines written and published on the internet; viewers are then invited to not only choose which story line works for them but to contribute by changing the stories as well. Now imagine how this works in an

advertising sense. The company develops its products in a public forum on the internet. The consumer is then asked how to position the products. They are then encouraged to write the ads and to suggest which media they would expect to see the commercial messages in. Finally, crowed the article, here’s the way advertising can be relevant, believable and immediate. This concept is still in its infancy but just imagine the opportunities it would present. Real one-to-one customised relationships with your target markets. Precise reliable data about who reacted to your message and how. The ability to change tack at a moment’s notice. And maybe the biggest benefit of all: the saving of bucketfuls of money. Sounds brilliant to me. As the channels to market evolve and advances in technology begin to force costs down, the bigger agencies are going to find it increasing difficult to survive. Overheads, the cost of hiring and keeping the people to maintain a heirachical structure and so on are going to erode their bottom line until it will become financially unviable to continue. The smaller agencies – those that have knowledge of the broader aspects of marketing and have negotiated partnerships with specialist companies they can call on when the need arises – are going to find themselves more and more in demand. A recent newspaper article suggested that in 10 years’ time, 80% of the careers available will be for jobs that haven’t been invented yet! Things are moving, if not at the speed of light then very close to it. In almost every industry – medicine, technology, agriculture – you name it, it’s changing on a daily basis. The only industry in fact, that is lagging behind, is the one that espouses to be at the forefront of change and creativity.

THE ROCKSTARS

The ANNUAL 2008 — 261

THE ROCKSTARS

10 big media trends By Gordon Patterson

As much as we’d like to believe that change is evolutionary, if we stop and take the time to look around, the reality today suggests that the perception of evolution is really driven by consistent revolution.

Looking back it ’s not dif ficult to see why trend predic tions are of ten wrong or worse, grossly misleading. We’ve seen unbelievable upheavals in all areas of life, business, culture, spor t, economy and obviously in media. It seems we’re surrounded by contractions like the world getting smaller yet we want more out of it . Rather than life get ting simpler it ’s really becoming more complicated and people seem to be getting older younger and then younger older.

So where do I st a r t ; 2 010 per haps? W hile t his date star ted of f being linked to soccer, in realit y it has be come far more signif icant to all South A fr icans. It marks t he event t hat will simultaneously celebrate and def ine ou r ent r y i nto a new era of soc ia l, economic and political development. Media is inextr icably linked to t hese forces; it bot h ef fects cha nge wh ile being af fected by t he change. T here’s a n old say i ng “when i n doubt, predict t hat t he present trend w i l l cont i nue” a nd for ma ny yea r s t his was a safe bet. T his concept has reached its sell-by date. From my perspective t hese major trends will not only affect us but will increasingly become ev ident around t he world: 1. M ASS TO ME TO W E (Content is king & social networking ) Mass media have since t he beginn i ng of t i me relied on t hei r abi lit y to reach large nu mbers of potent ial consumers with a single message. The bigger t he coverage t he more powerf u l t he med iu m, t he more i ncome generated. Shif ting consumer needs, new tech nolog y and f ierce competition are forcing mass media to deliver to t he i ndiv idual. Telev ision is par ticularly af fected by t his trend as we seen t he movement f rom ter rest r ial to satellite to VOD to IP T V gaining momentum. 262 — The ANNUAL 2008

2. PR IMETIME IS MY TIME Tech nolog ica l adva nces w i ll a llow consu mer s to def i ne what a nd when they want to watch. W hile PV R technolog y has so far been limited to aff luent market segments, the potential of memor y storage capacity in the soon-to-be-released digital to analogue decoders for t he mass market cannot be u nder stated. Severa l telev ision sets cur rently of fer t his feature as a sta nda rd. T he abilit y to delay v iew will, if made available in the analogue decoders, make pr imetime my time. 3. LIVING OUT OF HOME R ATHER TH AN AT HOME People are spending more time out of home than ever before. The mobility of media and out of home media will g row in relevance as at-home media consumption of all media declines. 4. EXPOSUR E TO ENGAGEMENT (Permission- based marketing )

Exposing t he message to t he correct people at t he cor rect time is no longer enoug h as people t hese days simply t u ne out to clutter. Motivating response requires t he target consumer to respond and engage with the com mu nicat ion i n some way. T h is i ncreases t he responsibilit y of bot h the creative and media professional to leverage t he media platfor m in a way that offers engagement. Once engagement has been achieved, per missionbased mark ing initiatives can follow with instant gratif ication/reward being a key consumer incentive.

rates. A lready some adver tisers have for mulated rate cards based on f ixed customer acquisition costs. 6 . PROSUMERS R ATHER TH AN CONSUMERS (the power of 1)

Gone are t he days were marketer s dictate product per sonalit y a nd character. Wit h g row ing con nectivit y w it h i n reach of ma ny consu m ers arou nd t he world, we are seeing consu mers play i ng a g reater role i n def ining product positioning and appeal. A few years ago one consumer could only inf luence their immediate family, friends and colleagues. Today that same consumer can reach millions of people t h roug h numerous dig ital platfor ms. T heir exper ience wit h t he bra nd ( bot h posit ive a nd negat ive) ca n spread rapid ly. T he ma rket i ng community has picked up on this and in an ef for t to tap into t his trend has ex plored t he v iral benef its of CGM (consumer-generated messaging) initiatives. 7. GLOBALISATION (Brands without boarders)

T he world is t r uly becoming t he consu mer’s “cor ner café” a nd most bra nds a re eit her g lobal cit i zens or def ined by global citizens. The marketing challenge to t hink global but act local has never been more important or as complicated. W here contradictions in brand personality/positioning exist bet ween markets t he disconnect will create consumer conf usion.

5. GROW ING R ELEVANCE OF DR THEORY

8 . TIME , THE SCARCEST COM MODIT Y

M e d i a f r a g m e nt at i o n a n d t h e growing ability of consumers to avoid adver t isi ng /promot ional messag i ng means that continuity is a key success fac tor. Cost of c ustomer/relat ionsh ip acqu isit ion w i l l become a hot topic in measuring the effectiveness of campaigns and will dr ive adver tising

We l ive i n a n era where t i me is becoming the scarcest commodity and as such com mu n icat ion a nd med ia platforms that do not provide value and relevance are simply ignored. Consumers have lear nt to multi-task in order to obtain more – more infor mation, more entertainment, more reward and

more stimulation. It’s not uncommon to see the youth “texting” while listening to radio/ipod, watching television or even hav ing a conversation. 9. LIQUID CONT ENT (info/enter tainment a c c e s s o n m u l t i p l e p l a t f o r m s)

Content w it hout border s! Wit h t he advent of t he mobile age, consumers want access to in for mat ion or enter tai n ment on whatever mobile dev ise t hey have. A lready we see t hat cellular phones have b e c o me c a lc u l ato r s , d i a r ie s , r ad io s , telev isions a nd game consoles. Media platfor ms are exper imenting w it h t his concept and several pr int g roups are already shif ting focus to becoming digital multi-facet ted entities w it h b r a n d s o n s e v e r a l p l a t f o r m s . I t ’s becomi ng hard to def i ne even t he m e d i a pl at f o r m s . W h at f o r e x a m ple is a newspaper a nd what makes it dif ferent f rom a maga zine? A nd what is telev ision, a screen i n t he lou nge, my computer in t he off ice or an electronic billboard? I g uess t he real question is, does it mat ter? 10 . I N S TA N T R E WA R D / R E C O G N I T I O N / R E S U LT S (a n d a b s o l u t e t r a n s p a r e n c y)

Consumers, marketers and adve r t i s e r s w i l l w a nt e ve r y t h i n g n ow ! Change will be rapid and trends w ill be more inf luenced by where we’r e g oi n g r at he r t h a n w he r e we’ve come f rom. Research will need to be bot h f lex ible a nd f requent, focusing on facts. A s m e d i a p r o f e s s i o n a l s w e ’r e all investing in u nderstanding t he f ut u r e a nd a s I r e ad some whe r e “ t he genius of i nvesti ng is recog nisi ng t he direction of a t rend and not j u s t c a t c h i n g t h e h i g h s a n d l o w s ”. I n t he years a head we w ill have bot h ext remes.

THE ROCKSTARS

The ANNUAL 2008 — 263

THE ROCKSTARS

If you see a silver lining – grab it! By Harry Herber

It’s strange how things change in just the space of a few months. Last year when I was about to write a piece for this publication, things were really looking rosy. Not that there weren’t storm clouds on the horizon. But the seven years of fat (or so it felt) that we had been enjoying created a belief that the good times would just keep rolling.

Wow! Were we in for a really nasty surprise in 2008! The first few months were surprisingly buoyant and agencies and media owners alike revelled in the Indian Summer of spend. Hoots of derision greeted any mention of recession or belt tightening. “We choose not to participate!” became the standard response when asked if any cutbacks were being experienced. And then WHACK! Participation was mandatory, and inescapable.

One has seen little reaction from the agencies to date. Sure there has been a lunch or two fewer with the new reality dawning. And client’s reaction? Other than looking harder at any area of marketing spend, they are surprisingly realistic in their expectations. Advertising and communications are not seen as the panacea of all consumer non-spending evils. I think this is borne out by the really low level of pitching going on at the moment. Other than those businesses awarded on a f ixedterm contract, and therefore legally having to go out to tender, little else is on the go. However where we are seeing reaction to the downtur n is from media owners. Their budgets were set last year so there is an ever increasing credibility gap between their projected sales and the new cold, hard truth. This has galvanised them into action. “Yield” has become the new catch-phrase of t he media industr y. If margins are increased on deteriorating volume then at least the prof it targets may be met. So discounts are being examined like never before. Reduced spend is really an issue, and far more conser vative discount offers are being tabled by the prudent for advertisers merely maintaining the status quo. This is balanced by incentives for increased spend (in the few instances that it applies) and lavish 264 — The ANNUAL 2008

rewards are being offered for greater share of the clients’ budget. Astute negotiators are walking away from the table with all three parties – agency, client and media owner – feeling that a good deal has been done. And now the media industry is actually examining concepts that go beyond the traditional. The doors are being f lung open to new and innovative usage ideas, and the true professionals are in fact self-generating ideas and actively marketing them to agencies and clients alike. So in adversity we’re seeing a lot of positives! Not only are we getting more ideas to tempt clients, but service levels have been increased across the board, and competition is leading to a far smoother implementation of the day-to-day business of advertising. The last obvious benef it is that media owners, many of them younger, and used to the buoyant times, are growing in stature and learning on a very sharp curve how to operate in these times of paucity – a new but ver y impor tant exper ience for all! Enough, though, on past events. W hat can we expect in the year 2009? One is hearing a lot of positives about inf lation having peaked, and possible interest rate cuts. But ever ything is tinged wit h caution – and I believe this will be the overriding sentiment that will inf luence the communications industry and the budgets, in the coming year. Even a mild upturn will be welcomed, and f iercely contested, and there are sure to be winners and losers. And this upturn will probably be apparent in the second half of 2009 only, and more likely the last quarter of the year. So keep the belt tight is sage advice. Winners in the next year? Well the radio stations should benef it – t hat

is if the greed motive is parked. By this I mean they are of all media least affected by inf lationar y forces – their product cost is most easily contained. The T V stations, on the other hand, have to contend wit h t he increased price of programming given the rand’s slow slide, and a projected exchange rate of between R8.50 and R9.25 in 2009. But they have their advertising pricing model pretty stabilised, and are all aggressively pushing for greater partnerships with the larger advertisers. Also they are starting to get their sponsorship sales revenues up as they focus on areas outside of traditional/ classic advertising. Plus, they are looking at product placement as a growing area of massive potential. So T V and radio look good. Ditto for t he out of home i ndust r y, where mor e a nd mor e opp or t u n it ie s a r e b e i n g de velop e d , a nd adve r t i s e r s a r e b e i n g s p o i lt f o r c ho i c e . T h e on ly neg at ive i s t he s he e r nu mb e r of operator s, wh ich is lead i ng to a n over t raded ma rket. It’s t he pr i nt g uys who a re goi ng to have to pu ll somet h i ng out of t he f ire. T heir costs are based largely on d ist r ibut ion (read pet rol pr ice) a nd paper costs (read i n f lat ion a nd ra nd weak ness). It’s fa r toug her for t hem to contain rates, and any increase just makes compet it ive med ia look more appeali ng. A nd w it h “new media” – dr iven by inter net and cellular being t he really sex y hot buttons – spend is sure to be channelled into these areas, especially g iven t he low cost of entr y. So t he pr i nt med ia w i ll have to box really sma r t i n t he nex t yea r or so i f t hey’re not to go back wa rds. C o n c l u s i o n ? I t ’s g o i n g t o b e toug h out t here – but si lver li n i ng s a re sh i n i ng ever y where. G rab t hem – or someone else w i ll.

THE ROCKSTARS

The ANNUAL 2008 — 265

THE ROCKSTARS

Slashing marketing budgets is financial suicide By Ingrid Veysie.

According to Nielsen’s AIS/Adex figures, the 2008 Q2 South African advertising expenditures decreased by 28.6% compared to 2007 and is the lowest Q2 advertising expenditure since 2005. This shows that the heavy hand of marketing budget cuts is already evident.

Currently the question on most marketers’ lips, therefore, is how to maintain and hopefully grow their brand’s equity and status with a diminished marketing budget .

Marketing budget vulnerability Fi r st, let ’s look at why ma rketi ng budgets a re so v u l nerable i n a n economic dow nt ur n. As par t of costc ut t i n g ac t i v it ie s , compa n ie s u n der take a t horoug h a nalysis of t hei r phy sic a l a s set s to a sce r t a i n wh ic h a re cr it ica l a nd wh ich a re d ispensable a nd what i mpac t t he reduc t ion mig ht have on t he compa ny’s overall per for ma nce i n t he s hor t a nd long ter m. T he sa me r igorous a nalysis is not always applied to i nta ng ible assets l i ke br a nds, ma k i ng it a major reason why a ma rket i ng budget is a pr imar y cost- cutting target. A not her reason is t he w idely held percept ion t hat ma rket i ng ex pendit u re is a cost a nd not a n i nvest ment. It is also one of t he most ex ped ient cost- c ut t i ng measures t hat pressur ised executives ca n i mplement.

C onseque nces of market ing budget cuts Cutting t he marketing investment needed to suppor t the most impor tant si ng le cor porate asset - t he bra nd w it hout consider i ng t he long-ter m da mage, is f i na ncial su icide. T here is a g reat deal of ev idence t hat demon st r ate s t h at a reduc t ion i n ma r ket i n g spe nd du r i n g a n e conom ic dow nt u r n is shor tsig hted. Doi ng so could erode brand equit y and stat us, t hereby lower i ng a compa ny ’s com-

266 — The ANNUAL 2008

pet it iveness consider ably when t he economy recover s. Brand equity is built up over a long per iod of time, which also means t hat t he i mpac t f rom a dec reased i nvestment may not show up initially. T his is refer red to as t he “depot ef fec t.” However, if t he lack of bra nd i nvestment cont i nues for some t i me it ca n lead to bra nd erosion.

Vital importance of brands Br a nds represent a relat ionsh ip of t r u st w it h t he con su me r, m a ki ng it probably t he most i mpor t a nt component of a ny busi ness. Bra nds st i mu late dema nd a nd help sec u re f ut u re ea r n i ng s t h roug h i nc reased loyalt y. Ef fective brand per for mance is not just a f u nc t ion of ma rket i ng spend, but a tool to c reate va lue for a l l st a keholder s. T herefore, br a nd m a n a g e me nt s hou ld no lon g e r b e seen as pu rely a marketi ng f u nction, but as a n i nteg rated pa r t of t he total ma nagement process, w it h a st rong marketing-f inance inter face. It needs to b e ele v ate d to a v it a l pa r t of a (value -based) busi ness st rateg y a nd shou ld be on ever y top ma nagement agenda. Pa r t of t he challenge lies i n t he abi l it y of ma rket i ng exec ut ives to ef fec t ively a nd ef f ic ient ly t r ack ma rket i ng per for ma nce to prove its i nteg ral value.

Advice R eg a rd le s s of a l l t h is, t he c u r rent rea l it y is most ma rketer s need to de a l w it h d i m i n i s he d bud g e t s , so how do we ma x i m ise t hem to t r y a nd avoid bra nd erosion? Star t w it h

a na ly si ng you r spend over, say, t he pa s t ye a r a nd c ompa r e t he s p e nd w it h t he projec ted br a nd per for m a nce, awa reness a nd br a nd loya lt y. I nclude you r key compet itor s i n t h is analysis. If relevant competitive data i s not av a i lable i n you r m a rket i n g i ntel ligence depa r t ment, work on a basis of ex pe r t as su mpt ion s. T he cr it ical poi nt is to ident if y a nd position your brand in an eff iciency zone, in which you neit her over-spend” nor “u nder - spend”. Nor mally I would recommend you manage your marketing budget ef fect ively (do t he r ig ht t h i ng s) bala nced w it h ef f ic ie nt ly (do t h i n g s r i g ht). However, when money is t ig ht, it is w iser to put more emphasis on ma nag ing ef fectively, and get ting t he basics r ig ht, t han manag ing ef f iciently, which may lead you to over-engineeri ng i n a quest for per fec t ion. I n a m ission to do t h i ng s r ig ht, ma rketer s may have to ex pa nd t hei r c u r rent f r a me of reference beyond only optimising the marketing budget. A s t he economy cha nges, so too do t he needs a nd ex pec tat ions of consu mer s. It cou ld denote t he need to develop bet ter foc us by i mprov i n g brand value propositions or redesigning t he brand architecture to achieve bra nd sy nerg y. S e e t h i s d i f f ic u lt p e r io d a s a n oppor t u n it y to r ef i ne t he pr oduc t por tfolio strateg y and to make recommendat ions on t he ent i re ma rket i ng and sales channel mix. Marketers are i n a posit ion to lead compa ny-w ide change in response to cha ng ing buying patterns by reshaping a company’s

public prof ile and building new market i n g c apabi l it ie s t h rou g hout t he compa ny as a whole. Some ideas on how to rapidly tailor a marketing spend more ef f iciently is to re -allocate t he ex isti ng marketi ng budget f rom a cost ly a nd ex tensive classica l “above -t he -l i ne” com mun icat ion ca mpa ig n to a n i n novat ive targeted “below-t he -line” campaig n, wh ic h cou ld i nclude v i r a l m a rketing. You could also re-str ucture your br a nd p or t fol io by d i s c o nt i nu i n g br a nds t hat a re not add ressi ng t he needs of you r t a rgeted ma rket segments.

Measur ing marketing results “I k now ha l f of my adver t isi ng money is wasted. T he problem is I don’t k now wh ich ha l f !” (Q uote by t he fou nder of Un i lever – W i l l ia m Hesket h L ever). T h is quotat ion, a lt houg h f rom 1923, is still relevant to marketers today, who complain about t he lack of i nst r u ments to measu re t heir marketing spend. T his becomes even more apparent when the economy look s ble a k a nd cost c ut t i n g i s on ever y compa ny ’s agenda i n a bid to stay compet it ive. Once a ll you r ef f icient bra nd cha nges have been made, I recom mend you set up a t rack ing system to conti nuously monitor t he bra nd per for mance against a comprehensive set of key performance indicators (K PIs). Make sure t hese indicators allow you to quickly identif y which levers to pull if your brand plan goes “off the rails”. Remember, it’s d i f f ic u lt to ma nage what you ca n’t measu re.

THE ROCKSTARS

The ANNUAL 2008 — 267

THE ROCKSTARS

A new look at an old debate By Ivan Moroke

As marketers and advertisers deal with sticky questions of relevance and loss of credibility, Ivan Moroke suggests answers can be found by taking a different approach to solving the long-running creativity vs effectiveness debate

It’s a discussion that’s been going on for ages – should advertisers be focusing on developing creatively innovative adverts that win awards, or should their end goal rather be delivering effective adverts that drive sales and deliver to a client’s bottomline? The position from the two opposing sides seems clear. Most agencies want to win awards and see nothing wrong with the pursuit of creativity for its own sake – after all, being creative is what they get paid to do. In reality, it is highly unlikely you will meet many internationally renowned creative gurus who are where they are purely because of the number of products they moved into Mrs Khumalo’s shopping basket. Most marketers on the client side, however, want to see their hard-earned adver tising spend deliver tangible dividends – after all, why else are they paying to have adverts developed? Equally rare is the successful marketer whose office is lined with creative awards while the sales graph have always been dipping.

And while this is a debate that some mig ht arg ue has ex hausted all new avenues of argument, I would like to propose that there’s value in revisiting it – this time from a different angle. Because this is a debate that’s relevant only to t he adver tising industr y – it applies to the entire marketing sector and has par ticularly relevance currently. Externally marketers are feeling ever-increasing pressure to justify the value that they add to business, while internally the industr y is asking itself some searching questions about why it’s lost so much credibility and what it can do to regain ground in making itself relevant again. T he f law in t he creativ it y vs effectiveness debate is that it has only ever been applied to the specif ic f ield of advertising. And in this regard, the answer is simple. Whatever advertisers wish to believe or argue to the contrary it is possible to build a successful brand 268 — The ANNUAL 2008

wit hout creative adver tising. T here are countless examples of companies t hat have ma naged to do just t hat. Take Woolworths, for example. It’s a trusted brand, associated with highquality goods and service and recently added to its accolades the International Responsible Retailer of the Year award. But its ads don’t necessar ily st r ike one as a k nock-out on the creativit y scorecard. The converse is also true. A creative ad mig ht win awards but it can do nothing in the long term to save a brand whose intrinsics are f lawed. In fact, the incongruency created between ads that promise the earth and brands that fail to deliver lies at the heart of why the promises made by advertisers and marketers are sometimes viewed wit h a degree of scepticism in some quarters. So forget about the creative ad debate. The real question we should be asking is whether creative marketing has anything to add business’ bottomline. A nd by marketing I mean t he entire spect r um of what marketing used to cover – customer experience, packaging, branding and advertising. To avoid confusion, let’s refer to it as communication. In this debate, creativity is certainly not redundant. W hen it infor ms all areas of bra nd buildi ng it ca n be a powerful differentiator. Some might argue that even creative communication is not necessar y, so long as you have a unique and powerful product offering. A nd yes, there are those brands and brand categories that manage to get by with dull-as-dishwater communication strategies – home shopping channels leap to mind – and rely solely on what they offer the customer. In such cases, the creativity or innovation is applied to the product. W hether in reality the product’s functionality is actually innovative is a discussion for anot her

time. But the most powerful BR ANDS are those that combine an innovative offering with a creative communication strateg y. While creative adverts may (or may not – dependi ng on you r posit ion) help to sell products, creative communication helps to build brands. And that delivers long-lasting bottom-line value. Using creativity to inform the packaging, customer interfacing and advertising of a product lends something that a creative advert alone cannot. It builds a brand perception that outlives both product uniqueness and advertising awards. Ta ke mobi le phone c a me r a s for e x a m pl e . T h e f i r s t mo b i l e p ho n e ca mera t hat lau nched ha rd ly needed a c r e at ive com mu n ic at ion st r ateg y to get people to buy it. A l l it h ad to do was a n nou nce it s a r r iva l. But by employ i n g c reat iv it y i n it s com mu n ic at ion st r ateg y, t he compa ny d id fa r more t h a n si mply d r ive sa le s of a n i n novat ive produc t. It rei n forced itsel f as a pioneer i ng, g rou nd-breaki n g br a nd t h at d r ive s revolut ion a r y ideas. Such brand perceptions remain long a f ter t he compa ny ceased to be t he on ly pr ov ide r of mobi le phone c a mer as. C reat ive com mu n ic at ion st rateg ies ca n help bra nds to get t he mo st m i le a g e out of t he i r pr o duc t i n novat ion s so t h at when compet i tor s lau nch ‘me too’ produc t s – a nd t hey a lway s w i l l – t hey st i l l ret a i n a compet it ive ed ge. T he poi nt is t hat t he ent i re ma r ket i ng m i x – not just t he adver t isi ng - needs to be c reat ively i n for med i f br a nds a re to set t hem selve s apa r t. A nd wh i le c reat ive com mu n icat ion, l i ke c reat ive adver t isi n g , c a n never h ide a bra nd’s i nt r i nsic f laws, it ca n t a k e a br a nd to t he ne x t le vel, a l l ot her t h i n g s rem a i n i n g equ a l. A nd t hat’s a cla i m t hat c reat ive adver t is i n g on it s ow n c a n’t m a ke.

THE ROCKSTARS

The ANNUAL 2008 — 269

THE ROCKSTARS

Creative intelligence – The next step forward By Jason Knight

We wake up every morning of our lives to a world that is not the same as the one we went to sleep in the night before.

As people we can see this paradigm in two ways, depending on the type of person we are, either it’s the most exciting thing in the world or the scariest. As marketers and communications people, however, we have no choice: we need to feel the excitement or look for another profession. It is our job to grab the reins of this new world that we wake up to every morning and make it work for us rather than the other way around.

So how do we keep up with this new world we wake up to every day? And more importantly, how do we get ahead so that we can create the new world order rather than merely react to it? In my opinion, it’s a multi-pronged strategy that is based principally on two fundamental ingredients. 1. Open-mindedness 2. Collaboration If we get the mix of ingredients right, we have the potential to create and live a powerful driving philosophy and new approach to how we think and work. It’s called creative intelligence. The primary ingredient is openmindedness, everything worthwhile starts with an open mind; a closed mind shuts out all opportunity. This becomes particularly pertinent when we look at the current business landscape. Business and branding in every category is evolving at a head-spinning pace; what worked and what was news yesterday, is exactly that. The building and maintenance of brands and communication is becoming increasingly revolutionary and decreasingly evolutionary and so we need to be open-minded enough to potentially discard the formulas that have worked for us, the thinking that got us here and the approach that has built our brand and guided how, and to whom, we communicate. The second consideration and advocate for open-mindedness is the expansion of “brand geography”. Gone 270 — The ANNUAL 2008

are the days when brands were built in regions or in countries. Brands and communication have fewer constraints in today’s market and we have and increasing responsibility to understand the global context of business and branding and communication. That understanding begins with all of us knowing what’s out there, and by out there I don’t mean just your consumer, in your region, in your category, in your segment, in your country. Of course we need an intimate knowledge and insightful understanding of our consumer, but that’s not enough any more. We need to have a more holistic understanding and brand intelligence. Our (albeit small) internet penetration and economic growth have meant that consumers are far more aware of just how borderless brands are. It’s quite a sobering thought that brand perceptions and relationships are being built outside of the control of South African marketers, without any local reference or local marketing activity. We need to step up to the plate and take on responsibility for building a frame of reference for what and who are driving and innovating in global business, who the thought leaders are and how all of that is translating into product innovation brand building and communication. Consumers aren’t thinking in categories and countries any more when it comes to brands; neither should we. The next vital ingredient is collaboration. All around us walls are crumbling, lines are blurring and silos are ceasing to exist. There are no longer boundaries between virtual and reality, work and life, and now strategy and creativity. As agency people, and I use the term loosely, we need to actively break down prehistoric classifications. Our industry is under enough pressure and we need to be looking at new ways to help it evolve and create a new way of thinking. One such way is to re-evaluate the way we classify people and their contributions to

the communication process. Creativity is an approach to a challenge, not a department, and the same applies to strategy. Once upon a time the “strategist” and the “creative” sat in their little silos and got on with their jobs. That was a time long ago; things have changed, but not enough. It is no longer the sole responsibility of the art director and writer to be creative nor is it the sole domain of the strategist to understand our client’s business and brand objectives, the environment and consumers. At Ireland Davenport we have redefined convention, not only in theory but in action. These roles have become symbiotic, bringing to life the underlying philosophy behind creative intelligence. We don’t believe in a process in which one discipline hands over responsibility in the process but rather one in which the various disciplines are f luid and combine at ever y junction to create something that is bigger than the some of the participants. Strateg y should inform creative, which should in tern inform strategy, and so it goes. Our true strength lies in our ability to combine not in our individual brilliance. This philosophy has also come to life in a blog that we have created that tracks and documents the most progressive business and strategic thinking as well as creative genius from around the world so that we all have a constant feed of inspiration – the best of both worlds if you like. (www.idcreativeintelligence. blogspot.com) So in our case, the whole in this instance truly is greater than the sum of the parts and we need to constantly be adding those two vital ingredients (it’s not always easy, no one ever said it would be) so that we can wake up every morning and be inspired and excited by the prospects of the new day and step boldly into the future of our industry rather than being bewildered and unsure and taking tentative and meek little steps forward.

THE ROCKSTARS

The ANNUAL 2008 — 271

THE ROCKSTARS

Predicting the future By Johan prins

I think I can say, without danger of contradiction, that this article was the very (and I mean very) last one to be submitted for publication in this year’s The Annual. I missed the initial deadline. I missed the extended deadline. Eventually, a deadline was created just for me. Working in media, deadlines are sacrosanct, so one needs a very good reason to miss one. I had a very good reason: My article is supposed to be about the future of media.

U n l e s s y o u ’r e p r o g n o s t i c a t i n g a b o u t the far future (and especially if you ke e p t h i n g s n i c e a n d v a g u e, l i ke N o s t ra d a m u s d i d), p re d i c t i o n i s a d a n g e rous enterprise. This is especially true w h e n y o u t r y t o p re d i c t w h a t ’s g o i n g to happen in media, where innovation is of ten rewarded with striking audience grow th, whilst at the same t i m e, a s P o p p e r a n d Ku h n p o i n t e d o u t in dif ferent ways, being inherently u n p re d i c ta b l e . In ot h e r w o rd s , t h e o n e t hin g t h a t i s likely to h ave t h e gre a te s t imp ac t on w ha t you ’re t r ying to pre dic t i s t h e ve r y t h i n g t h a t , b y i t s n a t u re, i s u n p re d i c t a b l e .

T he i n he r e nt l y u n k now able n a t u r e o f f u t u r e i n n o v a t i o n d o e s n’t m e a n t h a t o n e c a n’ t p r e p a r e f o r w h at ’s l i k e l y to h a p p e n . T h e r e a r e pr o c e s s e s t h at a r e a l r e ady ap pa r e nt i n t he market, a nd it is possible (a nd ne c e s s a r y) to e x t r apol ate t he i r p r o b a b l e i m p a c t i nto t h e n e a r f u t u r e . It i s i m p o r t a nt to r e m e m b e r, h o w e v e r, t h a t s o m e t h i n g e n t i r e l y n e w m i g ht e m e r g e at a n y m o m e nt to t h row out a l l of ou r be st-la id pl a n s . It i s p o s s i ble a n d n e c e s s a r y to prepa re, but i mpossible to be e nt i r e l y p r e p a r e d . L et ’s st a r t by def i n i ng what “me d ia” is a l l about. W hen you get r ig ht dow n to it , m a rket i n g /adve r t i si n g i s a b ou t h a v i n g s o m e k i n d of i m p a c t o n b e h a v iou r. Tr a d it io n a l l y, we do t h at b y i nt e r j e c t i n g ou r s e l ve s i nto a n env i ron ment t h at a l r e ady h as t he at tent ion of member s of ou r ta r g e t au d i e nc e . Pe o ple l i k e w atc h i n g t e l e v i s i o n , s o we pl a c e a d ve r t i s i n g i n t he middle of t heir favou r ite prog r a m me s. People l i ke to u se 272 — The ANNUAL 2008

t he i r c e l l p ho ne s , s o we s e n d t he m u nw a nt e d SM S s o r p ho ne t h e m u p to s e l l L i f e I n s u r a n c e . S o, we f i n d w he r e t he t a r g e t m a rke t i s fo c u s i n g i t s a t t e n t i o n (o r w h e r e t h e t a r g e t m a r k e t i s), a n d we pl a c e ou r m e s s a g e s a c c o r d i n g l y, h o p i n g t h at b y i nte r r upt i n g t hei r l ive s i n some way we g e t t h e m to bu y ou r p r o du c t . T he major cha nges t hat we’ve b e e n s e e i n g i n m e d i a r e l at e to t wo i nter - con nected processes: t he i ncreasi ng availabilit y of media opt ions to a la rger propor t ion of t he population, and changes in t he ways i n wh ich i n for mat ion is t ransfer red. T h e f i r s t p r o c e s s h a s l e d to i n creased media ubiquit y and f ragme nt at io n : Pe ople a r e i nc r e a s i n g l y s u r r ou n d e d b y “ m e d i a” (e n v i r o n m e nt s w he r e t h e y c a n r e c e i ve a n d / or send i n for mat ion, a nd where t hei r at tent ion may be focused at a n y g i v e n t i m e), b u t m o r e m e d i a opt ions mea n t hat audiences a re spread more t h i n ly across mu lt iple plat for ms. Audience seg ment def i nit ions have t herefore become na r rower a nd less d isc rete (t he lat ter because i nd iv idu a ls tend to be mem b e r s of mu lt i ple p o s s i ble s e g m e nt s si mu lt a ne ou sly) a nd me d i a a g enc ie s h a v e c o n s e q u e nt l y b e g u n to f o c u s mo r e o n “ t a r g e t i n g ” t h a n “ b r o a d cast i ng ”. A s a consequence, det a i led a nd r el i able con su mpt ion d at a h ave g a i ne d i n c r e a s e d i m p o r t a n c e , a n d w i ll w it hout a doubt become st ill mo r e i m p o r t a nt i n f u t u r e . T he s e c ond p r o c e s s (t he c h a n g e i n del ive r y me c h a n i s m s) w i l l h ave a f a r mor e pr ofou nd i mpac t on f ut u r e media st rateg ies. I n t h is rega rd,

He n r y J e n k i n s f r o m M . I .T. d r a w s a u s e f u l d i s t i n c t i o n b e t we e n “ m e d i a” (s u c h a s r e c o r d e d s o u n d , o r r e a d a bl e p r i nt), “g e n r e s” (s u c h a s a s o a p o p e r a o r a g a m e s how) a n d “d e l i v e r y t e c h n o l o g i e s ” (s u c h a s DV D s, t he i nter net on a n a log ue tel ev ision). He poi nt s out t h at “med ia” d o n’t g o e x t i n c t , b u t t h a t g e n r e s r ise and fall i n popular it y a nd de l i ve r y te c h n iq u e s c a n c h a n g e q u ite r a p i d l y. I f you t h i n k a b ou t i t , t h i s i s t r u e . T he i nt e r ne t , fo r e x a m ple , i s n’t r e a l l y a n e w “ m e d i u m” – i t ’s a deliver y tech nolog y t hat allows user s to consu me t he t h ree g reat “me d i a”: r e ad able p r i nt , aud io a nd v ideo recordi ngs i n new ways a nd n e w c o nt e x t s . C h a n g e s i n del ive r y me c h a n i sm s (t he i nt roduc t ion of t he i nter net a nd d ig it a l broadcast i n g , t he i nteg r at ion of newspaper a nd telev ision w it h on l i ne adju nc t s, etc) mea n t h at con su mer s choose not on ly wh ich med ia to c o n s u me , but how to c o n s u me it ( I can read t he Economist magaz i ne , v i s it t he we b s ite or dow n lo ad t h e au d i o ve r s i o n to m y i Po d ) a n d w he t he r (a nd how) to i nte r ac t w it h i t ( bl o g g i n g , C N N i - R e p o r t). It i s e ve n p o s s i ble to s h i f t c o nte nt f r om o ne del i ve r y me c h a n i s m to a not he r (dow n l o a d t h e we b s i t e o n P C , bu t t ra nsfer it to a mobile phone a nd r e a d i t t h e r e). Tr a d i t i o n a l “ m e d i a ow ner s” a re t herefore now becom i ng c o nt e nt p r ov i d e r s , s p e c i a l i s i n g ( i f t h e y ’r e g o i n g to b e s u c c e s s f u l ) i n deliver i ng a speci f ic t y pe of cont e nt t h at i s at t r a c t i v e to a s p e c i f i c “ t y p e ” of c o n s u m e r (o r, g i ve n t h at c o n s u me r s h ave mu lt i ple i nte r e s t s , “ i nt e r e s t g r ou p s” ).

T he mu lt iplicit y of media op t ions, t he abilit y to sh i f t content f r o m o n e pl at f o r m to a n o t h e r a n d t h e p o s s i b i l i t y o f i n t e r a c t i o n (o r c reat i ng t he content you r self ) all me a n t h at “c on su me r s” a r e b e c om i n g a c t i v e p a r t i c i p a nt s i n a mu lt i l a y e r e d we b o f i n f o r m at i o n . T h e y a re no longer passive “receiver s” of messages, but i ncreasi ng ly act ive co - creator s, editor s a nd se l e c to r s . T h is doe sn’t mea n t hat t he 30 - second ad is dead, a ny more t h a n s i g n a g e o u t s i d e s h o p s (o n e o f t h e f i r s t fo r m s of a d ve r t i s i n g ) i s de a d . A n a d v e r t i s e r wou l d howe v e r b e a fo ol to r ely on ly on si g n a g e or p o ster s, a nd t he sa me w i l l apply to t hose w h o r e l y o n s t a t i c (c o n s u m p t i o n based) “i nter r upt ive” adver t isi ng i n f u t u r e . A d ve r t i s i n g w i l l h a ve to b e i nc r e a si n g ly t a r g ete d i n te r m s of content, i nstead of on ly w it h re spec t to pl a c e m e nt . D i f f e r e nt pl at f o r m s w ill allow for dif ferent levels of sele c t ion a nd i nte r ac t ion, a nd t he se plat for m-related capabilit ies w ill deter m i ne user s’ ex pec tat ions of content. Adver t iser s who prov ide c o n t e n t t h a t d o e s n’t m a t c h t h e s e contex t- based ex pec t at ion s w i l l s i m pl y f a i l to g a i n c o n s u m e r s’ att e nt i o n . T he secret, t herefore, w ill be content t hat i nteg rates w it h a nd a d s t o t h e c o n s u m e r ’s e x p e r i e n c e of t he deliver y mecha nism. T he d ay s of “ we i nte r r upt ou r pr og r a m m i n g to br i n g you t he se com me rc i a l m e s s a g e s” a r e we l l a n d t r u l y ov e r. Me d i a w i l l b e w he r e ve r c o n s u me r s a re, a nd content w ill have to do t he same.

THE ROCKSTARS

The ANNUAL 2008 — 273

THE ROCKSTARS

Web 2.0 shifts market forces – demands Marketing 2.0 By Jonathan hall

Powerful advances in the connectivity and interactivity of the internet and the mobile web have made it simple for people to link up, create and share information in a matter of seconds.

At face value, millions of digitally networked people appear to be a marketer’s utopia. But the social networking and social media phenomena have shifted market forces and the balances of power substantially and introduced new marketing challenges. Jonathan Hall, CEO of leading community engagement specialist, The Virtual Works, pinpoints some of the key strategic considerations that modern marketers and communicators must navigate to succeed in a networked and interactive world.

Shift in community: In principle, Web 2.0 has int roduced little new, simply enabling humans to belong to communities more easily – and to more effectively benefit from and contribute to them as they’ve always needed to do. (Communities are groups of people who associate through any form of common interest.) Because technology makes it far easier for people to congregate than ever before and puts up fewer barriers to entry or exit than real ones, virtual communities are growing far faster than their live-world counterparts. However, while the principles of identity, worth and support are common to real and digital communities alike, online ones differ from physical communities in a few key ways. Firstly, they’re f luid. The complement of an online community can grow, morph or decline in ways unlike real communities. Digital communities know no geographical boundaries. Members interact signif icantly faster and more eff iciently than real ones. Virtual members can participate in a community and remain anonymous or even invisible. And technology makes it makes it possible for people to participate in a matrix of many more virtual communities than in real ones. Shifts in power: The levels of trust that bind social or business networks and the ease and speed at which members’ opinions can be sought and gained is shifting power away from advertisers 274 — The ANNUAL 2008

and tempering the inf luencing strength of brands. Because social media puts broadcast communication tools in the hands of everyone, the customer is striking back. Communities are becoming major decision making inf luencers in the 21st century and must be carefully factored into modern marketing plans. Now, more than ever, companies need to vigilantly manage each customer’s experience of their product or service, and respond quickly to poor experiences, because an individual customer’s sphere of inf luence is far wider and more powerful than ever before. Shifts toward conversations: Conventional communicators were trained to tell. In today’s climate, where the customer has a digital voice as well as an ear; the customer now demands to be heard. T he trend toward greater interaction and collaboration with customers requires new competencies. Now marketing is less about messaging and more about creating and managing conversations with customers. The trend requires a few new key competencies: the systems, structures and skills to collaborate with customers, and a responsive culture. The ability to collaborate wit h customers wit h agility and f lexibility is becoming an increasingly important source of strategic advantage. Shifts in segments: Since technology has made it simple for people to find and interact with like-minded people, you’d think that markets would progressively consolidate into very targetable broad interest groups. Yet they haven’t. In fact, the converse is true. Technology is fuelling a continuous splintering of traditional segments into micro communities of interlinked customers and introducing new levels of complexity into the marketing mix. Web 2.0 dynamics beg the modern marketer to solve a few key challenges:

how to identif y ever mutating communities and member molecules – and how to engage them suff iciently well to establish and nurture a preferred relationship with your products and services. The short answer is: Not easily. The first paradigm shift that marketers must make is this: In the Web 2.0 world with a plethora of search, syndication and social networking tools at the disposal of the customer, communities and community members will find and value who they choose. But marketers can apply some proven Marketing 2.0 techniques to thrive in this inverted, complex and networked world. 1. Get micro relevant: Specif ic relevance to communities is perhaps the most signif icant of the Marketing 2.0 factors that will get members to engage. Relevance comes from an ability to pinpoint the essence that binds community members together and the insight to discern the subtle differences that distinguish one community from another. Use techniques to identif y community molecules and to cost effectively engineer the value that will result in community engagement. 2. Get ranked and rated: No matter how good your community value proposition is, communities are going to have to notice it in order to consider the benef it of a relationship with your brand. The myriad of ways to get communities to notice your proposed contribution range from database marketing, email campaigns, search engine optimisation, linking, key word acquisition campaigns and the harnessing of social networking, through to online advertising and blogging. Hire a guide to pick the right options for your business. 3. Get reputable and real: Keeping your hard-ear ned communit y cred-

ibility is the real trick. In an age where reputations are destroyed at the click of a mouse, this is easier to do in concept than in practice. However, some sound rules are emerging. Experience is proving that message weary and wary communities value transparency and truth above all else and resist traditional marketing hype. Case studies reveal that communities punish disrespect for a community member and dishonesty harshly. Get responsive: Inviting people to converse and not pitching up the conversation for it is fatal in an interactive world. Putting in smart systems to hear is one thing. But making certain that resources respond is as, if not more, important. The digital world enables real-time collaboration and as suppliers get better at reacting to e- conversations with e-speed, customers expect it more. The Web 2.0 world demands 2.0 structures and processes to respond with agility. No matter how you def ine it, Web 2.0, social networking and social media is no fad. It’s big, sustainable and gaining momentum. In, 2007, Forrester Research forecast that social media would impact almost every role, in every company, in all parts of the world. The McKinsey Group predicted that social media enabled collaboration would become one of the most impactful of the eight technology trends they identified. The Gartner Group also identified Web 2.0 as a powerful transformative force. And they were right. Today, MySpace has more than 220 million profiles. 100 million YouTube videos are watched every 12 hours and the numbers of blogs have almost doubled to more than 110 million in less than a year. A few blogs per second get created 24/7. Social networking and media will continue to revolutionise the way humans relate and do business for years to come.

THE ROCKSTARS

The ANNUAL 2008 — 275

THE ROCKSTARS

Media spend trends 2009. What marketers should look out for By Josh Dovey

There are at least two schools of thought on the way the advertising market will go in 2009. For the optimists (the sales directors of media owners) the slowdown we have seen in 2008 is a “blip” not a trend and adspend should soon recover to show double-digit growth.

The pessimists (perhaps the f inancial directors) would argue that adspend cannot detach itself from the broader economy. Thus we will continue to see a decline in real terms as growth in advertising revenue falls behind the level of CPI inflation.

If I had to choose one view I would be inclined to side with the pessimists, but as ever, it’s more complicated than t hat. T here is no quest ion t hat g row t h in ad expenditure slowed markedly in 2008, with many adver tisers trimming budgets in line wit h reduced sales volumes in Sout h A f r ica. T here was also a second level of budget re- evaluation from multinational clients facing tough trading conditions in the United States and Europe, wit h whole reg ions being asked to justif y marketing expenditure to HQ i n New York or L ondon. T his trimming of demand for time and space means t hat media ow ners are of fer ing plent y of ava i labi l it y even i n pr i me slots, and market pr ices have sof tened considerably. For 2009? Well it’s hard to see much volume growth in the local adver tising market while interest rates remain high and consumer expenditure is relatively depressed, so for t he f irst par t of t he year t he sof ter market conditions and lower pr ices w ill continue. However, South A frica is still forecast to show robust GDP growt h (estimated at 4% next year by The Economist panel). Oil pr ices should level of f and leave some room for interest rate cuts, a nd t here is ev idence t hat big global sponsors will start to spending in South A frica to suppor t their market share in 276 — The ANNUAL 2008

advance of 2010 World Cup. These factors would point to a mild recover y in adspend in t he second half of 2009. W hat should marketers look out for? Well i n a ny market t he clever money gets in ahead of the trend. Adver tising budgets always look v ulnerable when things are tight, but sensible investment can pay big dividends. A recent ar ticle in t he Financial Times about Reck itt Ben k iser (not a n OM D client) made for interesting reading. “…in a market growing by 4% (USA & Europe) Reckitt has achieved like-forlike sales growth of 10%, increasing its market share at a time many expected it to suf fer… It is reaping t he benef its of its decision to advertise strongly into t he dow ntur n.” Now you may be t h i n k i ng “ Wel l he would say t hat wouldn’t he? OM D ea r ns a com m ission on what cl ients spend.” T he realit y is we are mostly paid a fee, or fee equivalent basis, so no, it’s not t hat. Of course t here is some self interest: prof itable, happy clients who are growing their market share and margins generally don’t f ire their agencies! I think marketers should look to expand ma rket sha re by tak i ng adva ntage of these softer media market conditions in the f irst par t of the year, and be mindf ul t hat when setting budgets for 2009 there could be some recover y in the last quar ter. Oh, and I could go on about how “dig ital” w ill change ever y t hing but w it h penet ration of broadband at less t han 10% of SA homes it won’t do t hat in 2009. W hen it g rows, it really will change ever ything though, so start getting ready for it now…

THE ROCKSTARS

The ANNUAL 2008 — 277

THE ROCKSTARS

Breathing life (and magic) into Brand Positioning By Keith Stevens and Ginny Felps

Positioning is dead. Seriously! One of the toughest and singularly most important hurdles in the brand journey is the point at which its strategy is mobilised.

And most businesses rely on a twodimensional, static brand model to do the job. Brand tools like onions, bullseyes and keys are what we’ve used for years to distil brands down to their core, their most clear ar ticulation. But therein lays the rub. As the market get s more competitive, these tools just aren’t adequate and worse still, leave too much open to interpretation.

A sk f ive creat ive di rector s to de l i ve r a T V c a mp a i g n bu i lt o n t he d e s c r i p to r s “ m o d e r n , A f r i c a n a n d st yl i s h” a nd you’ l l g et f ive d i f fe r e nt e x p r e s s i o n s . T h r ow i n t h e b e l ow t h e - l i n e a g e n c y, t h e i n - s to r e g u y s , t he PR folk, t he c ustomer ser v ice t rai ner s a nd t he HR people, a nd you’ll get a whole new ra nge of v isualised ver sions. A si mplist ic p o i nt , but w he n o ne c o n s i de r s t h at t he goal of t ig ht bra nd buildi ng is i n de l i ve r i n g t he s a me b r a nd e x p e r i e nc e i n e ve r y f ac e t of t he b r a nd’s m a n i fe s t at io n, you s t a r t to s e e t h at c u r r e nt p o s it i o n i n g mo de l s a r e not t e l l i n g t h e w h o l e s to r y. Po s i t i o n i n g to ol s ne e d to b e f a r more speci f ic a nd releva nt. T hey c a n’t b e s n aps hot s, some ide a l istic v ision of t he brand. T hey need dept h a nd colou r as well as a no -nonsense, u nequivocal ar t iculat ion of t he bra nd, i n all its mu lt i l aye r e d g lor y. T he y a l s o ne e d to h a ve t he f le x i b i l it y to move i nto t he f ut ure. I can hear t he sceptics g roan f r o m h e r e : s u r e , t h a t ’s w h a t w e ’ v e b e e n s a y i n g ; t h a t ’s w h a t w e d o ; we k n ow a r e a l b r a n d i s m o r e t h a n just its proposition and a few ad-

278 — The ANNUAL 2008

jectives i n t he “personalit y” layer of t h e o n i o n ; t h at ’s w h at ou r s to r y b o a r d s a n d m o o d c h a r t s a n d s h ow reels a re all about. But t he t r ut h is t hese ex pression s u su a l ly l i ve i n t he a g e nc y side of t h e b r a n d wo r l d . A n d w h e n b i g b r a n d s a r e u s i n g u p to f ou r to f i v e a g e nc ie s to de l i ve r t he i r br a nd , t he p r o ble m i s e x a c e r b at e d . M i s i nt e r pretation f ract u res t he message a n d t h e b r a n d o w n e r s d o n’t f u l l y ow n t he o ne t r u e r e p r e s e nt at i o n of t heir brand. S o, we h ave a c h a l le n g e. B r a nd s a r e n’t s t a t i c . T h e y a r e n’t t wo d i me n s ion a l. T he y ’r e mor e l i ke cha racter s on a mission whose li fe stor ies are evolv i ng. T hey have per sonalit ies, of ten f lawed. T hey develop f rom a nd evolve i nto t he cult ural memes and mores t hey are par t of. T hey have var ious socio - cult u ral roles. T hey a re as mu lt i f acete d a nd h i stor y- r ic h a s t he societ ies t hey operate i n. So how c a n we b e t t e r b u i l d – a n d mo b i l i s e - bra nd stor ies t hat ref lect t h is? F i r s t l y, t h e i n s i g ht wo r k we u s e to u nder pi n bra nd creat ion needs t o c h a n g e . W h a t ’s b e e n m i s s i n g f r o m t he t r a d it i o n a l t r iu m v i r at e of c o n s u m e r s , c o m p e t i to r s a n d t r a d e resea rch is cu lt u ral i nsig ht. Cu lt u ral i nsig ht g ives bra nd ow ner s a v ision of t he context i n which t heir brands live and a good v iew o f h ow t h at c o nt e x t w i l l c h a n g e i n t he f ut ure. T h is is not ju st about t r end spott i n g . I t ’s a b o u t g e t t i n g t o g r i p s w it h t he seism ic sh i f ts i n what we c a l l “Cu lt u r a l C e nt r e s of G r a v it y ” or COGS, a nd t he social, cult u ral

a nd econom ic factor s t hat i n for m t he m. S h i f t s i n at t it ude s to he a lt h, mater ial value, et h ics, gender a nd i d e n t i t y a n d t e c h n o l o g y, f o r e x a m pl e , h a v e h a d s i g n i f i c a nt r e p e r cussions for brands ever y where, i nc lu d i n g ou r ow n s out he r n c o r ne r o f t h e g l o b e . Fo r b r a n d s t o b u i l d r e a l c u lt u r a l c apit a l ove r t i me , t h i s k i nd of i n s i g ht c a n he l p bu s i ne s s e s s t r at e g ic a l l y de c o de how c u lt u r e i s evolv i ng a nd use t he i n for mat ion to k e e p t he i r br a nd s f r e s h, r ele v a nt a nd mobile. S e c o n d l y (a n d g o o d n e w s f o r a g e n c i e s) i s t h a t w e n e e d t o g e t bet ter at a r t icu lat i ng ou r bra nds i n ways t hat a re solid enoug h to resist m isi nter pretat ion, but alive e n ou g h to b e c a m p a i g n - a b l e , b o t h n ow a n d i n t h e f u t u r e . B e c a u s e a s t r a t e g y w o r k s i f i t ’s a c t i o n a b l e . B r a nd to ol s s hou ld br e at he l i fe i nto b r a n d s . We ’ v e s p e n t a l o t o f t i m e on t h is; developi ng a Bra nd Stor y to ol t h at he l p s u s bu i ld a c h a r ac te r i n ste ad of ju st a pr opo sit ion. B a se d on a sta r t i ng poi nt of u n iver sally recog n isable Ju ng ia n a rchet y pes, bra nds ca n become t r ue i ndiv idua l s: w i t h a v o i c e a n d a p a s t a n d a per sona l it y, wa r t s a nd a l l; a t a n g ible ent it y w it h t a lent s a nd emot ion s a nd a n ap p r op r i ate c u lt u r a l c o nte x t . A t h r e e d i me n s io n a l a r t ic u l at io n t h at works towa rds t he g rail of bra nd buildi ng: consistent execut ion, f rom cha n nel st rateg y to com mun icat ions to ser v ice. W h at m a ke s t h i s c ombi n at ion of ele me nt s wor k – i n s i g ht a nd a r t ic u lat ion - is t he ack nowle d g ement t h at a br a nd ne e d s mobi l it y a nd c u lt u r a l c o nt e x t to h a ve lo n g - t e r m v a l i d it y.

Coke does it; ever y i ncremental evolut ionar y move t he bra nd has made has kept it releva nt w it h t he c u r r e nt g e ne r at i o n , w i t hou t lo s i n g t he o ne b e for e it . A p ple ap p e a r s to b e doi n g it to o, but ad m it te d ly w it h le s s he r it a g e a nd mor e bu mp s a lon g t h e r o a d . Ta k e Vo l v o a s a n o t h e r e x a m ple . T he y ’ve ow ne d s a f e t y fo r years. But safet y has become a tablestake i n t he categor y a nd t he c a r br a nd i s fe el i n g a l it t le s t at ic a s a r e s u lt . W i t h a s ol i d u n d e r s t a n d i n g o f h ow t h e c o n c e p t o f s a f e t y i s evolv i n g i n a c u lt u r a l contex t , Volvo cou ld be pla n n i ng a head; mak i ng su re t heir ar ticulation of safet y i s r e l e v a n t n o w, w h i l e p l a n n i n g f o r h o w a n d w h e r e “s a f e t y ” m i g h t e vol ve a nd lo ok l i k e i n t he c u lt u r a l contex t of each seg ment of t hei r ma ny markets i n t he f ut u re. W it h a f u l l y mobi l i s e d p o s it io n i n g model, br a nd ow ner s a nd agenc y pa r t ner s ca n act ivate st rateg y to day t hat has a n eye on buildi ng r e a l lo n g - t e r m c u lt u r a l c a p it a l a nd br a nd e qu it y. A f te r a l l, for m a ny of u s , t h e b e s t p a r t s of g e t t i n g to t h e b o t to m l i n e a r e t h e g r e at , m a g i c a l stor ies we help to weave i nto li fe in t he process.

K e ith and G inny are brand special i st s a t b r a n d r e n o va t i o n a n d i n n o va t i o n c o m p a n y, A d d e d Va l u e . A U K l a d w h o d i t c h e d L o n d o n fo r l o v e a n d a Z i m ba b w e a n w h o c a n’t g e t e n o u g h o f t h e J o z i b u zz , t h e y’v e b o t h fa l l e n f o r t h e S A B r a n d S t o r y, h o o k l i n e a n d s i n k e r.

THE ROCKSTARS

The ANNUAL 2008 — 279

THE ROCKSTARS

Prior preparation prevents poor performance By Larry Shiller

The 2010 Fifa World Cup: a turning point for South Africa. The ultimate showcase of our country and brand.

A n d y e t , d e s p i te t h i s i n cre d i b l e o p p o rtuni ty b ein g vir tu ally o n our d o o r s tep s , ve r y fe w l o ca l co m p a n i e s h a ve s ta r te d to gear up for this event. New infras t r uc ture and limite d use of t he ident ity would seem to be the only tangible acknowledgement that South Africa w i l l b e h o s t i n g t h e b i g g e s t e ve nt i n t h e world in less than two years’ time.

W h e t h e r i t b e c y n i c i s m , a p at h y or a f u nda mental lack of com municat ion t hat has resulted i n ou r lack of pro -activ it y a nd general excitement about t he event, t he realit y is t hat t he per vasive “wait a n d s e e ” at t i t u d e a d o p t e d b y m o s t w ill have ver y real consequences – s o o n . T h i s i s b e c a u s e t h e 2 010 F i f a Wo r l d C u p b r i n g s w i t h i t a ver y speci f ic a nd li m ited w i ndow o f o p p o r t u n i t y. A s a n e v e n t t h a t u n ite s t he wor ld , a nd i nde e d S out h A f r i c a , c o m p a n i e s s hou l d b e u s i n g it to build t hei r bra nds bot h i nt e r n a l l y a n d e x t e r n a l l y, p r e p a r i n g n ow : p r e p a r i n g p r o p e r l y. T h i s y e a r ’s B e i j i n g O l y m p i c s pr ov ide d u s w it h t he u lt i m ate s how case of what is possible if t r uly prepa red. T he absolute at tent ion to de t a i l a nd f i n i s h i n g touc he s t he y i ncor porated – f rom t he openi ng c e r e mo ny to t he i n s t a nt a ne ou s a nd f lawless r u n ni ng of t he var ious spor t i ng code s – t he whole event was not on ly well executed, but was a “s p e c t ac u l a r ”, e nt ic i n g u s to w atc h as ma ny of t he events as we cou ld a n d , m o r e i m p o r t a nt l y, f r e q u e nt l y w i s h we we r e t he r e to e x p e r ie nc e it for ou r selves. T he slick execut ion demonst rated by t he Ch i nese is a result of ca ref ul a nd coordi nated pla n n i ng a nd ma nagement – t hat sta r ted well i n adva nce. I n Sout h A f r ica, despite havi ng t his mam mot h event on ou r d o o r s t e p , w e ’r e c u r r e n t l y s e e i n g l i t t l e p r e p a r at i v e m a r k e t i n g a c t i v 280 — The ANNUAL 2008

it y. Pe r c e i ve d c o nt r ove r s y a s to ou r inf rast r uct ural readiness and capac it y h a s le f t mo s t S out h A f r ic a n s reluc t a nt to t a ke t he event on boa rd. W i t h “ n o t h i n g t o b e l i e v e i n y e t ”, t h i s fe e l i n g of dou bt h a s t r a n s l ate d d i r e c t l y i nto a l a c k of p r e p a r at i o n , a nd a lack of cor respondi ng ma r ket i ng a nd bra ndi ng st rateg y a nd act iv it y as a result. We at t he Sw itc h G roup f i nd t h is e x t r e m e l y c o n c e r n i n g . We h a v e a r e s p o n s i b i l i t y to e n s u r e t h at a l l o f ou r c l i e nt s a r e a s p r e p a r e d a s t h e y p o s s i b l y c a n b e f o r 2 010 – w h i c h me a n s g a l v a n i s i n g t he m i nto ac t ion n o w a n d a v e r t i n g t h e l a s t- m i n u t e s c r a m ble fo r m a r k e t i n g a nd b r a nd i ng elements. M a rketer s need to decide now on exact ly what it is t hey w ish to ac h ie ve du r i n g t he 2 010 World Cup a nd put a st rateg y i n place to facilitate t h is. T h is wou ld i nclude, for e x a mple ( but not b e l i m ite d to), t he legal requ i rements associated w it h ide nt it y a nd br a nd u s a g e , sup plier ident i f icat ion a nd br ief i ng, m a r k e t i n g c ol l ate r a l ( p r o duc t s a nd p r o m o t i o n a l m a t e r i a l ), c a m p a i g n e xe c ut io n ( p r omot io n s a nd c omp e t i t i o n s) a n d k e y d e l i v e r a b l e d a t e s . T ho s e c o m p a n i e s o p e r at i n g o n t h e p e r i phe r y, or not d i r e c t l y l i n k e d to 2 010 , w i l l a l s o h a v e t o d e c i d e o n t he i r a p p r o ac h i n t e r m s of le ve r a g i n g t he e ve nt w it hout i n f r i n g i n g o n t radema rks a nd copy r ig hts. A s s uc h , a l l c o m p a n i e s , r e g a r d l e s s o f t h e i r s i z e a n d i n d u s t r y, shou ld be tak i ng a cr it ical look at t heir position i n t he local market, a nd st rateg isi ng as to how t hey w i l l h a r ne s s t he op p or t u n it y of t he Wo r l d C u p. W h e t h e r c h o o s i n g t o f o c u s o n e ’s at t e nt i o n d u r i n g t h e s e a l mo st t wo mont h s on e x i st i n g c u s tomer s, or rat her on t he v isitor s to Sout h A f r ica, one needs to put a p l a n i n p l a c e s o a s t o l i n k o n e ’s

br a nd or br a nd u sa g e i n a n i nteg r ate d w a y. C o m p a n i e s n e e d to d e c i d e w h at m a r k e t i n g ac t i v it i e s - p r o mo t io n s , ne w p r o duc t s , c o mp e t it io n s , bra nd collateral – t hey w ill need to have i n place to take ma x i mu m adva ntage of t his occasion, a nd s t a r t d e v e l o p i n g t h e s e n o w. T he e c o no m ic b e ne f it s i n t e r m s of i ncreased dema nd for v i r t ually all products a nd ser v ices du r i ng b o t h t h e r u n - u p t o a n d t h e Wo r l d Cup itself, have been repeatedly touted to Sout h A f r ica ns. W hat m a n y f a i l t o r e a l i s e , h o w e v e r, i s t hat wh ile we have healt hy levels of p r o duc t i v it y c ap ac it y, t he s e w i l l become i ncreasi ng ly li mited as we g e t c l o s e r t o 2 010. T h e r e a r e o n l y so ma ny ser v ice prov ider s to t he m a rket i n g i ndu st r y, a l l of wh ic h a r e g oi n g to be work i n g u nder i nc r e ase d pr e s su r e i n t he r u n - up to t he e ve nt . L eave you r pla n n i n g a nd subsequent pr o duc t ion work to o l ate , a nd t he r e w i l l b e def i n ite con se quence s. Work w i l l h ave to b e out sou r c e d , p o s si bly even to over seas compa n ies; sup pl i e s w i l l h a v e to b e i m p o r t e d – i n ef fect negat i ng all of t he benef its p r e v i ou s l y e a r m a r k e d f o r ou r lo c a l e c o n o m y. W h e n i t c o m e s to t h e 2 010 F i f a Wo r ld Cu p t he n , it ’s t i m e fo r bu s i ness to show its com mit ment to t he event – and star t prepar ing n o w. H a v e t h e n e c e s s a r y s t r a t e g i c conver sat ions, consu lt t he bra ndi n g e x p e r t s , pl a n you r p r o duc t a nd ser v ice di f ferent iat ion tech n iques for t hese rapid ly approach i ng t wo mont h s , a nd let ’s st a r t br e a k i n g t he 2010 bot t leneck . We must recapt u re t he i nitial euphor ia ex per ienced w h e n F I FA a n n o u n c e d S o u t h A f r i c a a s t h e 2 010 h o s t n a t i o n . L e t u s u s e t h i s op p or t u n it y to s how t he wor ld w h at a c u lt u r a l l y u n iq u e a nd capable people we really a re.

THE ROCKSTARS

The ANNUAL 2008 — 281

THE ROCKSTARS

Attributes of a creative director in a fragmented media environment By michael bLore

Don’t be intimidated. So a lot has happened over the past few years. And yes, we live in very interesting times. The Information Age hit us like a perfect storm and everything (seemingly) changed overnight. Suddenly, the market had access to our information, access to brands and they used that information to start to control brands, remake them their way. Consumers started deciding the tone and manner of their favourite brands, what they stand for and what they mean to them. They even decided that the internet was the new media of choice. Marketers woke up one day to realise that they weren’t in control anymore, the consumers were, and had placed themselves at the very centre of the marketing world. So brand managers in their droves turned to their agencies in panic, looking for answers.

The other thing that happened was that the media environment exploded. Cellphones became televisions. So did fridges. We have taxi-TVs, in-store checkout counter TVs, our laptops are TVs and so on and so on and the list is endless. Both marketers and consumers alike are faced with a myriad of screens, further fragmenting the media environment. And what happens? Some clever technology companies and mobile companies see a gap and start offering “digital solutions”, “specialist mobile advertising” and more. The buzz in the industry is that advertising agencies are dead if they don’t reinvent themselves and that television as a medium is something of the past. So brand managers in their droves turn to their agencies in panic, looking for answers. And they start looking elsewhere too. So what are the answers? Simple. Or rather, basics – we need to go back to basics. When television was invented, it took the industry by storm. We were suddenly asked to develop big ideas, moving pictures, to go on TV. But we didn’t all do a course to figure out how the signal came into the aerial and was translated into pictures on TV with the help of a tube. No, we did what we do best, come up with great ideas that tell great stories and help sell a lot of 282 — The ANNUAL 2008

product to our markets by making the right kind of emotional connections between our markets and our client’s brands. That’s the first thing marketers need to understand: there will always be the people who bring ideas to life through technology. That isn’t the agency’s job. It’s our job to sell through the ideas. And don’t worry mister client, we will manage the production process for you too. Just like we always have. TV isn’t dead. You don’t see a lot of flat screens and LCD’s in the trash do you? We just need to understand that times are changing and that there is now much more opportunity in the way we use TV, or in fact any medium, to reach people and make the kind of long-lasting emotional connections that truly inspire brand loyalty. That includes the Internet and mobile. And so what if the consumer wants to have a say and involve themselves in our brands? As long as we embrace their engagement and interactivity with our brands, we will learn more about our markets, much faster than any of the usual research methods. It’s honest too – the truth. Isn’t that what we want from our customers, their information, feelings, input and truth? I know I do. It helps me sell a lot more of my client’s products. I mean, how do you go wrong if you let people (because they don’t think of themselves as consumers or a target market) tell you what they want from your brands and then give them what they want. I believe that gives us more control over the success of our brands, even though it doesn’t feel that way in the beginning. It’s like having a creative department of 10 million people working on my client’s business. So take a deep breath. Don’t be intimidated. Great communication and advertising is still all about the big ideas. Do what you do best and do it well for your clients. You’ll probably be around for some time to come.

THE ROCKSTARS

The ANNUAL 2008 — 283

THE ROCKSTARS

Brand… the one and only love? By Michelle Caldeira

Is brand the be-all and end-all in employee communication?

The things which attract people to a company can be very different from those that retain or engage them. This means that employers have to emphasise different elements of the employment relationship at different stages of the employment lifecycle to create and sustain employee engagement. Engagement is the degree to which employees commit to their organisation, and how hard they work and how long they stay as a result of that commitment. Pretty much like a relationship. You need to work at both. And communicate appropriately – at the right stage.

In an idyllic world, one would want love to be at the heart of all. And if we had to think of the heart of an organisation’s communication, that love should be the brand. However, if the brand was love, then it would need to be said that one cannot live on love alone. A relationship grows and shifts. And in the journey, we question where this love is taking us, what we will do together and apart, where we will live. It has its ups and downs. And it needs great communication. So it is for the brand in an organisation. The employee journey within the organisation starts with the first exposure, which may be a general awareness of the external brand through advertising or a first meeting through recruitment. That first tantalising date. When both parties are on their best behaviour. Followed by the formal introduction to the family in an orientation programme, where one discovers the game plan for this courtship. The flirtation continues in a probation period. We settle in, meeting the family and friends, finding out who they are and what they do, and learning what we need to do as part of this group. In the next stage of the relationship, we enter the arena of performance management, where we now need to step up and where we are encouraged to be a great partner and deliver on the promises made in those early, heady days. The relationship settles into that comfortable phase where we have learnt an ease 284 — The ANNUAL 2008

with one another. Career development lies around the corner, where the age-old question: “Where is this relationship going to?” is asked… and where we are challenged to acquire new skills and possibly take on more responsibility. Some take it on. Others don’t. To grow in our relationship, we need to learn about boundaries. We also need to learn to become coaches, allowing for growth and offering direction. Leadership is asked of us in our relationship with “me, we, work, world”. And for all this, we like a little reward or two. Whether it be a salary or a bonus, it gets our attention. Even better is a warm afterglow of recognition. A “well done” from your meaningful other (manager) goes a long way. Our environment then gets the onceover. Does it do what it should for me? Is it ergonomically sound? This then gets us to consider our wellbeing, when we weigh up the pros and cons of our work/life balance, and possibly choose to live a healthier lifestyle – enabled by our partnership. In this process of change, we explore the benefits of transformation, considering diversity and playing our part in building our spirit – our nation. All these lessons that we have learnt from the first date until now have engaged us. At this point, some are deeply committed, and others may want a way out. And that’s when we call in employee relations (if we haven’t already) – checking that we know our rights within the relationship. The do’s and don’ts. And if the time has come to exit, we need to review our reasons for leaving. Have we been woo-ed by another? Is it just a tired relationship, or greener pastures that call? Does it end in an amicable divorce, a soured relationship or a happy separation? Could there be a return to the fold? The story is ongoing – as are our relationships. And constant within this is communication. From the first moment of recruitment to the final exit interview, the employee is communicated to. How effectively is the question.

The employee journey is not only about the brand. Brand does not live without vision and values. And vice versa. Some companies have carefully co-ordinated messaging in the business, others allow a free-for-all. The larger the organisation, the more difficult it often is to co-ordinate the messaging. HR, Marketing, IT and Finance, amongst others, all bombard the employee. And all expect the employee to respond positively to their messages. Many of these departments try to “brand” themselves. Think of the message chain here. There is the business vision (being the leading / best / ultimate...). There is the strategy (say, five imperatives). There is the brand (architecture, personality, promise). There are the values (four or five, if we’re lucky). There are the desired behaviours (15 to 20 – say, four per value). There are the priority business initiatives (customer centricity, employer of choice, innovation, etc.) each of which are broken down into sub-projects). And all these (plus loads more) are communicated at different stages, and sometimes simultaneously, within the employment lifecycle. Brand can only be effectively communicated in a passionate, committed relationship with vision and values, tailored to employment lifecycle. How do we do this? To achieve targeted and co-ordinated messaging, buyin is needed at the top. The CEO needs to be committed, and Human Resources and Marketing need to actually work together. Ego, politics and self interest need to be left at the door. And there needs to be a true partnership between those who lead the messaging. Vision, values and brand need to be integrated. Without this triumvirate, most internal communication will only be passable, instead of wildly passionate and effective. So, let’s spread the love. Integrate the head (vision), heart (brand) and hands (values / behaviours) to engage employees and enjoy a fulf illing relationship.

THE ROCKSTARS

The ANNUAL 2008 — 285

THE ROCKSTARS

What’s great about South African advertising? By mike abel

What constitutes a great South African ad? Well, imagine African elephants being born out of eggs and wondering through the desert, the elder brother supporting the younger.

O r, g u y s b r a a i n g o n t h e ro of of a N e w Yo r k a p a r t m e n t b l o c k w h i l e a f r i e n d delivers ice-cold Castles in celebration of the rugby. A man who places hi s b e d o n Ca s t ro l oil t in s b e cau s e h e’s s care d of t he to ko lo sh . T he s e are s o m e o f o u r b e s t- l o v e d a n d r e m e m b e r e d local ads.

B u t w h y? A l l of t he m a r e u n l i k el y s c e n a r i o s , t h at i s , i f you a r e n o t a l o c a l . T h e m a g i c o f t h i s p l a c e , S ’e f r i k a is t hat it is such a mu lt i- c u lt u ral melt i ng pot, a n i nter play of f i r st a nd t h i rd world t h at ac t u a l ly a l low s o ne to b e l ie ve t he s e nt i me nt of ou r c ou nt r y ’s m a r k e t i n g l i ne , t h at i t ’s “a l i v e w i t h p o s s i b i l i t i e s”. S o m e of ou r f i ne st adver t isi n g over t he ye a r s h a s b e e n u n iq u e l y S out h A f r ic a n – t h e f r a g i l e a n d e t h e r e a l s t u f f t h at bonds consu mer s to bra nds a nd c re ate s a u n ique a f f i n it y t h at c re e ps i nto you r h e a r t . O u r b e st ad s a r e n at u r a l ly, emo t ional ones. T he say i ng goes t hat “ by mov i n g pe ople , you move pr o d u c t ”. I f w e l o o k a t i c o n i c b r a n d s t hat have consistent ly played to t he u n iq ue ne s s of t h i s c ou nt r y a nd its stor ies, ma ny bra nds such as Vo l k s w a g e n , K l i p d r i f t , Vo d a c o m , Cast rol, Coke a nd Joko come to m i nd, to n a me but a few. T hey of ten tell stor ies t hat ca n be on ly told here, or if not, a re executed i n a t y p i c a l l y S ou t h A f r i c a n w a y. T h i s “way” g ives one a sense of home, c h a r m , f a m i l i a r it y a nd e mp at hy o r e v e n p at ho s . A n d t h e n a g a i n , we m a k e s o m e of t he worlds’ best ads t hat have not one d r op of loc a l st u f f i n it , but t hey are concept ualised by creat i ve m i n d s t h at h a ve b e e n f o r m e d , infor med and inf luenced by t he s t r u c t u r e , c h ao s a n d e ve n m y t hol og y of bei ng pa r t of bot h t he old 286 — The ANNUAL 2008

a n d n e w S ou t h A f r i c a . T he tension bet ween ou r past a nd pre sent is played out beaut i f u l ly i n B o e t a n d S w a e r g e t t i n g a B EE pa r t ner, T he Vodacom ads where t he g uy i n t he L e opa rd sk i n u nde r pa nt s gets h i msel f i nto ongoi ng t rouble a n d i s “s a v e d ” b y t h e o l d e r b l a c k ob s e r ve r c a l l i n g for help. Vo d ac om did it agai n i n t he spoof of “t he Gods must cra z y” ad where t he b ok k e ’s b a l l f a l l s ou t of t h e pl a n e , like t he or ig i nal Coke bot t le a nd l a n d s o n a B u s h m a n’s h e a d – a n d t h e n t h e y pl a y r u g b y. “M e t E i s h” b r i l l i a n t l y a n d e f for t lessly toys w it h t h is h istor ic f r ic t io n w he r e c o n f l ic t i n g c u lt u r a l g roups m isu nder sta ndi ng s of one a not he r ’s l a n g u a g e ac t u a l l y b r i n g s t h e u n l i k e l y f r i e n d s to g e t h e r. A n d not i n a c o nt r i ve d w a y e i t h e r. Vol k swagen, obv iously ver y close to my hea r t, has played w it h t h is “ lo c a l ne s s” i n m a ny d i f fe r e nt w ay s. T h e r e ’s t h e o l d Vo l k s i e B u s a d s w it h D av id K r a me r a nd h i s r e d vel l ie s . S a r e l v a n de r Me r we w ho s a id t h at t h e ol d Pa s s at i n t h e e i g ht i e s “s t u c k to t h e r o a d l i k e b o e r e wo r s to a b r a a i g r i d ”. T h e r e ’s t h e s t o r y o f a y o u n g black g irl who is broug ht up by h e r p o o r, w i d o w e d f a t h e r d u r i n g t h e s t r u g g le ye a r s a n d r e w a r d s h i s love b y b u y i n g h i m a Pol o. O r t h e you ng wh ite G olf- d r iv i ng y uppie (do t h e y s t i l l u s e t h at wo r d ?) w ho h e l p s t h i s ol d bl i n d bl a c k g u y f i n d h i s s o n , a nd a s h i s “ b r a i l le d” h a nd move ac r o s s t he V W log o, he s m i le s b e c au s e he r e a l i s e s t h at o n l y a V W d r iver wou ld help some st ra nger t h i s mu c h . A n d t h e n t h e r e ’s t h e p e r e n n i a l s to r y of t h e f r a c t u r e d r e l at i o n s h i p b e t we e n a f at h e r a n d s o n a n d t h e y t a ke a r oad - t r ip i n t he i r Tou a r e g to br i n g t hem tog et he r. He r e t he s he e r

h au nt i n g be aut y of t h i s cou nt r y a nd it s people c reate a releva nt backd rop to t he reconc i l iat ion. T here’s a l it t le m a g ic mome nt i n t h i s ad w he r e t he te e n a g e son lo ok s lon g i n g ly out t he w i ndow at t h is you ng M a lay g i rl a nd t h e u n l i k e l y a n d f o r b i d d e n l ov e i n ou r c ou nt r y ’s p a s t , i s h i nt e d at . Ta l k i n g a b ou t r e c o n c i l i at i o n , I t h i n k ou r abi lit y to laug h at each ot he r ’s d i f fe r e nc e s , q u i r k s a nd foi ble s is wh at m a ke s Sout h A f r ic a a nd it ’s adve r t i si n g so s p e c i a l. To l au g h a t t w o l a d i e s d i s c u s s i n g P o l k a ’s i nte r ne t s p e c i a l i n t he “ S e - r i -y a s! ” a d w i t hou t c au s i n g of f e nc e , to t h e h i s tor ic M ack h at i n i “ S c ot s m a n” i n t h e “M u c h m o r e m u n c h a d s ” a n d more recent ly t he Halls ad where ou r hero, a n ever yday A f r ica n au nt y, shouts out at a U FO t hat wa nts t o s t e a l h e r f r i e n d t o “ Vo e t s e k ! ”. S i m i l a r l y t h e l a t e s t “ We ’ v e b e e n h av i n g it ” Vo d acom ad p oke s g o o d he a r te d f u n at w h at c ou ld s i m i l a rly b e c o n s i d e r e d , a b i t of a n A f r i c a n c o nt i n e nt t r a g e d y. A n d t h e n t h e r e ’s S u n I n t e r n a t i o n a l ’s C h a r l i z e a d t h a t u n d e r s t a n d s t h at e v e n t h e m o s t f a m ou s a nd celebr ated of Sout h A f r ica ns has ou r c ou nt r y i n t h e i r s ou l a n d t h at t here is no bet ter place to re con ne c t w it h t hem selve s, t h a n to come home – obv iously to Su n I nter nat ional. I n fact Charlize herself summed i t u p w h e n t a l k i n g to D e r e k Wat t s “ B u t you k n ow w h at t h e y s a y, you ca n take t he g i rl out of t he bush but you ca n never take t he bush ou t of t h e g i r l .” We a r e a c o u n t r y o f w h i t e s i n bl ack sk i n s (not “coconut s” – I h ate t h at jud g ment a l te r m) a nd black s i n w h ite s k i n s. We a r e A f r ic a n s , a l l of u s , but w it h wo nde r f u l d i f fe r e nc e s t h at we h ave le a r nt to c elebr ate a nd l au g h at . I n ou r c a s e it i s c e r t a i n l y “a r t i m i t at i n g l i f e , i m i t at i n g a r t ”.

THE ROCKSTARS

The ANNUAL 2008 — 287

THE ROCKSTARS

Marketers’ Top 10 wish list for Agencies of the Future BY mike bosman

“Greater knowledge of the digital space” tops the list of what marketers want from their advertising and marketing agencies in the next 12 months.

This is according to the Boston based global consulting group, Sapient, who have recently released the results of a survey of 200 senior marketing executives.

An astonishing 45% of the respondents have switched advertising agencies or plan to switch in the next 12 months, for one with greater digital knowledge. Based on the survey results, Sapient issued the Top Ten Wish List of Agencies as follows: 1. A greater knowledge of digital space 2. More use of ‘pull interactions’ 3. Leverage of virtual communities 4. Agency executives who use the technology they are promoting 5. Chief digital officers make agencies more appealing 6. Web 2.0 and social media savvy 7. Agencies that understand consumer behaviour 8. Demonstrates strategic thinking 9. Branding and creative abilities 10. Ability to measure success Those of us who have been around the block a few times in the advertising industry, can reflect on how times have changed! Just a few years ago, strategic thinking and creative capabilities typically topped the list in these types of polls. So we must expect digital technologies to have a major impact on our marketing and advertising community. We can already see this pressure building. Yet, as an advertising industry, we seem to either be in a state of denial about this or suffering from a severe bout of a reluctance to face up to it. Many of us who grew up in the 80’s and before that (horrors) feel that the digital world is something ‘out there’, foreign and possibly difficult to come to grips with. What I think we fail to sometimes see is the extent to which all sorts of digital technologies have set about successfully infiltrating our lives in recent years. It is fast approaching the situation where understanding what these technologies 288 — The ANNUAL 2008

can do is no longer an option. Most of us have seamlessly migrated in recent years to banking online or at an ATM, a reported 96% of the South African population uses a cell phone, most of us in business use some combination of a laptop, scanner, digital camera, the worldwide web and iPod. Together with this, all of us who drive a car built in recent years may not realise that, whether we like it or not, we are already deeply immersed in freely using digital technologies each day. Likewise, because of online and cell phone address books we have moved beyond having to remember cell phone numbers. For the average person, it is about as irrelevant as having a hard copy of the Encylopaedia Brittanica. When we use our cell phones and ATM machines none of us really care or have the slightest interest in understanding the technology, hardware or software that allows us to make the phone call, send the message or transact as the case may be. Most people don’t have the faintest concept of what is happening behind the scenes when they switch on their TV, let alone switch on a light ... and this for me makes the whole digital marketing so thrilling - there is no requirement for the user to have any understanding of the platforms and technologies that deliver digital solutions. Rather we as marketers and communicators can concentrate on what are paid to do - working out how we build our brands and how we increase sales of our product. Also most of the time, with the use of digital technology, we are able to accurately determine the return on our investment and these metrics will improve as the technologies improve. These days if you climb aboard a modern commercial aircraft, a single touch screen at the entrance of the aircraft indicates the open or closed position of each of the aircraft doors, controls the temperature of the cabin, the volume and content of the safety announcements, the lighting for the cabin and the in-flight entertainment is controlled and displayed.

With the exception of the pilots, these days almost everything on the flight deck is digital and the flight controls and engines are also all digitally controlled. It makes the life of the pilots incredibly easy compared to years gone by and provides amazing backup and safety for both pilots and passengers. The world of little round gauges and big round gauges are gone forever. The critical challenge for all of us in the advertising, marketing and communications industry is to realise that digital technologies are here to stay and to understand that these technologies will make our life in marketing much easier and more fun. If you have had an opportunity to watch eNews carefully since it was launched recently, you may have noticed that there are no cameramen operating the cameras! They are all remotely controlled – no doubt more efficiently and with many more redundancies built in than before. For companies, like ourselves, who provide digital media services to the marketing and communications industry, our major challenge is to provide you, the industry, with simple, turnkey solutions which can be 100% relied upon. These solutions have to deliver sales improvement results and other efficiencies. If they don’t, we will be out of business and rightly so. The days of wondering whether your ad was flighted and whether it had any effect on your sales numbers are past. So why is it that many mainstream agencies around the world are so reluctant to embrace this new and tremendously exciting digital direction in marketing? There is no doubt that the attraction and the opportunity of producing an incredible TV commercial is still enjoyed by most mainstream agency creatives. Digital is cool, but the creative work does not quite have the same creative profile or pull. It is also slightly disconcerting because in the digital world the technology is constantly changing, improving all the time and becoming more cost efficient - it takes a lot of time to keep up.

Agencies these days are also very hectic and busy places. There simply isn’t the time to spend exploring new things. Having said that, the days of producing, say, one ‘Back to School’ campaign for use all around South Africa are over - just as the days of producing one magazine ad, for insertion into many magazines, also disappeared several years ago. The market is simply too fragmented and diversified for those sort of campaigns to work. Digital campaigns produce creative content in layers so that different imagery, language and prices can be used in a very cost-effective manner. Content can also be changed at the push of a button and very cheaply. The idea of printing POP material for stores and retail outlets and then distributing it via distribution centres and trucks to locations all over the country is incredibly old-fashioned, inefficient and environmentally unfriendly. These days customised content can be downloaded to any environment in a few seconds. Not only can different demographics and psychographics be monitored but so too imagery can be changed in stores and shopping centres to match the day-part, the weather and/ or local activities. The idea that fast food outlets should spend millions in distributing plastic backlit menu boards once or twice a year doesn’t make any sense. This means that products and prices can only be adjusted once or twice a year. Why would marketers want to live like that if they can make changes each day, or each hour if necessary? We also should not expect our digital marketing technologies to cancel out our activities in any other communication channels. The internet didn’t make newspapers obsolete, TV didn’t wipe out magazines. Legal publishers that now sell CD’s and access to websites on law will not stop selling books. On the contrary, book sales have increased since digital offerings were launched.

THE ROCKSTARS

The ANNUAL 2008 — 289

THE ROCKSTARS

Global multinational companies & advertising in a recessionary environment By Modise Makhene

These are interesting times for both marketers and advertising agencies. After 5 years of a bull run the world over, economies across the globe are cooling off. Interestingly, the recessionary pressures are more acute in developed economies. Emerging markets are affected, but not to the same extent. The dominant marketing paradigm under such circumstances has always been to drastically cut marketing spend in order to achieve the bottom-line in the short term. The question that needs to be asked which has never been adequately answered is, what is the opportunity cost of not sustaining advertising spend in a recessionary environment and more importantly how to channel the spend in the most optimal manner which in effect takes advantage of the situation and prepares a brand or brand portfolio for traction when the economy begins to tick upwards.

A few traditional multinational companies are subverting the dominant paradigm of less advertising spend in a slow economic environment. This is a relatively new trend. The reasons could be manifold, but I want to focus on 3; f irstly, multinational brand companies by definition have a footprint that spans the globe and are the first ones to realize the effects of gloablisation. Secondly, the consumer has changed signif icantly resulting in a need for a closer engagement and new ways of communicating with them, thirdly, the fragmentation of media has spawned new media channels which are highly engaging, cheaper and measurable, thus being able to account for the return on investment at board level. Multinational companies understand the effects of globalisation. Globalisation has meant that ideas, skills, capital and the output of that, being branded products can be spawned from other markets other than the first world markets amongst other things. The BR IC countries and “Next 11”are creating t hei r ow n emerg i ng ma rket mu lt inational brands which tend to get to market quicker, are nimble and are on a high investment trajector y as they continue their pursuit of transitioning 290 — The ANNUAL 2008

from an emerging market brand to a truly multinational brand. By def inition, these are challenger brands. As they aggressively seek market share, they tend to maintain or increase their marketing spend, in a recessionary environment. Telecoms companies such as MT N, Zain, and Bharti are cases in point. The phenomenon is however not limited to this sector. As we all know, consumers will embrace these brands, firstly based on the quality of their offering and secondly, in an economic slump they will tend to be more visible as their share of voice increases relative to those brands that are spending less. That the consumer has changed is well documented. The average consumer has become more knowledgeable and discerning in the way they interact with brands. They have become cynical and are less receptive to mass marketing messages. Even brands with a strongly built heritage that has stood the test of time have found that they have to be constantly forensic in their approach. It is no longer business as usual when communicating to consumers. Messages that are encoded in integrity can become the cornerstone of a closer and honest engagement with consumers. In an economic slowdown, consumers are looking for added value. Added value does not equate only to a price-point play. Multinational brands are beginning to understand that there are other brand dimensions that come into play such as true innovation, as opposed to the gimmicky ty pe, cause related marketing and issues of a sustainable environment. Innovation plays a crucial role in delivering added value during an economic down-turn. As perverse as it may seem, a slow turn in the economy can prove to be an opportune time to leverage a new product launch when ever yone else has scaled back t heir advertising spend. The informed consumer is also forcing brands to examine

t heir attitudes towards a my r iad of social aspects of brand engagement such as environmental and socially responsible issues. It is a case of being socially responsible, is good for business. It is to be expected that when times are tough, consumers will go on a f inancial diet of some sorts and will forgo or indulge less on some brands or categories. However, it stands to reason that they will be predisposed to brands that continue to build an affinity which is underpinned by sustainable or cause related marketing programmes. The message is simple; create marketing messages that hinge on integrity partnerships. It is worth noting that whilst fragmentation of media communication channels is seen as a headache by most, it in fact can be an invaluable opportunity to a marketer during an economic slump. Firstly, media fragmentation happens because consumers are to an extent, but not altogether tired of old media and are embracing new media which is more personal. That speaks volumes to marketers as they can channel their communication to media which consumers are generally highly receptive to. Secondly, such media platforms tend to be cheaper and the costs continue to be more affordable, thirdly, it is much easier for marketers to justify maintaining their budget levels and explaining the associated “budget stretch” and ROI because this media is measurable. The message going forward is unambiguously clear; an economic slump is an opportunity to rally around the brand. The critical success factor is how to do that and successfully weather the tough times so that the brand is on the right trajectory for the future. A lot of multinationals are heeding the call. T hey are scaling back on big media spend and redirecting their resources towards marketing programmes that build on loyalty and speak truthfully to consumers.

THE ROCKSTARS

The ANNUAL 2008 — 291

THE ROCKSTARS

Fear of Failure By Muzi Kuzwayo

The chairman of TBWA, Jean-Marie Dru, once said that advertising is a nation speaking to itself in bursts of 30 seconds, but what is the conversation in South Africa right now?

Undoubtedly it is about leadership or lack thereof, which is why as a country we didn’t perform as well at Cannes as in the previous years.

The reason for our poor performance is because we have recoiled into a shell of fear. And so when the democracy circus played out in the tunnels of power, the resounding laughter of admen and women failed to echo on radio and television. The greatest obstruction has been the industry’s own intransigence to transformation, and the subsequent fear that if we laughed out loud we could be misconstrued as a whitedominated industry that has no regard for black authority. Add to that the fear of being of excluded from state tenders. This has made us lose our seat at the table of influencers of society. As an industry we did some of our best work when we challenged the conventions of South African society for the better. Somehow, that seems to have all changed and we are now keeping quiet so as to stay out of the firing line. It is the tragedy of our time that the conversation within the advertising industry has shifted from discussing creative work to profits from the quality of the work to the quantity of the services we offer. Advertising at its best is not about marketing strategies, sales plans and pushing marked-down wares, but about dreams. It is about creating a pie in the sky and motivating people into believing that they can get a piece of it. So that they can wake up early in the morning and jump into a taxi, a train or even the back of a van in order to raise their standards of living. What is wrong with a man or woman who dreams of a better education and health for their children? Dreams are at their most telling when they are outrageous. Advertising can and must tell society that in the same vein that it can dream of a better car, it can dream and get better 292— The ANNUAL 2008

leadership. Continuous dissatisfaction with the status quo is part of the package and we have every right to dream of better leadership than what we have at any given time. That is how society gets better. Scientists who study living systems tell us that you can never really direct a living system – whether it is a human being (I am sure many parents would agree to that fact) or a company. You can only disturb it. If this is true, then what is our role as advertising men and women? Granted, there is no automatic recipe for success, but the first step is to generate disequilibrium, and give power to those who will say the wrong things at the wrong place and time because they see things differently. It may well be that their poorly packaged thoughts carry an insight that will change society for the better. I am not calling for an all-out revenge of the losers who helped polish the apartheid turd, or those who resisted transformation because they have an innate disdain for democracy. To the contrary, I am calling on all patriots with their quirky sense of responsibility to shape the future of this country with the brands that they build. After all, brands can make a meaningful contribution to the culture and image of a society. For instance, what would be the German industrial culture without Mercedes Benz or BMW? I cannot picture South Africa’s Gold Rush without Standard Bank, and in the black family, a house is not a home without Vaseline Petroleum Jelly. But what are the patriots to do when they have no mandate to make political utterances? They can laugh, and allow their infectious laughter to make the whole nation laugh at itself. The last time I checked, no one needs a political mandate to laugh. But the joke will turn on the industry when the nation realises that after all these years, we’ve only spoken about transformation, and nothing has been done.

THE ROCKSTARS

The ANNUAL 2008 — 293

THE ROCKSTARS

Green. The new black? By Neil Clarence

Branding takes an interesting turn with the rise of the green issue. Is this a passing fad or can it deliver real results for your company’s image?

Customers typically associate internal marketing company Actuate with a vivid orange that’s become the hallmark of their brand. But lately, a new colour has shown its face – and has an interesting branding story to tell.

“Green is the new orange for us!” announces Grace Harding, CEO of Actuate, in typically enthusiastic style. It may well be “the new black” for all the attention it’s currently getting. What Grace is referring to is the company’s recently launched internal campaign to encourage staff to follow more environmentally friendly behaviour in seven simple steps. “We matched it with an external campaign challenging clients to do the same,” says Grace. The idea came about at one of the company’s monthly Focus Days, where the Actuate team sharpen their strategic, relationship and creative skills at hotels, bowling clubs, art galleries or even ice rinks. “We worked out our carbon footprint from a book we found called The Carbon Diet and decided it was time to make some changes,” says Neil Clarence, creative director. So, Actuate set about changing the office light bulbs to compact fluorescent lights, set all computer screen savers to switch to power-saving mode earlier, installed Mondi paper and other general recycling bins, and switched to recycled Typek paper. “We also endeavour to buy local as this means a lower carbon footprint for all products, and encourage employees to walk the short distance to the shops during lunch, instead of driving,” says Neil. To this end, a bucket of flip-flops sits at the door for those who would otherwise use the old high-heel excuse. “We’re serious about being green,” says Grace. They’re not the only ones. But is ecomarketing, as it’s come to be known, not just another fad trend? Do clients and employees really care if you’re not green and can the “green” marketing angle really make a difference to a business’ bottom line? If you’re a heavy industrial, technological or manufacturing company, it certainly 294 — The ANNUAL 2008

can. Sustainability measurement scorecards like the JSE’s Socially Responsible Investment (SRI) Index and the Global Reporting Index make reporting on environmental impact essential for any such company that takes reputation management seriously. But the issue extends further than sustainability reporting standards and the need to meet the demands of public lobby groups. “It’s about showing that you share the values that your customers and your staff live by – values of responsibility, environmental awareness and a willingness to make a difference,” says Neil. With concerns about the environment taking centre stage, more and more companies are going green – and deriving real competitive edge benefits. “The importance of making a difference is something Woolworths certainly understands,” says Neil, referring to that organisation’s standing as international Responsible Retailer of the Year in the 2008 World Retail Awards, and its win in the Mail and Guardian’s Greening the Future Award in June this year. Both of these awards are in recognition of Woolworths’ “Good Business Journey,” an ongoing strategy to “make a difference in our communities, our country and our world,” as the company describes it. “If customers feel they can trust your responsibility as an organisation, they will respond well to your brand – and ‘green’ is what’s uppermost in many people’s minds right now when it comes to businesses being responsible,” says Neil. “It also shows you’re aware of what’s going on around you, that you’re switched on, tuned in and can react quickly, creatively and proactively,” he continues. None of which can harm your brand. The same principle applies when it comes to employees. Actuate’s core business involves consulting to corporates on how to market themselves successfully to that toughest of customers – the employee. “Companies spend so much time trying to reach their employees – to connect and engage with them. They battle to have authentic conversations with employees

and this affects their ability to ‘get people on board’,” says Grace Harding. Going green is a great way to make a connection. If nothing else, it shows you’re a caring organisation that’s concerned about more than making a buck and getting your pound of flesh out your workers. “If people can feel good about the company they work for, it definitely affects their motivation, enthusiasm and overall performance,” says Neil. A sense of company pride can also spill over into environments outside the workplace, benefiting your brand as an employer. “With the advents of internet and blogs, every employee is a potential journalist. Any initiative that influences employees to tell good stories about an

organisation is an asset,” adds Grace. But she and Neil offer a word of caution. ‘Greening’ is not a bandwagon you can hop on and off of. If you’re going to do it, do it authentically, with conviction, or not at all. “There’s nothing more potentially harmful to a company’s brand than to lie. Employees and customers alike have a fine-tuned ability to pick up on inauthenticity – and it makes them run a mile,” says Grace. While Actuate’s business does not, by its nature, have a high carbon footprint, the company has taken the issue of greening itself seriously, backing up external talk with internal action. “Our next step is to buy a hybrid car for the company,” concludes Neil.

15671 SAPPI adS UD R 13/10/08 13:40 Page 4 C

M

Y

CM

MY

CY CMY

K

THE ROCKSTARS

Brand thinking in a recession By Neil van der Weele

No brand, regardless of its size or its strengths, should regard itself as immune from what is currently shaping up to be a global economic downturn.

As more and more South African consumer s are forced to mind their rands and sense in cash-s t rapped and uncer tain t ime s, taking s teps to re ce s sion proof your brand – or at the very leas t, make yourself aware of the critical challenges facing brands during a recession – is a wise precaution. In fact, clever marketing dur in g re ce s sio n ar y t ime s can b e t he catalys t for a bet ter per formance once the inevitable ups wing begins .

Chang ing behaviour One of t he major realisat ions br a nd ow ne r s mu st come to te r m s w it h dur ing a recession is t hat c on su me r s b e h ave d i f fe r e nt ly a nd m a k e d e c i s i o n s i n a n e w w a y. I n general, when t he economy is on t he up, con su mer s tend to be more ex per imental and reck less. But, when t i me s a r e h a rd , con su me r s b e h ave mor e r at ion a l ly a nd a r e w i l l i n g to post pone pu rch ase s, t r ade dow n or buy le ss, spend le ss on lav ish goods a nd ser v ice s t h at d isplay i ncome or we a lt h, a nd f avou r mu lt i - pu r p o s e g o o d s o v e r s p e c i a l i s e d p r o du c t s . Con su me r s a r e mor e a n x iou s , r i sk aver se a nd conser vat ive, but a re a lso more br a nd loya l. Howe ve r, t he s e g e ne r ic t r e nd s “to t r ade dow n” a nd “rema i n br a nd loy a l” ap pl y d i f fe r e nt l y to d i f fe r ent i ncome a nd soc i a l g r oups, a nd a l s o ac r o s s c ate g or ie s . For e x a m ple, du r i n g boom t i me s, a n upper i ncome shopper buys t he best of ever y t h i ng i nclud i ng bra nded ba ked bea ns whereas a lower -i ncome shop per buy s a cheaper br a nd of bea n s. I n a r e c e s s io n , t he u p p e r - i nc o me shopper may t rade - dow n to no -na me br a nd c a n ne d b e a n s to e n su r e s he c a n st i l l a f ford to buy K a r oo la mb but – because t he lower income shop -

296 — The ANNUAL 2008

per ca n no longer a f ford meat, even c a n ne d me at – b e a n s b e c o me t he ma i n sou rce of protei n for t he fa mi ly a nd it is l i kely t h at s he’l l prefer to buy t he be st be a n s s he c a n, a nd p o s si bly w i l l t r ade up to t he mor e ex pen sive. So, c a n ne d me at , a s a c ate g or y m ay lo s e , w h i le ba k e d b e a n s , a s a categor y, benef its. O t her categor ies t h at h i stor ic a l ly t h r i ve i n a r e c e s s i o n a r e ho m e f u r n i s h i n g s , ho m e enter tai n ment a nd related categor ies ( b e c au s e c o n s u me r s a r e n’t a f for d to buy a new hou se, t he y i nve st i n t hei r ex ist i n g home s). A lso, i n u n cer tai n t imes, people tend to nu r t u re per son a l bonds, so com mu n ic at ion ser v ices a nd g reet i ng ca rd sa les stay buoyant and of course, in good or bad t i me s, a lcohol w i l l a lway s cont i nue to benef it. Implications for market e rs T h is cha nge i n consu mer behaviou r h as t wo m ajor i mpl ic at ion s for ma rketer s. Fi r st ly, t r u ste d br a nd s a r e v a l ued bec au se con su mer s k now wh at t h e y ’r e g e t t i n g , bu t a f f o r d a b i l i t y doe s become a key d r iver. S e c o nd l y, m a r k e te r s a nd t he i r m a rket i n g pa r t ne r s ne e d to i nve st mor e i n g et t i n g to k now how t hei r consu mer s a re redef i n i ng va lue. By talk i ng to t heir customer s to f i nd out how t he dow nt u r n is a f fec t i ng t hei r lives a nd t hei r produc t choices, t hey w i l l ac q u i r e v a lu able i n for m at io n about how t he br a nd s hou ld reac t. T h is “reac t ion” ca n come i n one or m a ny for m s, i nclud i n g: - Focusi ng on fa mily values because, as h a rd t i me s approac h, con su mer s ret reat to f a m i l ia r place s. - Work ing hard to maintain t he brand

essence but adjust i ng t he message to stay relevant to a chang ing consumer. For e x a mple, po sit ion i n g a lu x u r y ca r as t he most st yl ish du r i ng boom t i me s i s f i ne, but t a l k i n g about it s h ig h resa le va lue du r i ng a recession w i ll at t rac t t hose consu mer s look i ng for du r abi l it y a nd va lue. - Adju st i n g t he pack a g i n g for m at s so t h at con su mer s loya l to a prem iu m br a nd c a n eit her buy la r ger but more econom ic a l pack s, or sm a l ler c heaper pack s. -Reminding consumers why t he brand is wor t h t he pr ice by foc usi ng on its f u nc t ion a l adva nt age s. - T h i n k i ng t w ice before lau nch i ng a new produc t u n le ss it add re sse s t he new con su mer rea l it y. A l l t h i s i mpl ie s t h at m a rke te r s keep spend i ng on t hei r br a nds … at a t i me when most f i na ncial d i rector s a nd hold i ng boa rds w i l l be i nsist i ng t hey c ut back . - C or e i n s i g ht … b o o st m a rke t i n g spend i n a rece ssion T he c or e i n s i g ht i s t h at now i s t he t i me to i nve st b e c au s e m a rke t sha re is cheaper i n a rece ssion. T he reason for t h is is t h at h ig her s h a re of voice (SOV ) c a n be ac h ie ve d by t he bra nd t hat adver t ises as its compet itor s sc a le back t hei r m a rket i n g spend, a nd s h a re of m a rket (SOM) is related to SOV. Proctor & Gamble CEO AG L af ley su m med it up: “ We h ave a ph i loso phy a nd a st r ateg y. W hen t i me s a re tou g h, you bu i ld s h a re.” T hen, t he P rof it I mpac t of M a r ket i n g St r ateg ie s ( PI M S ) d at aba se, p r e s e nt e d at t h e M a r c h 2 0 0 8 I PA con fe r ence, s howe d t h at compa n ie s t hat i nvested du r i ng a recession ac h ie ve d a s i g n i f ic a nt l y h i g he r r e t u r n on capit a l employed a nd g a i ned

u p t o a n a d d i t i o n a l 13% m a r k e t s h a r e a f te r t he h a rd t i me s h ad end e d . C ompa n ie s t h at c ut m a r k e t i n g spend enjoye d supe r ior ROI du r i n g t he r e ce s sion, but ac h ie ve d i n fe r ior r e su lt s a f te r it e nde d . T he i mpl icat ions of t h is for va r i ou s br a nd s a r e: - Sm a l l or n ic he br a nd s s hou ld fo cus on t hei r core bra nd of fer i ng r at her t h a n spread i n g t hei r ex ist i n g r e s ou r c e s to o t h i n l y. - L a rger bra nds ca n cont i nue to i n nov at e , e s p e c i a l l y i n r e c e s s i o n f r ie nd ly a r e a s. - We a k e r b r a n d s s h o u l d f o c u s o n pr ote c t i n g e x i st i n g s h a r e by fo c u s i n g on t hei r most loya l a nd va lu able c on s u me r s. - I f you mu st c ut e x pen se s, t hen c ut w isely a nd substit ute w it h more c o s t- e f fe c t i ve c h a n ne l s , l i k e r ad io or i n - s tor e , or t r i m you r T V s p ot s f r om 6 0 s e c ond s to 3 0 s e c ond s. - I f r e s ou r c e s a r e ve r y t i g ht , t he n now i s t he t i me to concent r ate you r marketi ng muscle behi nd t hose br a nd s t h at a r e mo st l i kely to su r v ive a nd leave t he ot her s to si n k or s w i m . I n conclusion, recessions are f u ll of oppor t u n it ies. W h ile t hey p r u ne t he e c o no my, t he y c a n a l s o b e a s ou r c e of g r e at i n nov at io n a s org a n isat ions re -t h i n k t hemselves to f i nd bet ter ef f ic ienc ie s. T her e is no “one solut ion” a nd br a nds w i l l most l i kely need a hea lt hy m a rket i n g m i x to we at he r t he r e c e s s ion wel l. U l t i m a t e l y, w h i l e i t m a y b e a c h a l len g i n g yea r for u s a l l, we mu st h ave cou r a g e a nd v i sion a nd t h i n k long-ter m. By look i ng for t he oppor t u n it ie s , t he he a lt h of ou r cl ie nt s’ br a nds i n t he f ut u re w i l l depend on t he st r ate g ie s we put i n pl ac e now.

THE ROCKSTARS

The ANNUAL 2008 — 297

THE ROCKSTARS

New World Order By Nina Morris

Great creative concepts are one thing, squeezing them into a budget under half a million for a 30-second TV ad is another!

Long gone are t he d ays when Agencie s w e re g i v e n l a rg e b u d g e t s to p ro d u ce o n e T V C . T h i n k b a c k t o 19 8 8 , t o t h e Co nt i n e nta l Ty re s ‘ro of to p’ a d . It co s t R300k to produce. Today that very same ad would cos t R3m . How ab out anot her i co n i c S o u t h Af r i ca n co m m e rc i a l , t h e J & B ‘ b u t t e r f l y ’, i t c o s t R 35 0 k i n 19 91 a n d t o d a y t h a t w o u l d co s t t h e c l i e n t R4 m . H o w m a n y cl i e nt s a re s p e n d i n g t h a t k i n d of m o n e y to d a y?

T he world has cha nged. T he g lo b a l e c o no m y i s u n d e r p r e s s u r e (to say t he least!); as a re su lt people a nd busi ness a re more foc ussed t ha n ever, on per for m a nce a nd ret u r n on i nve s t me nt . T he g r e at 6 0 - s e c ond br a nd ad s t h at we love to m a k e a r e fe w a nd f a r b e t we e n . T he y pl ay a lon g te r m g a me of con ne c t i n g emo t ion a l ly w it h t he con su me r t he r eby bu i ld i n g t he br a nd ove r t i me. We don’t have t i me. We need ac t ion a nd we need it now. I nst a nt g r at i f icat ion i s t he m a nt r a of t he mome nt . T h i s is not a Sout h A f r ica n phenomenon, it’s a g loba l one. Ever y where cl ients w a nt to b e o n T V, a s it s t i l l i s t he h i g h e s t r e a c h m e d i u m p l u s i f i t ’s a m e a s u r a bl e m e s s a g e l i k e a o n c e of f p r omot ion a l T V ad , t he r e s u lt s c a n b e s e e n a l m o s t i m m e d i a t e l y. T he aver age len g t h of a T VC is st i l l 3 0 s e c ond s. Howe ve r, c ut dow n to 15 s e c ond s a nd 2 0 s e c ond s ad s a r e slowly but su rely becom i ng t he nor m a nd alt houg h dig ital a nd mobile med ia a re g row i n g f ast , for t he nex t few ye a r s at le a st , it ’s st i l l a l l about T V. S o now you h ave s ay, 3 0 s e c ond s to con ne c t w it h t he con su me r 298 — The ANNUAL 2008

t h roug h a bit of stor y telli ng a nd t hen i n w it h you r produc t a nd pr ice w h e r e n e c e s s a r y. Yo u r b u d g e t i s R 50 0k , t h at doe s n’t even pay for a n ave r a g e o ne d ay s ho ot ! You r c l ie nt wa nts t he best product ion values (t hat mea ns shoot i ng on 35m m), t he b e s t p e r f o r m a nc e s a n d a b r i l l i a nt c o n c e p t to h a n g i t a l l o n . N o t a n e a s y t a s k . T h i s i s w he n you r e a l l y h ave to g e t c r e at i ve. T he challenge is get t i ng t he client to u nder st a nd what ca n a nd ca n’t be done w it h R 50 0k . Eve r yone wa nt s t he Fe r r a r i but c a n on l y a f for d t he c he ap C h i ne s e i mp or t . Eve nt u a l ly t he y t r y to s t r i p t he Fe r r a r i dow n to such a deg ree t hat it on ly has t he Fe r r a r i b o d y a nd t he I mp or t ’s e n g i ne ! W h at a me s s . T he c o s t of f i l m i ng has gone up, but t he budgets h ave r e m a i ne d t he s a me i f not le s s a nd t he s c r i pt s a r e not g e t t i n g a ny si mple r. T he b ot tom l i ne i s t h at we a re ex pe c te d to produce qu a l it y ad s for le s s a nd le s s . M a ny c l ie nt s a r e ig nora nt of costs a nd la nd up c ut t i ng c o s t s i n a l l t he w r o n g pl a c e s , l i k e not w a nt i n g to pay for a r t i st ’s fe e s , voic e fe e s a nd mu s ic . I f t he a d i s goi ng to c ut t h roug h, t he se a re v it a l i n g r e d ie nt s to a s uc c e s s f u l ad . We a l l k now t hat costs i nc rease bet ween 11% a nd 15% a n nua l ly, however jus t i f y i n g t h i s i s e nou g h to g i ve e ve n t he tou g he st producer a n u lcer. T V h a s a lw ay s b e e n e x p e n si ve not on ly to pr o duc e but to f l i g ht a s wel l. S o it ’s no wo nde r t h at t ho s e f abu lou s 6 0 se cond ad s a r e a l mo st e x t i nc t a s t he c o st of f l i g ht i n g it ju st onc e on G e ne r at ion s c o s t s R 2 0 0 k !

T hen of cou r se we have t h is prob lem of get t i ng t he creat ive tea m to w r ite to t he budget. So of ten c l ie nt s a r e p r e s e nte d w it h a s c r i pt t h at look s g re at on paper but by t he t i me you’ve c o s te d it out , it ’s w a y out of t he ba l l pa rk . To o m a ny c a st me m b e r s , to o m a ny lo c at io n s , to o much of ever y t h i ng. So t hat’s eit her back to t he d r aw i n g boa rd or t r y i n g to conv i nce t he cl ient to spend more m o n e y. N o t i d e a l . R e a l l y c l e v e r c re at ive s k now t he cost of put t i n g a produc t ion toget her a nd u nder st a nd t h at it ’s not j u s t a b out c o m i n g u p w it h a g reat idea but ma k i ng it work w it h i n a l i m ite d bud g et. O f cou r se t h i s i s r e st r ic t i ve , but t he y ne e d to le a r n how to c ome up w it h s i mple , good ideas t hat not on ly bu i ld br a nd but s el l s t u f f to o. A ll we have to do is to adjust ou r ex pectat ions. A gencies have to get t heir heads arou nd t he fact t hat less is more; clients in t ur n need to understand what t heir money ca n buy t hem. So ca n we m a k e a h i g h i m p a c t , g o o d q u a l i t y, ef fective T V ads for R 500k? Only just. A ny t hing under R 500k w ill compromise on product ion values a nd overall i mpact, but i f we box clever w it h a cut t h roug h concept t he ad w ill be memorable and de l i v e r r e s u l t s . We h a v e t o s t a r t b y educat i ng ou r people a nd clients t o ‘ t h e n e w w o r l d o r d e r ’. I t ’s n o t about t he biggest, most spectacul a r a d s a n y m o r e ; i t ’s a b o u t c l e v e r ideas commu nicated in a simple way s t h at don’t comprom ise on t he f u ndamentals.

THE ROCKSTARS

The ANNUAL 2008 —299

THE ROCKSTARS

Putting the ad(D) agency back where it should be! By PAUL MIDDLETON

What the advertising industry needs is to get back to basics and go back to the tried and tested way of doing things in an ethical way and with a healthy dose of integrity.

A regrouping of the adver tising community and the way that we do things is imminent if we are to maintain a stake as an integral par t of a healthy business strategy and star t working fo r cl i e nt s ra t h e r t h a n a g a i n s t t h e m . I t i s n ot o n l y f ra g m e nta t i o n w i t h i n a g e n ci e s t h a t i s ca u s i n g t h i s d i v i s i o n , b u t a total lack of communication between divisions within the industry that has l e d to n o b o d y k n o w in g , o r ca r in g , w h a t is going on unless it relates directly to them.

Research conducted by the I ndependent A genc y Search a nd S e l e c t i o n C o m p a n y ( I A S ), s h o w s t h a t a p p r ox i m a t e l y 5 0% o f c l i e n t s p e r c e i v e a d e c l i n e i n o u t p u t to b e a major factor i n t he breakdow n of c l i e nt- a g e nc y r e l at i o n s h i p s , f ol lowed closely by t he t i m i ng issue and meeting deadlines. A major factor cont r ibut i ng to t h is is t he d e c l i n e o f t h e f u l l - s e r v i c e a g e n c y. T he i ndu st r y, a s a whole, h a s slowly lo s t s i g ht of t he f u l l - s e r v ic e a g e nc y a n d h a s c o n s e q u e nt l y lo s t v a lu a ble g rou nd, a nd face, w it h clients. T h i s c u r r e nt f r a g me nt at io n a nd t he mov ing away f rom t he f ullser v ice agenc y is u ndoubted ly a v it a l f a c to r i n c o m b at i n g i s s u e s r e l at i n g to t i me a nd de ad l i ne s. H av i n g e ac h discipli ne w it h its ow n st r uct u re, of f ice space a nd even cu lt u re ca n add massive time delays and can have a negat ive i mpact on out put. Bei ng u nder one roof, operat i ng as one cohesive unit and hav ing t he r ig ht ma nagement d r iv i ng for v a lu e c o n s i s t e nt l y, r e le nt le s s l y a nd c o n t i nu a l l y p l u s a c r a z e d s e n s e o f u r g enc y t h at compels ac t ion en su r e s t hat deliver y is on t i me a nd a head 300 — The ANNUAL 2008

of ex pectat ions for t he client. C o - or d i n at io n b e t we e n s t r ate g y ( b r a n d , m e d i a & c r e a t i v e), m e d i a p l a n n i n g , b u y i n g , c r e a t i v e , D T P, t raf f ic, product ion, client ser vice a nd ad mi nist rat ion creates a sea m less cha n nel of com mu n icat ion t h roug hout a n agenc y t hat is invaluable. A team t hat can get toget her for a meet i ng i n a matter of m i nutes lends a n edge a nd promotes t he same v ision, even t houg h ever yone may not always be i n ag reement, deadli nes must b e a d h e r e d t o. E mploy i n g l i ke - m i nde d st a f f a nd hav i ng staid core values is cr it ical to hav i ng a team t hat ca n work to g e t h e r i n p e r f e c t h a r m o n y w h i l e sea m lessly i nteg rat i ng t hemselves i nto t he m a n a g e me nt te a m s of t he i r clients should needs be. Get t i ng i n s ide t he c l ie nt s’ he ad s a nd le a r n i ng how to sat isf y t heir needs is essential for deliver i ng t he best value a nd t h is is what u lt i mately w i l l s e t t he m apa r t f r om ot he r r u n ners in t he f ield. A long w it h t his sy nerg y comes t he net ef fect of reduci ng agenc y ove r he a d s a n d s a v i n g o n de l i ve r i e s a nd f i xed costs like sw itchboa rds, copier s, net work s, I T i n f rast r uc t u r e a nd ad m i n i st r at ion . T he l i st i s e n d l e s s , t h e b e n e f i t s hu g e a n d t h e compet it ive adv a nt a g e a no - br a i ne r. T his is what sets agencies apar t f r o m t h e h e r d , a t i g h t- k n i t , s e a m less a nd consistent approach t hat meets a nd exceeds ex pectat ions held by clients ever y t i me. To g a i n a comp e t it i ve adv a nt a g e do e s not a lw ay s r e s t o n a n a g e nc y ’s creative lau rels, a nd it is a well k now n fact t hat creat iv it y equals

t i me. About 80% of meet i ng t he c l i e n t ’s e x p e c t a t i o n s i s t o d e l i v e r a nd, when consider i ng t he pict u re hol ist ic a l ly, we of ten se e t he ne e d to s e t p a r a m e t e r s to c l i e nt s’ e x p e c t a t io n s of c r e at i v it y i n o r de r to m a k e t he de ad l i ne. It i s e a s y for u s to g e t lost i n t he t h r oe s of awa rd -w i n n i n g , e g o - s t r ok i n g a d ve r t s t h at r a i s e ou r prof iles a nd make us feel good – b u t do t h e s e n e c e s s a r i l y m e a n f e e t t h r ou g h t h e d o o r a n d r i n g i n g t i l l s for t he client? We n e e d t o r e g r o u p a n d l i n k tog e t he r for a st r on g e r i ndu st r y, not one t hat f loats all boats when t he tide is hig h but leaves t he smaller c ompa n ie s st r a nde d w it h t he d r y i n g kelp when t h i ng s take a dow nwa rd t u r n. T h is is t he ver y reason t hat I i nvolve myself heav ily on i ndust r y boards such as t he Adver tising M e d i a Fo r u m (A M F ); A s s o c i a t i o n for Com mu n icat ion a nd Adver t isi n g (AC A); t h e S o u t h A f r i c a n R e s e a r c h F o u n d a t i o n ( S A A R F ); t h e R adio Adver t isi ng Bu reau ( R A B) a nd t he Marketi ng Association of S o u t h A f r i c a ( M A S A). A s w i t h t h e f rag mentation i n t he adver tisi ng agenc y itself, we see t he ver y same t hing happening wit h t he division and lack of commu nication bet ween t he adver t iser s, ma rketer s, broadcaster s, com mu n icator s and so on. T he a n s we r i s s i mple: by m a k i n g a dif ference, however small a nd get t i ng t he i ndust r y bodies to talk a nd work toget her of fer s pa r t of a solut ion. H av i n g me d i a a nd c r e at i ve agencies toget her is key for clients and w ill improve out put, create h a p p i e r c l i e n t s a n d , u l t i m a t e l y, a bet ter i ndust r y for all.

THE ROCKSTARS

The ANNUAL 2008 — 301

THE ROCKSTARS

...from a jetlagged creative’s POV By Ronald Wohlman

In the ’80s and ’90s, the biggest thing in the ad biz was the 30-second TV commercial. Today, the 30-second commercial is literally the last thing anyone wants to talk about. It’s possibly the only dirty word left in the business. To mention it is to declare your age: 40+. Today the buzz word in advertising is global. And I expect it will be this way for a long, long time.

I blame the internet of course. I blame O b a m a G i r l . I b l a m e t h a t fo o l i s h k i d i n Io w a b l a b b e r i n g o n a b o u t B r i t n e y Spears. I blame every person broadcasting themselves. I blame every blogger. Eve r y w e b s i te. Eve r y s e l l e r o n e b a y . Why? Because they all went global at the push of a download but ton. And if they can do it, then why the hell can’ t your trus ted brand of tampon? Which brings me to my life.

My wonder f u l cl ient s a nd t hei r f abu lou s pr o duc t s a l l w a nt g loba l fa me. A nd t hey deser ve it too. A nd I’m t a l k i ng t he k i nd of g loba l fa me a nd recog nition t he Jolie -Pit ts enjoy. For c reat ives, where we once had to w a it for Supe r b owl Su nd ay or t he Osca r s to get worldw ide aud iences, we now have t he oppor t u n it y to play to g lobal audiences of millions ever y si ng le day of t he week . So t h is is as excit i ng a nd dema nd i ng a nd ex h i larati ng as ou r busi ness gets. But wait, before we get too exc ited, let’s t a ke it step by exc r uc iat i ng step. I n prev ious yea r s, c reat ives may have spent weeks whining about t heir lack of u nder st a nd i n g of t he br ief. B oy we r e t ho s e d a y s e a s y. To d a y we h ave whole cou nt r ie s to wh i ne about. Cu lt u ra l d i f ferences keep me awa ke at n i g ht. Women appe a r i n g i n adve r t i s i n g i n t he M idd le E a st must have t hei r heads covered. Un ma r r ied couples i n C h i na ca n’t k iss or touc h . C h i ld r e n i n It a ly a r e n’t a l lowe d to b e i n c om me r c i a l s for produc ts t hey don’t per sona l ly use, a nd i f t hey a re, t hen a n adu lt must be over seei ng t hem. T he Br its love 302 — The ANNUAL 2008

i r o ny. T he A me r ic a n s love b r o ad hu mou r. T he Swe de s l i ke it d a rk . A nd on a nd on a nd on it goes. A nd I haven’t even sta r ted on I nd ia where t here a re 30 0+ c u lt u r a l d i f ferences on one cont i nent. Believe me when I tell you, global adver tising is going to k i ll more c reat ives t ha n la rger logos or leg a l wa r n i ng s ever d id. B ut b e fo r e you r u lc e r s b e g i n s to bleed, I recom mend tea m i n g up w it h a ver y smar t global pla n ner. It’s clear t hat we w ill see t he st reng t heni ng role a nd i n f luence of t he g loba l pla n ner i n t he agenc y of t he f ut u re. He or s he w i l l b e come t he cl ient ’s a nd t he c reat ive’s tou r g u ide. A nd s o, a s we move i nto t he f ut u r e , I see pa r t ner sh ips bet ween c reat ive s a nd pla n ner s becom i ng t he new “a r t d i rec tor/copy w r iter ” relat ionsh ip of adver t isi ng past. I a l s o s e e t h e r ole of t h e c o n su mer cha ng i ng more rad ica lly t ha n we’ve e ve r k now n . A g a i n, t h a n k s to t he i nte r ne t , A K A t he wo r ld’s la r ge st “spea ker ’s cor ner ”, we now s e e t he e me r g e nc e of mor e vo c a l, more dema nd i ng, more challeng i ng, sav v y consu mer s. Folk s who ca n see t h rou g h you r bu l ls h it at t he speed of a double cl ick . T he se m i l l ion s of super - c r it ica l deckcha i r pu nd it s w i l l eit her applaud you r adver t isi ng or l itera l ly sh red it to bits. E xc it i ng t i mes i ndeed. But wa it t here’s more. Just when you t h i n k t he c h a l len g e s c a n’t g et a ny tou g he r, it occ u r s to you t h at not ever y br a nd “goi ng g loba l” has t he spend i n g power of a n Apple or a M ic rosof t or t he A i rl i nes a nd t he

ba n k s. Some ca n st i l l ba rely a f ford t he 30 - second T V ad. Did someone say v iral? Yea h “v ir a l” has become t he euphem ism for “ ha nd-held cheapie, shot i n t he off ice, bit- of-f unny, loaded on YouTube or spread v ia ema i l, popu la rly used to conc e a l a l ack of r e a l adve r t i s i ng dol la r s”. T he good news is v i ra l adver t isi ng is a whole new br i l l ia nt world of c r e at iv it y ju st w a it i n g to ex plode. But for ever y problem t here a re cou nt less c reat ive solut ions. A nd yes, wh ile i n ma ny cases o ne s olut io n m a y b e a s s i mple a s put t i n g t he c reat ive s on a pla ne to some cou nt r y where t he c u r renc y is wor t h shit, to shoot t he same ad seven t i mes usi ng d i f ferent cast member s, of course wit h no on- camera dialog ue and bear ing in mind t hat music t hat’s h ip i n Fr a nce cou ld be too sug ge s t ive, even si n f u l i n Kuwa it. (Oh, a nd please ma ke su re some PA is ha ng i ng a rou nd t he set shooti ng t he “beh i nd-t he - scenes” of you r margar ine commercial, on his camera phone, because CON T E N T is st i l l K I NG.) T here are countless solutions, and f i nd i ng t hem is ex ac t ly what ma kes t he f ut u re of adver t isi ng more c reat ive t ha n it’s ever been. Howe v e r, w h i l e e v e r y t h i n g i n adve r t i s i n g s e e m s to b e c h a n g i n g second by second, one t hi ng remai ns a const a nt. Not u n l i ke her pe s, I’m talk ing about consumer testing. T he f inal hurdle in t he race to global fame a nd for t u ne. Unlike i n t he simple days of local

adve r t i si n g , whe r e you r c a mpa i g n was te sted i n New Jer sey, a nd per h ap s C h ic a g o, it i s now te s te d i n Hong Kong a nd Helsi n k i. Mu mba i to M ia m i. Ha mbu rg to Holla nd. (At t his stage I recommend ref illing your presc r ipt ions for a nt i-a n x iet y med icat ions.) W hat, t he tag li ne doesn’t t r a n slate??? Hu h, wh at , even “ ju st do it” is obscene i n some la ng uages? (Oh a nd bet ween u s, t he G er m a n s hate met aphor s.) S o m a y b e t he f ut u r e of g lob a l adver t isi ng is si lence. No music. No d i a log ue. No t a g l i ne s. M ay b e it ’s sil houet ted f ig u res da nci ng to music by U2 or COL DPL AY, w it h just your product v isible (and in use), and t hen j u s t t he n a me of you r p r o duc t o r compa ny logo comes up. Oh no wait, A PPL E a l ready d id t hat. Br i l l ia nt. Ok ay, how about a gor i l la play i ng a Phil Collins song on dr ums? Gor illas aren’t sacred a nimals i n I ndia, it ca n work . Oh no, done. Bou nc i ng ba l ls i n a nondesc r ipt c it y? Done. I n my o pi n io n , a l l of t h i s j u s t makes adver tising r ig ht now t he most t h r i lli ng ca reer to be i n it. Fa r more e xc it i n g t h a n it e ve r wa s. T he old school t hree-mar tini lunch, cigarettes a nd adu lter y, li nes of coke a nd h issy f its, have not hi ng on t he 360 deg ree, mu lt i- cha n nel g loba l adver t isi ng of to d ay a nd tomor r ow. T he pl ay i n g f ie ld now i s w ide , w ide op e n a nd completely m i nd- blow i ng. A nd to t h i n k, I never even got to mention t he joys of f ly ing to all t hese dest i nat ions. T hat’s a whole ot her stor y. Pa r t ic u la rly, when, l i ke me, you look l i ke a Musl i m r abbi.

THE ROCKSTARS

The ANNUAL 2008 — 303

THE ROCKSTARS

Why marketers don’t trust agencies By steve miller

Marketers don’t trust agencies

It’s not that they don’t need them, nor is it about not liking them. The fact is, the more experienced marketers just don’t trust all agencies some of the time and some of them all of the time.

Strategic irrelevance There are a multitude of reasons, but the most fundamental may be that marketing and advertising diverged a decade or so ago as marketing matured as a commercial discipline. Most agencies just never caught up, never got their head around the fact that marketing was so much more about business and so much less about communication than it had been heretofore. They woke up late to the fact that design, availability and pricing mattered so much more in the mix, that many consumers are disintermediated by both the trade and shoppers. They didn’t seem to comprehend the strong wind of commercial sense behind the most basic of marketing decisions. To this day many still evidence a lack of understanding of advertising’s reduced role in the mix. With this lack of understanding came a gradual but inevitable slide in the strategic pecking order. Where agency CEOs had sat at the boardroom table and had influenced business and marketing thought, they found themselves consorting largely with marketing directors until they slipped further into the clutches of marketing and brand managers. And here the merry dance of consulting, ego and posturing began, a dance that continues to this day among some, fuelling the common perception that communication agencies may be the last bastion of the “tits and balloons” approach to service and selling. And in today’s markets, that’s just not going to cut it and adds further to levels of mistrust as marketing directors have their ears tweaked by their fellow board members and even their non-execs, who derisively point to the latest agency folly, either in the creative work or the people or their processes. Financial impropriety The second reason many marketers mistrust 304 — The ANNUAL 2008

agencies is that they are engaging in a flawed business model. Most agencies these days appear to charge their clients for staying busy. Monthly retainers are arrived at by charging portions of agency peoples’ time. Ergo, the more people you can stuff into a client, the more functions can “touch the work” and the busier you can keep them, the more profitable the account becomes. Somehow the quality of the output is less important than the process of getting there. Revert after revert will occur with no-one stopping to question the folly of the process or the brief. Work equals money and the more they keep busy the more time they can reconcile to the account and bill. And yet most client organisations reward the quality of the output and not the effort of their staff. Clever, efficient and effective outputs trump long hours, fruitless toil and misallocation or abuse of resource. This mismatch has not gone unnoticed amongst savvy clients. Even when all eyes are on the creative end product, it seems to be for the quality of its art and craft, not its commercial or brand impact. Creativity is celebrated over business improvement, Cannes features as an award target not as a holiday destination in which to spend well-earned annual bonuses. And finally, some of the commercial agreements some agencies are said to have entered into with certain of their clients makes Jacob Zuma appear a neonate in the game of back-scratching. While the stories may be more colourful than the substance and envy and competitiveness may be at the heart of the snide remarks, the prevalence of the stories and the level of acerbity that accompanies their re-telling hardly foster trust in the industry amongst less brazenly self-serving clients. Unseemly practices Even the process of getting and keeping business in the agency world is somewhat tawdry and hardly likely to engender respect or trust. Pitching and poaching seem to be the order of the day. Pitching competition rises to levels of

tastlessness rivaling street-side prostitution, as agencies primp and preen to attract attention and business. networks are pumped, rich promises are made, pitch teams appear and are never seen again, briefs to keep the presentations to credentials or strategic approaches are ignored as agencies cat fight, sometimes over meager pickings. Yes, clients’ egos foster this activity and some of the pitches, particularly from state institutions and desired brands, seem designed less to find a great agency for their brands and more to show off and even to generate alternative revenue. Yet a simple agreement by major agency heads might stop this indecorous custom dead in its tracks. But they seemingly can’t or won’t lest another agency break ranks and steals an advantage. How do you trust that kind of mindset as a marketer?! And remember, this is at the wooing stage of the relationship – what do you then expect in the screwing stage? The final straw is when ex-agency personnel are appointed to senior marketing roles, now largely apparently as a result of some BEE imperative. Their erstwhile colleagues’ unseemly haste to ingratiate themselves and replace the existing competition only makes seasoned marketers shake their heads in wonderment. Stories of continuing financial interests being shared only serve to further sully the name of agencies and clients alike, a situation unlikely to breed trust and respect among those looking on. Finding common ground There is no doubt that agencies mistrust many of their clients, too. Justly so. A litany of broken promises and bullshit budgets, poorly skilled and over-promoted clients, parsimonious fees that serve to starve rather than sustain agencies, bad briefing, even poorer creative judgment and sickening corporate politics don’t make for the most attractive partners, do they? And yet the relationship between marketer and agency is largely symbiotic. We need each other to create great work and we need to like and trust each other to do it. We have much work to do together.

THE ROCKSTARS

The ANNUAL 2008 — 305

THE ROCKSTARS

Economic slowdown forces change in marketing mix By terry behan

The year 2008 has been a watershed for many brands in emerging markets and South Africa in particular.

The subprime lending crisis in the United Sates, domestic political upheaval in the aftermath of Polokwane peppered with a dash of drama on the infrastructure front, that is Eskom, and an unclear future on where interest rates will settle, if at all, has left the local economy looking a tad ragged, a bit like Britney Spears after a trip to the hairdresser.

Coupled with this is that South Africa has enjoyed the best part of a decade of relatively uninterrupted economic growth going from zero in the mid nineties to hero by 2006. Our economy, and more importantly for marketers, economic sentiment for the past 18 months has been shrinking faster than the polar ice caps. The booming market conditions that have contributed to the positive creation and growth of many of South Africa’s best loved brands over the past 10 years have fundamentally shifted. Brands now have to contend with tougher market conditions. Trading conditions resemble mature markets in developed economies where smaller margins, slower growth and a more savvy consumer prevail. This shift has hit many emerging markets faster than a Jamaican sprinter creating confusion and leaving business owners and marketers uncertain what to do next. But regrettably, this is where the humour stops. Brands and the marketing teams who manage them have responded to this environmental shift in varied manners, but this response can by and large be quantified by reaction as opposed to action. This reaction has manifested itself in the belief that the consumer continues to be driven by brand recall and recognition and thus the reactive response has been to maintain and in some cases increase the proliferation of the above-the-line communication into an already over-communicated, overstimulated and an increasingly harried consumer, who has moved from fickle to focused in an remarkably short space of time in the way they consume and 306 — The ANNUAL 2008

associate with brands. This approach may have been relevant and appropriate when market categories were expanding, growing and in many cases forming in developing economy era, circa; South Africa 1996 – 2006, where consumers were introduced to genuinely new product categories, had reasonable amounts of disposal income and ridden the wave of positive growth and sentiment. How the consumer prefers to absorb media and be communicated to during times of economic hardship are different to the prevailing conditions of the last decade. Understanding consumer behaviour, and more importantly, trends in consumer behavior can be utilised as a competitive advantage and a great way to stay ahead of the game, especially in an emotionally driven market like South Africa where consumer sentiment shifts rapidly. It’s essential that brands are able to not only keep abreast of consumer trends but also to anticipate and retool their organisations accordingly. There are, however, some impediments to this required clarity of thinking. Top of the list is the misplaced belief that brands succeed because the product offering is in some way unique. In mature market categories such as cellular telephony, banking, leisure and retail, the consumer is already aware of the category and your brand and has most probably already made his or her purchase decision. There is no USP to cling to, thus the focus shifts away from creating strong recall and recognition to protecting a brand’s existing market share and organically growing new market share or preferably stealing it from your competitors by understanding the consumer’s needs and reacting appropriately. This requires marketers to utilise historical data in a far more effective and relevant manner. Pace is the name of the game. Normally the research data received by the marketing team can be up to 90 days’ old from time of capture.

It normally takes the business another 90 days to get to grips with the changing consumer requirements and additional 90 days to implement any meaningful solution to retool the business and another 90 days for the consumer to feel the effect. On average a full year goes by before a brand has sufficiently readjusted its behaviour or communication to address a trend. During this time the behavioural driver that created the trend in the f irst place may very well have passed or a new counter trend may have emerged, negating the brand’s response to the initial trend. In other words, the process of adjustment takes too long. So what should brand owners be doing to adjust the engagement with the market? In mature market categories, brands will still advertise, in the traditional sense, to keep their products and services on the list of considerations. But there is a fundamental shift in focus from recall and recognition to reputation and experience. As economies down gear, the behavioral drivers inf luencing the consumer are increasingly informed by reputation, as people tend to care more about the brand experience. Why? Well, the less money we have the more careful we are about what we do with it and whom we spend it with. This can pose difficulties for brands because many marketers have honed their skill in crafting the above-the-line process and largely ignored the reputational and experiential elements that affect their brands. This is the area that requires attention. Reputation is governed by experience and experience is formed beyond the initial call to action. It is created through tactile encounters that the consumer has when they connect with the brand across many different brand touchpoints. Each touchpoint should be identified, assessed, managed and improved to limit the risk of negative brand exposure and reputational damage. Don’t give the consumer reason to start thinking about alternatives.

THE ROCKSTARS

The ANNUAL 2008 — 307

THE ROCKSTARS

Why ad agencies need to understand the youth By Tim Beckerling

When I had jus t f inished high school I spent a month at the coast without my parent s with my aunt and uncle. During my stay we visited relatives I wasn’t that close to who knew of me, but didn’t really KNOW me. Eager to be one of the adult s and quite conscious of it at the time, I shook hands and was overly polite to everyone.

It w a s n i c e to t he i r do g s a n d t hei r ch i ld ren a nd d id ever y t h i ng I cou ld to f it i n. Su re, I was wea r i ng my “ Nobody k now s I’m a le sbia n” t- sh i r t, wh ich i n h i ndsig ht probably didn’t help constr uct t he per fect f irst impression, but t hat’s just who I am. Come dinner time, I was escorted past t he ma i n t able a nd to my complete su r pr ise fou nd my place at t he k ids t able, whose Tupper wa re f u r n it u re w a s n’t e x ac t ly ac com mo d at i n g to my close to si x foot f rame. T hey w ill never k now t he silent f ur y t hat welled i n me a s I s hove l le d t he to dd le r si z ed por t ion of roast ch icken i nto my mout h w it h t he Wi n n ie t he Poo plastic cutler y, spilling Oros onto t he ot her k ids ever y t i me I at tempted to move my leg s. Conver sat ion to du ll t he pa i n was i mpossible as my fel low di ner s were doi ng all t hey cou ld not to piss i n t hei r pa nts, let a lone st r i n g sentence s tog et he r. W hen I t h i n k about it now, I was probably i n bet ter compa ny t ha n i f I had sat at t he ma i n table, but t he “adu lts’” lack of u nder st a nd i ng , to t h is day, conju re s si n ister t hou g ht s of way s I c ou ld k id n ap a nd tor t u r e t ho s e basta rds. It is ex ac t ly t h is sor t of m isu nder st a nd i ng t hat so ma ny ad agenc ies have when it comes to br a nds, not rest r ic ted to yout h br a nds, but perhaps more ev ident t here t han anywhere else. A g reat way to a l ienate k ids, is to treat t hem like k ids. W hile you Kooch ie Koo a seven yea r old, t hey a re t h i n k i ng “C heck t h is oke. W hat a n asshole”. Tr y watch i ng a n 308 — The ANNUAL 2008

animated f ilm or T V programme with a you ng k id and see which par ts t hey laug h at. I n ma ny i nsta nces, it’s not t he a nv i l fa l l i ng on someone’s foot t h at c r ack s t hem up, it ’s ser iou sly i ntellec t ual social com menta r y t hat gets t hem laug h i ng. T he ot her g reat t hing about lig hties is t heir complete d isreg a rd for t he need to be pol it ically cor rect. T hey laugh at stuf f t hat g row n ups won’t a l low t hem selve s to laug h at. Ask any k id and t hey will tell you, t hey don’t buy t h i ng s because of t he ads. But i f Tony Hawk sk ate s on a Bird house deck, t hat’s t he f irst t hing on t heir Ch r ist mas list. To an extent t hey a re r ig ht, t r ad it iona l for ms of adver t isi ng a re i ncreasi ng ly ig nored by an ever-increasingly sophisticated yout h ma rket. Emu lat i ng heroes (or a nt i-heroes), is t he way t hey decide which t hi ngs to buy. Adver tisi ng has always projected its products as ways to f it i nto soc iet y bet ter. T h roug h f resh you ng eyes, k ids a re especially sensitive to t his and who could blame t hem for not wa nt i n g to f it i nto a soc iet y t h at doe s n’t h ave a ny r e a l heroes? Ou r problem isn’t rea lly f i nd i ng way s to u nde r st a nd k id s, it ’s t h at we t reat adu lts l i ke t hey a re st upid a nd t hen ex pec t k ids to look up to us. A huge nu mber of cl ients i nsist on dumbing dow n communication so t h at people w i l l u nder st a nd it. A l l t h is c reates is u n i mag i nat ive relays of basic infor mation, put for ward in a condescendi ng way. No wonder k ids don’t g ive a sh it about what adu lts say – look at how we com mu n icate w it h each ot her. A l l k ids wa nt a re r e ason s to bel ieve i n pe ople. G ive t hem t hat a nd you won’t have to sell t he m a ny t h i n g , t he y w i l l ac t i vely seek out what it is you have to of fer. It rea l ly isn’t a que st ion of us a nd t hem, because we were all k ids once a nd t her e a r e some of u s t h at w i l l never let go of t he k id i nside.

THE ROCKSTARS

The ANNUAL 2008 — 309

THE ROCKSTARS

Marketing in a recession By Tim Byrne

As much as Finance Minister Trevor Manuel tells us we are not in a recession, the current economic climate in South Africa feels uncomfortably familiar.

I can remember (albeit rather mistily) the market conditions in this country in the late ’90s, when the bond rate languished in the mid 20s, you could sell your car for more than you bought it for three years earlier, and a 10% annual salary increase was good encouragement to look for another job.

And then came the noughties. After we had all got over the paranoia of Y2K, the country experienced a period of strong economic growth, single digit inf lation, a dramatic decrease in interest rates, credit for all and sundry, and mayhem in the country’s shopping centres. South Africa had never had it so good, and even the most intellectually challenged of marketers managed to make a little hay in the blissful sunshine. However, nothing lasts forever, and the prosperity bubble well and truly burst in late 2007, with the sub-prime mortgage crisis in the US, the oil price explosion, Jacob Zuma and Eskom. Add this to some of the most repulsive crime on the planet, the brain drain, daily reports of graft and corruption, our complete ineptitude north of the Limpopo and an abysmal Olympics, and it becomes easy to understand how the nation has gone from a winning to losing mojo in just 18 months. South Africans are currently in a state of depression and, if we agree in principle with Rene Descartes and his quintessential statement “I think, therefore I am”, we are more than capable of creating our own psychological recession. And as positive and upbeat as Mr. Manuel so admirably remains, the rest of us are battling to punch the sky with quite the same degree of enthusiasm. Whether real or perceived, a blanket of recession has settled upon most of us. What is interesting in all of this is that the current economic conditions represent the first real challenge to a whole new generation of marketers who so far have been swept along on the boom-time current. Anyone under thirty is unlikely to be able to remember how 310 — The ANNUAL 2008

things worked in the late 90s, because when you’re 23 or below you are simply not interested in such issues. Whoever said “youth is wasted on the young” obviously came from a more conservative era. So what should the bright young marketers of today be aware of when it comes to marketing in a recession? The big debate in the past centred on whether or not it was prudent to cut back on marketing budget in tough times. Most companies historically focused on the bottom line and “if you are not making the sales cut the costs” could be heard in boardrooms across the country. The odd marketing orientated company bucked the trend, and continued to spend in the tough times. And lo and behold, they did better, not only in the bad times, but in the good times that followed too. There is enough evidence worldwide to prove that companies that see advertising as a means of generating sales rather than as a cost centre win through in the long run, all other things being equal. However, as important as it is to keep spending in a recession, it is equally imperative to understand how our consumers’ collective mind set changes when the economic climate moves from summer to winter. One of the worst things we as marketers can do in diff icult times is to continue to address our consumers in the same tonality or with the same message we used in the good times. “Let’s take the campaign we did last year and run it again this year, and then we can save the production costs”. Why is this wrong? Because, quite simply, the joyful bonhomie of the good times is completely inappropriate to the national psyche in times of trouble. And the main message can be too. A bit like wearing a party frock to a funeral. One thing we have learnt from past experience is that in order for our advertising to work optimally, it needs to be in accord with our consumer’s frame

of mind. In the advertising industry we are always waxing lyrical about the relationships we work so hard to build with our consumers, and how these relationships are at the very heart of our brand value. The best definition of a relationship I have so far come across is “an awareness of another’s state of being”. At all times we need to be aware of our customer’s state of being, and then, and only then, apply the most appropriate tonality and messaging to our communication. By way of example, let’s look at credit cards. Before the National Credit Act and the dramatic increase in interest rates, credit cards were everyone’s best friend. South African consumers couldn’t get enough of them, and the paradise of overt materialism that they promised. Credit card advertising before the NCA was all about aspiration, spending, conspicuous consumerism, luxury and instant gratification. And then the financial bomb hit and South Africans ran out of disposable income. Shortly thereafter the streets of our cities were littered with small pieces of cut up plastic, as consumers blamed all their woes on the hologram card. How appropriate would it have been to continue marketing credit cards in the same tone and manner as the previous year? And yet many card sellers (not card marketers) did just that. Over and above tonality, the message itself needs to be continually examined. In the example above, whilst advertising the availability of credit in a recession may be taboo, to advertise the safest form of payment or having an emergency reserve may not be. The simple point I am trying to make is that when the economy turns, marketers need to assess their communication to determine the appropriateness of both its message and tonality to the prevailing mind set of the consumer. If these are in sync, even stronger relationships will result. If they are out of sync, the damage caused may be irreparable.

THE ROCKSTARS

The ANNUAL 2008 — 311

THE ROCKSTARS

The Industry Associations

INDUSTRY ASSOCIATIONS

Audit Bureau of Circulations (ABC)

The Audit Bureau of Circulations (ABC) is a non-profit organisation, based on a bi-partite agreement between advertiser and advertising agencies and media owners. Its main objective is to promote the interests of the buyers (advertisers and marketers) and sellers (media owners) of advertising and promotional material by providing accurate and comparable circulation data. The ABC’s primary function of the certification and provision of accurate and comparable circulation figures is achieved through agreement or auditing standards, on the certificates and on the reports submitted. The bureau is managed by a board of directors, elected every year by the annual general meeting. The day-to-day activities of the bureau are handled by a permanent staff headed by the general manager. Publisher members are requested to submit audited figures verifying their circulation, by means of a circulation certificate. They must abide by a code of conduct which includes: • The provision of circulation data that is in no way inaccurate, misleading or distorted; • Acting with the utmost good faith; • Dealing honestly and fairly with advertisers and suppliers. The audit of the certificate must be conducted by a registered accountant and auditor who must have full access to all financial accounts and other relevant records connected with the publication for the purpose of a complete and accurate ABC audit. The bureau does random check audits to verify the information submitted by the publisher. CONTACT DETAILS Tel: +27 11 484 3624 Website: www.abc.org.za

The Association for Communication Advertising Media Association of and Advertising (ACA) South Africa (AMASA) The Association for Communication and Advertising (ACA) represents about 100 communications and advertising agencies that collectively contribute about 95% of the total measured ad spend in South Africa.  The association was formed by the industry, for the industry, in 1971, in an effort to self-regulate. Today, the ACA is active in all areas of the industry including transformation, education, setting of standards and ethics. Members of the ACA are those accredited communications and advertising companies that have committed themselves to the ACA Code, principles, disciplines and ethics.  ACA members enjoy benefits such as discounted rates on television production insurance and archival search for competitive reels; access to research information such as industry trends and surveys; legal advice on compliance to the ASA Code and any other regulatory compliance issues; guidelines for tenders and pitches; policies; client agency contracts and a wealth of other relevant and industry-related information. The ACA’s prestigious APEX awards recognise leading agencies, their clients and their respective brands’ performance effectiveness. APEX represents the best in the business of effectiveness because it awards and celebrates the highest standards and achievements of communications campaigns. The AAA School of Advertising is a wholly owned subsidiary of the ACA. It is the school that feeds the industry with qualified professionals and where the industry shops for talent. With campuses in Johannesburg and Cape Town, the AAA School provides professional, SAQA- and internationally accredited education and training for the industry.  In a forward thinking initiative that aims to open doors for all the industry’s bodies to pull together, the ACA and the Advertising Media Forum (AMF) joined forces, affording paid up members of the AMF membership to the ACA. The ACA is managed by an executive team – the CEO, Odette Roper, and the CFO, Russell Cory, and is overseen by chairman Reinher Behrens (director: TBWA\Hunt Lascaris), vice-chairpersons Boniswa Pezisa (group executive director: Net#work BBDO), Mike Gendel (CEO: Gendel Advertising and Marketing), and Modise Makhene (Group CEO: J Walter Thompson) and a board of 21 representatives.  CONTACT DETAILS Tel: +27 11 781 2772 Website: www.acasa.co.za

314 — The ANNUAL 2008

Established in 1971, the Advertising Media Association of South Africa (AMASA) is a non-profit organisation that since its inception has been at the forefront of media education and training in South Africa. This year, AMASA launches its bursary fund, an annual initiative seeking to bring fresh media talent into the current staff-starved industry. AMASA chairman Brad Aigner says that the last few years of the organisation’s fundraising activities have been building up to this moment. “AMASA’s bursary fund will allow individuals to have a foot in the door at one of our top media agencies. Our intention is to allow students with talent and potential full access to the industry and to gather real experience on the ground in order to kickstart a career in media. We are in dialogue with various media agencies across the country and initial reaction has been very encouraging.” To fulfil its main mandate of increasing media education in South Africa, AMASA interfaces with other commercial educational organisations such as the AAA School of Advertising. AMASA committee members are responsible for setting exams and arranging topclass lecturers, who give freely of their time to impart their knowledge to learners. A further education drive comes in the form of an intensive four-day workshop, held each year at Little Switzerland in the Drakensburg. “Close to 70 delegates attend each year,” says Aigner. “They are either currently employed as media planners, are studying media or are involved in other areas of sales, marketing, communication and advertising. Again, lecturers give freely of their time to broaden the knowledge base of those wanting to improve, or refresh, their understanding of media.” As additional added value, each month AMASA brings the industry topical issues to the fore that directly affect the media, advertising and marketing industries. “Industry leaders from media owners, research houses, media and creative agencies keenly participate each month,” says Aigner. This forum is offered free to AMASA members. CONTACT DETAILS Tel: +27 11 562 6800 Website: www.amasa.org.za

INDUSTRY ASSOCIATIONS

Advertising Media Forum (AMF)

The Advertising Media Forum (AMF) is a collective of media agencies and individuals including media strategists, planners, buyers and consultants through whom 95% of all media expenditure in South Africa is bought. The AMF advises and represents relevant organisations and aims to create open channels of communication and encourage and support transparent policies, strategies and transactions within the industry. At the same time, the AMF acts as a conduit for a wealth of relevant and important information designed to deliver data of vital importance to the media strategy, planning and buying industry. Various committees are assigned to address changes in the industry landscape, forecast trends, monitor activity and make key decisions to guide the industry. These include outdoor, print, radio, TV, research, mobile and industry liaison and also act as lobbyists for issues affecting the industry in areas regarding media inflation, legislation and BBBEE compliance. Affiliated to the Association for Communication and Advertising, the AMF is a valuable advisory and consultative body to the advertising, marketing and entire media industry. It provides a platform for these to co-ordinate a common policy to promote acceptable media industry standards and practices. The role of the AMF is to enhance and upgrade the quality of professionalism in the media industry while encouraging wider participation across the board. It also seeks to make a meaningful contribution at all levels, including national legislation, towards the development of sound national media policies. By keeping abreast of relevant issues, the AMF debates what should be excluded and included legislatively to legally ensure best practices. Industry participation is key and members benefit directly from the influence on decisions that are guided and monitored on their behalf. The AMF initiates and encourages policies to achieve meaningful and sustained participation in the media industry by all South Africans. CONTACT DETAILS Website: www.amf.org.za

Advertising Standards Authority of South Africa (ASA) The Advertising Standards Authority of South Africa (ASA) is an independent body set up and paid for by the marketing communications industry to regulate advertising in the public interest through a system of self-regulation. The ASA works closely with the government, statutory bodies, consumer organisations and the industry to ensure that the content of advertising meets the requirements of the Code of Advertising Practice. An example of this co-operation this year was the addition to the code of new rules for advertising food and beverages to children. As a result the government has refrained from enforcing legislation on the subject. The ASA, which is celebrating its 40th birthday this year, has welcomed the Direct Marketing Association, the Association of Travel Agencies and the Marketing Association of South Africa as members. Self-regulation is a system by which the marketing communication industry voluntarily regulates the content of advertising. The three parts of the industry – the advertisers who pay for the advertising, the advertising agencies responsible for its form and content, and the media that carry it – work together, to agree advertising standards and to set up a system to ensure that advertisements which fail to meet those standards are quickly corrected or removed. The Code of Advertising Practice is the guiding document of the ASA. The code is based upon the International Code of Advertising Practice, prepared by the International Chamber of Commerce. The code requires all advertising to be legal, decent, honest and truthful, and be prepared with a sense of responsibility to the consumer. If a person believes that the content of an advertisement is untruthful, misleading or harmful in any way, a complaint may be lodged with the ASA. Any person can lodge a complaint regarding the content of an advertisement. The ASA will deal with complaints about advertising content but not with complaints about contractual matters or service standards. Consumer complaints are dealt with free of charge while competitor complaints are subject to a filing fee. CONTACT DETAILS Tel: +27 11 781 2006 Website: www.asasa.org.za

The Creative Circle (CC) The Creative Circle (CC) is in the process of launching a new website that will greatly enhance its offering to members and other visitors. Previously the website was used mainly to show the CC Ad of the Month and Year finalists and winners. The new site will be a more useful portal involving all creative disciplines including, film, design, digital and music. Other CC highlights of 2008 were the undoubted success of the Loeries, which it jointly owns with the Association for Communication and Advertising. The CC has also stepped up its involvement of junior creative people in judging of the ad of the month awards. The CC aims to improve the standard of the South African advertising industry’s creative products and to enhance its reputation as one of the country’s worldclass industries. The CC is elected by and represents the wider South African creative community. It aims to encourage and promote creative excellence that is relevant and meaningful in the South African advertising and communication industry. The CC endeavours to inspire and stimulate the growth of creative talent by supporting development and empowerment schemes, educational programmes and awards initiatives. It is continually resolved to prove to the industry and the marketing world as a whole the value and effectiveness of creative advertising. The CC strives to promote creativity as a business resource. It represents the creative community in lobbying relevant industry bodies on issues affecting members. The CC decides which international and local advertising awards to formally endorse from time to time. These are currently the CC Monthly Awards, Ad of Year, Cannes, D&AD, Clios, One Show, The Loerie Awards and The Eagle Awards. An educational committee has recently been constituted to find ways of helping develop disadvantaged creative people who are either in the industry or seeking to come into the creative side of the advertising industry. A priority for the year ahead is to increase the number of black people in the industry. CONTACT DETAILS Tel: +27 11 912-0062 Website: www.creativecircle.co.za

The ANNUAL 2008 — 315

INDUSTRY ASSOCIATIONS

The Independent Communications Authority of South Africa (ICASA) The Independent Communications Authority of South Africa (ICASA) regulates the telecommunications, broadcasting and postal industries. ICASA promotes the attainment of universal service and access by requiring telecoms operators to service underdeveloped areas and by ensuring that licensees contribute to the Universal Service Access Fund. It also ensures that relevant and appropriate broadcasting services are extended to all citizens. To this end, ICASA is finalising regulations that will require broadcasters to also contribute to the fund. ICASA promotes ownership and control of telecommunication and broadcasting services by people from historically disadvantaged groups. During the 2007/08 financial year, ICASA licensed five broadcasters to provide subscription satellite broadcasting services to foster participation by such individuals. ICASA ensures rules apply equally to all industry players. The administration of regulatory justice and fairness is important for the creation of regulatory certainty. It is crucial for competition, for building confidence in the market and to attract investment to the communications market. To this end, ICASA is finalising regulations for interconnection and facilities leasing that are aimed at ensuring that the cost of communication is acceptable. ICASA educates telecommunications consumers on their rights and complaints handling. During the year regulations to protect the interests of consumers were promulgated. A Consumer Advisory Panel was appointed to advise ICASA. Further, regulations on the Code on People with Disabilities were published to regulate the manner in which operators deal with the disabled. ICASA has also published Handset Subsidy regulations that will allow consumers to choose a term of between six and 24 months for their cellphone contracts. The regulations will also ensure that there is transparency in consumers’ contracts. CONTACT DETAILS Tel: +27 11 566 3000 Website: www.icasa.org.za

The Marketing Association of South Africa (MA[SA]) The Marketing Association of South Africa (MA[SA]) was formed in 2007 as the overarching body to represent the interests of the whole marketing community. It aims to: • protect the interests of the industry’s customers; • provide members with competitive advantage; • provide the marketing community with information about industry trends and developments; • promote good practice; and • protect the industry’s brand reputation. MA(SA)’s initial objective was to regain marketing industry representation on key bodies that had been vacant since the disestablishment of the Marketing Federation. MA(SA) now has representatives serving on the boards of the Advertising Standards Authority, the South Aftrica Advertising Research Foundation, the Levy Collection Agency and the Audit Bureau of Circulations. Interdependent partnerships have been realised through re-establishing professional links with the Association for Communication and Advertising, Consumer Goods Council of South Africa and the Direct Marketing Association of South Africa. Mirroring the Public Relations Institute of Southern Africa, the Direct Marketing Association and even organisations like the Institute of Directors, MA(SA) now represents marketers from both the individual and corporate environment. An impressive eight out of the top 10 advertisers in South Africa are MA(SA) corporate members. MA(SA) has appointed Chris de Villiers (formally the CEO of Chartered Secretaries Southern Africa) as he has been tasked with increasing membership, building on interdependent partnerships and leveraging the power of complementary bodies in addressing issues of mutual relevance, such as food labelling, media inflation, advertising to children and free pitching. MA(SA) is very clear on its positioning as a promoter, not a provider of services to the marketing profession and as such is working with complementary bodies on issues dealing with education, legislation, lobbying and regulations. The re-establishment of an independent oversight committee is also nearing finality. CONTACT DETAILS Tel: +27 12 844 1123 Website: www.marketingsa.co.za

National Association of Broadcasters (NAB) The National Association of Broadcasters (NAB) is the voice of South Africa’s broadcasting industry. Its vision is to maintain an environment in which South African radio and television broadcasters can thrive – serving audiences and contributing to development and diversity.  The NAB’s formation coincided with the South Africa’s democratisation and the freeing of the airwaves. Over the years the NAB’s membership growth has matched that of the industry to a point where it is representative of most sectors of South African broadcasting. This representation means that it is able to draw on a wide range of resources when formulating submissions, representations and research. NAB represents the interests of South African broadcasting and works to promote: • A broadcasting system that provides choice and diversity for audiences; • A favourable climate for broadcasters to operate in; • A broadcasting industry grounded in the principles of democracy, diversity and freedom of expression. More than 80 organisations belong to the NAB and hundreds of individuals working in broadcasting and associated industries involve themselves in its activities. The NAB also interacts with other stakeholders including advertisers, agencies, producers and performers in order to optimise South Africa’s cultural and communications industries to the benefit of all.  Over the past months, the NAB has made groundbreaking strides in various fields of the broadcasting industry which include: • active participation in the formulation of the digital migration recommendations to the Minister of Communications, which culminated in a policy approved by the the cabinet on 6 August 2008; • development of a learnership programme run in conjunction with National Electronic Media Institute of South Africa. The first intake of learners was in January 2007; • commenting on a number of parliamentary bills. The comments made by the NAB have in most cases been valued by parliament, as they shed light on the protection of broadcasting; • negotiating with collecting societies in the music industry on issues of principle concerning royalties. CONTACT DETAILS Tel: +27 11 325 5741 Website: www.nab.org.za

316 — The ANNUAL 2008

INDUSTRY ASSOCIATIONS

Out of home Media South Africa (OhMSA) Out of Home Media South Africa (OHMSA) has made steady progress in the year in promoting members’ interests, says the executive director, Les Holley. Late last year the first OHMSA awards ceremony was held to recognize creative work. “We needed something that was specific to our industry and believe that the format of the awards that has been developed is helping to promote pride in and commitment to the industry,” says Holley. Another significant development has been work to develop a measure of outdoor exposure opportunities that will give the industry a currency to value its display space on a similar basis to all other media owners. “The activities of certain legislative bodies at all levels remain a constant challenge,” says Holley. “Some local authorities, in particular, appear to be intent on destroying our industry in their jurisdictions by promulgating Draconian regulations that hinder our members’ operations and growth. We are continually lobbying regulators to ensure an environment where we can have space to operate. Unfortunately in many cases the more the councils tighten up, the more unscrupulous media owners act to escape the constraints, so encouraging the authorities to make ever stricter regulations, to the detriment of legitimate and compliant operators.” OHMSA members may not contract for or erect an outdoor advertising site or display for which approval has not been given – by the landlord or owner, the municipal authority, where applicable, and, where necessary, the provincial or national roads authorities or any other relevant regulatory authority. Holley says he thinks black townships and rural areas represent underutilised areas of growth for the industry. “Not everybody has moved to town. Marketers are fighting for the urban rand but there are still lots of rural rands available. I believe the township and rural areas can provide the astute marketer an opportunity to steal a march on his opposition by taking relevant brands there.” CONTACT DETAILS Tel: +27 11 781 9367 Website: www.ohmsa.co.za

The Online Publishing Association (OPA) The Online Publishing Association (OPA) has been on a major membership recruitment drive this year and now boasts 18 agencies as full members. The OPA also opened up membership to small publishers free of charge and saw their numbers double to more than 60 in only three months. The OPA is an independent body and voluntary association aimed at: • building trust in South African online publishing websites as a viable medium for advertisers to reach a key niche audience; • increasing the share of advertising, sponsorship and marketing spend directed at South African online publishing websites; • ensuring a sustainable and vibrant online publishing industry in South Africa; and • promoting freedom of speech within the online publishing environment in South Africa. The OPA aims to provide a non-profit forum in which online publishers can address issues of common interest; and which can represent online publishers to advertising agencies and the advertising community, the press, government and the public. The OPA: • formulated and implemented a strategy to educate advertising agencies about the benefits of online advertising; • developed an audience measurement and tracking product to act as a planning tool for advertising agencies and the advertising community; • endorses the highest standards of editorial quality and integrity, credibility and accountability; • develops and promotes standards across all aspects of the online publishing industry; • enhances the trust necessary to support sustainable online publishing businesses; • helps online publishers to drive revenue through a variety of means, including advertising, charging for content, sponsorships and services; • raises the profile and credibility of online publishers; and • engages positively with all related and government bodies in order to further and protect the interests of a sustainable online publishing industry in South Africa. The OPA’s inaugural The Bookmarks awards took place in November. The event rewards creativity in the online industry.

Print Media SA (PMSA)

South Africa is one of the few countries in the world where a number of facets of the print media operate together within one organisation. Print Media South Africa (PMSA) represents more than 700 newspaper and magazine titles in South Africa. PMSA is organised into three specific, focused operating bodies that addresses the specific needs of the respective industry sectors: • The Newspaper Association of South Africa (NASA) – formerly known as the Newspaper Press Union – was founded in November 1882, making it the oldest communication industry association in South Africa. NASA membership comprises 43 urban and metropolitan daily, weekly, twice weekly and monthly newspapers. It represents all the titles of South Africa’s four major newspaper publishing groups. These groups have committed finances to grow diversity within the print media industry through the Media Development & Diversity Agency, a statutory body established to encourage and create an environment for the development of small, independent previously disadvantaged publishers. • The Magazine Publishers Association of South Africa represents the interests of custom, consumer and business-to-business magazine publishers. It represents about 400 magazines. • The Association of Independent Publishers (AIP), formerly known as the Community Press Association of Southern Africa, seeks to become the primary clearing house for research, policy debate and the setting of industry standards for the grassroots media sector. The AIP was established in Johannesburg at a plenary summit of independent grassroots publishers from across South Africa. The new regional umbrella body incorporates South Africa’s 125-year-old Community Press Association and the Independent Media Alliance lobby group, and has been accepted as a constituent member of the PMSA cluster of media advocacy associations. AIP currently represents more than 350 members and intends to represent the majority of South Africa’s small independent newspapers. CONTACT DETAILS Tel: +27 11 484 3624 Website: www.printmedia.org.za

CONTACT DETAILS Tel: +27 11 454 3534 Website: www.opa.org.za

The ANNUAL 2008 — 317

INDUSTRY ASSOCIATIONS

The Public Relations Institute of Southern Africa (PRISA) The Public Relations Institute of Southern Africa (PRISA) represents professionals in public relations and communication management throughout the southern African region. It is a founding member of the Global Alliance for Public Relations & Communication Management and initiated the formation of the Council for Communication Management (CCM) in South Africa. The Council is the co-ordinating body representing various groupings of professionals in South Africa. PRISA plays a leading role in uniting professionals and driving transformation. PRISA represents and positions its members at various forums, including the 2010 Communication Partnership, the Services Seta, chambers of commerce, Marketing Advertising and Communication Charter committee and other industry bodies. One of PRISA’s roles is to provide continuing professional development for its registered practitioners and students. Continental and global initiatives The institute hosted the Federation of African Public Relations Associations’ (FAPRA)’s 2006 council meetings and conference in Johannesburg. On the global front, PRISA hosted the World Public Relations Festival for the Global Alliance and its members in Cape Town in 2007. This event gave South African public relations and communication professionals the opportunity to showcase and benchmark their excellent work, as well as network with a global professional community. Challenges Key focus areas for the future include ethical practice, the link between sustainable development and public relations and communication, the promotion of professional credentials and recognition of accreditation and the encouragement of creativity and innovation. Through PRISA’s PRISM awards, best practice is recognised. Apart from creativity, emphasis is on the research and evaluation component of the programmes/ campaigns submitted. Business, government and academia In South Africa the profession is gaining recognition among business leaders for the impact it delivers on the bottom line. Government has also recognised the professional’s contribution to effective communication by upgrading the public relations and communication management posts within its departments to chief director level. CONTACT DETAILS Tel: +27 11 326 1262 Website: www.prisa.co.za

318 — The ANNUAL 2008

The South African Advertising Research Foundation (SAARF) The South African Advertising Research Foundation (SAARF) commissions and manages media audience and product/brand research for the benefit of its stakeholders, thereby providing data for target marketing and a common currency for the buying of media space and time. AMPS (All Media and Products Survey), RAMS (Radio Audience Measurement Survey), and TAMS (Television Audience Measurement Survey) are the registered trade names of the major research surveys conducted by SAARF. Media owners use the surveys to market their media as well as for strategic editorial and programme planning. Advances this year included: • the launch of a market segmentation tool based on research to identify Attitude Groups; • RAMS data is being collected for 13+ years for the second half of this year instead of the usual 16+ years; • TAMS data is being released for all people aged 4+ years (previously 7+ years); and • A TV sub-committee has been formed because of expected developments in the field. SAARF was founded in 1974 as a joint industry committee by people from the marketing, media and advertising community who realised there was a need for a comprehensive, unbiased, reliable, regular and technically excellent survey. Its purpose would be to provide data about the use of the mass media, and about the consumption of products and services by users of the mass media. The AMPS and RAMS survey covers the total adult population, with a few exceptions. The survey uses personal in-home interviews of thousands of persons representative of the total adult population. Next year the AMPS sample is being increased to 25 000 from about 21 000. Also, people from the age of 15 years (previously 16) will be interviewed, in line with international practice. AMPS and RAMS will be fully national for the whole year, where currently they are national for the first half of the year and large urban only for the second half. CONTACT DETAILS Tel: +27 11 463-5340/1/2 Website: www.saarf.co.za

The Southern African Marketing Research Association (SAMRA) A membership survey during 2008 yielded useful information, and results will be used to provide better membership benefits. On the agenda for 2008/2009 is the creation of a qualitative research interest group, as well as an interest group for consulting/freelance researchers. An accreditation process for SAMRA full members has been developed, and will be implemented in the next year. Benefits related to accreditation include recognition and acknowledgement from the research community and clients and listing of the names of accredited members on the SAMRA website. The SAMRA website is to be upgraded and content significantly revamped to ensure that information is current, and the secure functionality can be used. SAMRA Corporate has created a bursary for a final year student, as part of a broad-based black economic empowerment strategy, to be awarded annually, and SAMRA Corporate company contributions will be matched by SAMRA Rand-for-Rand. A SAMRA Advisory Panel has been constituted to consider requests for expert opinion, and provide assistance with ethical and research industry-related matters. There are 27 portfolio positions on the SAMRA Council. Each of the volunteers filling those positions carries the responsibility of continuous and increased delivery against SAMRA’s aims/objectives and specific benefits to members. SAMRA chairman Niel Victor has set the following goals for the year: • Increased transformation of council to ensure a better representation of both black and young members; • Chair visibility at branch, national and other events to improve feedback from members; • Marketing research career and industry exposure at tertiary learning institutions through involvement in and sponsorship of career days or other similar opportunities; • Enhancing the current industry promotion programme by implementing an appropriate and media visible platform for exchange, discussion and debate of topical issues; and • Conducting a complete member information database update project. CONTACT DETAILS Tel: +27 11 886 3771 Website: www.samra.co.za

CLOSING

Advertising: The unspeakable attempting to fool the unsuspecting into thinking they need the unnecessary by Ben Trovato

Growing up in Durban, I never watched much television because we never had one. Nobody else had one, either. That’s because the National Party believed TV was Satan’s way of brainwashing decent God-fearing people. We now know this to be true. Eventually the country fell to the devil worshippers and Pandora’s box began appearing in homes around the country. Before God created the remote control, my father would bark: “Volume! Volume!” whenever an advert appeared. I recorded a personal best of 2.5 seconds over four metres. And that was from a lying start. These days, when I visit the elders to check on their health and my inheritance, I am alarmed to see that nothing has changed. If anything, my father’s aversion to commercials now borders on the psychotic. The screen fading to black signals the start of a violent scramble for the remote. Cats and dogs scatter. Tea cups go flying. My mother’s screaming – “for Christ’s sake find the remote before he has a stroke” – sets off the neighbour’s car alarm. Shutting out the pandemonium, I watch a blonde woman having what looks like an orgasm or some kind of epileptic fit, so excited is she about her new grimefighting oven cleaner.

I am fascinated by advertising in the way that I am fascinated by hypnosis. What makes seemingly normal, rational people do strange and stupid things? Why do people happily plunge themselves into debt after seeing something being advertised and deciding that they simply had to have it? Especially when nothing new is being advertised. New would be a jet pack that allows you to fly to work. Or a home liposuction kit (no anaesthetic needed!). All we’re being offered is more of the same. Cars, cellphones, clothes, banks. Bigger, better, faster, more. But nothing new. Advertising is not a science. If anything, it is witchcraft. Creative directors and copywriters are sorcerers by trade. They are spellbinders and dreamweavers. They are voodoo merchants trained to influence minds. Blood-letting rituals have been replaced by coke-chopping rituals and instead of using bile of the bat and eye of the newt, they use aerial shots and digital effects. Necromancers particularly gifted in the dark art of enticing and entrancing do not go short in life. For their ability to turn people into lemmings and sheep, the warlocks and witches are richly rewarded by the kings and queens of commerce. They

drive, use, wear, drink and eat everything that made it into the 2008 Top Brands. They created, then became their creations. They are like shining mortal gods. This morning I went to Pick n Pay, not because it is this year’s fifth overall favourite brand, but because I wasn’t dressed for Woolworths. Inside, my knees broke into a sweat at the sight of millions of sheeple browsing in the aisles. Others huddled in one another’s shade in queues that stretched deep into the belly of the beast. Zipping up my fleece, I bleat a path to the health section. My wife, Brenda, had suggested that I bulk up after a case of South Africa’s most favoured beer slipped from my feeble grasp and turned the garage floor into something quite indescribable. The first item I saw was a can of “HAZARD”. Interesting marketing gimmick, I thought, slipping on a pair of shoplifted rubber gloves and inspecting the product more closely. It was a “Lifestyle Management Interceptor for Syndrome X”. Of course it was. “But,” I said to the can, “how will I know if I have Syndrome X?” The can wisely kept its mouth shut. With a bit of help from a little old lady, I managed to heave a giant tin of Fast Grow Muscle Fuel High Protein MRP

Shake with Calcium Caseinate and WPC into my trolley. If the label is anything to go by, I will be taking gold in the 450kg weightlifting event at the 2012 London Olympics. I then proceeded in a north-westerly direction to the domestic hygiene section, which rubs up obscenely against the death section, a charnel house of candles, sprays, pellets, traps and electric devices designed to murder the smallest living creatures on earth. The shelves were covered in products ranging from those guaranteeing the death sentence for rats (no drawn-out trials here, folks!) to bottles of stuff that kill all known germs dead. Well, all the semi-literate ones, anyway. Crossing myself and saying half a Hail Mary, I quickly moved away from this entomological holocaust in the making and stumbled into the aisle for ladies that, thanks to David Beckham’s predilection for primping and preening, is now also the aisle for men. I briefly considered buying Brenda something called Emergency Hair Rescue Treatment in case her hair ever found itself on a sinking ship or, God forbid, went into cardiac arrest. As for gel, well, hell. There was Party-Proof Gel (the vomit slides right off!) and Indestructible Gel (bulletproof your head!) and even WWE Smackdown Gel for wrestlers who might be put off by the inherent gayness of Wet Effect Gel (friends will think you shower 20 times a day!). There was shampoo for black people, white people, tourists, toddlers, teenagers, geriatrics, the disabled, people with hair that is too flat, too dry, too thin, too dull – every one of them promising to give you a mane to make an Arabian stallion envious. Most people I know would settle for looking marginally less repulsive to the opposite sex. Having forgotten why I was wandering aimlessly about this hotbed of lies and deceit, I drove home, poured myself a big fat glass of every real South African’s favourite brands – Klippies & Coke – switched on the telly and marvelled at a world in which snails ice skate, meerkats dance and ugly boys get beautiful girls with a single spray of deodorant.

The ANNUAL 2008 — 319