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ADVERTISING In Morocco

10

Dr. Mohammed IbahrineAL AKHAWAYN UNIVERSITY in IFRANE

SCHOOL OF HUMANITIES AND SOCIAL SCIENCESCOMMUNICATIONS STUDIES PROGRAM

Mapping Advertising in MoroccoCapstone Research done by Ismail Slaoui

Presented on Wednesday, December 5th, 2007

School of Humanities & Social Sciences

Communication Studies

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Outline• Introduction• Theoretical framework• Research questions• Methodology• Summary of the findings

– Historical perspective– Regulatory bodies– Expenditures– Global ramification– Advertising agencies– Advertising’s positions & salaries– Media service organizations

• SWOT analysis• Conclusion• Recommendations

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Introduction

• Mapping: a method for depicting a process.

• Relevance and importance of the topic: – The advertising field is undocumented in

Morocco,– Such research has not been conducted since the

previous decade.

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Theoretical Framework

• The depiction of a comprehensive picture of the advertising sphere will be done using the SWOT analysis

• Strengths• Weaknesses• Opportunities• Threats

– Strategic planning tool,– Assesses both internal and external environment.

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Research Questions

• How have the advertising industry and its institutions evolved in Morocco?

• How does advertising function in Morocco today?

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Methodology

• Two interviews with experienced practitioners,

• Use of personal internship experience

• Use of previous mappings

• Use of specialized magazine

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Historical Perspective

• Key events– …: The “Berrah” (screamer);

– 1928: Dahir allowing advertising on radio;

– 1933: Legalization of media buying practices;

– 1946: Creation of the first advertising agency, Havas;

– 1961: Creation of the Radio et Television Marocaine;

– 1970: Creation of RTM’s media service organization, the Service Autonome de Publicité (SAP);

– 1980: Médi 1 is allowed to sell advertising space;

– 1989: Creation of 2M;

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Summary of the findingsRegulatory bodies

• Several attempts have been made from the 1970’s to the end of the 1990’s to organize advertising through professional associations → Failure.

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Regulatory Bodies

• The industry is being regulated by two entities

1. La Haute Autorité de la Communication Audiovisuelle (HACA).

2. L’Agence Nationale de Réglementation des Télecommunications (ANRT);

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Expenditures

• Ratio GDP/Advertising budget: 0.6%

• Spending per capita: $12

Announcer 2006 Advertising expenditures (Million Euros)

Maroc Telecom 36,3

Méditel 17,8

Procter & Gamble 11,7

Lesieur Cristal 5,5

SOREAD 5,4

UNILEVER 5

CNPAC 4,9

Centrale Laitière 4

Source: ComNews, 2007

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Global Ramification

• Large budgets attract large communication groups;

• The five top agencies worldwide and their Moroccan representatives

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Global Ramification

  Group Moroccan Representative

1 Omnicom Group Zone Bleue DDB

2 WPP Group JWT - Team young & Rubicam - Grey

3 Inter Public Group Mc Cann - Initiative

4 Publicis Group Drive Maroc

5 Dentsu Klem Euro RSCG - MPG/MIM

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Advertising Agencies

• The creation of numerous agencies is favored by

1. Economic development of the country;

2. Introduction of foreign brands and investors;

3. Support of the regulating law;

4. Importation of foreign practices;

5. Coming back of Moroccan professionals.

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Advertising Agencies

• The following table identifies the major existing agencies, their dates of creation, and their main clients (Source: ComNews, 2007).

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Date of

Creation Agency Main Clients

1972 Shem'sArtisanat du Maroc, Groupe Banque Populaire, Peugeot, Ministère du Tourisme, Danone,

Total, INDH,…

1975 KLEM Euro RSCG Eqdom, Arryadia, Citroën, Sidi Ali, Ingelec, Maroc Soir, Méditel,Siera, Vache Qui Rit, …

1989 TBWA / Alif BMCI, Nissan, Nexans, Cetelem, Nivea, Involys, Groupe Jamai

1990 Analogie Telecontact, Kompass, Top Class (Lavazza).

1993 SagaRisma, Taous, Royal Air Maroc, Maroc Telecom (mobile), ONCF, Attijari Wafabank,

Addoha,…

1995 Altaïr Auto Nejma (Mercedes-Benz & SsangYong), Web Cad.

1995 Zone Bleue DDB Maroc Telecom, Honda, Sony, AXA, Ain Saïss, Regional Airlines,…

1995JasmineCommunication CNRA, Brandt, Super Cerame, Wella.

1995 Mosaïk Ego, Ford, Khmissa, Bigdil, Wafasalaf, Le Matin.

1997 Pro&Anti Poste Maroc, Mounier&Bouvard, Simmons.

1998 Imagine BMCE Bank.

1998 Robinson Siera, Franke, Kia, Crédit Agricole.

1998 Drive Toyota, Daihatsu.

1999 Publicis Mawazine, HP, Méditel roaming, Nescafé, Heineken, Whirlpool, LG Mobile.

2000 Capricornone BenQ-Siemens, Banque Populaire, CDG capital, MEDZ (CDG), Via Seta.

2001 Initiative Média Atlas Hotels, Aluminium du Maroc.

2001 Jade Communication CMH, Colorado, Fitco, Kti voyages.

2002 Impact RMA Wataniya, Royal Air Maroc, Méditel, HPS, Hyundai.

2004 Komunik Ilaï Com, Venezia Ice, Madurel, Mystère, O'Pure.

2004 Positive Com Artelegno, Maje, Tessilarte, Tara Jarmon.

2004 Works Villeroy & Boch, Philips, Guy Degrenne.

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Advertising’s Positions & Salaries

• Account manager: 18,000 Dhs/month;

• Computer graphic artist: 8,000 Dhs/month;

• Writer (or texter): 18,000 Dhs/month;

• Art director: 20,000 Dhs/month;

• Creative director: 30,000 Dhs/month;

• Account executive: 10,000 Dhs/month;

• Commercial director: 25,000 Dhs/month;

• CEO: 45,000 Dhs/month + facilities and percentage on the agency’s earnings.

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Media Service Organizations

• Advising on the media strategy and selling space to advertisers;

• Two media service organizations

1. SAP: manages exclusively the advertising space of the Société Nationale de Radio et de Télevision (SNRT);

2. Régie 3: manages advertising space for 2 TV channels (2M and Médi1 Sat), 2 radios (Médi and Radio 2M), several magazines (Femmes, Nissaa, Parade, Sur la 2, Maisons du Maroc, etc.), and websites (Menara, 2M.tv, etc.).

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Media Service Organizations

• Régie 3 finances up to 80% of 2M’s budget, 90% of the magazines’, and over 100% of the radios’

• (Bekkali, Personal communication)

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Strengths•Awareness of the announcers of advertising’s importance;

•Presence of major multinational advertising agencies;

•Creativity of the Moroccans (Bénistan);

•Freedom of speech in the country;

•Existence of effective regulatory bodies;

•Growth in revenues;

•Large number of media channels.

Weaknesses•Negative reputation of the practitioners;

•Follower attitude and narrow mind of the announcers (Bénistan);

•Absence of highly trained human resources;

•Under invested market;

•Largest budgets in the hands of few agencies;

•Absence of advertisers association;

•Absence of audience measurement tools;

•Absence of post tests for advertising campaigns.

Opportunities•Fast growing Moroccan economy;•Entrance of global investors;•Globalization (possibility for Moroccan agencies to manage foreign budgets);•Willingness of the government and its institution (HACA) to accompany the practitioners;•Growth of the outdoor advertising industry;•Growth of the internet advertising industry;•Creation of specialized, highly efficient companies, to serve the marketing needs;•Development of new media;•Governmental advertising.

Threats•Fierce competition

•Visual pollution in big cities is likely to lead to outdoor advertising restrictions;

•Globalization (foreign advertising agencies are likely to attract Moroccan budgets);

•The absence of regulation for media buying tariffs.

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Conclusion

1. The industry still needs considerable human and technological resources;

2. Innovativeness should rise among announcers;

3. Audience measurement tools are being developed, and will provide the first results by the end of this year;

4. The state’s fresh awareness of the power of advertising promises to considerably raise the expenditures;

5. The future of the industry is to be considered with optimism: advertising is a field of ideas, and there can not be a saturation of ideas.

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Recommendations

• Conduct more semi-structured interviews among

practitioners, particularly in advertising agencies;

• Gather quantitative data and conduct analyses of

audience preferences;

• Analyze advertising trends, their evolution, through

focus groups and content analysis;

• Create an exhaustive list of all the practitioners.

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Outdoor Advertising

• Rizlan Naji Fall 2006

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Outdoor Advertising Decision Process

₪ Innovator: White Owl communication agency in 80’s

₪ Early adopters: Smarty Pub and New Pub agencies in 90’s

₪ Early Majority: FC COM, and Totem Affichage in 1999

₪ Late Majority: 2A COM, City Pub, Outdoor COM, Maroc Telematique, Concept Visuel, Bioalpha, MNM, and so forth, starting in 2000

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Outdoor Advertising Decision Process

₪ “Cadum Shampoo” is the first campaign that was posted in Rabat in 1986

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Communication Agencies: 40s-70s

Agency Date

Havas 1946

Cinémapresse 1968

Shem’s Publicité 1972

Top Publicité 1973

Klem Euro RSCG 1974

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Top 10 Advertisers

Top Ten Advertisers 2005

0

2

4

6

8

10

12

1

Advertisers

Ran

kin

g

Maroc TelecomMedi TelecomGroup AbroulDolidolCoca ColaRichbondBanque PopulaireSopriamLesieur CristalLG Electronics

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The Advertising Investments by Media (2005)

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Measurements of Outdoor Advertising’ Impact: Technical Measurements of The Audience and Coverage

₪ AffiScore: Advertising Monitoring of urban outdoor advertising

₪ The period of distribution

₪ The name of the brand/institution/subject or theme

₪ The name of the campaign and the announcer (advertiser)

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(Cont)₪ The format of the poster (4x3, 8x3 or lollipops)

₪ The faces

₪ The exact places

₪ The state control/the network

₪ The number of panels

₪ The theoretical rate or cost

₪ The numeric photos of the used posters

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Regulations/laws

₪ There are no regulations governing outdoor advertising in Morocco except the ones in the folder of call for tender

₪ There are 19 article provided in the folder

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TEN Recommendations

₪ 1. More clarity on the level of the message.

₪ 2. Improvement in terms of cover hangs.

₪ 3. More details and information on the object of the poster.

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TEN Recommendations

₪ 4. Improvement of the creation considered as very simple.

₪ 5. Change on the level of the posters’ sites (Selection of the most strategic places of the city).

₪ 6. A mixing of different outdoor vehicles to maximize impact/achieve quick awareness.

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TEN Recommendations₪ 7. Taking into consideration the seasonality in the selection.

₪ 8. Ensuring a national coverage (pending on campaign objectives).

₪ 9. Ensuring high visibility/high traffic locations.

₪ 10. Reducing many outdoor channels in the same place.

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Conclusion

₪ Morocco is going to reach the stage of merging of many outdoor advertising agencies that will lead the Moroccan market to have two or three outdoor advertising operators.

₪ Regulations should be set to protect the positive flow of outdoor advertising in Morocco.

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Audiovisual Advertising Regulation in Morocco:

HACA

Saad Bennani

Fall 2007

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Outline

• Research Question

• Methodology/Data Collection

• Findings: HACA, French and American Model, Advertising Regulation in Morocco

• Recommendations

• Conclusion

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Research Question

• What is the role of HACA in regulating advertisements in the Moroccan audiovisual sector?

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Methodology

1. Literature

2. Websites: HACA

3. Informative Interviews

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Organization Description of HACA

– Created in 2002 with a Royal Dahir– Democratization of Regulation– Financial Independency– Different tasks: – Licenses for TV and Radio– Assign frequencies– Political pluralism– Children protection– Organizational Chart

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HACA President

Administrative/ Financial

Programs Follow-up

Juridical Affaires

Infrastructure/Technology

Development

Audit and Management

Information Technology

Documentation/Information

CSCADGCA

9 Members

• 4 appointed by the King• 2 appointed by the Prime

Minister• 1 appointed by La Chambre des Representant•1 Appointed by La Chambre des Conseillers

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Findings (cont’)• American Model of Regulation

– Federal Agencies• Ex: Federal Trade Commission, Food and Drug

Administration, Federal Communications Commission …

– State/Local Regulators• Rules and Law might differ from a state to another

– Non-Governmental Agencies (Self-regulation)• Ex: American Association of Advertising Agencies,

American Advertising Federation, Association of National Advertisers.

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Findings (cont’)

• French Model of Regulation– Governmental Agency: Conseil Superieur de

l’Audiovisuel • Model HACA

– Self-regulator: Bureau de Verification de la Publicité (BVP)

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Findings (cont’)• Advertising Regulation in Morocco: HACA

– Role of HACA• Regulation, no censorship

• Follow-up of TV channel and Radio Stations

• Acts on the operators (2M, RTM, MEDI1, …)

– Legal Aspect: Law n°77-03, Chapter 1, Article 2• Clandestine Advertisement

• Forbidden Advertisement– Racial, sexual, ethnical or religious discrimination

– Violent scenes

– Political messages

– False messages

– Morally prejudiced messages

– Negative consequences on health of consumer

– Negative messages on a company or institution

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Findings (cont’)

• Ethical Aspect: Operators

– Decisions and applications: CSCA

– Examples:• Forbidden advertisement: TAGGER

• Clandestine advertisement: Radio program “Youmyat Alfallah”

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Recommendations

• Self-regulation

• Co-regulation

• Self-regulation vs. Co-regulation:

Source: Executive Summary Study on Co-regulation Measures in the Media Sector

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Recommendations (cont’)• New institution: l’Agence Marocaine de la

Régulation de la Publicité (AMRP)– All types of advertising: audiovisual, print,

outdoor, online, mobile phones advertising.– Structure:

• Conseil Superieur de la Régulation de la Publicité (CSRP)

• Direction General de la Régulation de la Publicité (DGRP) with additional departments for each advertising type.

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Recommendations (cont’)• Co-regulator: Association des Professionnels

pour la Régulation de la Publicité (APRP)– Partnership with the CSRP– Involvement of associations from different fields

(children, food, health …)

• Corrective Advertisement• Complaint process

– Opened to the community– Free phone number (“Numero Vert”)

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Recommendations (cont’)

• Awareness Campaign– Inform Moroccans

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Conclusion

• Advertising Regulation is new in Morocco

• Stop copying only French models to be more efficient.