Marketing Mix Nov Dec 2009

SoccerMarketing

Guide

SoccerMarketing

Guide

Vol 27 Issue 11/12

Sponsored by

MarketingMix

0 6 1 1 2 4 3 2PROPRIETOR AND PUBLISHER: Systems Publishers (Pty) Ltd. Tel: (011) 234 7008 North Block, BradenhamHall, Mellis Road, Rivonia, Johannesburg PUBLISHER: Terry Murphy MANAGING EDITOR: Michelle [email protected] EDITOR: Fulvia Becatti [email protected] ADVERTISING MANAGER: Hellen [email protected] PRODUCTION: Spencer van Graan [email protected] EVENT ENQUIRIES: DaisyMulenga [email protected] SUBSCRIPTION ENQUIRIES: Marianne Nzioki [email protected]

www.marketingmix.co.za

ContentsI 0 2 I Ed’s note

I 0 3 I Media mix beyond 2010 Radio:

Graham Wilcox

I 0 4 I Media mix beyond 2010 TV:

Peter McKenzie

I 0 5 I Media mix beyond 2010 AlternativeMedia: Ken Varejes

I 0 6 I Media mix beyond 2010 Newspapers:Ferial Haffajee

I 0 7 I Media mix beyond 2010 Magazines:Jonathan Harris

I 0 8 I Media mix beyond 2010 Digital Media:Matthew Buckland

I 0 9 I Media mix beyond 2010 CommuterMedia: Kevin Kirby

I 1 0 I Media mix beyond 2010 Outdoor:S’khumbuzo Nkosi

I 1 1 I Day [B]itch

Mlamuli waka Nxele spends a busy week visiting thecountry’s cities.

I 1 2 I Expert opinion: Richard Duncan

Richard compares apples with apples.

I 1 3 I Expert opinion: Nici Stathacopoulos

Nici wonders if anyone knows what direct marketing is

anymore.

I 1 5 I The future of TV

Marketing Mix chats to The MediaShop’s Virginia Hollis

about the future of TV.

I 1 7 I Soccer Marketing Guide

Marketing Mix looks at the world of soccer and its

opportunities, in particular the 2010 FIFA World Cup.

I 3 6 I Brand Anatomy: MINI

50 years of cool.

I 3 8 I Afrikaans media

A look at what’s available media-wise for the Afrikaans market.

I 42 I Expert opinion: Dr Mornay Roberts-Lombard

Mornay has a look the untapped pink market.

I 4 3 I Expert opinion: Stuart Woolmington

Stuart looks at Christmas in June.

I 4 3 I Expert opinion: Will Green

Will looks at Africa’s online growth opportunities.

I 4 8 I King III

The latest King III report takes a much closer look at the

communications industry – you have been warned!

vol 27 / issue 11/12 / 2009 marketingmix.co.za

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Cover picture: courtesy Soccer Laduma

3 292(Jan-June 09)

Database:List Perfect

marketingmix.co.za / vol 27 / issue 11/12 / 2009

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Ed’s note

I’m very honoured at the prospect of working on MarketingMix, after all, the magazine is a legend. I’m also excited tobe working back in print after a two-year stint with SA’s

largest online daily media, marketing and advertising newswebsite – you know which one I’m talking about.

So I’m here to say hello again to all those familiar faces andan even bigger hello to those industry experts that I have yet tomeet and work with. I will be in contact with everyone soon tosay hi, swap ideas and move the magazine onwards andupwards. My first issue is already brimming with useful infor-mation, helpful tips and amazing ideas – all of which you canthink about while on your holiday. I don’t even mind if you getsand stuck between the pages while you read it on the beach.

In this issue, Marketing Mix hosted a breakfast with MervynKing (yes, the man himself) for the marketing fraternity aboutwhat to expect in the latest King report (page 48). The King IIIReport escalates communicators to strategic level and requiresbusinesses to take stakeholder relations seriously.

The report requires that promotion documents be writtenfairly, and marketing material promises to be fair, just and beunderstood by ordinary customers. Internal marketing andmotivating staff is also vital, workers are supposed to live up tostandards set by the company’s governing codes. And this isjust for starters!

With the 2010 FIFA World Cup on our doorstep, wethought it prudent to look at the soccer marketingopportunities that exist in the run-up to the tournament – yes,there are still ways to get involved, believe it or not.

There’s an important article (page 46), seeing it’s the end of the year, which brings forth all those glorious parties –information on liquor marketing in light of impendinglegislation and how it will affect liquor marketing at-retail, in particular.

Happy holidays, don’t drink and drive so you can Arrive Alive. �

Pleased to meet you!


Media mix beyond 2010

Apple’s acknowledgement that its consumer base wants radioreceivership built into an iPod improves the prospects of traditionaland new media in peaceful coexistence. It also acknowledges thatradio will continue to play a role in the breaking of new music,breaking news and breaking the monotony of always having tothink for yourself which song you want to listen to next. DAB(PVR for radio) will arrive sometime with the digitisation of theradio spectrum and Internet radio will allow for ever greater niche sites.

Finally, how should traditional media handle the revenue gap?New media may be ideal for need satisfaction but it does not hold agreat deal of promise for need generation. If need generationdepends on branding then traditional media will continue to offerthe best opportunity for the development of brand equity.Innovation in traditional media will need to place a premium along acontinuum of value. As audiences have more choice so they willbecome more discerning and with discernment comes a willingnessto pay good money for good content. But equally so, Africacontinues to offer real and meaningful traditional media opportunitiesin all media types but specifically analogue radio, free-to-air TV and outdoor. The aggregation of audiences across both new andtraditional media types will present additional revenue opportunitiesas will the youth market. �

Atoms by bytes –anarchy beyond 2010

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By Graham Willcock, managing director, RadMark

New media breaks down the rules we know and understandabout the way life and, appropriate to this forum,traditional media economies work. New media is

dangerous in its surreptitious guise of making our lives easier. Youcan have whatever you want, any time you want, wherever youwant and what’s that – you don’t want to pay for it?

New media encourages the surrender of privacy on the altar ofsocial networking. It also threatens democracy as autonomy iscompromised, and a vigilant and watchful press is replaced by the inane nature of the blogosphere where all semblance ofaccountability disappears into a virtual mist of user-generatedcontent. That sounds like anarchy to me. And anarchy breeds moreuncertainty. In the media world you can almost smell the fear.

As our uncertainty over new media increases so too does ourneed for reassurance, which manifests itself in another contradiction.We act and speak as if a peaceful coexistence between the new and the old is possible. But we don’t really believe it do we? Wewonder if on-air personalities can make the transition from being a ‘voice’ to a multimedia content manager able to articulate themselves in their blog or on Twitter, without compromising theircarefully crafted on-air persona. We wonder how to continuerunning a media infrastructure when traditional ad revenue isdisappearing into the void of search words and Google ads, andwhere the black magic of Search Engine Optimisation (SEO)simply underpins the loss of autonomy that threatens democracy.

We are left with the realisation that we are possibly looking at astark choice: You can have new media or traditional but you can’thave both. You can’t continue to produce good quality contentwithout the revenue to support it. You simply cannot, as atraditional media owner, lose control of the distribution interfacebecause if you do you lose power and influence, and becomesubservient to a far larger third-party distribution network.

But peaceful coexistence must prevail if autonomy and privacyare to be protected; if democracy is to be sustainable, new mediacannot replace the traditional. That means 20 years from now,people will still be listening to their favourite radio station, willread their favourite magazine or newspaper, and watch theirfavourite sitcom on TV. But they will do this all within an incrediblyconnected media universe in which content moulds with form, anda multiplicity of media formats seamlessly complement one anotherand allow for greater personalisation and locality.

Some will find it easier than others. Radio lends itself to aparallel and complementary relationship with other media types.And, as radio will remain pervasive rather than invasive, so it willenable Web-based and mobi interfaces. MP3 players and iPods willnot bring about the demise of radio any more than a digitised and‘paperless world’ heralded the demise of the paper industry.


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How will the 2010 FIFA World Cup impact on pricing, schedules

and audiences? What happens after the World Cup?

Major sporting events have the capacity to boost audiencessignificantly and alter normal adspend patterns – but obviously theWorld Cup in SA will be in a different league. We expect the event todraw strong advertising support and the tournament and related contentwill pull ad revenue from other channels and programme genres.

With 63 matches in the space of a month, audiences are bound tobe dramatically different, but equally, many channels will counter-schedule against the soccer and this will present good opportunitiesfor marketers who decide to stay out of the World Cup fray andwhat some may perceive as a cluttered ad environment.

I expect to see normal adspend patterns change with increasedinvestment in the run-up to the event and during the tournamentitself. I also anticipate a distinct lull in adspend for a month or soafter the final. This view is supported by analysis of the previousWorld Cups in Germany and Japan/Korea.

Ad rates in premium content – and specifically in this World Cup,which is likely to deliver massive audiences – will obviouslycommand a premium price. But equally, outside of soccer, I thinkthere will be lots of bargains to be had.

How to get the most out of TV advertising opportunities?

Keep an open mind, embrace the change and be prepared to experiment.In our case, we want to be involved in the planning process and increating unique opportunities – we see it as a partnership. �

How will the TV landscape in SAevolve in 2010 (and beyond)?


By Peter McKenzie, managing director, Oracle Airtime Sales (OATS)

Television is on the brink of enormous transformation thatwill, I believe, fundamentally change the whole process ofmedia planning and buying in the medium to long term. In

this sense, I see 2010 as a watershed year – and for good measure,we’ll have the FIFA World Cup right here in our own backyard.

Along with the World Cup, the anticipated launch of digitalterrestrial TV (DTT) in April 2010 will mark the start of the digitalmigration process – probably the single biggest change to SA’sbroadcast landscape since television started in 1976. The regulatoryframework is in the process of being finalised and the timelines formigration are much debated – but the imminent arrival of DTT is a reality.

For both viewers and advertisers this means greater channelchoice – at least 10 new digital channels in the short term – tosupplement the existing line-up of SABC1, 2, and 3, e.tv and M-Net which will continue to be broadcast in both analogue anddigital. Then there is the major challenge of adequately measuringaudiences on these new channels.

And let’s not forget that 2010 also promises the launch ofadditional pay-TV operators to compete with MultiChoice and DStv.

We’ll also see the continued steady growth in the penetration ofPVR decoders, further roll-out of high-definition channels, theintroduction of video-on-demand services and television serviceson your mobile phone.

How will this evolution impact on marketing and advertising?

The biggest challenge will be dealing with the huge fragmentation inaudiences and the industry’s ability to measure this plethora ofchannels – in addition to measuring time-shifted viewing throughthe PVR, video-on-demand, viewing on mobile phones and out-of-home viewing.

I think the conventional approach to planning on television hasto change with all of this choice and fragmentation. Marketers, mediaagencies and broadcasters will have to jointly develop new tradingmodels and I expect greater accountability to be key to this.

How can marketers and advertisers prepare?

Marketers, advertisers and their agencies need to know and under-stand what this change will bring and anticipate the impact in theirplanning. Education and good communication are a prerequisite inthe process.

Collectively, the industry has to be prepared to invest more inresearch and ensure that there is sufficient funding for SAARF. Itmust be remembered that 2010 will also see the awarding of thenext TAMS contract and we must ensure the tender process antici-pates the future needs of the industry – and provides the resourcesto pay for it.


and this platform will grow rapidly. Mobile advertising will alsoburgeon but it will be compromised by the invasive factor which isbecoming a reality: we are constantly having media pushed at us andthere will ultimately be a backlash. Consumer engagement willcome down to how this is handled; people opt-out of yourmessaging if they see it has become an advertising platform thatovershadows their reasons for opting-in.

A key development will be media that does good for people inthe process of driving a brand. A great example of this are the PlayParks that Wideopen Platform developed for Simba’s Ready SteadyGo brand which sit in key parks in Gauteng.

In the near future, there will be limited increases in rates andinflation. If one looks at the increase in media spend in Germanyover the World Cup period, one finds that – surprisingly, perhaps –year-on-year media spend only increased by inflation with nosurges! Brands held back and spent more at one time.

Over this year, the trend has been much the same. Most localadvertisers have taken advantage of the depressed economy andnegotiated rates upfront. So, all in all, the 2010 FIFA World Cup willnot create the whirlwind that many in the advertising industry expect. �

Evolution of alternative mediain South Africa

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By Ken Varejes, CEO, Primedia Unlimited


Defining alternative media certainly is a challenge. The word‘alternative’, in my mind, lends it the impression of beingthe third cousin in the media mix or that it should only be

considered after mainstream media. New media, as I like to refer toit, should always be considered for the media schedule because it ishighly adaptable to the ever-changing consumer landscape.

The traditional platforms, generally consumed in the home,worked effectively as standalones 30 years ago, but things are verydifferent now. Innovation has transformed the world dramatically.For a start, people are more gregarious than ever before and don’tstay at home to entertain themselves. And with transport being farmore accessible than ever before, it’s easy for the average Joe to getto new destinations and environments.

Media should be about captivating individuals while they areengaged in their day-to-day activities, during those intervals whenthey have the time to absorb the message (which at its best shouldbe consistent and impactful). Enter new media, which does exactlythis, and which accommodates the changes constantly taking placein the media and advertising environment. What’s more, it offersoptions for clients that don’t have the money to invest in TVcommercials. In many instances, new media also offer exclusivity,enabling advertisers to dominate space away from competingbrands. The cost/value equation then becomes key.

It is absolutely true that new media depends entirely on innovationand creativity to drive its growth and its adoption by mediaagencies and clients. However, new media cannot be fly-by-night.The best performing media are those that are tried and tested.

When it comes to alternative and ambient media, we see greatcreative once-offs in international spaces, yet these are not consistentofferings. South African advertisers call for these types of innovations,but don’t immediately jump on great new opportunities. I canquote great examples of existing media types like bus shelteradvertising which allows wacky creative executions that will standabove the shelter, but clients shy away, often falling back to themore conservative offerings. A further example is how long itinitially took for clients to buy in to the building wrap advertisingconcept, which they initially saw as expensive when compared tothe 18sqm billboards on the sides of the road. Clients now clamourfor the medium, even though it is significantly more expensive onsheer rate but significantly lower when comparing cost per square metre. Consider too, washroom advertising, which nowincludes entire washroom wraps. This is cool stuff yet brands arestill nervous to step out of the mould until the first brand takes the initiative.

The ICC Champions Trophy, as an example, spent the majorityof its marketing budget on alternative media (new media), and isregarded as one of the most successful campaigns we have seen in SA.

Looking ahead to 2010, mall advertising is a fledgling business


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and edit well, we can build excellent sites that break news andprotect quality journalism. TimesLive, the online form of The Timesand Sunday Times as well as M&G Online are trailblazers here.

The greatest threat to media freedom is not an avaricious rulingparty but the decline in the depth of our journalism.

Old-fashioned newsrooms are still a bastion of good old-fashioned reporting through which people in power are kept ontheir toes and readers are given the information they need to makedecisions. Readers follow talent so those newspapers that continueto invest in and grow their own timber will continue to grow andthose that don’t wont.

Five newspaper trends I am watching in 2010:

� Daily Sun goes mobile� Moving blogs into print� New investigation units at Media24 and Independent Newspapers� Staff and management buyout of Independent Newspapers� My race for Sunday with my brothers Mondli Makhanya at the

Sunday Times and Makhudu Sefara at the Sunday Independent. �

Newspapers and beyond


By Ferial Haffajee, editor in chief, City Press

Every morning when I get to work at MediaPark in AucklandPark, Johannesburg, people fill the reception lounge suites.Obviously, working people, some look beaten up by the

world and older than their years. They glance at the Afrikaans daily Beeld or The Star that sit on

the coffee tables and grab the Daily Sun. These are Daily Sunreaders, the paper’s mascot of which is the man in the blue overalls,here to ask advice from the newspaper or to tell their stories. DailySun breaks every rule of journalism that I’ve been taught. Neitherobjective nor balanced, it campaigns against a variety of causes be itthe dysfunction of the Home Affairs Department, foreigners livingillegally in SA (‘aliens’ in Sun patois) and against crime.

It has reporters in corners of the country that the rest of themass media long ago gave up on as it clung, koala bear bear-like, tothe wealthy urban centres. The people who come to sit at MediaPark every morning are ‘Sun People’ for whom the paper is morethan just a newspaper – it is a friend, a community and it is localpower in a political set-up that allows very little local democracy.

In a corner of the foyer sits a man whose job it is to give adviceto Sun readers while Mr. Fixit vans drive in and out of our car-park– a home maintenance unit that goes out to Sun readers.

The Sun has redefined SA newspapers forcing those at oldernewspapers to sit up and take notice. In Cape Town, the DailyVoice is doing the same thing. The Independent Group-ownednewspaper writes in a language defined by the Cape Flats. It hasthrown every single grammatical rule out of the window andspeaks in the rough blend of English, Afrikaans and tsotsi taal thatis the language of the Flats. It’s got the same rough, straight-talkingattitude as the other side of Table Mountain and readers haveflocked to it, abandoning the sombre broadsheets.

Tabloids are the big news in local newspapers and they ensurethat print is still alive and well in SA. Nimble, rooted, risqué, we inthe broadsheets should tear a sheet out of their papers if we are tocontinue along a growth trajectory.

Like them, we need to stop seeing ourselves as newspapers alonethough our trajectory is somewhat different to becoming serviceproviders and advice centres.

For one, to survive, we have to get out of Johannesburg, CapeTown and Durban into the dorps and heartbeat of the country andto be relevant to its needs.

As newspapers move up the living standard measure, we have tostop viewing ourselves as newspapers because we have to beproducers of excellent journalism that is presented on differentplatforms, including online and mobile.

While 2009 promised to be the year of broadband, thegreenshoots only appeared at the end of the year and perhaps 2010will bring the promise of cheap broadband. That means the mediarevolution will accelerate and newspapers will begin to go intodecline as the centrepieces of media companies.

Without good websites to build reader communities andinteresting mobile iterations, newspapers will enter their museumphase. But the Internet, a revolutionary 40-year old innovation, isfilled with brilliance and also with almost infinite junk. If we curate


works is a special kind of information intelligence marketers need toget access to.

Building technology – it’s easier than you think. Publishers willingly handed over readers to the Internet and then foundthemselves reconsidering their future. They have forgotten thatbuilding relationships is harder than building technology, so identifypublishers that hire technology people, collaborate with them orbuy their companies. Those that stay ahead of the technology curvewill drive marketers’ ROI up and offer unique and creative ways forbrands to form part of the information stream.

Research driven – no business on the planet knows or is able topredict more about consumer behaviour than a publisher. Howinteractions and experiences influence attitudes, perceptions andbeliefs, that in turn drive engagement and ultimately impactconsumer behaviour is not only a publisher’s business but they alsohave meaningful influence over the whole process. Publishersinvesting in research about their consumers, their brands and thoseof their advertisers in a world where the need for the feedback loopto be increasingly complete are the ones that will add value tomarketers today and shape consumer relationships in the future.

Not every publisher can rule the world but the ones that lead thekind of fundamental change needed in this industry over the nextfive years might just make the shortlist, make sure you pick thewinners. �

Beyond magazines

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By Jonathan Harris, publisher, Thought24

Why some magazine publishers will rule the world… andhow marketers can spot the ones that might. Magazinepublishers run complex businesses that do something

pretty hard to get right, they entice a person to read, and do it sowell they love the experience and repeat the cycle over and overagain.

The next few years are going to be the real game changers for theindustry and how effective publishers are at making the right callsis going to directly impact returns for marketers. Those that aren’trethinking everything they do will not make it into the new mediafuture.

If publishers leverage the uniquely complex intellectual propertythey own about information gathering, filtering and delivery, andinnovate around it both off and online, they will survive and thrivein 2010 and beyond.

The litmus test for current innovation marketers should apply, isto ask publishers why they are online. Only do this if their onlinestrategy doesn’t involve Facebook or Twitter, because then theydon’t have a strategy. Most probably they won’t tell you about thefundamental need they have identified and are now fulfilling or theunique value add they are bringing to their offline readers, butmore likely they’ll say that’s where we thought you and your admoney were going.

The future for publishers hinges on a need for a fundamentalshift in the predominantly passive relationship they have withtechnology and how people are changing the way they useinformation and then consume brands.

Strategies must become more aggressive, for example, about howvertical the offline and online experience becomes, what informationpublishers use to drive this and how they increase their potential toinfluence it. This will require measurable returns redefining the waypublishers are benchmarked. Publishers must look to developingtheir accountability model, combining cost per thousand with acost per engagement measure spanning both offline and online, atough challenge but an inevitable one.

Information in the future will form measurable streams ofpersonalised content constantly adjusting based on need. Publishersmust define their role and then help marketers to become a part ofthat stream. Future big media players and the ones marketersshould be talking to now will establish a new media model with theunderstanding that consumers have access to more informationthan they can consume and that playing a role in the delivery ofonly the most relevant and targeted content is going to becomemore important.

Growth and increasing returns for marketers will come fromsmart publishers regardless of genre. Those to watch out for are:

Redefining what they do – they are not in the business ofpublishing but rather information intelligence. Those that aresimply uploading more content to the Web won’t make themselves or their advertisers rich but the ones shapinginformation streams and how they are consumed might.Understanding how the relationship between offline and online



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MB: Brands should not merely be focused on ‘traditional’ onlineadvertising as a model to reach consumers when they approach theNet. They need a holistic view which may encompass social mediacampaigns, viral e-mail campaigns, content creation, SEO and evenWeb development/site creation. These are all ways to ensure yourbrand gets out there and is noticed.

MM: Social media is a hot topic – your thoughts on whether ithas real value as a marketing/advertising tool?MB: Social media hold tremendous value for brands. Like in anyearly industry, there’s quite a bit of snake oil around. Marketersshould be wary of the hype and stick to their core values andprinciples when approaching social media campaigns.

On a social media platform, be authentic, personable and add realvalue. People don’t want to interact with banks on Facebook andTwitter, they want to speak to people at those banks – find a way todo this.

MM: What about digital media and innovation – what’s the link?And how can brands tap into this?MB: By its nature, digital media is evolving fast. If you don’tinnovate, the bus will pass you by on the information highway.

MM: What is the digital media landscape going to look like in thenext 12 months? Who is going to be online, and how? What willhappen to brands that are not digital savvy?MB: I’d rather look at a five-year period. Five years ago the industrywas practically unrecognisable from what it is now with blogging,Facebook, Twitter, You Tube. In five years’ time I doubt it will bethe same too. I suspect brands that are not digital savvy will findtheir medium-term positions eroded. It all depends on the brand’starget market and what its competitors are doing in this space. �

Digital media: we’re ready for it


Marketing Mix: How do you define digital media? Does itinclude mobile, or is it just online?Matthew Buckland: Any information that is transmitted viabinary is digital. Digital media generally these days refers to newsand information transmitted over the Net, regardless of themedium or device.

MM: What is the current state of the digital media landscape inSA? How do we compare to the US and Europe, and what doesthis mean for media and marketing/advertising?MB: SA is an underachiever when it comes to the Internet. Weshould be bigger than we are. For Web usage: we languish at number42 in the world. We’re not even the biggest Internet country inAfrica. We’re ranked fourth behind Nigeria, Egypt and Morocco –this, despite having an economy four times the size of our nearestrival, Egypt. But we’re also sometimes too hard on ourselves: Wehave double the amount of Internet users than developed countrieslike Ireland. We’re on a par with Switzerland, Austria, Sweden andDenmark. What I’m saying is that this is a significant market. Butit’s a market we know we could be doing much better in.

MM: What role is digital media playing in marketing andadvertising? Where does it fit in?MB: Digital media is one of the many ways to reach consumers’hearts, minds and pockets. It’s particularly effective at targetingprofessional individuals and is highly engaging and measurable asan interactive medium.

MM: Digital media is said to be a growing industry locally:where do you think most of the growth will come from? Where should marketers/advertisers be investing to see the bestlong-term returns?MB: It’s become somewhat of a cliche to talk about the tremendouspromise and potential of the mobile Web, but this really is themass digital medium of the future. The advertising model here isstill crude and needs to evolve. Some mobile sites are reaching bigaudiences – it’s just a matter of time.

MM: How will an event like the 2010 FIFA World Cup impacton the digital landscape in SA? What can we expect? How willpricing, audiences, etc be impacted?MB: FIFA is a demanding organisation that tolerates nothing butthe best. It’s already implemented innovations such as wirelessbroadband at stadiums.

MM: Are there any recent developments in the digital mediaworld that you think are going to have a positive impact formarketers/advertisers?MB: The unrelenting march of the mobile platform.

MM: Which are the top five digital platforms or tools, that youthink local brands need to start familiarising themselves with (if they have not already done so)?

Matthew Buckland, founder and head of 20fourlabs


change their spending patterns, the use of sampling and face-to-face methods are vital as they do not have the propensityfor spontaneous trial and error

� Value-for-money propositions are more important than discountingor cheap alternatives

� To understand the commuter, you need to immerse yourself inthe environment. The best insights are obtained by experiencingwhat the commuter experiences on a daily basis.

To invest in this market wisely, marketers need to understand thatthe various media types available offer the ability to interact withdifferent segments of the consumer market as well as allow theability to run campaigns varying from brand building to price andproduct promotions.

A popular topic at the moment and one that has greatly impactedthe way marketers think is the anticipated effect the 2010 FIFAWorld Cup will have on the commuter marketing media landscape.Certain media types, such as airport buses and cabs will certainlyenjoy some additional attention. But, I do not believe that in viewof the current public commuter setup there will be any significantupswing here. I think also that many ongoing marketing campaignsmay be nervous of World Cup clutter. �

Commuter media:ever changing

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By Kevin Kirby, chief operating officer, ComutaNet

For the past few years SA has experienced significant changesin terms of transportation and the upgrading of commuterhubs. Many of these structures have been rebuilt into modern

facilities which has allowed for the formalisation of old improvisedranks. In addition to this, as South Africans, we have also seen theemergence of specific commuter modes. In Gauteng we have seenthe advent of the Business Train, BRT, Pretoria to Johannesburgbuses. There is also the forthcoming Gautrain. This changinglandscape has left the commuter industry with many long-lastingchanges that are set to have a profound impact on the waycompanies market to this segment of the market.

As a result, there are many new opportunities for companies interms of new ‘canvas’ platforms where advertising can be placed.Marketers now have the opportunity to take advantage of thissituation and ‘own’ different new media options. These new optionsallow for a digital advertising space to emerge regarding out-of-home(OOH) media. Internationally, the concept of a digital OOHlandscape has largely been accepted and widely adopted by theindustry successfully featuring in places such as airports, and on busshelters, buses and taxis. Research into what consumers react to hasresulted in the birth of the digital age, with more consumersresponding positively to moving billboards than to the statictraditional mediums.

With this media landscape in mind the future of the localcommuter and the commuter market is set to change quitesignificantly over the next two years. The addition of new modes oftransport and upgrading of facilities means that more upper LSMconsumers may be encouraged to use public transport. Thisgovernment initiative to provide South Africans with safe, accessiblepublic transport will have a positive impact on the commutertransport industry. Investing in public transport infrastructure hasbeen emphasised at national, provincial and municipal level as anaspect that requires immediate attention. Thus, with publictransport becoming a more accessible and cheaper alternative,combined with rising living costs, the stigma associated with publictransport being used by only bottom-of-the-pyramid consumers hasbecome somewhat of a white elephant. Gone are the days of raceand ethnicity label consumer behaviour and buying patterns.

In the face of this ever-changing environment, marketers need toprepare for these changes and the best way to do so is throughconstant research. According to a recent study conducted by FreshlyGround Insights, a few key market insights were gained about whatto keep in mind when marketing to the South African commuter:� Partner with people who understand the market� Don’t underestimate the spending power and sophistication of

the market� Commuters are extremely brand loyal. Should you wish to



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utilise current, extensively used, campaign-noting and effectivenessresearch tools.

Coming off a soft 18 months, the market will set new rates aheadof the 2010 FIFA World Cup. Given FIFA’s marketing regulations,enforceable in all major host cities and on key routes, the industrywill take a pragmatic market opportunity position to ensure that itdoesn’t hurt loyal clients but, at the same time, capitalises on thecommercial opportunities presented by this once-off opportunity.Certain formats and locations will attract premiums, as driven bymarket demand. It is certain SA will host visitors/audiences tomatch the adspend investment in the World Cup.

Good outdoor creativity is based on simplicity, brand equity,colour contrast and legibility. It must be engaging, bold in size andshort in copy. In addition to these traits, great outdoor creativityand execution, and locations generating exceptional environmentresponses are elements media planners and marketers shouldconsider essential. Striking creative and worthy innovation shouldcompletely overcome and eliminate clutter.

Leading up to 2010 and beyond, marketers should be investing inout-of-home media solutions that can demonstrate both delivery ofdesired target audiences and response to the communicationstrategy. This may require collaboration and synergies with other effective media platforms. With audience fragmentation on the rise, media integration or collaboration will underpineffective reach and frequency of out-of-home audiences, especiallyin urban markets. �

The remarkable outdoor advertising evolution


By S’khumbuzo Nkosi, CEO, Primedia Outdoor

Historically, and in its traditional form, outdoor advertisinghas been leveraged by marketers to reach middle- tolower-income audiences in urban townships, peri-urban

areas and rural settlements, especially along stadia, transport nodesand reserves.

Post 1991, and aligned with SA’s democratisation process,outdoor advertising exploded into more affluent communities,providing marketers with new upper-end audiences. Johannesburg,at the forefront of innovation in these markets, approved innovativenew media platforms, including illuminated spectacular billboards,LEDs, 3D and product placement on billboards.

Until recently, the strong growth in outdoor advertising hasbeen underpinned by new market opportunities and globallycompetitive innovation. Although outdoor’s market share grewfrom three per cent (in the 1990s) to five per cent in 2006, it hasretreated to 4.3 per cent on the back of the global recession.

Today, and probably as an ongoing reformed standpoint,outdoor advertising is unlikely to be confined to billboard space inthe traditional format, but will become integral to out-of-homemedia through a plethora of innovative formats and new media.Audience fragmentation, speed to market, flexibility and qualitativeresearch tools measuring media ROI will drive outdoor growth andaccountability. Post the 2010 FIFA World Cup, the pace will falterbefore growing market share as an out of home, rather than anoutdoor, media platform.

The increasing mobility of growing middle-class audiences andbeneficial public transport infrastructure developments offerexcellent growth prospects for the out-of-home sector. In light ofthis, out-of-home audience solutions, broader than, but includingbillboard marketing in its ambit, will be the way of the future.

With these growth opportunities in mind, it must be stressedthat the absence of an outdoor measurement tool does injustice toa largely cost-effective medium. To correct this inadequacy, theoutdoor industry in partnership with SAARF and AC Nielsen, isclose to launching an outdoor measurement tool comparable toother traditional mediums such as TV, radio and print.

Over the past five years, outdoor’s media inflation hasconsistently averaged below ‘All Media’ inflation. The outdoorindustry is firm in its assertion that certain markets and formats areundervalued – particularly in view of the extensive reach andfrequency achieved. The introduction of an outdoor research tool will insert this inherent value into audience perspectives anddrive accountability.

The broader outdoor industry has organised itself under theauspices of the Out of Home Media Association of South Africa(OHMSA), a self-regulatory body representing about 80 per centof outdoor spend. One of the association’s core objectives is tobuild and promote the credibility of the outdoor medium to allstakeholders to grow market share responsibly.

The methodology and research tool under local developmenthas built-in factors and elements that will qualify the ‘opportunity-to-see’ measurement. Local conditions and the environment,coupled with outdoor format types, should be factored into thedevelopment of ‘opportunity-to-see’ formulae. In combinationwith the new research tool, many industry players will continue to

19/10/2009

I’m waiting for the 6am flight from Durbanto Johannesburg sitting in the airportlounge, black coffee in hand and pagingthrough the mock-up of the new look Ilangathat I’m going to present to big agencies andclients. I use my time on the flight to readthe research report.

When I arrive OR Tambo InternationalAirport (ORT) is abuzz with businesstravellers. The long queue at the Avis countermakes me think how convenient it’ll be toland at OR Tambo, jump onto the Gautrainand be in Sandton in 10 minutes!

Arrive at Ads24 an hour later, and wepresent to three agencies and one directly tothe client. The response to the new the lookIlanga is overwhelmingly positive. Afterheading to the B&B, replying to e-mails andreturning calls, I freshen up, put on mySunday best to attend the GQ Best DressedMen Awards. I reminisce with Yfm’s DJ Sbuabout our days at Ukhozi FM.

20/10/2009

I wake up to an exceptionally good breakfastat the B&B! I’ve got four presentations linedup and I get through my first presentation.My plan to forgo PowerPoint slides workslike a charm. At the second meeting, I gettangled in debate about an ad for traditionalmedicine in the mock-up of Ilanga. I discoverthat there are still serious misconceptionsabout the cultural lifestyles of black people.After the last presentation the traffic out ofSunninghill to the N3 is spectacularly thick.Two and half hours later I arrive at ORT.When is the Gautrain coming?

21/10/2009

Back in Durban, my day starts with abruising session to review the budget for themarketing that supports our launch of thenew Ilanga. No bells and whistles – just theelements driving awareness and circulationget a tick

Then my day gets an unexpected lift; apublisher of a high-end magazine is receptiveto our advances for a partnership with theircompany’s online portal. They request ameeting. For the rest of the day I immersemyself in figures, sales performance, forecastsand paper sales. What I see necessitates


11

some urgent escapism so I bookan early evening movie.

22/10/2009

I’m taking my roadshow tosome agencies in Cape Town.The cleverly scripted Kulula in-flightannouncements have me in stitches.

Upon arriving I meet withthe Ads24 team and takethem through the revampedIlanga. Everyone isexcited. I’m encouraged.The Ads24 team takeme to another agencywhere I meet a longlost friend who offers asundowner and a catchup. I relax at a calm,cosy tranquil B&Bat the foot of themountain. I squeezein a read of ourholding company’sannual report thenend my day with ablissful dinner at afriend’s place down the road.

23/10/2009

Still in Cape Town, I take an early morningwalk and enjoy an outdoor breakfast. ThenI’m back at Ads24 fielding interestingquestions from Media24 colleagues andwe’re off to present to a big agency.

I learn that there is a media guru in theaudience and we must be very pleased if weget good feedback from him – and we do!

But my delight is short lived. Twocancellations later and I have no luckcatching an earlier flight back to Durban; Itweet about my dilemma and a childhoodfriend gets in touch. We have a good mealand a laugh reminiscing about growing up herding cattle and goats in the lushmountains of the KZN Midlands.

26/10/09

I’m in Durban and back in my routine. Alarge retailer that we have been courting fora while is trying out Ilanga. Then I’m

invited to sit in a briefing session for anoutdoor media supplier. The supplier getsreally persuasive about how outdoor ‘outsizes and outshines’ print. The rest ofthe day is spent on correspondence andadmin for the launch.

28/10/09

I can’t finish my usual 10km run becauseof stomach cramps. But I end up runningfor the rest of the day. I’m late for my 8amweekly circulation meeting. I get to see thefirst creative for the launch campaign; it’slooking good. A few tweaks here and there.I love a creative showcase that emphasisesdriving business objectives.

I meet with Ilanga’s MD about thepartnership with the high-end magazineand he asks some tough questions, but inthe end we find consensus.

As I finish my day, I remember someoneoffered me a ticket to see This Is It. I loveMichael Jackson. �

7 day [B]itch

Mlamuli waka Nxelegeneral manager, CommercialDivision, Ilanga News

Richard Duncan

The Partnership, Sydney, Australia

[email protected]

+61 411 549 791


12

Comparing appleswith apples

Expert opinion

The growth of Apple has been morethan impressive and meteoric in itsnature. From the humble beginnings of

the Mac Classic two decades ago, to the morerecent array of Macbooks and the iMac, thegrowth in popularity of this enigmatic brandand technology icon has been nothing shortof astounding.

Not only has the presence of thesedistinctive machines literally spread like avirus throughout the business world, but theownership figures of Macs in the home aremind blowing. Fanned by a noticeablepresence in most blockbuster movies, theiconic illuminated white apple has shonedirectly into our living rooms across literallymillions of flat screens. This, at a time whenthe music industry has been revolutionised byApple’s iPod and the mobile phone industryinvaded by the groundbreaking iPhone.

I am in awe of this brand and its founderSteve Jobs. I have been so enamoured by thisbrand that I have purchased two Macbooks,one iPhone, several iPods, countless softwareproducts and accessories and, more recently,one of its bigger iMacs. Not withstanding theodd technical honeymoon hitch with theiPhone, my marriage to this King of brandshas been extremely enjoyable. Up until nowthat is. Recently, it has become clear to methat my honeymoon with this brand has sadlycome to an end.

Don’t get me wrong; I still love Apple andits products and I plan to continue using eachand every one of those that I own and willprobably buy many others in the future. Thatsaid, whereas I was the blushing giggling bridebefore, now I am the cynical, critical and highlysuspicious once bitten, twice shy partner.

It didn’t help that with my own eyes Iwitnessed the myth-busting disassembly ofmy iMac by one of its accredited productspecialists on two successive occasions.Despite replacing three major parts to try torectify a debilitating problem which preventedme from using my precious iMac, the problem

persisted. The plain truth is that it isn’t right tosee your iMac without its face and body. It’slike seeing Terminator without its body armouror witnessing your child’s birth from thebusiness end of the delivery table!

Until then I had happily lived in the world ofromantic illusion that surrounds this giantamong giants. I must confess that I could see itdoing no wrong, but I have now seen theirwarts, fillings and failings and am left deeplydisheartened. Make one call to their call centreand you’ll be impressed; after the third, fourthor even the fifth call, you grow tired of thesame repetitive questions from their people, thelong waits and successive platitudes. Every newcall centre agent brings with them ‘Ground HogDay’, and it feels that you have to start the storyall over again! The 10-minute wait to speak to themafter being cut off doesn’t help much either.

The imagery I had previously associated with them, of freshness, simplicity, speed,commonsense and perfection has been replacedby a general lack of confidence which has sincereverberated across all their products to such anextent that I am starting to spot potentialpitfalls and problems in the other products Iown. It just goes to show that no-one at the topis far from the bottom, nor is anyone exemptfrom the backlash of customer disappointment.I will probably just have to console myself thatthey are better than most, and thus the bestchoice out of what is otherwise sometimes abad bunch. The measure of their recovery, andalso of their brand strength will be in the mannerin which they attend to my concerns andcomplaints over the next few days and weeks.

Hopefully, I will come through thewilderness with a renewed sense of faith inthem, that they shall once again become theapple of my eye and remain my daily dietaryprescription to my peers for their technologicalchallenges and problems. I truly hope this willbe the case, but if the old adage holds true thatthe apple never falls far from the tree, thefuture looks bleak as the alternatives, in myeyes, truly look rotten to the core. �

Can one bad apple ruin an entire shipment? Somewould say not, but I would beg to differ.


13

There is less unwanted mail in consumers’mailboxes, which makes the DM piecesthey do receive standout. When consumersdo read direct mail, they tend to only openmail from advertisers with which they arefamiliar. That challenge, combined with theexpense, and the fact that many retailersare still only beginning to think aboutCRM, presents an opportunity formarketers who view direct mail as an integralpart of any successful CRM programme.

One of the most challenging issuesdirect marketers face is the necessity to testand measure prior to continuing with acampaign. It is difficult to plan an annualvoucher campaign when you need theresults of the first campaign in order toanalyse and understand what worked andwhat failed, where the best return oninvestment is and which data segmentsshould never be mailed again. Technologyobviously plays a major role in this, buteven today, we find organisations stilloperating on legacy systems and age olddata. A leap of faith from past experiencesand learnings from the industry can assistin making decisions that may in the endyield positive results.

During a recent trip to the UK, I visiteda number of stores I wouldn’t haveordinarily, including Boots, M&S and JohnLewis. At point of sale, I was askedwhether I had their loyalty card, and eventhough I did not, a number of POS voucherswere issued to me at the end of my tillslips. I couldn’t help but wonder whathappened to the multitude of shoppers likeme, who simply tossed the till slip and thevouchers because they are irrelevant, or hasthat methodology become a hygiene factor– that is it’s the bare minimum consumersexpect even when they don’t have a loyaltycard? I spoke to one store manager whoexplained that it is a spray-and-pray-methodit has reverted to because it seems no oneis responding to its tailor-made e-mailoffers anymore.

Back to basics seems to be a good tacticat the moment, especially if few of yourcompetitors are doing it. You have theopportunity to grab the high ground andthe emptier mail boxes, and make astatement to your existing or potentialcustomer. Just make sure you engage withan agency that can excite and delight therecipient or your pricepiece? will trulystand out as junk mail. �

Direct marketing

Nici Stathacopoulos

head of Retail/WFS Integration and

Rewards Project, Woolworths

[email protected]

Expert opinion

Goodness, what a very boring titlefor an article. Let’s rephrase – doesany one out there know what direct

marketing is anymore? When I started my career, direct marketing was thecommunication channel you used to talkdirectly to customers. There were twochannels: mail and telephone (inbound andoutbound). We had statement stuffers andsolus mails and inserts in magazines; we had newsletters and, if necessary, someoutbound calling… And we did it well. Wesegmented, we sliced and diced our data andwe measured our responses… Our jobsdepended on measurement.

Recently, I sat through a very interestingpresentation where the speaker showedsome statistics from the UK – all advertisingspend was dramatically down, ‘DM’ by 5.5per cent yet ‘Internet and Internet Media’were both up. What I am trying to definenow is what has direct marketing become?For me, all the channels that are nowavailable are still direct marketing as long asthey are direct communication to thecustomer on a one-to-one basis, whichincludes e-mail and mobile messaging. It’sstill marketing directly, it’s just quicker,possibly even better segmented and can bemeasured far more scientifically. So if this is true, how can expenditure on directmarketing be down? I’m puzzled.

On a more positive note, I am findingthat some corporates in SA are truly engagingin great direct marketing; finding innovativeand collaborative methods of cuttingthrough the communication clutter andensuring consumers are willing to receiverelevant messages. Anecdotally, I’ve heardfrom several large direct marketers that theyhave renewed interest in mail because somany others have dropped out of the game.

“Back to basics seems to be a

good tactic at the moment,

especially if few of your

competitors are doing it.”

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TV

15

The future of TVMMX: Repeat content is an irritant – do you think this will changeanytime soon?VH: There will always be repeats or reruns. Viewers do notunderstand that when stations buy international content, especiallymovies, they buy the right to an initial broadcast in prime time andthen subsequent broadcasts off peak.

Also stations buy one blockbuster and with that come a packageof other titles. This is the only way that advertising during filmsremains affordable. I think we also forget that as we’ve already seena series or movie, it doesn’t mean that everyone has; this isparticularly true of M-Net and DStv viewers. We tend to forget thatmost households don’t have access to M-Net or DStv. Thereforerepeating local content is something stations have to do to amortisethe costs. It is terribly expensive to produce local content andinvariably stations cannot get their money back from just onebroadcast; a repeat helps bring in additional revenue to cover thecost of production.

It is also extremely difficult to fill a 24-hour schedule. If we lookat the five major broadcasters (SABC 1,2,3, M-Net and e.tv)between them they have to fill 120 hours of programming a day or


Marketing Mix: What will the local film and TV industry look likein 2010 and beyond?Virginia Hollis: It’s difficult to predict what will happen to thelocal film and TV industry, but I would like to believe that localproducers will find ways of releasing cheaper content because thestations are going to need a lot of material. If you look at countriessuch as Nigeria (Nollywood) and India (Bollywood), while theyeach produce expensive extravaganzas, they also produce volumes ofcheaper, entertaining shows.

MMX: Reality programmes are big with viewers; will this trendcontinue?VH: Reality changes all the time. The icons – Survivor, AmazingRace, Idols, SA’s Got Talent – are never going to go away as they areserious talent shows.

Shows such as Big Brother and the Biggest Loser will lose viewerinterest after a while. As a genre, reality shows are here to stay butonly the iconic ones will keep going. Therefore producers will needto come up with sillier ideas; I think we’ve only touched the tip ofthe iceberg when it comes to ‘silly’ concepts!

Marketing Mix chats to Virginia Hollis, joint managing director, Sandton, The MediaShop, about

the local TV industry.


16

TV

43 800 hours per annum. Factor in DStv channels and you’re addingover another 150 000 hours!

MMX: Will the introduction of new TV stations impact the wayprogramming is done? VH: It certainly opens up opportunities for the SABC to have adedicated sports and news channel. There are a lot of variationssuch as kids’ channels and specific languages, but stations are goingto have to be realistic and look at the costs. I’m sure that thestations have already put in a lot of work on what they can and willdo with their additional stations.

MMX: Do you think digital migration will have a major impact onTV in South Africa? VH: We’ve already got problems with niche audiences on DStv;digital terrestrial TV (DTT) will amplify this. At the same time itwill offer a lot more opportunities such as split transmissions sothat advertisers can broadcast exclusively to a KZN audience, forexample.

MMX: How can planners start preparing for the new TV channelsso that they can be available with the digital migration?VH: This is difficult to answer as we have to play the waiting game.It will take time for the new channels to be rolled out as thestations cannot afford to launch lots of new ones once the set topboxes are released. This will help media planners as we won’t haveto contend with 10 new stations at the end of 2010 or early 2011.

There is also the problem of tracking audiences. There wereissues with DStv, not having sufficient representation on the panel,hence the introduction of iPanel. So we’ll see the same problemwith the introduction of the new DTT stations – the main peoplemetre panel is not large enough to include these new stations.

MMX: How best can marketers leverage the opportunities thatcome with digital and high definition TV? VH: I think that there are going to be many opportunities. But afirst question that needs to be answered is how much is going to becharged to a) Produce a commercial for DTT and b) How much isgoing to be charged for regional advertising?

MMX: Will the digital migration have any impact on advertisingrates?VH: There will be an impact but the initial impact will be on themacro strategy – who is the target market? How are you going touse TV? Once you have these answers you can then start lookingat cost effectiveness. It’s going to be a case of which media is morecost effective/impactful/efficient – TV, radio, print or outdoor?TV no longer has to be the national purchase that is supportedregionally by other media.

MMX: Is TV 2.0 a reality in SA? VH: For certain households, TV 2.0 will be a reality far sooner thanI think any of us realise. But for the vast majority there will be aconsiderable wait.

MMX: Should marketers start planning for mobile TV?VH: SA promised FIFA that mobile TV would be available in SAduring the 2010 World Cup. I know that M-Net has piloted mobileTV for the last two years and it does work. For me the tricky thingis the size of the screen. It’s very hard watching TV on a screenthat is so small – but if you are young, have great eyesight and aredesperate to watch everything now, then of course you will use it. Ido think that it is going to be expensive. In addition as far asadvertising goes it will happen, but I assume there are a whole lot ofchanges required to get a spot to run properly on mobile.

MMX: Is there any chance that community TV will grow? VH: We haven’t seen advertising on community radio take off andthe same applies to TV. It is a ‘nice to have’ but not essential andunfortunately the programming is not as engaging or compulsive asnormal terrestrial/satellite TV. If this could be changed then itwould be different. Still there is always room for community basedmedia; it’s just never going to be as important to media people asnormal TV.

MMX: How best can advertisers tap into the mindset of viewers atcommunity level?VH: Involvement in programming is important here. Allowingadvertisers to sponsor or integrate into programming is far moreeffective at this level than straight advertising. For example a serieson hygiene can feature advertisers in each episode such as washinghands (Dettol soap); cleaning teeth (Colgate); and drying betweenyour toes (Johnson’s baby powder). It can be done inexpensivelyand these programmes are useful and are extremely important to allwalks of life. Let’s not forget the value of educating youngsters atschool as well.

MMX: Will TV stations start to consider user generated content aspart of programming strategies?VH: I don’t believe that mainstream TV will use this, except whenit is integrated into a bigger platform, such as in a reality showwhere content is produced for a cellphone then showcased in amaster show. I think that it is a bit risky letting people live streamstraight into your show – imagine what would be sent through! Itobviously works on stations like MTV because shock value worksfor that particular audience. �

Virginia Hollis, joint managing director, Sandton, The MediaShop

This column is written from a mobile office (not thecellphone or PDA kind, but the four-wheeled buskind) and as I start this, I am being driven past the

impressive Soccer City stadium and my heart starts beating alittle quicker.

So while traffic on the Soweto highway is bumper tobumper and everyone is moving in first gear, the constructionworkers are in sixth and are working hard to ensure thatSouth African roads, stadiums, hotels etc will be ready fortourists next year.

SA, according to Sepp Blatter, president of FIFA, passedthe Confederations Cup test and scored seven out of 10. Didthe Confederations Cup examination results ignite an adver-tising furore? And the impressive pass mark, did it lead to thelaunch of new clever and brand activation campaigns? Are thelocal soccer media houses bombarded with advertisers whowant to book space in their publications and also learn moreabout the local consumer? Have brands started looking forthose marketing gems that would set them apart in the buildup to and during the 2010 FIFA World Cup?

It doesn’t seem so.So this Soccer Marketing Guide is filled with content that is

all about the beautiful game and next year’s 2010 FIFA WorldCup. The aim is to give marketers insight into the local diskifan, how they consume media and brands, and the passionthat drives them to blow their vuvuzelas. There’s the legalstuff, a look at available media and an all-important resourceguide.

I am excited by 2010, and if you look hard enough, don’t break FIFA’s rules and are creative enough, there are manyopportunities for marketing and advertising campaigns to fly before, during and after the 2010 FIFA World Cup.

It’s now time for soccer mania to reach fever pitch for South Africans and brands need to start pushing hard. �


20

Soccer Marketing Guide

Inside the mind of a diski fan


21

they have paid US$30m (about R226million) and Telkom US$36m(about R272million).

According to Dr. Dean brands that are not official FIFAcommercial affiliates have very little opportunity to take directadvantage from the 2010 FIFA World Cup. Through creativitymarketers can still find ways to sell their products to consumers


Once the final draws for the FIFA 2010 World Cup havebeen made on 4 December 2009 and the vuvuzelas start toscreech, all major marketing campaigns by some of the

world’s largest advertisers will come to life. The world governing body has made it its priority to safeguard its

sponsors who have paid a lot of money for the right to use theWorld Cup as a marketing vehicle. FIFA is dependant onpartnerships with commercial affiliates to stage an event the scale ofthe FIFA World Cup. A large amount of the advertising spendaround 2010 is limited to official FIFA sponsors, and a large part ofthat goes FIFA itself.

Using FIFA or 2010 World Cup trademarks without authorisationconstitutes a criminal offence under the Merchandise Marks Act,Trade Practices Act and Copyright Act and the Counterfeit GoodsAct. According to Dr Owen Dean, an attorney who acts on behalfof FIFA’s intellectual property: “It is also a civil infringement ofcommon law rights to pass-off products or services as part of theevent; as well as unlawful competition and a breach of theAdvertising Standards Authority code.”

The legislation introduces measures that prohibit the use ofwords in ad campaigns such as 2010 Soccer or World Cup, and thepresence of unaccredited advertisers within a three km radius ofhost stadiums.

The sponsorships are structured into different layers. The onlySouth African company among FIFA’s first-tier partners is MTN,adidas, Coca-Cola and McDonalds – each one is paying US$65m(about R491million). Second-tier SA sponsors include FNB and

“It is also a civil infringement of common law

rights to pass-off products or services as part

of the event; as well as unlawful competition

and a breach of the Advertising Standards

Authority code.” – Dr Owen Dean, an

attorney who acts on behalf of FIFA’s

intellectual property

Kick off your 2010 marketing effortsKick off your 2010 marketing efforts

Picture courtesy: Soccer Laduma


22


during the World Cup period, as Dr Dean explains: “An advertisingcampaign referring to football in general terms does not constitutean unauthorised association, unless it makes use of FIFA and WorldCup trade mark symbols.”

Kulula is not an official sponsor of the World Cup and haslaunched a R12-million multi-platform advertising campaign forprint, TV and radio. The airline company initiated the campaign in2009 for the duration of the Confederations Cup but the campaignwas not in contravention of the law. It showed the South Africancolours taking to the skies with the radomes (nose cones) of theentire fleet resembling soccer balls.

Garments with general football terms and images, or terms andimagery relating to South Africa, without an associated allusion tothe World Cup do not create an unauthorised association. In-storedecoration with general football-related terms or symbols or termsor symbols related to South Africa, without any reference to the2010 FIFA World Cup, is not prohibited.

Dr Dean advises marketers: “In the event that marketers wish touse an opportunity presented by the hosting of the 2010 FIFAWorld Cup in South Africa to sell products or services, they shouldeither seek a licence from FIFA; enter into some form of cooperationagreement with an authorised sponsor or licensee; or market andsell products in the normal way and seek to capitalise on theenhanced commercial and business activity during the tournamentperiod.”

The FIFA Public Information Sheet has more information on thevarious useful examples of when FIFA’s marks can safely be used.The booklet can be downloaded from the FIFA website.http://www.fifa.com/mm/53/42/06/2010_fifa_public_guidelines_en_260908.pdf.

“Anyone interested in knowing more can consult the officialFIFA guidelines regarding what is permissible marketing during thetime of the World Cup. The rest they should seek advice from their

“The situation regarding advertising on

protocol routes is still unclear as FIFA is

advising the out of home industry one

thing while the bylaws promulgated by the

cities are contradicting FIFA’s advice. The

Johannesburg City Council has agreed that

it will obtain confirmation from FIFA with

regard to the actual state of play.”

attorneys,” says Dr Dean. The hotel industry is able to takeadvantage of the shortfall of rooms required for the event.Accommodation providers can market their services freely tovisitors to the country during the World Cup, “But they must notrelate their marketing efforts to the World Cup. They can rathercapitalise on the demand for accommodation at the time, to provide accommodation facilities in South Africa in general,” saysDr Dean.

He also says that in due course fan parks will be organised andthere may be some facility for non-official FIFA affiliates toparticipate.

According to the CEO of VWV, Abey Mokgatswane: “There isstill opportunity for those who are imaginative enough to promotethemselves and their products, while at the same time beingcautious not to infringe legislation.”

“For example start an inter-company soccer league, have brandedfootball competitions or host large-scale events such as family fundays and fan fests where staff, suppliers and other stakeholders areinvited to watch the game. These can all be branded under anumbrella of clever opportunistic marketing, while not ignoring thatsuch events can boost relationship building and networkingopportunities,” says Mokgatswane.

No match ban for non-ticket holders

World Cup match attendance is not limited to ticket holders; fanparks and public viewing places will aim to pull in fans that do nothave tickets.

These parks will be situated in central areas to allow public easyaccess and entrance will be free. In Johannesburg Mary FitzgeraldSquare in Newtown has been earmarked as a fan park and InnesfreePark in Sandton will be a public viewing area. The Durban BeachFront is also anticipated to be a fan park.

“Details pertaining to these venues are not yet available. Brandscan simply rely on increased commercial activity during the periodof the World Cup to expand their markets,” adds Dr Dean.

Matthew Gertenbach, marketing executive for Megapro says:“The opportunity to ride on the hype of the 2010 FIFA World Cupis to advertise at all Bafana Bafana team games leading up the WorldCup. Fans will always develop a passion for a sport when there ishype around the event where the team is participating, and evenmore so for an event of this proportion.”

The bylaws gazetted by all the World Cup host cities preventcompanies that are not official sponsors of the 2010 FIFA WorldCup from advertising on billboards on protocol routes. The bylawsrequire non-official sponsors of the tournament to remove theiradvertising 15 days before the tournament until five days after thetournament has ended.

This rule has created uneasiness with outdoor advertisers as itstands to lose revenue.

In response to this Out of Home Media South Africa issued astatement warning its members that intend to advertise on any outof home media during the period preceding, during and post theWorld Cup to have their advertising content pre-cleared eitherthrough media owners or the FIFA Local Organising Committeeoffice.

“The situation regarding advertising on protocol routes is stillunclear as FIFA is advising the out of home industry one thingwhile the bylaws promulgated by the cities are contradicting FIFA’sadvice. The Johannesburg City Council has agreed that it will obtainconfirmation from FIFA with regard to the actual state of play,”announces the statement. �


23

sustain their pre-2010 soccer investments post 14 July 2010. Forexample will Hyundai keep the naming rights of Hyundai Park inSoweto, or will McDonalds continue investing in the soccer spacepost the World Cup? The fact that ABSA and Vodacom recentlyreceived the highest brand recall rate (BMI statistics 2009),underpins the importance of long term investment in the sportsmarketing arena.

It is important to keep in mind that as with any opportunity itcan be reworked and remodelled in such a way that your objectivescan be met. Remodelling is executed best by experts in the sportsmarketing field and is identified by knowing who to deal with andhow to implement to the end result.

Once the client is comfortable with the proposed property andthe Making Sport Count matrix or similar vehicle has been madeuse of, all that is left to do is for the client and agency to implementthe campaign, sweating out each and every sponsorship correctlyand ensuring that all that you do is measured – whether it bethrough online surveys or exposure reports.

It is imperative that the clients’ objectives be kept in mind at alltimes as it is this that one measures against and ultimately definesthe success of any campaign. �

Measuring effectiveness of sports sponsorship


Signing off a sizable budget for a particular sponsorship can bedaunting. However in using a comprehensive strategy, athorough implementation plan and in-depth measuring tools,

any fears should be erased and opportunities embraced.Results consistently show a significant return on investment in

the use of sports as an effective marketing tool, which is firmlyestablished worldwide. There are a number of vital elements thatmake up a successful sports marketing campaign. Prior to securingrights, it is essential that an all-inclusive strategy is formulated andthat ‘Chairman’s Folly’(when a brand sponsors a particular sportbecause it is the first love of the CEO or chairman, and does notnecessarily fit with the brand or its objectives) is avoided. Thesetting of the business or its respective unit’s objectives is a taskthat we believe is critical to the success or failure of a campaign andthe important measurements of that campaign.

There are a number of tools to assist us in establishing theobjectives of a campaign, the relevance to the brand and ultimatelythe benchmarks which we will use to measure the success of acampaign.

The first tool that assists us is the Making Sport Count Matrix –a template where each potential opportunity is filtered and testedagainst the clients’ specific objectives. One cannot comprehensivelymeasure the success of a campaign if you are not 100 per centcertain of what you are measuring against. Whether it be theobjective of increased staff morale, sales leads or brand awareness,all areas are rated in terms of importance, which assists with furthermeasurement tools that need to be set up to ensure the perfectstrategic fit.

The second tool which can be used in relation to measuring thesuccess of the campaign is the use of a media tracking company. Forexample BMI and Newsclip provide in-depth reports that highlightwhere and when your brand features as well as the value of beingfeatured. These research companies can also provide historic data ofthe event and so providing a benchmark for your campaign.Knowing this information is pivotal in the planning and support ofa detailed marketing campaign in and around the sponsored property.Another benefit is of research companies is uncovering whether theproperty receives the promised exposure.

To support this data we recommend conducting surveys beforeand after the campaign. Direct marketing research companiesprovide sample response and recall rates with new respondents orthe same sample before and after the campaign. This allows us tounderstand the impact and ‘mindshare’ the brand has secured duringthe period under review.

We have found that once-off campaigns are never as beneficial asthose which continue for several seasons. Keeping 2010 and ‘soccerfever’ in mind it will certainly be interesting to see which brands

By Neil Jankelowitz, joint managing director, MSC Sport


24

For the mobile Internet, advertisers can seek packages to linkbanner or text ad campaigns to a live match commentary across theentire service or choose a particular team or a league/competitionfor the brand to be associated with (depending on the targetmarket). For example, an advertiser may take up a Kaizer Chiefspackage and run a campaign to focus on the live match commentaryand news for that particular club, therefore targeting the direct fansof a particular club.

A ‘push’ example is the delivery of live match SMS updates to the fan. The branding and sponsorship of live match SMS updates is a powerful way for advertisers to reach the target market and solicit measurable cost per click or call to action traffic for their campaigns.

Similarly MMS match reports and videos can be ‘pushed’ to therecipient and used as an advertising channel to drive branding andcall to action campaigns. Because recipients opt into receiving theseupdates, the advertising can be packaged in a way that it is seen tobe adding value to the user. Therefore instead of being intrusive itbecomes part of their personal football experience.

It is crucial for any advertiser or sponsor looking to reach thismarket to carefully consider implementing a strategy that will link acampaign to all the elements of the mobile football experience. Themobile opportunities above present a way for brands that are not indirect football sponsorship to get into the football market in aninnovative way and gain brand affinity in the industry through theopen market route that mobile presents. �


Mobilise your brand

The good news that every African wants to hear is that the2010 FIFA World Cup is only a few months away. The badnews is that all traditional advertising platforms have been

booked. Outdoor, print, TV media have all been sold out for theJune and July 2010 period.

However a platform with the most eyeball power and the onewith the most measurability is still available.

It is estimated that there are about 416 million mobile users onthe African continent with South Africa contributing 37 million ofthese. This creates a platform for cellphone to be used as a ‘remotecontrol’ to turn these customers onto your brand.

Football fans tend to support a number of teams, one in theSouth African PSL, one in the English Premier League or in anothermajor league in the world.

For someone who is passionate about football, it is vital to getinformation about a preferred team as it happens, and this is wheremobile marketing steps up to the mark.

A goal alert SMS delivered to a football fan within 15 seconds ofthe actual goal being scored offers greater value than hearing aboutit during the news bulletin an hour later. A multimedia match reportdelivered via MMS to a fan immediately after the match providing afull analysis of the match and access to an archive of video highlightpackages can further enhance the user experience of football on thecellphone. A sponsor based multichannel delivery of footballinformation and content is a powerful tool for advertisers to reachthis market while offering real value.

With major sponsorship avenues such as league/cup competitionsand club sponsorships already tied up, mobile opens up newopportunities for brands that are not currently official sponsors ofthe game, to become brand players in the industry.

An advertising campaign strategy across the ‘push’ deliverymethods (SMS and MMS) and ‘pull’ delivery methods (mobileInternet and Java based applications) guarantee a successfulcampaign for a sponsor and ensure that a brand is exposed to fansduring a mobile football experience.

It is crucial for any advertiser or sponsor

looking to reach this market to carefully

consider implementing a strategy that will link

a campaign to all the elements of the mobile

football experience.

By Patrick Kawuna, co-founder of Livemobile


25It goes without saying that there are multiple ways to leverage

2010 and develop related platforms to drive interaction and internaldialogue, but most importantly these practices should be alignedwith a business strategy. Many superficial spirit generating internalprogrammes are sure to emerge, all supported with promotionalgifts including the obligatory branded soccer T-shirts, personalvuvuzela’s and even fun face-painting exercises and so on. However,the real opportunity to strategically align internal marketingactivities to drive business objectives should not be missed norconfused with promotional paraphernalia.

As the host of the 2010 tournament, South Africa has beentransformed into a soccer nation for the coming year. While socceris already the most ubiquitous sport in the world, hosting the WorldCup makes it that much more accessible to all employees.Designing a programme that incorporates and leverages off thistheme could help your company to achieve its goals; it’s the smartthing to do.

Offering the ball around

Corporate social investment (CSI) can be put into action byadopting an underprivileged soccer club or by sponsoring brandedkits or providing transport. Another initiative would be to commissionunderprivileged communities to develop branded merchandise to besold within your company in the spirit of 2010.

It’s not long until the start of the World Cup and we aresomewhat unprepared for the circus, and – shockingly – somepeople have neglected to even consider internal mobilisation as anopportunity. Activating internal applications through leveraging2010 will be the employment differentiator and help businesses to achieve business objectives. Either way it is going to be the greatest show on earth and we can’t wait tohost other nations and treat the global audience to a uniquelyAfrican experience. �

The 2010 FIFA World Cup is by far the biggest show on theglobe and it’s coming to our country. According to consultingfirm Grant Thornton, the World Cup will pump around

R21.3 billion into South Africa’s economy, generating an estimatedR12.7 billion in direct spending. Marketing opportunities (andvuvuzelas) scream at these stats!

Similar to when a small town awaits the arrival of the circus, SAhas already hung the posters and warmed the crowds for trapezeartists, juggling clowns and dancing elephants. The fun has begun –we’re upgrading roads, building hotels, and taking strides to combat crime.

An external marketing engine

We must give credit to FIFA’s ongoing drive to structure 2010 as anexternal marketing opportunity by inviting sponsors and encouragingcorporates to leverage their association to the organisation. FIFA,by definition, is selling the positive association with its brand to SAand its partners.

With an estimated three million global visitors, together with theeyes of billions watching from around the world, the mediaattention that the southern tip of Africa will attract is simplyunprecedented. The indirect spin-offs of an improved internationalimage will have an even greater impact on the economy in years tocome. The question that begs answering, is how can businessesleverage the circus from an internal marketing point of view?

Businesspeople should be focusing on what the 2006 World Cupdid for Germany. Hosting the World Cup altered the reputation ofthe country giving it good PR. Not only was its internationalreputation transformed with newfound national pride, Germany’simage was successfully positively positioned overnight. All this evenbefore any money was made.

Since reputations don’t develop randomly – and this is true forbusinesses as it is for countries and their people – it stands toreason that internal reputation can be developed and promotedstrategically too.

Team players

External marketing campaigns have been well documented in themedia and most marketing budgets are aimed at this audience.Businesses need to be smart about channelling energy from the2010 vehicle toward its brand, and should use the opportunity toactivate internal marketing programmes that will unify staff, retainemployees, increase productivity, heighten morale, intensify loyalty,secure buy-in and assist transformation.

A good example of a scenario that could benefit from 2010associated activity is if an organisation that has transformationissues where employees could not get to grips with the cultures and nuances of different racial groups. For example, puttingtogether an all-in, cross-gender, five-a-side round robin footballtournament would provide a way of getting people to interact, share stories, build team spirit and collaborate effectively towards awin-win situation.

World Cup 2010 – uniquely Afr canAbey Mokgwatsane, CEO, VWV Group


MMX: When can we expect the broadcasters to announceplans?

GD: I think there is a lot of negotiating taking place behind thescenes – once they are allowed to release their info, I’m sure theywill make sure every marketer is aware of the various options and packages.

MMX: When will we know publishers’ plans for the 2010FIFA World Cup?

GD: This is the first World Cup football event in the modern era totake place amid such a global economic mess. There are bigger issuesto be considered for all businesses over the next financial year andpublishers who are planning their budgets for the new fiscal year andwho think the World Cup is the solution to all their financial prob-lems are dreaming. Everyone in the media industry is trying to makethe most of this event – this will result in enormous clutter and


26

wastage. Marketers will do well to focus on the core, trusted mediaproducts that reach their defined target markets as there will be a lotof ‘fly-by-night’ operators trying to capitalise on this opportunity.

MMX: Do you expect that broadcasters will raiseadvertising rates for the duration of the World Cup?

GD: Absolutely. The statistics, facts and figures all show howpowerful television is during this event and broadcasters will surelytake advantage of this. There is also the issue of finite space duringthe match broadcasts and so the prime spots will be worth a lotmore for the big matches. I imagine that some of the core printmedia products will be taking advantage of the event but on thewhole I believe most publishers are aware of the financial straits thatthe majority of marketers find themselves in and will budgetaccordingly.

MMX: What advice do you have for brands that don’thave a bottomless budget?

GD: Firstly, the TV coverage of the World Cup extends waybeyond just the live matches. There are daily analyses, previewshows and review shows, highlights packages, news clips and expertfeedback almost 24 hours a day for the entire month!

Regarding print ads, I think there is a lot of fear among localmarketers about stepping on FIFA’s toes. FIFA makes it very clear– you cannot create an unofficial association with its event – butyou can use generic football images, terminology and messages. Theobvious opportunity for clients is to make the most of the passionand excitement around the World Cup by creating material that willhave World Cup ‘talkability’ and relevance for their products. Anddon’t be confused by who your market is. I keep hearing clientsdiscussing ways and means to ‘reach’ the foreign fans even thoughthe majority of them will only be here for two weeks!

Media24 has been engaging with FIFA since 2004 – when wepublished the African edition of the Official 2006 FIFA TournamentGuide – so we have a good idea of what we can and cannot do. We alsooffer advice, ideas and opportunities to our advertising clients as partof our service, so that none of them get on the wrong side of FIFA!


Marketing Mix chats to George

Dearnaley, soccer business

manager, Media24, about 2010

and its opportunities.

“Regarding print ads, I think there is a lot of

fear among local marketers about stepping

on FIFA’s toes. FIFA makes it very clear – you

cannot create an unofficial association with its

event – but you can use generic football

images, terminology and messages.”


27


MMX: Out-of-home TV viewing is huge. What is theimpact of this on advertising and marketing?

GD: The World Cup is a social event – people are drawn tocrowds, they want to sample the atmosphere even if it is in a packedlocal pub. Sadly, the World Cup is not just about Brazil, England,Spain and Holland. I doubt the majority of South African fans willstay up to watch matches like North Korea versus Honduras orChile versus Slovakia. Not every group match will be a ‘must see’for a lot of people, but games featuring the big names in worldfootball will be massive. The England and Spain games will get a lotof television audience as will Bafana Bafana matches – seriously! Theopening match of the World Cup will break whatever the currentTV audience rating is!

Do you think print will see increased circulations, astourists pick up mags and newspapers?

GD: I think ‘international’ titles that are known in Europe andNorth America such as Men’s Health or Sports Illustrated mightbenefit. I’m certain there will be a few extra casual purchases bytourists and I think distribution points at airports, train stations andother transport hubs will do well. Newspapers need to ensure theircoverage of international news during the tournament is wellmarketed – this could generate some additional copy sales. Ingeneral though, apart from a few titles that crack some brandextensions and supplements during this time, I don’t think it is acirculation opportunity.

MMX: How will the mags and newspapers in your stablemaximise on the soccer fever?

GD: Without giving away any secrets, various titles and businessunits within our group will do a range of exciting special issues andsupplements but right now nobody wants to publish something thatdoesn’t add value for our readers or make financial sense. We arestill analysing various options and projects and these will beavailable to the market early next year.

The World Cup tournament is not a ‘final destination’ forMedia24, if anything it provides a launch pad for additional projectsand initiatives that will seek to take advantage of any positivemomentum the event generates. We are not interested in making aquick buck out of the tournament, but we recognise that thetournament provides us with a catalyst that hopefully stimulatesadditional business beyond the final whistle.

Within the Media24 group, SupaStrikas has got some great ideasand opportunities as does Sport24 in the online space. FamilyMagazines has really embraced the World Cup and will be doingsome clever things in the new year and community newspapers arebusy finalising some great projects. There is some suggestion thatwe are all behind schedule or running out of time, but the reality isthat no major sports event has ever managed to sustain a high levelof interest and support for more than 10 weeks prior to the start ofthe event. I believe that the 2010 World Cup frenzy will start fromsomewhere around 1April 2010 – no jokes! �

MMX: How should media planning and segmentation bedone during the 2010 craze for the best results?

GD: As per the above, media planners should be focusing on theirclients’ target market. If some titles experience a slight increase incirculation because of the ‘tourists’, that could be seen as a bonusbut it’s really only relevant if they represent the core target marketfor the client. In Germany in 2006, the official products producedin English did a lot better than those in German simply becausethere were more people who could speak English either as a first orsecond language. I have argued in various discussions that theWorld Cup tournament is not really a circulation driver becausethere is such saturated content all over the place. If anything,publishers will do well to maintain their circulation over this time.

I have been involved in enough ‘2010’ discussions across thevarious Media24 commercial teams to know that there are plenty of great ideas and media solutions available for media planners out there – they just need to engage with their media reps and dotheir homework.

The best advice I can give to anyone out there who wants toreach an audience during the event is to consider the ‘environment’and the conditions of the World Cup tournament. � It’s winter. That means different things to people in Durban and

people in Cape Town. Being outdoors in Cape Town is not greatwhen the rain is pouring and it’s dark by 4.30 pm!

� It’s only one month long – the majority of fans will only be herefor the first two weeks. What would an average day’s activities befor a group of five foreign men?

� There is no school. There will be thousands of moms trying todeal with their children who want to go into the cities toexperience the ‘World Cup’. How will they consume media?

� There will be traffic congestion in the host cities on match days.� Most of the international visitors will be men. They want to

drink beer and watch as many of the games as possible,preferably in a social environment.

� South Africans will form three groups – those who will embracethe World Cup and want to be a part of the action wherever theycan, those who are curious and might come out to have a look atwhat all the fuss is about and maybe attend a fan zone just for

“In general though, apart from a few titles

that crack some brand extensions and

supplements during this time, I don’t think it

is a circulation opportunity.”

the experience, and those that will avoid it at all costs. Who do youwant to talk to?

The South African football media consumer is incrediblypassionate about the sport, wears makarapa and blows avuvuzela during a game. A large percentage of the fans are

black males and over the past 15 years the collective spending powerof black males has grown tremendously. But South African footballfans are all too often perceived as down market. “If you take two ofthe biggest male magazines in the country and put them up againstKick Off, some very interesting figures are revealed. Collectiveearnings of the Kick Off readers account for 62 per cent more thanMen’s Health and 45 per cent more than Car magazine. Surely thisshould squash any perceptions of soccer fans not having buyingpower,” says Mark Murphy, associate publisher, Kick Off.

Soccer-Laduma’s reader profile also backs up the assertions madeby Murphy. “Soccer-Laduma currently has 2 733 000 readers, 85 percent of whom are men, 67 per cent are in the 16-35 year age group;53 per cent in LSM 5-6 and another 25 per cent are in LSM 7-10.Up to 44 per cent have household incomes of R5 000 or more permonth, says Zizi Hollander, general manager, Soccer-Laduma.

Local fans are very enthusiastic about the game, want up-to-dateinformation and are happy to pay to consume specialised media tostay informed. According to Taryn Gill, Avusa soccer strategist andpublisher of SoccerLife 442, “2010 presents a real opportunity for aniche product like SoccerLife 442 to grow not only traditional socceraudiences, but also acquire non-traditional readers. With themagnitude of the 2010 FIFA World Cup, all South Africans will getcaught in the soccer fever; and this gives the sport a real chance tobreak through the perception that football is only supported by SA’sblack males.”

To harness the potential of the World Cup marketers need tounderstand that there are two kinds of clients out there, one whoneeds to reach the local market only and one that would like toattract foreign tourists. But, warns Murphy, “Always be true to themarket that will be loyal to your brand when the 2010 craze hascome and gone, and continue reaching them in a language theyunderstand.

Official media partners

Advertising spend is expected to reach a record high as the 2010FIFA World Cup approaches. Official media partners are preparingto cater for the demand with the top six FIFA sponsors and thenational supporters are given preference when it comes toadvertising. “The World Cup is a first-class event, and will be sold assuch. The rights were secured at a premium, so the SABC will needto charge accordingly to recoup its investment, says Peter Kwele,head of the SABC Crucial 2010 Unit.

He adds that, “in the US, there is the Super Bowl phenomenonwhereby brands go absolutely wild, planning, budgeting andmotivating for a single 30-second ad during half-time. I have yet tosee this level of advertising furore or excitement in SA, even thoughwe boast such events as the Soweto Derby and the Currie Cup.Perhaps the market is not sophisticated enough.”

Touchline Media is producing the official FIFA publications forthe 2010 World Cup aimed at both local and international footballfans. The publisher has secured the rights for Love Life andgovernment departments to advertise in the official media. Thecompany also has a contract with the Global Brands Group topublish official licensed print products such as the 2010 previewguide, posters, official travel guide, calendars and colour-in books.


28

No other publishers in SA are able to produce these products withthe FIFA marks and approval. Touchline’s official titles will be soldthrough the stadiums and hospitality companies, with no other titlesold in the stadium or at the official fan parks. “We are engagingwith some of the hospitality companies on getting our magazine outto tourists too,” says Murphy.

Other publications, while not able to produce anything related toFIFA, are still able to use the World Cup to provide readers withsoccer-related info. Soccer Life 442, for example, will be producing a90-page soccer fan’s one-stop reference to the tournament in May2010. Integrating digital platforms with print works well forSoccerLife 442, “When you buy this issue of SoccerLife magazine,you will get a pocket-sized city culture soccer guide that will also beavailable for downloading to a cellphone for convenience and easyanytime reference. We will be offering our advertisers packageddeals that include print and online, says Gill.

For Kick Off, a range of products will be released betweenDecember and June next year. “We will be producing unofficialguides and products that will give all advertisers the opportunity toreach the soccer market,” says Murphy.

Radio 2000 relaunched and rebranded in 2008 when it took onthe role of SABC’s official radio broadcaster for the World Cup,allowing it to target a new audience of LSM 6-10, aged 25-34 years.FIFA’s strict rules only allow a few radio stations to cover all theWorld Cup matches,” says Cuthbert Mashego, programmes manager,Radio 2000.

The radio station has introduced 2010 features in all itsprogrammes. In addition, Radio 2000 is creating awareness of thebusiness opportunities that the event brings with it. Radio 2000 isplanning to broadcast live from public viewing areas and fan parks,giving fans an opportunity to interact with on-air personalities andstudio guests live on radio. “Radio 2000 will be broadcasting all 64matches; brands can use this opportunity to advertise their productsto an expected increased audience at that time,” says Mashego.

Mobile

A new ingredient in the media mix next year is mobile TV; theIndependent Broadcasting Authority is working on finalisingregulations on mobile TV. The regulator will soon issue an invitationto interested parties to apply so that live TV can be watched on acellphone.


Untapped marketSponsorship opportunitiesThe National First Division is still without a sponsor, available

opportunities are to either sponsor a league tournament or the league

itself. According to Zizi Hollander, GM Soccer Laduma, all the big

tournaments in the PSL already have sponsors. It might be

worthwhile to create four team tournaments in January when the

league will be frozen (to allow the national squad to prepare), and

then sponsor these tournaments. One could also look at clubs in the

PSL who do not have a main sponsor. Some sponsors like to get

involved in the youth development programmes of clubs as an option.

Most of the traditional soccer marketing platforms are at clubs and

the PSL.

> p33


33


most important sporting events in the world,” says Khanyi Dhlomo,MD of Ndalo Media.

Online

www.soccerladuma.co.za (the official website of Soccer-Laduma)www.kaizerchiefs.co.za (official website for Kaizer Chiefs)www.soccerlife.co.za (official website for SoccerLife)

Mobisites

www.soccerweek.mobi (official mobisite for SoccerWeek)soccerladuma.mobi (official mobisite for SoccerLaduma)www.soccerlife.mobi (official mobisite for SoccerLife)

TV

SABCSABC1 – Laduma – Build Up; Laduma – ABSA Premiership;Countdown 2010; Soccer 411; FNB African Soccer Show; YO.TVVuvuzela; Coca-Cola Soccer ZoneSABC2: Know Your Game; Sport on 2 (will include soccer)SABC3: Sport on 3 (will include soccer); English Premier Leaguee.tv: Playa – 2010 Soccer Show; e-ShiboboSuperSport: SuperSport 3 and 4 are dedicated channels. www.supersport.co.za/footballSuperSport 3 includes programmes such as 2010 World CupMagazine; La Liga; Goalissimo; UEFA Champions League; FIFAFutbol Mundial; FA Premier League; Inter Milan TV; Juventus TV;Woza 2010; Soccer Africa; Coca-Cola Championship; AC Milan Weekly;The World Football Show; Futbol De Primera; Real Madrid TV.SuperSport 4 includes programmes such as SuperDiski: PremierSoccer League; Woza 2010; PSL TV; ABSA Premierships Kings; TheMatsatsantsa Show; Engen Premier Soccer; Soccer Africa; KaizerChiefs TV.

Radio

Metro FM (Discovery Sports Centre with Robert Marawa) RAMS October 2009 listeners past seven days: 5.255 million

Radio 2000 is the official 2010 FIFA World Cup station. RAMS October 2009 listeners past seven days: 721 0000

SAfm – Gameplan; SAfm Sports SpecialRAMS October 2009 listeners past seven days: 648 000

Ukhozi FM – 2010 Ses’fikileRAMS October 2009 listeners past seven days: 5.954 million

Trufm GrandstandsRAMS October 2009 listeners past seven days: 350 000 listeners. �

There are other options available for mobile marketing. Acampaign targeting any team in the PSL or any other league can berun focusing on the club’s live match commentary and news, forexample. “Users opt-in to receiving messages in the form ofupdates etc, and advertising can be packaged in a way that it is seento be adding value to the user instead of being intrusive. In fact, theadvertising becomes part of a user’s personal football experience,”says Patrick Kawuna, co-founder of Livemobile.

Hollander finds it hard to believe that there was a time whenSoccer-Laduma operated as just a newspaper. “Our website andmobisite attracted 230 000 unique visitors in September 2009 alone.Everything we do for the World Cup will include new mediaalongside print. It would be crazy not to,” she says. “It’s hard toascertain exactly how many visitors come to our website eachmonth because many users share a computer (Internet cafes,universities, libraries, work, etc) and the computer is counted as theuser. There is no official information on demographics but weassume that they are predominantly male in the 16-35 age group,mainly students or employed, and heavily weighted in the LSM 5-10group,” Hollander adds.

Using social media and networks allows for greater interactionwith its readers and audience is high on the list for Soccer-Laduma.The weekly is looking to elevate the status of contributors bygiving them official blogs/podcasts as well as introducing Soccer-Laduma TV, where users can upload their video clips.“Express Yourself on our Web and a mobisite allows citizenjournalists to send in everything from opinions to match reports.We will be able to target the exact groups age/sex/LSMs that brands would like to speak to as we learn more about our onlinecommunity,” says Kwele.

Taxi rank TV

SABC works with ComutaNet to screen its content to commutersusing public transport via RANK TV. “We will be interested to seeif the RANK TV sites can become public viewing areas. In thoseranks that fall outside of the 1km stadium radius, we will mostcertainly allow informal traders and small businesses to getinvolved,” says Kwele.

Reaching for the teens

Aiming to capture the market that influences most buying decisions in households, Ndalo Media launched SportsTeen, amonthly sports magazine aimed at sports crazed teen boys. “We are a monthly magazine aimed at sports fans, with a strongfocus on soccer, and so are already well positioned to tap into the potential of 2010. While TV will certainly get its share of the ad spend, print will remain a priority. It provides theopportunity for lasting imagery and a keepsake of one of the

Correspondingprevious period

Total circulationTotal paidSubscriptions andsingle copy sales

Publication

ABC figures for July to September 2009 (unless otherwise indicated)

Kick Off Magazine (fortnightly) 53 180 53 180 53 180 59 256

SoccerLife 442 (Jan-June 09) Alt monthly 31 969 32 002 32 409 35 431

Soccer Laduma (weekly) 309 645 309 645 309 645 332 987

Amakhosi Magazine (monthly) 21 324 21 324 21 342 27 393

Sowetan Soccer Magazine (Jan 08-Dec 08) Bi-annual 11 806 11 806 15 181 New member

Football Arena (weekly) 11 696 11 696 11 696 New member

Soccer Week (weekly) 10 352 10 352 10 352 New member

>> p28


35


FIFA

www.fifa.com/worldcup

For the marketing rules and regulations, visit

http://www.fifa.com/aboutfifa/documentlibrary/doclists/marketing.html

FIFA Local Organising Committee (LOC)

Emy Casaletti, marketing manager: (011) 567 2010

or Jermain Craig, media manager: 083 2010 121

FIFA licences, sub-licences, merchandising, and marketing/distribution:

Global Brands Group www.globalbrandsgroup.com.

Retailers/ buyers as well as companies wanting to enquire about FIFA

distribution rights, contact Neil Nottingham

([email protected])

Enquiries about trade marketing and merchandising of the FIFA brand

should contact Katie Black ([email protected]).

Newspapers

Soccer-Laduma

Zizi Hollander

(021) 425 1200

[email protected]

www.soccerladuma.co.za

Soccer Week www.soccerweek.mobi

Sowetan Soccer magazine – quarterly

www.hsm.co.za/sowetan-soccer.html

TV

SABC

Peter Kwele, 2010 general manager

e.tv: www.etv.co.za

SuperSport: SuperSport 3 and 4 are dedicated

channels.

www.supersport.co.za/football

Radio

Metro FM - Discovery Sports Centre with

Robert Marawa

Radio 2000 – official 2010 FIFA World

Cup station

SAfm – Gameplan; SAfm Sports Special

Ukhozi FM - 2010 Ses’fikile

Trufm – Grandstands

Mobile

Live Mobile

http://www.livemobile.co.za/

PA Sports

http://www.pa-sport.co.za/divisions/za/en/

TEAMTalk Media

http://www.teamtalkmedia.co.za/mobile.html

Mobile TV on Vodafone Live!

www.vodacom.co.za and live broadcast

with DVB-H from DStv in time for 2010

http://www.dstvmobile.co.za

Outdoor

OHMSA

http://www.ohmsa.co.za/

Agencies

ThirtyFour Sport

http://www.34.co.za/

MSC Sport

www.mscsports.co.za

MegaPro

www.megapro.co.za

Legal

Dr Owen Dean

Spoor & Fisher

(021) 673 4418

[email protected]

Other useful info

www.football365.co.za

www.psl.co.za

www.thesoccerpages.com

www.southafrica.info/2010

www.safa.net

www.sa2010.gov.za

www.southafrica.info/about/sport/soccer.htm

http://www.joburg.org.za/content/view/654/167/

http://www.marketingmix.co.za/pebble.asp?relid=59

Stadiums

http://www.fifa.com/worldcup/destination/stadiums/index.html

http://www.sa-venues.com/2010/2010-stadium.htm

http://www.southafrica.info/about/sport/stadiums.htm

South African office:

Paul Zacks

General manager

(011) 537 4640

Edward Lindsay-Bowman

Licensing sales manager

(011) 537 4640

Darryl Kroll

Retail sales & merchandising

manager

(011) 537 4640

ResourcesResources

Picture courtesy: Soccer Laduma

Magazines

Kick Off

Mark Murphy

[email protected]

(021) 408 1258

www.kickoff.com

Amakhosi

http://www.kaizerchiefs.com

SoccerLife

Taryn Gill

(011) 280 5154

[email protected]

www.soccerlife.co.za

Touchline Media

www.touchline.co.za

Just what is the epitome of cool? It’sincredibly hard to define – eachconsumer has their own opinion – butoccasionally there is a brand thattranscends all barriers and just abouteveryone agrees. The MINI, celebratingits 50th birthday this year, is one ofthose rare brands.

First built in the UK in 1959, the tinycar quickly resonated with consumersfor its quirky, compact (especiallyimportant for London drivers) andfashionable image at the height of the‘Cool Britannia’ era during the swinging60s. The Mini offered practical aspects suchas economic fuel consumption at the timeof the Suez Crisis, while managing to keepthe fun and adventurous spirit of the time.

The Mini was driven by celebrities suchas The Beatles, Steve McQueen, MickJagger, Peter Sellers and even Enzo Ferrari.The Mini also featured in ads with theworld’s first supermodel Twiggy (she alsoowned one), which cemented the car’sposition as fashionable and hip.

A firm favourite with students (alwayspurveyors of style and cool), the Minicontinued to build itself into global brand;films such as the 1969 The Italian Job (theremake in 2003 with our own CharlizeTheron features the new MINI built byBMW), and many others including thehugely successful Austin Powers franchise, allhelped to build its appeal.

Despite falling car sales during the 70s and80s, the Mini retained a huge hardcore fan

base and was still recognised for its original status ofbeing cool and audacious.

Importantly, Mini drivers became emotionally attachedto the car. So when the brand was bought by BMW in1994 as part of the Rover Group and in 2000 it waswithdrawn from production with a revamp on its way –car lovers were intrigued. Could BMW maintain the car’scult status?

On the day of reckoning in 2001 when BMW unveiledthe new look MINI, it wasn’t just Mini owners who heldtheir breath.

“Our initial re-entry into the South African marketseemed slow, but this was mainly determined by theenormous global demand for our product. Growth in thiscountry was hampered by production constraints. But assoon as production improved, we saw an increase in sales,which meant our brand had remained as desirable as it wasin the 60s,” says Karen Valle, general manager, MINISouth Africa.

Globally the car was a hit, delighting fans as well asallowing a new generation of consumers to fall in lovewith the iconic brand. BMW successfully retained theMini shape whilst improving performance and size andupdating it for the 21st century.

“We used the 1959 original Mini as a template for thenew car in terms of dynamics and handling, and our


MINI – 50 years of coolMINI – 50 years of cool

Brand anatomy

36

Karen Valle, GM, MINI South Africa says, “Our

brand is referred to as MINI with capitals to

differentiate it from the original Mini. It is not Mini

Cooper – Cooper is one of our model derivatives as

is the Cooper S.”

Setting the record straight

designers included a modern understated style, cheekiness,vivaciousness and energy into what is an incredibly hi-techand premium 21st-century package. MINI representsperfectly the birth of a modern classic, bridging the gapfrom a much loved 60s icon to a new design original,” says Valle.

The introduction of the MINI Cooper, Cooper S,Clubman and the Convertible has helped to round out theoffering and BMW is even looking at a ‘green’ MINI toextend the car’s reach further to embrace an even morediverse consumer market.

“MINI is a cosmopolitan brand and is seen as fun,exciting, unique and, of course, cheeky – wherever you mayfind yourself on the globe,” says Valle.

The marketing campaign around the launch of the new-look MINI nine years ago was immense. It was builtupon decades of emotional attachment from devoted fans,as well as created excitement for a new generation. Inkeeping with its cult status, ad campaigns were clever andquirky, a trait that continues to this day.

“The unconventional way of marketing fits very wellwith the brand and it allows us to connect with our targetmarket on a unique level to create notable discourse. For example our fibreglass car executions – the first onewas on the outside wall of the parking garage at MelroseArch, and is still used as a great example of guerrillamarketing,” says Valle.

While marketing campaigns for MINI are developedglobally, they are adapted to suit local markets. During theIAA car show in Germany 10-storey high images of theMINI Clubman were projected onto the FrankfurtMesseturm. Other companies complained about thecampaign and it was pulled, but not before it had createdhuge publicity.

Locally, celebrations for MINI’s ‘Fifty Years of Cool’campaign featured a fibreglass car in ice at the company’shead office wall in Midrand and culminated in an eventheld in Clarens.

“We are proud to adapt global campaigns that are locallyrelevant and we are particularly proud that we wererecently recognised for our vernacular communicationsthrough the Pendoring Awards,” says Valle.

With a limited marketing budget, MINI restricts its useof traditional media yet still manages to achieve adisproportionate share of voice. TV ads are only flightedon M-Net and DStv and billboards (found to be highlyeffective) are changed every two weeks. They are predominantlyfound in suburbs as opposed to on major highways.

“We ensure that we promote our products and brands inan ‘ONLY MINI’ way. All our communication has to liveup to it being unique, creative, humorous, exciting, as wellas innovative,” says Valle. �

Celebrating 50 years, MINI has launched two special editions: MINI 50 Mayfair and MINI 50 Camden – available

in Cooper and Cooper S Hatch models.

The Mayfair offers high quality luxury materials and colour schemes reflecting the classic elements of this stylish

locale. It is available in Hot Chocolate metallic paintwork with light brown toffee metallic bonnet stripes and white

pin striping. Other colour options include Pepper White or Midnight Black.

The futuristic version – Camden – comes with exterior paintwork that is finished in White Silver metallic or

Midnight Black or Horizon Blue metallic.

The car boasts an in-car management system called ‘Mission Control’, which uses different dialogues according to

the function; seat belt warnings, door open or low fuel, which allows the driver to interpret and respond accordingly.

Going back to our roots...

Brand anatomy

MINI SA celebrated its 50th birthday in style from 16 to 18 October 2009,

activated by experiential agency VWV, in the small Free State town of Clarens.

General manager of MINI SA, Karen Valle, explains how MINI shifted into

party gear:

“We have an internal litmus test for all of our events and advertising

executions. If we feel that another vehicle brand could conceivably host a

similar sort of event in the same location, or produce a similar

advertisement, then what we’re planning is not ‘ONLY MINI’.

Clarens provided us with a unique opportunity to take what is essentially

an urban brand into a completely different environment, but one that you

could revel in given the fantastic roads for driving in the area. Combined

with ‘MINIacs’ attending from all over the country, we needed a central

South African venue to allow our customers to truly experience the driving

excitement of their cars on the open road. Our main idea was for MINI to

claim the town as its own for the weekend (which we certainly did, with

over 1 000 MINIacs and 300 MINIs gathered in Clarens), and to offer

our MINI fans an opportunity to have some fun!

I don’t think that any other brand could have made this transition so

seamlessly and this made Clarens perfect! The weekend away was also

used as a marketing tool. The 1 000 fans at our event communicated

with more than 40 000 people about their experience in Clarens through

various social networks. This proves that social media definitely works for

us as part of our brand ambassador strategy.”


37

SA celebrates the (small) MINI, big style

Afrikaans media

38

The Afrikaans market

She continues to say: “Afrikaans magazines hold 31 per centmarket share. When compared with the previous period, the totaladvertising investment in magazines reflects a decline of 4.9 percent for the period September 2008 to August 2009 in comparisonto the advertising spend in Afrikaans magazines, which showed adecline of three per cent.


Up to 15 per cent of SA’s population speaks Afrikaans as afirst language. The Northern Cape has the highest numberof speakers, followed by the Western Cape, Gauteng and

the Free State. The Eastern Cape, North West, Mpumalanga,Limpopo and KwaZulu-Natal have the lowest number of Afrikaansspeakers. “Even though the Afrikaans-speaking communityrepresents only a small number of the population, it is responsiblefor 28 per cent of the country’s total household expenditure,” saysEureka Zandberg, general manager: Advertising and Research,Media24 Family Magazines.

The Afrikaans market is a strong and viable segment of the localmarket; the language is still one of the largest official languages inthe country, with about eight million speakers. What’s more,research has found that Afrikaans-speaking individuals prefer toreceive information in their mother tongue.

This segment completes the marketing puzzle. “Not only is thismarket very lucrative, there is also an underlying sense of prideamong its speakers. This pride has facilitated rejuvenation in the use of the language and has had a roll-on effect in the number ofproducts available and the quality of advertising in or on theseproducts,” says Tim Zunckel, OFM programmes manager.

Newspapers

The period between July and September 2009 was certainly not thebest time for newspapers in SA as most experienced a decline infigures. The latest ABC report reflects a decline in circulationfigures for all Afrikaans newspapers except for Die Son, whichexperienced one per cent growth and Rapport which managed tohold on to its position.

“Not only is this market very lucrative, there is

also an underlying sense of pride among its

speakers. This pride has facilitated

rejuvenation in the use of the language and

has had a roll-on effect in the number of

products available and the quality of

advertising in or on these products.” – Tim

Zunckel, OFM programmes manager.

Red: subscriptions and single copy sales

Blue: total paid

Green: total circulation

Figures in brackets refer to the total circulation for the corresponding previous period.

Daily newspapers ABC figures for period July to September 2009

Beeld

Son

Die Burger

Son

Volksblad

Weekend newspapers ABC figures for period July to September 2009

Beeld Saturday

Die Burger Saturday

Rapport

Sondag

Sondag Son

Volksblad Saturday

90 101

117 352

71 045

117 352

25 498

83 715

93 683

273 204

23 219

55 126

22 428

83 347

94 177

295694

23 219

55 126

22 938

(89 281)

(97 647)

(296 218)

(47 628)

(new member)

(24 019)

82 715

93 683

273 204

23 219

55 126

22 428

90 101

117 352

71 045

117 352

25 498

93 804

117 352

74 322

117 352

26 356

(104 141)

(104 162)

(80 004)

(104 162)

(27 699)

Afrikaans media

39

country and, according to Zandberg, still has a 40 per centadvertising share of the Afrikaans magazine market. “These figuresprove that advertisers trust Afrikaans magazines to communicatetheir message to their target markets. An Afrikaans magazine doesa particularly good job at reaching its target as, of the 15 millionmagazine readers in SA, 33 per cent is Afrikaans,” says Zandberg.

Globally, print is showing strain, “everybody is feeling therecession – some individuals are feeling it more than others, itwould be a bit presumptuous to say that the Afrikaans market hasfelt it any more or any less than the other markets,” says Neil vanSchalkwyk, strategist, The MediaShop.

While the announcement that SA is ‘officially’ post recession,the road to recovery will be a litmus test for print media withadvertisers’ reaction vital to the health of the industry. ForAfrikaans media, the fight is not only among themselves but alsoagainst the English media for advertising spend, airtime, readershipand audiences. According to Alain de Jongh, strategist, TheMediaShop, “Afrikaans media has always positioned itself as acredible source of information, focusing on its core strength whichis news reporting. This media has weathered the global financialstorm and is still going strong and looking towards an upswing inthe market.”

Magazines

At the beginning of the global financial crisis it was expected thatthe magazine industry would be the most affected as consumers’buying power for ‘luxury purchases’ became limited. Even though2008 had its casualties, 2009 hasn’t claimed any titles, “We are notaware of any Afrikaans magazines closing down in the past year.All the magazine titles are under pressure and the fragmentation ofthe magazine industry exacerbates the situation,” says Zandberg.Last year the Afrikaans travel lifestyle magazine, Mooiloop, closedits print title and retained its online operations. The publisher citedintense financial pressure and lack of advertising support as someof the reasons for closing the magazine down.

Huisgenoot is still among the leading consumer magazines in the

Radio

RAMS figures for October 2009 16 years +

listeners past seven days (000s)

Algoa 739 000

OFM 485 000

94.2 Jacaranda/RM/FM 2199 000


RADIOKANSEL/RADIO PULPIT 204 000

RSG 1737 000

RAMS figures for October 2009 15 years +

listeners past seven days (000s)

Algoa 756 000

OFM 502 000


94.2Jacaranda/RM/FM 2294 000

RADIOKANSEL/RADIO PULPIT 206 000

RSG 1759 000

Afrikaans media

40

audiences through the use of common campaigns. “The SportsCage concept, for example, uses common content and sponsorshipacross the five stations for audience reach and offers the client thevalue of national advertising,” says Zunckel.

Online

Beeld’s website is the leading Afrikaans newspaper websiteaccording to the latest Nielsen online ranking report. Media24recently launched South Africa’s first Afrikaans breaking news site,Nuus24.com, built on News24’s formula of publishing breakingnews. It publishes local, international, sport, technology,entertainment and (business news supplied by Sake24) news.Nuus24 also includes an Afrikaans version of the citizenjournalism portal, MyNews24, allowing users to upload photos;video clips; and blog or post comments. �

Radio

The digital age has resulted in broadcasting on-air, online andmobile through cellphones. The potential of converging online andradio is vital to the marketing mix. It’s interesting to see how thismix works in reality. Take OFM, for instance, which targets 25–49year olds in LSM 7-10 across central SA. Its RAMS figures forOctober 2009 showed 502 000 listeners in the past seven days. “Forthe same period as the RAMS our website had 1.3 million pageviews with an average time of six minutes and 30 seconds spent onthe site,” says Zunckel.

For marketers and media planners, regional radio stations whichare part of the same group, such as Jacaranda, ECR, OFM, Algoaand Heart, allow for easy targeting of both English and Afrikaans


Media24 recently launched South Africa’s first

Afrikaans breaking news site, Nuus24.com,

built on News24’s formula of publishing

breaking news.

Red: subscriptions and single copy sales

Blue: total paid

Green: total circulation

Figures in brackets refer to the total circulation for the corresponding previous period.

Magazines ABC figures July to September 2009

Onthaal Idees

Huisgenoot

LIG

Taalgenoot

Landbouweekblad

Pols

Die Tuiner

Tuis

Avokado (Jan-Jun)

Wiel

Weg

Wegsleep (freq change)

Finesse

Idees

Leef

Rooi Rose

Sarie

Vroue Keur

VISI (Jan 08-Dec 08)

Selfdoen Tuis

(Jul 08-Jun 09)

Sarie Kos (Jan 08-Dec 08)

(new member)

(318 128)

(32 959)

(64 466)

(43 031)

(new member)

(19 174)

(73 101)

(29 571)

(12 495)

(91 699)

(changed

(90 985)

(82 464)

(45 135)

(96 042)

(107 292)

(84 428)

(19 895)

(new member)

(new member)

19 076

317 880

35 986

61 868

42 193

50 507

20 889

63 529

24 984

10 724

91 649

33 576

89 519

72 932

46 194

114 611

129 578

78 728

16 657

24 052

49 566

19 076

317 880

34 112

61 491

42 193

50 507

19 255

63 062

22 539

9 681

91 649

33 576

89 079

72 132

41 570

109 686

125 564

78 543

15 455

24 052

49 422

Online Nielsen Report 2009 second quarter

www. opa.org.za

Publisher average unique browser average page impression

Beeld

Die Burger

Rapport

Volksblad

RSG

382 445

192 915

111 516

54 213

53 987

11 010 139

3 806 373

1 450 477

579 846

882 404

19 076

304 655

34 112

61 491

42 193

50 507

18 175

60 606

22 539

9 681

91 572

33 576

84 747

72 132

40 118

109 653

123 776

78 543

15 450

24 052

49 398

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(011) 559 3031

[email protected]


42

The pink market in South Africa:an untapped gem?

Expert opinion

� The element of surprise triggers the interestof the pink market, and is especially relevantconsidering the market is perceived to be‘early adopters’ and is often at the forefront,if not actually spearheading, new trends

� The Internet is an important marketingmedium, not only in securing privacy andanonymity, but also because it brings togetherpeople of similar mindsets who mightotherwise be geographically scattered andsocially isolated

� Businesses that sponsor or participate in gaycommunity events enjoy a strong level ofloyalty among gay consumers

� Gay people are brand loyal, supportbusinesses that are ‘gay friendly’ and areresponsive to advertising that acknowledgestheir preferencesThe pink market operates within a network

of similar minded people where product andservice experiences are communicated to friends and partners. Therefore businesses need to take note that word of mouth is anextremely credible marketing tool in the gayand lesbian community.

Create a desire among your customers (pinkor straight) to make repeat purchases byfocusing on these aspects: the delivery ofprofessional service to customers; the speedyhandling and resolving of enquiries andcomplaints; the creation of an aesthetic environment within which a service is delivered to the customer (this aspect includesthe appearance of employees); and therewarding of loyal customers throughstructured loyalty programmes

Communicate to the pink market via mediathat they identify with such as:

MagazinesWrapped magazineMambaonline.comMambagirl.comPink PagesExit newspaperThe Pink Tongue newspaper

Radio Bravo Brava radio 2000

The pink market is very social; gays are outand about more often and having more fun thantheir straight counterparts. This is somethingmarketers need to take cognisance of morepertinently. �

There is the pink pound and the pinkdollar, but what is the pink rand allabout? What exactly is the purchasing

power that the pink rand holds? What is thepink market really about?

The pink market in South Africa consists of gay lesbian, men, women, bisexuals andtranssexuals, and is commonly referred to asthe LGBT market. It is independent, bothfinancially and practically. According tostrategic planning and research specialist OriginalInsight Learning, the pink market is anextremely social one. Activities are nothingout of the ordinary, ranging from clubbing andshopping to gym, movies and dinner parties.

When the pink market goes shopping, theyspend big money, and fashion is a top priority.Gay and lesbian couples have discretionaryincome above the national average. Plus, theseare households earning a double income, withfew or no children and a tendency to preferbrands and labels. These are therefore house-holds with very high disposable incomes thatcould be used for travelling, shopping andother luxuries.

The pink market spends the majority of its income on products relating to travel,financial services, motor vehicles, fashion andentertainment. The majority of this market(65 per cent) resides in the LSM 8-10 category;over 80 per cent aged over 25 own their ownhomes and over 15 per cent own a second home.In addition, over 70 per cent take more thanfive power breaks in upmarket settings; over25 per cent are self-employed entrepreneursand over 30 per cent have a tertiary education.Since 2001, the pink market in SA has becomemore aware of whether businesses that theybuy from have instituted non-discriminationand domestic partner policies.

The lesbian component of the pink marketin SA earns (as a whole) more than gay men,heterosexual men as well as heterosexualwomen, but this market is mostly overlookedby marketers. Marketing tips to secure the interest of thepink market� Ensure that your product or brand is

something the pink market wants to beassociated with

� High-quality service is important to securecustomer loyalty

� The delivery of quality products is non-negotiable, and something they arewilling to pay for

So what’s top of mind right now? Reliefthat we’ve made it through the end ofa really tough year? Or that Christmas

is around the corner? – a magical, wonderfultime of events, full of preparation, givingand magical moments?

I believe that we should be comparing our preparation for Christmas with ourpreparation for our ‘Christmas in June2010’, the 2010 FIFA World Cup: thegreatest event in southern Africa’s historiccalendar. But what is it about this end ofyear event and the FIFA World Cup eventthat we can compare?

Let’s be honest. Christmas is the pinnacle of the marketing world’s success.Marketers have created its brand, created itsicons, promoted its music, celebrated itsbehaviours and captured its spirit of givingand joy.

Christmas is a time when we prepare ourhome for guests and family, prepare foodand entertainment, dress the tree, bring outthe decorations and sing the carols. Nowlet’s get real – is Christmas just about thetree, gifts, food and decorations?

What happens if all this is prepared, theguests arrive and there are no people towelcome them, no personal connection tomake the caring spirit come alive? Whathappens when Father Christmas has a badattitude, and his behaviour doesn’t liven upto the spirit of Christmas? What happenswhen all the presents are ready but there’snobody to give them with love and a smile;to say I care and I love you? Christmas isnot about the money but the ‘moments’spent, the memories.

So it is with the 2010 FIFA World Cup –our African Christmas in June. Thestadiums are being prepared, the food anddrinks are being ordered, the brands areputting their World Cup hats on and thedecorations are hung. But what will happenif people are not ready, the wrong type ofpeople greet our visitors at the door – ieFather Christmas with a bad attitude? Beingill prepared can unfortunately can make thetime and money spent on beautiful giftsseem worthless.

Our challenge in preparing for Christmasis the same as our challenge in preparing for the 2010 FIFA World Cup. Thechallenge lies, not in preparing the correctinfrastructure for 2010, but preparing SouthAfricans to live up to the spirit and


43

expectations of our guests. Have wecommunicated to our people well enough,do they understand their role, do theyknow how to create individual momentsthat carry the spirit and expectations of agreat African World Cup?

Are we working and preparing greatambassadors? People who create momentsfor our guests? People who understandtheir role in living the spirit and giving theservice to our World Cup guests, 2010style? It is not difficult to do, it just needsthe same energy and effort we have pouredinto preparing the stadiums.

Just as we remember that Christmas isabout the preparation of all the externalfactors, it is also about the spirit of giving and the creation of moments forpeople to show that they care. Christmas is a time where everyone becomes a brand ambassador, everyone has the ability to demonstrate that they care andcarry the spirit of giving in their attitudeand behaviour.

So it has to be for the 2010 FIFA WorldCup. It is a time in Africa’s calendar whereall Africans are ambassadors for the spiritof the World Cup. In creating wonderfulmemories for our guests, demonstratingthat we have not only prepared thestadiums, food and decorations but that we have also prepared the moments to remember.

Our call to action:

Now is the time to start preparingourselves as the ambassadors for 2010.Ambassadors that will live the spirit of thisevent before during and after the event,ensuring that our guests arrive safely, stayand keep coming back. I believe that thetools to build our ambassadors are not yetin place and are not entrenched in thepublic domain.

It is the responsibility of each and everybusiness, municipality, government department,hotel, restaurant and all individuals to step-up and start building our 2010ambassadors for now and into the future.

Start by creating the 2010 vision andessence. Communicate and demonstratedesired behaviours. Use our music, oursongs and our rainbow people to create,live and breathe positivity into thenecessary behaviours that make up our richSouth African tapestry. �

Christmas in June

Stuart Woolmington

MD of the win Wingroup

stuart@[email protected]

Expert opinion


45

Projections on growth potential arelooking very lucrative as marketpenetration is standing at 30 per cent withsome African countries having broken the100 per cent barrier. With superior nationalcoverage and large subscriber bases,Africa’s mobile network operators havecome to own market dominance and hencebeen labeled as the ‘new incumbents’.AMPS research done in Africa indicatesthat online users are predominantly male,which can most probably be ascribed toculture. However, this leaves us with thegap to motivate for more female users.Individuals are accessing the Internet mainlyfrom work stations, universities or Internetcafes. This reflects the education level andincome group of Internet users.

In South Africa there are already more3G/HSPA mobile broadband users than ADSLsubscribers and mobile data revenue isgrowing at around 45 per cent pa. SA hassome of the lowest data costs in the world,encouraging people to go online. OurYahoo! (m.yahoo.com) and TEAMtalkMedia (f365.co.za) mobi (mobile) sitesshow an exponential growth, with audiencesmultiplying monthly.

What struck me from the two-dayPAMRO conference is that the entire firstday was dedicated to digital advertising andmedia. This goes to show that mobile andonline marketing are mediums that can nolonger be ignored by African advertisingagencies and marketing managers, particularlyif they want to talk to the high incomemarket. Now is the time to start investingin online advertising, especially since the2010 FIFA World Cup lurks at our doorstepand the world is watching us online.

While the shift from traditional to onlineadvertising is being driven by improvedperformance of online advertising, thecontent and relevance to the recipient hasbecome the success factor.

Broadband will also result in theincreased use of rich media advertising,including video (which will become viewablein real-time). Having the right technologyand systems in place will become key.

Seacom’s enormous capacity now enablesEast and South Africans to enjoy high demandservices such as high definition television(HDTV), peer to peer networks, Internetprotocol television (IPTV), and surgingInternet demands. And although the onlineconsumer makes for roughly only 0.1 percent of the total advertising spend inAfrica, the list of capabilities is endless. �

Africa’s online growth opportunities

Will Green

managing director, Apurimac Media

(021) 446 6474

[email protected]

Expert opinion

My recent attendance of the PanAfrican Media ResearchOrganization (PAMRO)

Conference in Nairobi, Kenya highlighted theimmense opportunities in online advertisingin Africa, in light of the recent onlinebandwidth developments in the continent.

New international fibre links into Africahave seen the cost of broadband plummetby up to 90 per cent and online communi-cation has proven itself to be the fastestgrowing medium in Africa. With Seacom’sfibre optic cable into Africa, Internetbroadband is becoming cheaper –encouraging consumers to log on. TheSouthern and East African markets havebeen serviced by Seacom since July 2009,gearing the countries for increased broadbanddemands in 2010 with South Africa’s 2010FIFA World Cup. Apurimac has also feltthe impact of price cuts recently with ourpurchase of data. Our costs decreasedexponentially from 9c to 4c per Megabyte.

Kenya Data Networks (KDN), asubsidiary of Altech has reflected Seacom’s90 per cent price slash throughout EastAfrica. KDN’s fibre optic network and theundersea cables will provide more affordableinternational bandwidth to many East Africancountries, which until now have beenreliant on expensive satellite bandwidth.

As with online bandwidth development,telecommunication in West Africa hasreceived a major boost from the arrival ofthe new submarine fibre optic cables. It’sreported that Nigeria overtook SouthAfrica in early 2008 to become thecontinent’s largest telecom market withover 44 million mobile subscribers. Whilegrowth prospects in the region’s mobilevoice market are still excellent, the decliningaverage revenue per user (ARPU) levels areforcing operators to convert into providersof mobile and broadband services.

Africa’s poor fixed-line infrastructurehas made way for mobile networks playingan increasingly important role in Internetservice provision. In this low ARPU regionthe introduction of a third generationbroadband service, in a number of markets,was a much welcomed new revenuestream. Cellphones represent around 90per cent of all telephone lines in Africa,and the subscriber base is growing steadilyat around 50 per cent per annum withgrowth curves flattening in more maturemarkets. As a result operators are competingmore aggressively on price, quality of serviceand through new service introductions.


Liquor marketing 101

46

Liquor marketing at-retail

Legislation will impact the way liquor ismarketed and will likely impact whathappens on the retail floor. Scott Adcock,MD, Visual Fusion, says that brands needto understand the variables of liquormarketing at retail. There’s the alcoholbrand and there’s the store and, of course,the shopper. Understanding purchasingdrivers is key as is growing familiarity withretailers’ individual parameters and needs.

The only two aspects that really count inretail marketing are relevance and reward,say Felix Kessel and Vaughan Owen, co-founders, Owen Kessel, and given that99 per cent of promotions go unnoticed,perhaps the annual promo calendar is notworking. Ninety per cent of the people who win promotions are those who look out for them and may not be in the target market.

Shopping channels are realising that their relationships with consumers areimportant too. Category management is no longer the domain of the brand andsoon, it will be the fight for floor space,says Kessel. Brands need another avenueoff premises, and need to offer real value tothe outlet be it a bar or a store. Real valueis about bringing them customers andgiving them an experience. The key isreward (value and relevant experience).

Another great tool for liquor marketingis word of mouth (WOM). Jason Stewart,MD, Have You Heard, says that WOM isthe honest exchange of information, and at its most powerful is the passing on of

Shopping channels are

realising that their

relationships with

consumers are important

too. Category

management is no

longer the domain of

the brand and soon, it

will be the fight for

floor space.” Felix

Kessel, co-founder,

Owen Kessel

Marketing Mix’s Liquor MarketingWorkshop looked at impendinglegislation and how it will affect

liquor marketing at-retail, in particular.The World Health Organization (WHO)

has raised a few concerns around alcoholconsumption, says Odette Roper, CEO,Association for Communication andAdvertising (ACA). These include the rateof premature alcohol-related deaths;violence linked to alcohol abuse; harm topeople other than the drinker; harm causedduring pregnancy; and so on. The WorldHealth Assembly met in 2008 and passed aresolution that drives a global strategy toreduce alcohol abuse and consumption, andaddress these concerns.

A 10-point AFRO Action Plan has beenput into place locally, with the four majorpoints being:� Regulate availability of alcohol� Restrict the sale of alcohol� Regulate marketing of alcohol� Increase taxes on and prices of alcohol.

The ACA believes new regulation willhave a negative economic impact (includingloss of revenues and jobs) and proposes thata more constructive solution to the alcoholproblem is the pooling of resources acrossindustries to educate South Africans aboutalcohol abuse.

Government will deliberate all of thisuntil the 2010 FIFA World Cup (Budweiseris a major sponsor), says Roper. The biggestissue with the legislation is that it clampsdown on the media used for communications.

Liquor advertising tips

Stefan Vos, Stefan Vos Marketing Regulation Advisors, is familiar with the Advertising Standards

Authority of South Africa (ASA) code, and shares these tips.� Do not feature or foster irresponsible drinking. � Brand loyalty is about being loyal to a brand, rather than simply drinking more.� Any advertising should not be directed to persons under the age of 18 years. But in your advertising,

avoid using anyone under the age of 25.� All alcohol brands must state that they are ‘not for sale to persons under the age of 18’. There can

be no variation in this wording, and the size of the wording must be proportionately increased or

decreased as the case demands. For TV adverts, it must be between eight and 10 per cent of the

screen image. On the outdoor landscape, the size depends on the sheet size.� Do not create advertising that shows improper nudity, and avoid associating drinking with sexual

success.� If a drink contains less than 0.5 per cent alcohol, then there is no need to disclose its alcohol

content. However, there is an issue with this, because by not stating that there is alcohol in the

product (even trace amounts), a brand is duping the consumer.� Don’t create the impression that a non-alcoholic beverage is alcoholic.


47

recommendations. One in threerecommendations is acted on, he says.Within the alcohol industry, recommendationthrough WOM is not huge; usage isgenerally based on trial, which means thereis much opportunity still to be had.

Liquor brands need to understandindividuals’ highest social desires and driveaspirations linked to this, and create uniqueand differing platforms for engagement.It’s also about getting the right peopledrinking and endorsing your productthrough rituals and stores (brand experiences).Don’t brand the hell out of it – you’re thevehicle not the destination and do build asustainable relationship – it’s a marriage,not a one-night stand.

The township is the real life Facebook,says Stewart; it’s important to understandhow to leverage that. Who are the townshipinfluencers? “The guys that have money,”says Stewart.

With more than three million connectedtrendsetters frequenting the laid-backsocial environment of the townshiptaverns, it’s essential that brands do theirbest. Siwe Nyuswa, director, ProvantageTavern Media, says that shebeens are notthe same as taverns. A shebeen is moreinformal. Taverns, on the other hand, are more stylish, and this is where theyoung black urbanite can find expensive beer brands and whiskies. Socially, it’s allabout being seen (having the car, thephone, the look).

Nyuswa refers to the YBFs (young,black and fashionables). These are malesand females, LSM 6-8, aged 18-40 (with thesweet spot aged between 25-35), who visitthe taverns three to four times a month,and spend an average of one hour 35minutes there. Promoters in the tavernsmust look sexy, says Nyuswa. The tavernconsumer has money to spend and doesn’tmind spending it. WOM is huge here, andactivations can drive this. Trial is also usefulfor encouraging repeat purchases.

Understand that taverns are verycontrolled environments, and the ownerswill not let brands in to cover their wallswith posters. Light boxes, with beautifullifestyle branding, are great for enhancingthe environment (also a must!) “Befriendthe tavern owner, the waitrons and barpeople. They are going to become brandambassadors and they need to know moreabout your product than your promoters,”says Nyuswa.

Russell Stromin, MD, Strike Media, saysthat mobile can be used to interact with theconsumer at the tavern or in the store, tohelp the liquor brand stand out. Forexample, an SMS campaign to launch a beerbrand sees the unique code under thebottle top (proof of purchase), sent to ashort code to enter a competition. Theunique code can contain info, such aswhich region the consumer is in orwhether the beer went to a hotel,restaurant, bar, store, etc. Great for thebrand and the consumer.

MMS is hot, says Stromin, as it allowsfor a far richer user experience. Forretailers, mobile can also be used to drivevolumes and encourage repeat purchases.

Another way to drive sales of liquorbrands is to create premium branding andpack design. Adam Botha, creative director,Switch Design Group, believes that form isessential in driving brand choice. To getnoticed, disrupt the category, says Botha,and consider how the consumer opens andpackages your product. Colour is also key(or the lack of it), as is the collectiveimpact of the product on shelf (how do allthe bottles or packs look on shelf).Secondary packaging (a fancy box or tin)gives the impression of premiumisation andbecomes collectible.

Shane Allchin, shopper insights manager,Brandhouse, says that alcohol remains asmall luxury that shoppers want to protectand they are generally less likely to tradedown on this category. Price is the indicatorof quality; the lower LSM segment istrading down, but the middle LSMs arelooking for value (not necessarily pricerelated). At the top end, there is little impact,says Allchin. Brands need to have a three-phasestrategy, he says; speak to the aspirationaltop end as well as the value-hunter in themiddle and the price-sensitive lower end.

Consumers are rethinking fundamentalvalues, and we are seeing a move towardsin-home consumption, says Allchin. Theyare trying to replicate the ‘out-on-the-town’ experiences in their homes. Soconsumers may well trade up to achievethis, and this is where there is opportunity.Alcohol brands need to make theirproducts easy to find and shop; alcoholsolutions (DIY cocktails, for example) arekey. As are in-store experiences that reflectthese new at-home occasions, and showthem how they can achieve that great eventat home. �

Consumers are

rethinking fundamental

values, and we are

seeing a move

towards in-home

consumption. They are

trying to replicate the

‘out-on-the-town’

experiences in their

homes.” – Shane

Allchin, shopper

insights, manager

Brandhouse

Liquor marketing at-retail

Judge Mervyn King recently gave details on the implicationsof the latest report in good corporate governance toexecutive marketers at a Marketing Mix breakfast briefing

in Johannesburg. The latest King report is out and will replace King II in

March 2010. King III elevates communicators to strategicpositions in the workplace, removing the postmaster imageassociated with this profession. The report gives full recognitionto the role played by communicators in the pursuit for profits.

King III requires companies to embrace a participative andstakeholder inclusive approach; the board must identify itsimportant stakeholders and proactively manage the relationships.Promises and guarantees made to customers must be followed,customer complaints procedures must be fair, efficient andwritten in a language that customers can understand.

Promotion documents must be written fairly, marketingmaterial and promises are expected to be just and be understoodby ordinary customers. Internal marketing and motivating staffis also vital, workers are supposed to live up to standards set bythe company’s governing codes. “A stakeholder-inclusivecorporate governance approach recognises a company has many stakeholders that can affect the achievement of itsstrategy and long-term growth. Corporations should takeaccount of the fact that stakeholders’ interests could changeand so re-examine the interests of such stakeholders atappropriate levels,” says King.

The challenge is now on corporate communication managersand practitioners to deliver on expectations. “They are nowrecognised as being strategically important for the sustainableexistence of business. Practitioners are now a part of strategicmanagement and good governance practices, which givesstakeholder relationship management and the corporatecommunication function legitimacy in a corporate,” says King.

King III encourages a balanced approach between businessand its stakeholders, pro-actively focuses on stakeholders withlegitimate expectations on how managing stakeholder relationshipswill contribute towards transparency and enable them todetermine the value of an organisation.

The significance of reporting annually on how a company hasperformed both positively and negatively affects the economiclife of the community it aims to serve. In addition, emphasishas been placed on the requirement to report the company’sintentions to enhance positive aspects and eradicate anypossible negative impacts on the economic life of the communityin which it operates.

“There is an increased realisation that an organisation cannotcontinue to operate without regard for society, the environmentand stakeholders. It obtains its licence to operate from societyand the environment. In the short term an organisation can beprofitable and ignore its stakeholders, the needs of society andthe environment. It can even operate in an unethical manner,but that is not sustainable. An organisation without legitimacyin society needs to deal with the power of stakeholders that aredissatisfied with its activities which leads to business failure,”says King.


King III

48

Be warned!King makes a comparison of how Nike and Coca-Cola have

reacted to stakeholders differently. Nike’s brand equity tumbledthrough the late 1990s as reports emerged about poor workingconditions at its supplier factories in Vietnam and China. “Suchreports can cost billions in damage to brands,” says King. Nikelost customers and market capital from subsequent stock-pricedeclines.

After realising the impact that its operation had on theenvironment, Coca-Cola reacted and pledged to fix its waterfootprint by improving water efficiencies within its operations.As a result, the brand didn’t suffer because the company reacted early.

It is the responsibility of managers to assist in embedding aclear understanding of the company’s values, vision, mission andobjectives. External communication must be aligned withinternal communication. Stakeholder relationship managementneeds to be developed and maintained through a process ofsound business practice that involves marketing and public relations.

What communicators need to take away and work with fromthe report is that communications plays a vital role bothinternally and externally, and it requires skilled personnel so thatthere can be a clear understanding of messages at all levels. Thenew professional designation Chartered Marketer is trying tohelp professionals get ahead in the workplace. “It is pitched at asenior level and requires preparation through workshops and anassessment of both knowledge and practical application. That isfollowed by compiling a portfolio of evidence and a boardexam,” says Chris de Villiers, executive director of theMarketing Association of South Africa. �

What communicators need to take

away and work with from the report

is that communications plays a vital

role both internally and externally, and

it requires skilled personnel so that

there can be a clear understanding of

messages at all levels.

Documents

Marketing Mix Nov Dec 2009