Marketing Mix March April 2009

MarketingMix
M E A S U R A B L E M A R K E T I N G I N S I G H T S I Vol 27 Issue No. 3/4 I 2009 I R25.00 incl. vat
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MarketingMix Contents
I 0 2 I Ed’s note I 3 2 I Experiential marketing
Budgets are shrinking, and customers are demanding more from
brands. Experiential marketing is a powerful discipline in the
I 0 4 I Keynote: Paul Haupt
current environment.
I 0 5 I TV audience measurement: current scenario

I 3 7 I Expert opinion: Rick Grantham
Rick Grantham explains how private media networks could
I 0 8 I Column: Jorge Papanicolau benefit your business.
Jorge discusses the challenge that new media poses to TV
audience measurement.
I 3 8 I Commuter markets
Buses, trains and taxis transport millions of commuters across
I 0 9 I Column: Keld Nielsen South Africa each week. The question is, do you understand who
Keld takes a closer look at return path data measurement. these commuters are, and what they need?
I 1 0 I HD and DTT: preparing for the switchover I 4 2 I Cinema marketing

Cinema groups appear to be enjoying stable ad revenues, and
I 1 2 I Column: Dr Tanja Hackenbruch steady customer volumes – find out what works and what doesn’t.
Tanja talks about the ideal measurement solutions.
I 4 6 I Expert opinion: Keith Wiser
Keith shares his take on the Es.
I 1 3 I Q & A with Ricardo Gomez-Insausti
I 4 8 I Services SETA
I 1 4 I Expert opinion: Richard Duncan
The latest news from the Services SETA team, on the Chartered
Richard explains why having the best people is so important.
Marketer SA designation.
I 1 6 I Brand anatomy: Absolut Vodka

I 5 2 I Expert opinion: Neil Jankelowitz 1
Neil highlights why companies and brands should be thinking
I 1 8 I 7 Day [B]itch creatively and strategically about ways to Make Sport Count.
Tove Kane grants us a glimpse into her busy week.
I 5 4 I Digital and mobile at-retail

I 1 9 I Expert opinion: Nici Stathacopoulos A reportback from the Marketing Mix Digital and Mobile
Nici outlines what consumers actually want in today’s times. at-Retail event.
I 2 2 I Top print performers I 5 6 I Expert opinion: David Moffat

Marketing Mix looks at the 2008 ABC circulation figures of magazines David Moffat pens the fourth in a series of columns by
and newspapers, and identifies the top performing titles. HelloComputer, and talks about brand interaction online.
04 18 37 46
Database:
PROPRIETOR AND PUBLISHER: Systems Publishers (Pty) Ltd. Tel: (011) 234 7008 North Block, Bradenham List Perfect
Hall, Mellis Road, Rivonia, Johannesburg PUBLISHER: Terry Murphy MANAGING EDITOR: Michelle Sturman
michelles@systems.co.za EDITOR: Fulvia Becatti fulviab@systems.co.za ADVERTISING MANAGER: Lethabo
Tloubatla lethabo@systems.co.za PRODUCTION: Spencer van Graan spencerg@systems.co.za EVENT ENQUIRIES:
Daisy Mulenga daisym@systems.co.za SUBSCRIPTION ENQUIRIES: Bernice Tloue bernicet@systems.co.za
www.marketingmix.co.za
vol 27 / issue 3/4 / 2009 marketingmix.co.za

Ed’s note
Where’s the
soccer fever?
pril is upon us, and I am proud to say that Marketing Mix is providing readers
A with plenty of long weekend reading.
The TV Audience Measurement Guide raises pertinent issues around the way in
which highly fragmented TV environments are going to be measured. Locally,
SAARF is hampered by various factors, not least of which is the cost of some of
the new technology that is being implemented abroad. The feasibility,
cost-effectiveness, usefulness and relevance of some of the new methodologies
that are being practiced abroad still need to be examined within the local context
before we can adopt any one of them.
The ABC print measurement guide is also a very informative read – in fact, it’s
an absolute must-read for anyone who works with print media, because it explains
the ABC breakdowns and how to interpret each of them. At the very least, this
guide will get you thinking about your favourite print titles in three dimensions
with a greater understanding of how they are distributed and consumed. And
hopefully, media planners will finally understand what PMIE is.
Media measurement aside, I see a lot of marketing focus being placed on ROI,
cost-efficient strategy and differentiation. But why is there so little focus on
soccer? The Confederations Cup is a few months away – and if you ask me, the
2 excitement factor is sitting at a weak two out of 10. Where are the brand
activations and the clever campaigns? Where are the media trips to stadia and
soccer pitches to educate the country’s journos about soccer passion? Why are
local soccer teams and players not yet über celebs in the minds of every South
African? Women’s magazines should be getting local soccer stars to host
VIP cocktail parties with loyal readers or interviewing their WAGS (wives and
girlfriends, if you didn’t know) – women are a powerful and emotional market,
after all.
Why are advertisers not queuing up to advertise in our local soccer media, to
partner with them in creating fabulous campaigns and to learn from them? I was
pleased to learn that Kick Off magazine produces Ke Nako, the official 2010 FIFA
World Cup update magazine, for the Local Organising Committee. Guess who
I’ll be calling when I need updates. Kick Off’s website traffic was hitting almost
three million page impressions when I chatted to Neil (its editor) in January – yet
so few brands appear to be exploiting this medium. Tut tut!
Oops! We published the incorrect version of This month also marks the Marketing Mix website’s first birthday. Hip, hip
Olivia Leitch’s 7 Day [B]itch column in our hooray! It has been a year of fabulous growth for the website (our user figures are
Jan/Feb issue – so sorry. But the good news increasing at a steady pace), and we now boast a Twitter feed too (don’t say we’re
is that we will have a revised version on our not fashionable), and you can track us on http://twitter.com/marketingmix. We’re
website soon. also working on a YouTube channel – watch this space.
Happy holidays to all our readers! And if you need more reading material,
remember that you can sign up for our free e-newsletters.
marketingmix.co.za / vol 27 / issue 3/4 / 2009

TV audience measurement guide
A brave new TV world

he South African TV market is rocketing towards
T massive change. Measuring local TV audiences over

the next few years is going to create a lot of
headaches for a lot of people. We have enormous challenges
to deal with and we need to come up with solutions now or
risk being left behind by the changes.
Over the past 10 years we have made great progress in
the way that we measure television audiences, using the
tried-and-tested peoplemeter methodology in our Television
Audience Measurement Survey (TAMS) panel. It has
become abundantly clear, however, that current and future
challenges will require new and inventive ways of measurement.
The most talked-about challenge is the imminent arrival
of digital terrestrial TV(DTT). The challenge of actually
converting every TV household to digital is only one facet
of the problem. For media researchers, a more critical
problem is the fragmentation which DTT will usher in. The
introduction of as many as 20 terrestrial channels will mean
more fragmentation of audiences, and we’re not even
counting the fragmentation that will be caused by the
licensing of new pay-TV operators as well as the normal
expansion of DStv.
4 Due to financial constraints, sample sizes will never allow
all these smaller channels to be measured and reported on in a three years before better technology replaces TAMS in-home
robust way using the current TV metering approach. measurement systems. For the short term at least, we will have to live
We still have a little breathing space before these changes are fully with the current panel as a major part of our measurement system.
upon us, since I do not see the analogue signal being switched off In the meantime, we at the South African Advertising Research
before 2012 at the earliest. As an industry, we nonetheless need to Foundation (SAARF) are looking to Europe and the UK in
move quickly to find solutions. particular, to find ways to deal with this changing market. We are
investigating what technologies are available, how to measure
A proliferation of problems viewing and what the cost to the market will be.
Other pressing challenges are already upon us, such as time-shifted Portable metering devices and set-top box (return path) data
viewing, a fast-growing phenomenon which affects all broadcasters. must be considered as part of a future industry measurement
As the number of personal video recorders (PVR) increases, up to system. Yet even these technologies have their shortfalls and present
25 per cent of all viewing in certain important target markets will their own set of challenges. With return-path data, for instance, the
soon be time-shifted. decoder itself feeds back information about what is being watched.
Another challenge is the increase in out-of-home viewing, like It is a record of decoder activity and not of people’s viewing
mobile TV, and watching the 2010 FIFA World Cup. A fixed behaviour. In addition, you do not know whether the TV was
in-home meter isn’t going to be sufficient to capture this viewing. actually on, was anyone watching or was the TV just playing to itself?
The industry may also find it needs to know about TV viewing Naturally it can also only tell you about channels broadcast on
behaviour for each platform, in which case we will need to introduce the specific set-top box and not about other channels watched by
platform identification to differentiate between the various methods the household or indeed provide any information about viewing on
of watching. other TV sets in the home that may not have a set-top box.
Other future challenges will include the reporting of regional TV Whatever the solution, the new measurement system will have to
services, and the possible advent of interactive or transactional TV, service current industry needs while being adaptable to the changing
where viewers will cherry-pick and pay for specific programmes. demands of the next few years, and at a price that the industry is
able to fund in a sustainable way.
New solutions for a new environment Finding the right solution that meets a long list of criteria will
The time has come for a complete re-evaluation of current practice not be easy, but it is something which we, as an industry, must
and the development of an industry strategy to meet the numerous endeavour to find as soon as possible.
problems facing us. While the TAMS panel has served us well for
two decades, its days might be numbered.
TAMS panels are failing to meet the needs of users in virtually all Dr Paul Haupt, CEO, SAARF
countries around the world. They are expensive, require active 011 463 5340
participation from respondents, and only measure in-home viewing. paul@saarf.co.za
Some experts however, have estimated that it will take at least

TV audience measurement:
current scenario
V audiences can no longer only be described as mass
T audiences, that consume TV programming (and TV ads)

predictably, from the comfort of their lounges. Today’s TV
audiences are fragmented, thanks to the proliferation of TV
channels and stations on the market, coupled with the rise of new
platforms, such as IPTV (Internet Protocol TV), and mobile TV –
which may be a reality in SA sooner than we think – the PVR, as
well as High Definition TV (HDTV). And then, to top it all off,
there’s the digital switchover, which is already underway.
“Broadcasting will become increasingly ‘platform agnostic’ in
the future in order to accommodate all the above devices and
maximise reach,” says Chris Hitchings, sales director, Oracle
Airtime Sales (OATS).
All of these factors are challenging traditional TV audience
measurement models, the world over, and researchers are looking
for solutions that are able to keep up with these changes. At the
same time, the media planners and advertisers are demanding
greater accountability, and data sets that allow for more accurate
planning, buying and selling. Dr Paul Haupt, CEO of the South 5
African Advertising Research Foundation (SAARF) agrees that the
traditional model that has served the television industry well for
over more than 20 years will need major surgery over the next five
years to stay current and ensure that the currency for the buying
and selling of television airtime realistically reflects the real world.
In South Africa, the SAARF TV Audience Measurement Survey
(TAMS) is already being investigated to see to what extent new wide-ranging investigation to find solutions for future challenges and
methodologies will have to be incorporated to ensure that all TV the findings of this investigation will be available later this year. Once
viewing would be captured, irrespective of the platform. SAARF in this task has been carried out, SAARF will probably call for tenders
conjunction with the television industry have embarked on a so that new approaches can be implemented as quickly as possible.
Top 10 TV spenders 07 and 08 (Nielsen Ad Dynamix reports the top 10 biggest TV advertising spenders, 2007 and 2008).
2007 2008
Advertiser 2007 Expenditure Advertiser 2008 Expenditure
1 Unilever SA 482 277 906 Unilever SA 473 331 032
2 Reckitt & Benckiser 233 914 173 Mobile Telephone Network 222 565 207
3 Mobile Telephone Network 227 326 942 Kentucky Fried Chicken 219 884 646
4 Vodacom Communication 221 703 465 Coca-Cola SA 204 406 5911
5 Coca-Cola SA 176 288 852 Reckitt & Benckiser 199 562 162
6 Distell 167 526 039 Vodacom Communication 186 101 996
7 Procter & Gamble 164 375 434 L’Oreal 165 894 720
8 SAB Miller 158 590 992 Homemark Mail Order 151 708 915
9 Ford Motor Co 157 396 235 Distell 144 371 323
10 Kentucky Fried Chicken 153 930 250 Brandhouse 138 597 976

Meanwhile, the new DStv-i panel (the measurement solution that

has been pioneered in South Africa by MultiChoice, in conjunction The National Association of Broadcasters of
with Oracle Airtime Sales, M-Net and SuperSport) will be launched South Africa (NABSA) TV future roadmap
later this year. The National Association of Broadcasters of South Africa (NABSA) has
commissioned a report on the future of measurement of TV, which
SAARF TAMS: at a watershed
should provide the industry with a roadmap to the 2014 TV landscape.
SAARF’s TAMS was established 20 years ago to address the need
The outcome of this study will be fed into the current investigation by
for TV audience figures in South Africa.
The TAMS data is recorded by peoplemeters (electronic, SAARF and its stakeholders.
semi-automatic devices, which measure viewing as well as supplying
information about the viewer). SAARF installs the peoplemeters in
the home of the respondent, and assigns a particular button on the As far as out of home viewing is concerned, this is a phenomenon
remote control for the box, to each family member (their that will become more important, not necessarily because of
demographics are recorded). When a family member sits down to traditional out of home viewing, but because of the introduction of
watch TV, he simply pushes the appropriate button on the remote, new viewing platforms. Solutions for this challenge will be
to log in; his viewing is then recorded, and he logs out when he is formidable and probably costly and will have to be managed in such
done. The data is sent automatically to a central computer, for a way that an affordable solution is implemented.
collation every 24 hours, and therefore offers a second-by-second In spite of its shortcomings, the TAMS system needs to be
measure of TV audiences on a day by day basis. The peoplemeters considered within the context of where it has come from. It was
register everything that occurs on TV sets and any other equipment developed at a time when no one could have envisaged the
that might be attached to them (such as PVR’s, VCR’s, M-Net or explosion of technology that is now upon us. “There has been
DStv decoders). change on so many levels. The teams that developed the TAMS
In July 2006, SAARF launched overnight ratings, which sees data could never have envisaged this,” says Lorna Long, business
being published daily (except over weekends- Friday, Saturday and planning and insights executive, Mindshare SA.
Sunday data is published on a Monday). Prior to this, data was Dr Haupt concurs that when the technology for TAMS systems
reported weekly. This innovation has made it possible for users to was developed in the late seventies and early eighties of the previous
follow advertising campaigns on a daily basis to ensure that the century, nobody could envisage the technological revolution that we
expected ratings are delivered to the marketer. It also enables are living through. The good news however is that the end of this
6 television channels to monitor programme performance on a daily revolution is not yet in sight and that enormous change is just
basis and make the necessary changes when required. round the corner. In the light of this, it is an open question whether
Today, the TAMS data is the industry currency (and it’s set to the traditional peoplemeter will still have a role to play five or 10
remain so). However, the industry would like bigger sample sizes, years from now.
to make the panel more robust, especially in the light of ongoing
audience fragmentation. Consider that certain major planning Return Path Data (RPD): measurement solution?
software products simply don’t allow for modeling and planning of Penetration of pay television in SA is growing at a rapid
small audiences. “With limited sample sizes, planners are not able to pace – consider that approximately 70 000 new DStv households
drill down to a very defined level. We don’t offer solutions for were added in December 2008, according to Hitchings. This
sample size small than 15 – that is just not tabable,” explains Martin fragmentation will become even worse once the newly licensed
Urry of Telmar. channels become available. Due to the constant increase in the
“Although sample size is a very real problem, users unfortunately number of available pay TV channels, the audiences are continuously
sometimes do not understand that even if the sample size is fragmenting even further leading to very small sample sizes for
increased by 10 times, the data for small channels will still be of such some channels.
a nature that one will not be able to drill down,” says Dr Haupt. “In According to Lia Smit, senior media strategist, The MediaShop
addition, marketers also sometimes tend to over target which only 13 of DStv’s channels have an average AR of more than 0.5
exacerbates the problem. Lastly, one must remember that SAARF (ie a sample of between five and 25 individuals). The 17 remaining
TAMS is a survey consisting of well over 5 000 respondents and commercial channels have a sample of between one and four people.
therefore if a channel has only a few viewers out of the 5 000 “Even doubling the existing panel would not solve the problem,”
panelists, we can say with great accuracy that it is a small channel.” she says.
In the early days of TAMS it was impossible to measure people According to Dr Haupt, it is not just a matter of increasing
in all areas of the country due to the absence of electricity as well as sample size. “Even if the sample size is increased by 10 times, the
telephone lines. Over the past 10 years this situation has changed smallest samples will only increase to between 10 and 40 people –
drastically due to the electrification of large parts of South Africa as hardly an improvement! In addition the cost of doing this with
well as the introduction of cell phones. This has made it possible to peoplemeters will be horrendous and therefore the industry must
install peoplemeters in rural areas that were previously excluded so look at other alternatives,” he says.
that the current TAMS panel is a truly national panel. Return Path Data (RPD) is becoming increasingly popular in
The TAMS panel does not, at this stage measure PVR viewing, or other markets as a methodology to measure fragmented digital
out of home viewing. However, one of the priorities of the current audiences. Although the RPD system has formidable handicaps it
investigation into new methodologies will be to determine the most offers a way of increasing sample sizes in a more affordable way.
cost effective way of measuring time-shifted viewing. It is a given With return-path data the decoder itself feeds back information
that time-shifted viewing will grow enormously over the next about what is being watched. It is however a record of decoder
five years and eventually, virtually every South African household activity and not of people’s viewing behaviour. “With the RPD
will have this facility. panels, you don’t know if the TV was actually on and whether

someone was watching,” explains Dr Haupt. Also, it can only tell PVR and time-shifted viewing:
you about those channels broadcast on the specific set-top box and TV audience measurement is currently challenged by the time
not about other channels watched by the household; nor can it shifting of viewing, which is facilitated by the PVR (personal video
provide any information about viewing on other TV sets in the recorder). Until recently the current TAMS model only measured
home that may not have a set-top box. linear viewing – ie viewing live TV, as scheduled by the broadcaster.
In 2007, Oats announced the launch of DStv-i, South Africa’s It was not able to measure the non-linear viewing that the PVR has
first return path (RPD) measurement system (a panel jointly introduced, but TAMS providers have reacted quickly to this new
funded by Oats, M-Net, SuperSport and MultiChoice). The DStv-i development and the latest peoplemeters from some suppliers are
panel hopes to offer advertisers and planners higher accountability, already being used to measure time-shifted viewing in some
and data that will form the basis of more accurate planning. “In my countries. Currently, there are around 250 000 PVRs in the
view, DStv-i is absolutely essential to our own business, as well as South African market, but this is set to grow steadily, especially if
to our client and agency partners. It will increase sample sizes our middle class continues its booming growth and rapid uptake of
exponentially and at last provide more robust data in order to technology. Locally, the only PVR device available to consumers is
make planning decisions on DStv with complete confidence,” the MultiChoice DStv model – for now. Who knows when units
says Hitchings. like the TiVo (an independent PVR system available overseas) will
hit our shores, and allow the South African viewer to time shift any
TV content.
To enable SAARF to measure time-shifted viewing, the quickest
Despite the fact that new meters might not be and most cost effective way will be to get access to the MultiChoice
decoders to insert the necessary software for this purpose.
However, this access has not yet been given and SAARF will thus
the cheapest option, the methodology used in have to look at other options in the meantime.
With the peoplemeters currently in use in South Africa, banner
them for the measurement of time-shifted recognition can be used to measure the amount of time-shifted
viewing but it can only be reported globally and not per channel.
viewing does not depend on media owner SAARF will thus have to make a decision within the next few
months on how to proceed with this important matter. Despite the
fact that new meters might not be the cheapest option, the
cooperation and this is an important advantage. 7
methodology used in them for the measurement of time-shifted
viewing does not depend on media owner cooperation and this
is an important advantage. “It’s not a case of us not being able to
measure it – we just don’t have the data yet,” says Sharon
About 4 000 DStv homes in SA are being recruited to the panel. Penhalrick, MD, Telmar.
“We are well on our way with the recruitment process and are
collecting data already, however it is too soon to offer any insights Out of home viewing
into the data or trends,” says Brenda Wortley, director of strategy In the past, TV viewing was only done in the home; today, this is
and research, Oats. Final results are due to be released at the start not the case – individuals are watching TV in bars/clubs, shopping
of Q4, while initial results will be reviewed internally. centres, public viewing venues, cafes and restaurants, schools, etc.
Dr Haupt agrees that RPD panels cannot replace the current “There are millions of viewers that we are not able to capture,
TAMS panel but can provide complementary information to that if our systems are reliant on a TV set in the home,” says Long. The
delivered by TAMS. However, one must understand clearly that the arrival of the 2010 FIFA World Cup is driving the establishment of
use of larger RPD panels will not lead to higher ratings for the new infrastructures (large screens at public viewing venues, for
multitude of small channels. You will have more robust data to use, example), and these will become a permanent reality thereafter.
but the ratings will remain small. “TAMS is only measuring a small portion of what’s happening,”
Referring to the DStv-i panel, Wortley says: RPD requires a very says Long.
close cooperation with the broadcaster and media owner, in order for “Currently less than five per cent of TV viewing in South
it to be effective.” Oats is working very closely with SAARF, to Africa takes place outside of homes which means that in-home
ensure that the DStv-i data is both transparent and is integrated into viewing actually constitutes 95 per cent of all viewing,”
the current measurement offering. The data will be available on says Dr Haupt. “Although the out of home viewing is fairly
measurement tools/software, so the industry will have full access to it. small, it will in all probability grow in future due to
Although the DStv-i panel is currently conducted outside of the technological developments. Portable measurement systems
SAARF industry a research, in the longterm it could possibly are already available and in use in certain countries and SAARF
evolve into a RPD panel under the SAARF TAMS system. will have to evaluate which of these systems are best suited to
SAARF will be working closely with MultiChoice and Oracle our conditions.”
Airtime Sales to ensure that the panel can be fully utilised to He ends off by saying that the television scene will be extremely
complement the current TAMS system. Oats has offered to dynamic over the next few years and the changes that will be thrust
SAARF the option of considering morphing the DStv-i panel into a upon us will affect every single household in SA. “As far as the
SAARF industry wide panel. The TAMS sub-committee on the measurement of TV is concerned, the challenges are many and
future measurement of television will give this consideration and formidable but with a concerted effort from all parties our industry
make recommendations to the main TAMS council. However, will find its way through this maze and I have no doubt that the
before this can happen, formidable technical and financial industry currency will emerge from this stronger and even more
challenges will have to be overcome. credible than it is today.”

New media devices and broadcast platforms:

the TAM challenge
L
ooking back at the history of electronic audience
measurement devices, the waters of TV Audience
Measurement (TAM) were quite calm in the 1980s when
the first peoplemeters were installed around the world – in 1984 in
the UK, in 1987 in the US and in 1989 in SA, just to mention a few
of the TV advertising markets at that time – and the broadcasting
universe was analogue. All that was expected from a measuring
device was to detect the tuned frequency at the TV set or at the
cable set-top box and associate that frequency with a channel. The
only ‘difficulty’ for the meter was to detect the signal source – the
antenna or the cable set-top box, for example – and know which
frequency corresponded to which channel/station for each
platform in each household.
The 1990s were the years in which cable and satellite TV took
off as widely available services, offering up to 100 channels per
household in some countries and therefore putting some pressure
on panel sample sizes. But as long as the signals were analogue,
nothing changed from the technological side of TAM. However,
this started to change when the threat of digital television broadcasting
8 became clear to the industry. Several stations were time multiplexed
on one frequency, and this rendered frequency meters ineffective
for digital television measurement.
regards to TAM: the metering devices used to monitor the traditional
TV sets are no longer useful.
New viewing devices beg for new metering devices and technologies.
Some of the existing measurement methods – for example, active coding
In some cases no metering devices will be or audio matching – can cope with the challenges, though implemented
in new, more flexible capturing devices that can monitor the viewed content
used as a software solution will be the best if in an accurate way. Furthermore, in some cases no metering devices will
be used as a software solution will be the best if not the only option.
Finally, the fact that all new distribution platforms are digital means
not the only option. that logs of all viewing-related events are kept at the servers of the
service providers, the set-top boxes used to decode the signals and at the
media devices mentioned above. This information is also being used for
television measurement purposes, although with certain limitations (lack
of information as to when each TV set is on or off when the set-top box
Different methods and technologies (active coding, picture matching, is permanently switched on; lack of information relative to the individual
banner reading, service information, ‘tuner meters’) have been introduced watching; lack of information on non-set-top box uses of the TV set;
since then to measure digital TV, each of them having pros and cons and lack of any information for other TV sets in the home that do not
depending on the type of digital platform and the peripheral devices have a set-top box).
associated with the TV set to be measured in each household. To make Technological breakthroughs behind the explosion of new viewing
matters worse, during the first years of the 21st century new set-top platforms and devices available to end-users are constantly tracked by
boxes arrived that could decode all type of digital services – video, the media research companies to take full advantage of those same
audio, Internet – transmitted over the same platform, and offering technologies when thinking about the measurement solutions for the
interactive services thanks to the large-scale deployment of two-way future. In the same way that the television industry is now witnessing
networks. In this context, the most effective technology being used the arrival of TV consumption modes undreamt of in the early days of
today to measure digital TV(and time-shifted viewing) is based on electronic measurement, it will also see, and profit from, new and
audio signature comparisons, introduced in 2001 by the AGB Group in advanced metering solutions and services which are ready to be
the UK and now being adopted by other TAM companies. deployed when required.
Nowadays, we are witnessing the appearance of media devices that
allow for watching broadcast TV or video clips in new ways. Wall-
Jorge Papanicolau, technical advisor to AGB Nielsen Media Research
mounted, large flat screens, portable viewing devices such as mobile
phones and laptops and desktop PCs all share one thing in common in jorge.papanicolau@media-instruments.com

Understanding return path data

I
n a competitive multi-channel TV market, understanding viewer
behaviour becomes a key factor for success. Traditional methods
for audience measurement are compromised by the vast number of
channels, interactive and time-shifting services available to viewers
today. These changes have fuelled the development of set-top box audi-
ence measurement, also known as return-path data (RPD). This article
outlines the market developments that have created the requirement for
RPD services and shows how TV operators are benefiting from these
new technologies.
History of RPD services

In the days of analogue television, TV consumption was focused on a
small number of mass market channels with large audience shares.
Gaining a high level of accuracy in measurement of these channels was
possible through the use of people-meter panels. While panels have
traditionally been small in size, due to cost and complexity issues, they
were well suited for monitoring the few large channels available in each
market. The introduction of digital technology significantly reduced the
bandwidth required for carrying TV channels, which made the introduction
of many new TV channels possible. In the multi-channel era, TV viewing
became much more fragmented.
been able to analyse the viewing habits of customers pre-churn to detect

similar trends among existing customers at risk and then promoting 9
services of interest.
In a fragmented media environment,
In the same vein, customers using RPD to support their digital
service operation have managed to negotiate the price they pay for
traditional TV measurement methods are carrying international channels based on the actual performance of
these channels and have increased the ratings of their own produced
finding it difficult to meet the full needs of TV programmes by optimising their placement based on comparison of
initial programme performance and reruns on other channels/times.
operators, advertising and content providers. Finally, operators using RPD for supporting their advertising sales
have managed to optimise their ad placement by identifying which spots
are most suitable for targeting which demographics and winning new
advertising clients by sharing with them granular TV viewing data that is
In recent years, new challenges have further compromised otherwise unavailable. Operators have also sold new forms of advertising
traditional measurement techniques. As digital video recorder such as interactive and off-disk ads based on providing detailed impact
(DVR – also known as a personal video recorder, or PVR) penetration and usage information.
has become significant in many TV markets, measurement of time-
shifting and ad-skipping behaviours has become critical. Along with Summary
changes in the way people watch TV, increased demand for more In a fragmented media environment, traditional TV measurement methods
granular viewing data has arisen. Advertisers are looking for are finding it difficult to meet the full needs of TV operators, advertising
accountability in reports on TV commercial impacts while TV operators and content providers. In this context, RPD services have become an
are looking for more detailed analysis of how their subscribers use the important addition to the mix of TV measurement methods. Their
services in which they are investing. ability to monitor all types of digital viewing activity – from linear to
time-shifted and interactive viewing – means that the importance of
The benefits of an RPD service set-top box measurement will continue to increase as media fragmentation
Different TV operators are each facing their own business challenges, increases. In the past few years, this high-quality data has been proven
whether in marketing and reducing churn, negotiating the best to add significant economic value to TV operators around the world.
content deals for the platform, deploying new services or selling For some of these, RPD has become a critical element in their strategic
advertising. A key factor for successfully facing any of these challenges and day-to-day business decision-making process.
is better information.
Customers using RPD for supporting their marketing strategy have
managed to sell more premium channels by monitoring the subscriber Keld Nielsen, global business development director, TNS Media
groups tuning to those channels during their free trial period and Research, UK
attracting more viewers to specific programmes by promoting these keld.nielsen@tns-global.com
during the peak viewing times of target demographics. They have also

10
HD and DTT: preparing for

the switchover
High-definition TV (HDTV) is a new standard of TV which,
put simply, has a higher picture quality and resolution than
standard-definition TV (SDTV), so results in an enhanced
viewing experience.
“Currently we have one HD channel with
HDTV content is broadcast in digital format, which is of a
better quality, compared to analogue signals, which can carry ‘noise’ primarily M-Net and SuperSport content.
(unwanted variations in the signal, which result in grainy texture or
poor image on-screen, for example). This will grow over time as more and
“HDTV is not ‘new media’ but rather a content format.
Currently, we only have enough spectrum to use standard more content (both local and acquired)
definition format for terrestrial broadcasting. But HDTV is
already a reality in SA,” says Lia Smit, senior media strategist,
The MediaShop.
becomes available in HD.”
To watch HDTV, the viewer must have the right decoder and
an HD-ready TV. Those who do not have an HDTV (but have
the right decoder) will receive the digital HD signal, but since In the digital switchover, some broadcasters, such as the SABC
their SDTV set will not be able to render the image, will be and e.tv will be able broadcast at least some of their content in the
viewing in SD. form of HDTV over the DTT networks. Again, the viewer will
Meanwhile, digital terrestrial TV (DTT) sees HD content need the right HD-compliant components to view HDTV on the
being broadcast over terrestrial networks (and not via satellite); DTT platform.
it will provide users with new possibilities and an improved “One must not confuse digital terrestrial television (DTT) with
viewing experience. high-definition TV. It is quite probable that some of the South

African DTT channels will be broadcast in

HDTV, but most of them will remain in
Total media ad-spend (Nielsen Ad Dynamix, 2007-2008)
ordinary standard definition after the Media type 2007 expenditure 2008 expenditure Grand total expenditure
switchover, at least for the foreseeable future,”
Cinema 359 538 399 361 036 089 720 574 488
explains Dr Paul Haupt, CEO, the South
African Advertising Research Foundation Direct mail 139 900 248 150 502 248 290 401 496
(SAARF). However, eventually, all of the 647 930 469
Internet 271 998 085 375 932 384
channels will be broadcast in HD.
Outdoor 1 161 062 950 1 079 927 638 2 240 990 588
Measuring HD 9 121 584 095 18 395 529 412
Print 9 273 945 317
Measurement of HD viewing is not necessary
for planning, but as advertisers look for new Radio 2 964 814 070 3 345 249 141 6 310 063 211
ways to engage the consumer, TV advertising 9 379 446 058 19 341 018 226
TV 9 961 572 168
produced in digital format may be the way they
go if it offers higher viewing quality or special GRAND TOTAL 23 398 343 905 24 548 163 985 47 946 507 890
effects. So knowing which consumers are HD
viewers is relevant to campaign targeting, for
example. The challenge for measurement of HD is the need for
software that can deal with the different products be it a regular
HD PVR/decoder or a dual-view decoder, etc. In order to watch HDTV, the viewer must have
“Advertisers will need to give consideration to shooting
commercials in HD or on film to facilitate easy transfer to HD in
order to advertise within HD environments in the future,” explains
the right decoder, and also an HD-ready TV.
Chris Hitchings, sales director, Oracle Airtime Sales (OATS).
The good news is that SAARF is already measuring the Those who do not have an HD-ready TV (but
high-definition channel on the DStv platform.
have the right decoder) will receive the digital
11
HD signal, but since their Standard Definition
M-Net HD goes commercial soon
According to the Oracle Airtime Sales (Oats) website, www.oats.co.za,
(SD) TV set will not be able to render the image,
M-Net HD will become commercial from April 2009. Subscriber
figures for HDPVR reportedly reached 26 863 as of 4 January 2009,
reflecting a 45 per cent growth month on month. Advertisers can
will be viewing in SD.
expect to pay R500 per 30 second loose spot rate, while a package
offering is also available (50 spots for R5 000). M-Net pricing will be
detailed in the April 2009 ratecard. The digital switchover
Because of the improved quality of viewing, many countries around
the world have established digital transition policies, which will
guide their switchover to digital broadcasting systems. Otherwise
Measuring DTT known as the digital switchover (DSO), this process has been
The DTT channels are expected to bring new opportunities for completed in Luxembourg, the Netherlands, Finland, Andorra,
advertisers, but will also impact on audience measurement. “The Sweden, Switzerland and Germany.
introduction of DTT will fragment audiences even further but that Locally, the digital switchover started in November 2008, and it
will be among the current terrestrial television universe,” says is expected that the analogue signal will be switched off in
Jennifer Daniels, e.tv’s head of research. This means that where the November 2011. The South African government will be driving the
current SABC channels as well as e.tv have always enjoyed large local DSO by subsidising the cost of the specialised set-top boxes
sample sizes, this might change in future as the number of to make digital television accessible to mass markets. This will
terrestrial channels could grow to 20 or more. enable even the lower end of the market to switch to digital television,
It is imperative for SAARF to measure the new DTT channels since viewers will not have to buy a new HD-ready TV set (the
and this will be done in parallel with the measurement of the set-top box will provide a signal that conventional SD TVs will be
current analogue channels until the switch-off date. Again, as in the able to pick up). Of course, the price of technology will decline
case of pay television, additional methodologies may be required to over time and digital television sets will become more affordable.
measure the increased number of DTT channels and SAARF will Until the DSO has been completed, the existing terrestrial
work in close cooperation with the TV broadcasters to find the broadcasters (SABC, e.tv and M-Net) will be broadcasting in both
necessary solutions. analogue and digital. On the switch-off date, the analogue signal
Dr Haupt explains that although the DTT decoders will not have will be turned off and anybody that does not have a decoder or a
an inbuilt return path, this can be done externally and if SAARF new digital TV will literally be left in the dark.
requires this to enable effective measurement of all DTT channels, DStv and the other newly licensed pay TV operators will
then it is not an insurmountable obstacle, but it will add cost to the naturally all be making use of digital satellite transmissions and
measurement system. will thus not be directly affected by the changeover.

The ideal measurement today and

in future for the SA media market
urrent media research – even in South Africa – is faced
C with increasing competition and a constant call for

creativity. What is available to consumers in the course
of digitalisation and more advanced technologies has become
so comprehensive and multilayered that the ‘data silos’, as
they are known, are no longer sufficient for providing planners
and researchers with the correspondingly complex data they
need. In particular, the constant availability of media content and
the blend of different types of media on a variety of platforms
represent the greatest problem for us as media researchers.
Even if various studies and investigations have shown that
the usage of the new vectors is still only marginal and that
they provide hardly any usage data in comparison to tradi-
tional vectors, there is no doubt that electronic media will
continue to coalesce even more in future. Both in terms of
technology and content, unifying the vectors and collecting
data at a single source – respectively bringing them together
as fast as possible in a collection centre – will become all
the more urgent in media research for all platforms with
comparable data structures.
12 To meet the new demands in media research in all kinds of
markets GfK Telecontrol AG has developed a new product
line based on its experience with existing products but further
enhanced according to the latest findings and requirements.
The state of the art measurement systems in operation all
over the world include both fixed meters used for at-home TV
measurement (eg the Telecontrol 8 system with multiple recognition Based on our experience, there is currently no need to introduce
technologies such as frequency measurement, coding, matching etc) the entire measurement system, including out of home and Internet
and portable meters used for TV, radio, print, poster and cinema measurement in every market. However, regarding the fix meters,
research (Telecontrol Mediawatch with matching technology or almost every market (and SA in particular), will require a measurement,
active button pressing). The new GfK Telecontrol AG measurement system with the possibility to deal with different distribution
system, whose heart is called UMX, combines all measurement tools vectors and proprietary systems.
and its measurement technologies, which enables an entire and The development of technology in the media business is quite
customised recording of media usage. In other words, the appraisable and GfK Telecontrol AG has developed the required
Telecontrol fix meter at home, the portable meter Mediawatch measurement tools. However, how the human being deals with
together with a new Internet measurement tool can be combined, so these technologies, and how entire societies are developing,
that the entire data flow converges in one single data centre. The especially in a fast changing country like SA, this is more difficult to
outstanding characteristic of this combination is the data acquired predict. It has to be pointed out, that in media research the human
with the new measurement system is similarly structured and being as a media user must always be focused. Therefore, it is not
uniformly prepared. Data correction is also carried out uniformly recommended in any market to invest in a far too extreme and
and research designs are freely adaptable. ‘dealing-with-all’ future measurement system, if the penetration of
The market or the research community can themselves decide on certain devices or diffusion vectors is still in its infancy.
how they wish to use the two portable tools alongside the fixed One of the main advantages of the new Telecontrol product line
meter panel. For example, in a country like SA with a society with a is its modularity and its possibility for enlargement and permanent
high ethical and social discrepancy, alongside a permanent fix meter adaption to future requirements. So, an investment for example in
panel it would be possible to use the Mediawatch in waves to the ‘basic’ household meters UMX, which covers the TV measurement
measure the media usage of special target- or society groups, or for all vectors at the home TV set is never lost due to its long-term
simply to use it in a proportional subpanel to measure out-of-home expandability. Particularly in regard to the existing data collection
TV viewing, radio usage and print. In the same way, the portable data centre, future investments will be contained.
recorder (USX), which measures Internet usage, can be integrated into
the research design. Since the fusion approach developed by GfK
Telecontrol AG already starts at the data acquisition stage, the Dr. Tanja Hackenbruch, managing director, GfK Telecontrol AG
integration process of data from various measuring systems becomes hackenbruch@telecontrol.ch
considerably faster and, in particular, can largely be automated.

Q&A
Marketing Mix catches up with Ricardo Gomez-Insausti, VP: research, BBM Canada to find
out more about TV measurement.
Marketing Mix: In other countries, high definition TV

(HDTV) and Internet Protocol TV (IPTV) are a reality; how
has TV viewing been impacted in Canada? And how has TV
audience measurement been impacted?
Ricardo Gomez-Insausti: The penetration rate of HDTV
set-boxes in Canada is about 17 per cent. The rate varies over time
and by market depending more on the push forces of digital
television suppliers than on the pull forces of the consumers. So
far, the viewing to HDTV has been under eight per cent of total
television viewing. In a BBM survey on new television technology
usage conducted in 2008, it was found that less than 15 per cent
of the viewers chose HD over SD [standard definition] when
available. The same study showed that only two per cent of
respondents had an IPTV connection.
MMX: In some countries, mobile TV is part of the mainstream media.

How does mobile TV fit in and how does it impact on TV audiences and
TV measurement?
RGI: The 2008 survey on new television technologies reports that 13

MMX: How have PVR and TiVo products changed viewing patterns?
0.2 per cent of the respondents watched TV content on their
And is there any way to effectively measure time-shifted and place-shifted
mobile phones. In Canada, the option of watching television
content?
content on a mobile device appears to be chosen when no better
screen is available. For example, the phenomenon of watching TV RGI: In Canada, TiVo is in its early stages and no conclusions can
while commuting is not widespread in Canada, as driving is the be made at this time. However, PVRs have been penetrating the
most typical form of commuting and the coverage of mobile services market for a while. The adoption of PVRs moved up about 10 per
has considerable limitations (eg no coverage in subway lines). cent in early 2008 to 15 per cent now. Both PVR and HDTV
set-box adoption processes followed similar patterns, supporting the
MMX: What new measures are being used in Canada to better under- theory that the adoption of these innovations is more linked to
stand and record TV audiences and viewing patterns? How do they work suppliers’ push factors than to consumers’ pull factors. The
and are these new measures supported by the industry? advantages of these technologies are not fully appreciated by the
consumer until they use the technology. The 2008 survey on new
RGI: The Canadian television industry chose to deploy Portable television technology usage reports that 10 per cent of respondents’
People Meters (PPMs) throughout the country as a result of the viewing time was spent watching previously recorded programming.
Request For Proposals (RFP) conducted in 2008. BBM Canada’s The growth of PVR and HDTV has facilitated non-linear television
members decided to roll-out the PPM technology that has been viewing. Playback from the PPMs panellists is reliably captured
successfully commercialised for television audience measurement in through time stamps and processed in the weekly numbers. However,
Quebec since 2004. In September 2009, new PPM panels will the existence of a few time zones in Canada complicates the measure-
replace the fixed people meter panels in English Canada. Having a ment of time-shifted viewing considerably. Digital television suppliers
fairly passive technology that is capable of capturing individual offer time-shift options linked to programmes emitted by stations
viewing anywhere at any time is an important factor. located in time zones different from the viewer’s zone. Respondents
Simultaneously, BBM has tested the use of personal diaries to to the new technology survey reported spending nine per cent of
measure television audiences with positive results. This viewing time watching time-shifted programmes. Recording this type
redesigned personal diary can better capture out-of-home and of place-shifted viewing in diaries is particularly cumbersome, particu-
playback viewing and is more in line with panel data. Also, a larly in set diaries. It is hard to capture all possible playback options
more continuous form of diary measurement is to be tested. available to an individual in a diary that is attached to a particular set.
The main idea is to make the diary model closer to a panel The move towards personal television diaries will reduce this method-
design. Also, an online diary with a very friendly visual design was ological limitation.
tested in 2006 with great results among persons comfortable
completing online surveys. However, when tested with average
respondents in Anglo and Franco markets, the online option did Ricardo Gomez-Insausti, VP: research, BBM Canada,
not improve the cooperation of the younger groups. It has not Rgomez-insuasti@bbm.ca
been deployed yet.

Expert opinion
The best people

I
t has taken the economic downturn to its horror, that its lack of attention in this area
finally wake up the sleeping giants and with the subsequent staff turnover had cost it
draw their attention to a business issue an estimated Aus$4 million last year!
that has long been the subject of concern Sadly, this is no exception, but rather I
among a handful of so-called ‘doomsayers’. suspect, the rule. For too long business leaders
I am talking about a subject that has been have neglected their people and relied heavily
raised countless times and, for the most part, on the coat-tails of economic momentum,
has fallen on deaf ears. macroeconomic factors and the sheer size of
Now and then, one company might stand their operations. In many ways it strikes me
out for having addressed the issue head on as criminal negligence. Despite this oversight,
and gained considerable notoriety and executives have been quoted proudly stating
economic upswing as a result (like British that their people live their brand and yet in
Airways two decades ago). On the whole truth, few of them properly know what it
though, boards have paid lip service to the stands for. In fact, I wager that senior
subject and despite the recommendations of management probably couldn’t articulate the
leading business schools and publications brand values consistently among themselves.
have basically disregarded the signs. Yet, In 2006, Gallup announced that 75 per cent
the area concerned represents companies’ of the Australian workforce was disengaged
greatest asset and in most cases their greatest and calculated that this had cost the Australian
liability: people. economy Aus$32.7 billion in lost productivity,
Jerry Welsh is credited with saying that: recruitment costs, inductions, training… All
“The people with the best people win.” This is this from a country that has a population of
a statement that even the most inept business around 20 million people. What, I wonder,
executive cannot disagree with and yet most might be the cost to the UK, SA or US
corporations have grown fat and lazy in the economies if the same calculation was made?
14 area of human resources. It’s not surprising, A few weeks ago I met a company that is
given that HR is seen for many ambitious tackling this issue head on. It aptly goes by
executives as a graveyard shift and a prelude the name of Inside Out. The company is a
to retirement. In reality the discipline promises hybrid brand and business consultancy,
to become the most significant platform for staffed by senior specialists with no less than
business growth in the future. Companies 15-20 years’ business, marketing or HR
like Procter & Gamble have recognised experience each. Its focus is on assisting
this and responded by appointing talent companies with ‘cultural engineering’ and its
managers on the back of its already impressive client list is extremely impressive. By focusing
succession-planning policies and practices. on the inside of the company and ensuring
So while there are some notable exceptions that the people in the company and the brand
(particularly among the multinationals), most values are aligned, it is affectively fine-tuning
executives have taken their people for granted, the economic engine. According to one of its
and have relied on the traditional salaries, directors, Mike Read: “We are helping our
pensions, private medical cover and incentives clients to create a powerful magnetic culture
of one kind or another to keep them happy. that contributes directly to the attraction and
The problem of staff churn has never really retention of top talent and this has already
been tackled properly and is usually disregarded proven to deliver measurable growth and
until next month’s board meeting. profit results at a fraction of the cost usually
How many chairpersons or managing associated with such returns.”
directors can confirm, or even calculate, the To me, this seems like an obvious area for
lost profit and revenue or additional costs management to turn its attention to, but
incurred in replacing staff. For most it’s an then I have always marvelled at business’
Richard Duncan issue too hard and prickly to tackle. failure to appreciate the one thing that can
The Partnership, Sydney, Australia A short while ago, I met with senior build or break a brand – its people and the
richardd@thepartnership.com.au management from one of the largest advertising power of ‘word of mouth’ they offer (which
agency groups in Australia and learnt that it had everyone knows is the best form of advertising
+61 411 549 791
commissioned such a study and discovered, to there is).
Shopper Insights 12 May 2009
www.marketingmix.co.za
Brand anatomy
An Absolut icon
T
hink vodka, and you’re quite artists has elevated Absolut above the rest of the
likely to think Absolut. This is competition,” says Pereira. Absolut was the sponsor of
the iconic vodka brand, after Fabiani’s Winter Collection launch at the 2009 Joburg
16 all, with a long-standing history behind Fashion Week, which allowed the brand to explore its
its contemporary cult status. “Absolut connections to fashion, young creative minds and
was first produced in 1879 and only trendy lifestyles.
distributed in its country of origin, It is also supports the Lesbian, Gay, Bisexual and
Sweden. It was first exported Transgendered (LGBT) community, and this has lent the
internationally to the US in 1979 and brand real integrity in a market that has been proven to
has been available in SA since 1994 set trends, and has a higher than average disposable
(Pernod Ricard took over the brand in income. Consider the findings of the A.B.N.S.A Gay
2008). Every single bottle of Absolut is Consumer Profile 2008: seventy four per cent of respondents
produced and bottled in Ahus, Sweden,” are avid consumers of luxury goods, while 58 per cent of
says Seth Pereira, brand manager of respondents earn over R18 000 per month.
Absolut at Pernod Ricard SA. “As with fashion, art and music, the LGBT community
Since its launch, the brand has grown to is instrumental in creating trends across all industries.
become one of the world’s most Absolut has always understood this and together with the
consumed liquor brands. Sales figures LGBT community formed some fantastic collaborations,”
show that sales reached 96.6 million cases says Pereira. Internationally, Absolut has produced a
by 2007 (a number that held steady over limited edition bottle (called Absolut Colors) in support
2008). Meanwhile, Impact ranked Absolut of the LGBT community and here in SA, the brand has
as the world’s number four premium spirit got involved with festivals, events and community projects
brand in 2007. This is a brand that has to show support and further develop the relationship.
become associated with the innovative All of this is only driving brand equity higher. “Absolut
advertising, and has earned its spot in the is a fully imported international brand and we have seen
American Advertising Hall of Fame. significant decline of the rand versus international
currencies which is certain to have an impact on the cost
Winning the trendy target of Absolut, and this is where brand equity plays an impor-
Globally, the profile for this brand’s target tant role. Being an iconic brand with loyal support has
consumer is the same – young (25-35 years seen Absolut being able to weather this financial storm
old) trend-setting, and very gregarious. The and continue its growth,” says Pereira. The recession is
brand has successfully tapped into this market expected to impact all retail sectors, including liquor sales.
and its vibrant mindset by working the brand “To date, Absolut has shown some resilience to the
into the worlds of art, fashion and music. “I think market strains that we are seeing and is still performing
the fashion, art and music industries are where strongly in SA. There are international markets that we
some of the great creative minds are and tapping know are more exposed to the economic situation such as
into these minds and working with some of these the US, Russia and central Europe,” explains Pereira.

Brand anatomy
Absolut tidbits
Absolut Vodka was originally named ‘Absolut Rent Brännvin’, which means Absolutely Clean Vodka.
Every year, around 80 000 tons of winter wheat are used to produce Absolut Vodka.
Absolut Vodka is distilled by means of a unique process called continuous distillation in which the vodka is distilled hundreds of times
to remove impurities. This distillation process was introduced in the 19th century by Lars Olsson Smith, the man regarded as ‘The
Vodka King’, and the creator of Absolut Vodka (look for his mugshot on every bottle of Absolut).
Around 500 000 bottles of Absolut Vodka are produced each day in Ahus, Southern Sweden.
TBWA in New York, US, is the ad agency behind the Absolut ads (starting with Absolut Perfection, the brand’s first ad). The agency has
won over 350 awards over the years for its Absolut campaigns.
Absolut Akademi in Ahus, is where PR agencies, ad agencies, bar tenders etc go, to learn everything they need to know about Absolut
Vodka. The curriculum includes subjects such as history, production, marketing and tasting.
The link between Absolut Vodka and art was born when, in 1985, Andy Warhol was commissioned by the president of US distributor, Carillon
Imperter, to paint a picture of the bottle. Since then, a string of famous artists has lent their talent to interpretation of the Absolut brand.
Absolut Vodka was ranked the world’s number one luxury brand by Forbes in 2002.
Absolut Vodka’s involvement with music began in 2003, when the brand asked three famous club DJs to create their own tracks,
interpreting the Absolut lifestyle. Visit www.absolut.com/threetracks to listen to or download tracks.
According to the official brand website (www.absolut.com), the design of the Absolut bottle is not the result of hours of consumer
research. Instead, Gunnar Broman (a Swedish ad man who was to sell the concept of Absolut to the tough US market) was looking
through an antiques shop window in Stockholm’s ‘Old Town’ when he saw an old Swedish medicine bottle (which itself was
something of a cultural icon in Sweden). This bottle was handed over to the Absolut design and packaging team, and has become
the much-admired shape of Absolut Vodka.
One source
The Absolut brand has global street cred, thanks to the
brand management teams behind it. The Absolut brand
owners, and its international marketing team, sit in Sweden,
and control communications (brand advertising for print
and TV), but hand the placement of the advertising, and all
promotional conceptualisation and implementation to local
partners. This central control system ties back to the
concept of One Source, which loosely understands that the
brand is produced in one location to maintain the highest 17
standards and preserve the integrity of the brand. “More
than 1 500 Absolut ads have been produced. It works
because the creativity of the ads constantly asks the
consumer questions about what they are seeing, yet every
single ad that has been produced has been consistent to the
brand,” says Pereira. A global website serves as the brand’s
face online, but according to Pereira, there are plans to
Absolut: the milestones
move forward with a strong digital campaign locally to 1879 Absolut vodka is born.
leverage CRM, Internet communications, and so on. 1979 Absolut is launched in the US. And it is the 100th
Launches of new flavour variants are always supported anniversary of the brand’s creation.
with a full 360-degree campaign, including print, website, 1980 The first Absolut ad-Absolut Perfection – is published.
off-trade support and, of course, launch parties and 1985 Andy Warhol paints the Absolut Vodka bottle, and Absolut Art is
consumer involvement initiatives. “Absolut has been a born.
driver in experiential marketing. Consumer-driven 1986 Absolut Peppar, the first flavoured variant, is launched.
involvement in campaigns showcasing art exhibitions, 1988 Absolut Fashion is born when designer David Cameron partners
fashion shoots/shows etc, have been instrumental in driving with the brand, and creates the Absolut Cameron campaign.
the growth of Absolut. But rather than worry about driving 1992 Absolut Kurant is launched
sales volume, the idea was to always concentrate on 1993 Absolut becomes one of the three original brands inducted into the
building the correct image of the brand and develop brand American Advertising Hall of Fame.
equity which in turn would look after the future sales and 1997 The 500 millionth bottle of Absolut is produced. The Gianni
longevity of the brand,” explains Pereira. The brand Versace Absolut Versace campaign is launched.
recently hosted a chartered cruise aboard a luxurious 1998 The Absolut Originals campaign is launched, and sees 16 European
catamaran for SA celebs and business hotshots, and also SA artists lending their names to the campaign.
musicians Watershed. 1999 Absolut’s advertising campaign is named as one of the 10 best
campaigns by Advertising Age.
Absolut-ley responsible 2000 Absolut becomes the third-largest premium spirit brand in
Responsible advertising is key, especially today: consumers the world.
are growing hyper aware not only of health issues, but of 2002 Launch of Absolut Gaultier campaign.
the influence that advertising and branding can have, 2003 Absolut enters India, taking the number of markets in which the
especially on younger audiences. “Absolut certainly brand is distributed to 126. Absolut Vanilia is launched.
believes in responsible behaviour across all segments of the 2004 Absolut Raspberri is launched. On 16 March, the billionth bottle of
market. Responsible drinking, advertising and distribution,” Absolut is produced.
says Pereira.

7 day [B]itch
Tove Kane,
DJ Jacaranda 94.2
voice artist, MC, writer, singer, founder of
Ablekane Productions and www.tovekane.com
17/03/2009 19/03/2009
A
t 5am the alarm shrieks at me to play 6:15am: Cas is shrieking even louder than my
pre-dawn golf. MG stirs next to me, alarm. She’s dropped off at us every morning
warm and cosy in the cool of the (she and Jesse walk through the estate to
morning. Golf is awesome. The greens are school). I’m dressed in Jacaranda branding,
shimmery, wet and slow – our footmarks trace hair and face done and her approval is a hug
our progression to the hole. My caddie around my legs.
concedes I’m a vixen with the putter and the I jump through all the hoops answering
driver, validating our early start. Can’t play questions about co-DJs Dianne and Riva,
full 18, but just as well, because my agent calls what does Gerda look like, and are we really
with an urgent voice-over. friends outside work?
The creative director edited the Sit Dit I’m saved by the school bell and roar off to
Aan music video (the title track of a duet the SABC to lay down TV voice tracks,
I sang with Martin Bester on Jacaranda’s before dashing over to Centurion for another
Afrikaans compilation CD). He recognises interview on the Tové Tabloid.
me, telling client all about my antics. I do a live marriage proposal on air and the
18 Awkward at first, but I do a sultry voice en bride to be says, “Yes” much to everyone’s relief.
Harley-Davidson breakfast
route to the voice booth, which belies my Home – supper, koi, dogs and then a walk
crazy accents. after dinner. run. It’s best to go out
Off to Centurion, interview a muso for
Tové Tabloid. Live radio show – awesome 20/03/2009 early; MG and I make
callers, one acknowledging my positive Five days to Jesse’s birthday; MG and I
influence on his life – a great feeling.
Hit Woolies for fresh veggies. Home
are plotting his birthday surprise with a
sprinkling of hints that entice him out of his
the dash, locking hidden
to feed the dogs and the koi before teenage silence.
practicing my son Jesse’s English speech I’m MC’ing an awards function tonight so
gifts in our cupboards.
(I’m taking photos of him too) and cooking I have to take my make-up and a change of
a sublime supper. clothes to work.
Show flows nicely, and then it’s a mad
18/03/2009 stampede out of Centurion; traffic, shower, to another back to back until 10.30am. I
Gym after I see the kids off, and then I send make-up and get to function before guests squeeze in a lightning breakfast, and while
of photos of Jesse to mum-in-law, who’s arrive. Late finish – home to find MG and writing my blog, I notice the waitron’s cup is
working on a special birthday collage (Jesse’s Jesse playing Wii in the lounge. I can’t resist quivering. “Sorry to bother you – are you
birthday is 25 March). He’s protesting in last and the championship begins again in earnest. Tové Kane?” She has all three of my CDs, and
night’s shots – I can’t use any of the images – is asking me to give her an autograph. “I’ll go
will have to be more surreptitious. 21/03/2009 one better – why don’t you take a photo with
Get a bit stuck in my blog; I’m uploading a Mum-in-law takes Jesse to breakfast while me and I’ll put it on my blog?” She’s thrilled
bunch of images as well as writing some dense we do the present prowl. There’s so much and her friends join us in a heartbeat.
copy. My Harley-Davidson trainer arrives for rugby to watch and I’m a fan – shopping is a Research, write, voice the Tové Tabloid. Attend
our two-hour lesson. I ride a monster 1600cc fine-tuned operation woven around big a briefing with the creative and production
Street Bob that we’ve customised to the hilt. screens and cheering with friends. team at Jacaranda for a competition starting
She’s heavy; brutal if you go past the point of next week. My show – I’m on form today.
no return – balance is everything. 22/03/2009 Air check with my programme director
Use the traffic sagas of my lesson for blogs Harley-Davidson breakfast run. It’s best to go about audience ratings and advertising
that I post on my website: www.tovekane.com. out early; MG and I make the dash, locking revenue generated by my show; positives to
Sister-in-law and family arrive for early hidden gifts in our cupboards. accentuate and negatives to minimise.
supper. She’s near full term, expecting her I hit Woolies for fresh food, then dash
third child. Her first born, Cassie, wants me 23/03/2009 home to sort out dogs, koi, supper – listen to
to accompany her to school tomorrow since After early gym, I work with three producers Jesse’s Zulu speech and feign ignorance about
she is in ‘The Spotlight’. at the SABC, literally going from one studio his birthday.

Expert opinion
Am I the only one?

I
think I am the only one standing who to win one of 10 cars, and get ongoing use of
thinks loyalty programmes are archaic the vehicle, it will create a more sustainable
and never worked anyway. They generally interest in the brand.
aim at discounting the most valuable I was travelling on a Kulula flight this
customer on purchases they would have made weekend, when I was reminded of its Kulula
anyway. In tough economic conditions, the Moolah and credit card offering. I started
average consumer doesn’t wasn’t a bank of debating with myself (as one does) who the
points they can’t use because even if they fliers on board were loyal to – the airline
could access the flights they couldn’t afford or the credit card? So I checked with the
the hotel room and other costs associated passenger next to me, who laughed and
with travel! said it really didn’t matter what they called
What do consumers want in today’s times? their miles – cash is king and “besides I can
My answer is very simple: have a hundred cards but if there is no real
money on them I can’t go anywhere or
Great value buy anything.”
Great service How do I choose a local airline? I look at
Great quality the four airlines, and pick my optimum time
Acknowledgement. within half an hour of my desired departure,
then go all the way to checkout in case some
All the bells and whistles come afterwards, cost has been preloaded but is not obvious
but once satisfied with the above, the (usually the case). Then I look at who’s
customer primarily wants cash back. This cheapest. If they are same for same, within
especially applies to those who feel the R100, I will pick British Airways first, for a
economic pinch first. Generally, that does not couple of reasons: firstly, I can check in at the 19
refer to those who can no longer afford two self-service kiosk quickly. Secondly, the
pairs of Jimmy Choos, but rather, to those service on-board is always with a smile and I
who have to think twice about buying an can usually get my preferred seat (as close to
extra item of school wear. Think of yourself – the front of the plane as possible). Thirdly,
the corporation. Would you rather have a their meals are palatable (often, it’s the only
handful of air miles or additional money to meal of the day when I travel in and out).
write to the bottom line? Finally – and I do admit this – I get a handful
I recently read an interesting article (visit of miles. These would be meaningless, if I
www.colloquy.com for the full article): didn’t bank with Investec and have the ability
From the “Australian for Reward” to transfer my dividends points to BA Miles –
Department: “Virgin Blue’s multi-award but my ‘loyalty’ is to my bank in this
winning frequent-flyer programme, Velocity, instance, not to the airline. Is your loyalty to
is putting a rocket up the competition (literally) the retailer or to the credit card, or the actual
by giving punters a chance to [win]” one of bank? And is it to the loyalty programme or
four amazing prizes, including a sub-orbital the gym?
spaceflight with Virgin Galactic valued at I think companies should change their
25 million Velocity Points, plus an additional mindset from loyalty to retention; once
25 percent bonus Velocity Points for simply they make this very critical shift in strategy
transferring their points from selected credit they will understand that retention means
card partners to Velocity until April 15, 2009, persuading the customer to return on a
says the company. regular basis and increase their spend. If the
A few years ago eBucks put up a similar customer returns regularly enough, then they
prize. I questioned then (when it was my can look at how rewarding them will retain
client) as I do now, how many people actually their custom further.
changed their behaviour in a sustainable way Too often we think rewards mean points, but
because of a prize of this nature? I further most often a soft reward in the form of a thank
argue that besides the PR value, there is you, an invitation and exclusive preview to a
zero value in a campaign of this nature. I sale is enough. Couple this with great service,
believe that prizes should reach the majority value and quality above all and they will return.
of the target audience; a trip to space is Nici Stathacopoulos is currently the acting
incomprehensible to most, let alone being head of customer marketing at Woolworths Nici Stathacopoulos
within their grasp. Aspirational prizes like and the founder of The Tipping Point
nici@thetippingpoint.co.za
cars work far better; if I know I have a chance consultancy.

Top print performers
Top print performers 2009

hat a year 2008 turned out to be. After the dust settled
W over Media24 and its ABC figures, it should have been a

more amicable year for most publishers. Instead, even
before the economic crisis hit, newspaper and consumer magazine
Circulation key
Red: subscriptions and single copy sales
Blue: total paid
circulation figures were declining.
Green: total circulation
Still, it’s not all doom and gloom. There are many newspapers
Figures in brackets refer to the corresponding total circulation for the
and magazines that have managed to buck the disappointing trend
corresponding period.
and come out of 2008 with great figures.
Some of the 2008 top print performers may be surprising, but
taking into account the general trends within the industry, it makes
sense that niche titles came out on top. The same can be said of the
newspapers, with some of the smaller regional titles outperforming Daily Newspapers
their bigger metropolitan brothers and sisters. As a category, daily newspapers (Oct-Dec) have decreased by
While the ABC figures shown are from Oct-Dec 2008 for the 71 278 to 1 886 138 There were 21 digital editions, 40 228 Print
newspapers and the consumer magazine (those with 11 issues or Media in Education (PMIE), 10 756 third-party bulk, 1 491 336
more per annum) categories, top print performers focuses on copy sales with 343 797 subscriptions. All figures include
performance over the whole year. foreign papers.
The following print titles were suspended,
terminated, resigned, ceased publication or
didn’t submit figures at some point over 2008 top performers
2008:
22 Tribute; terminated Jan-March
Daily Dispatch 31 320 31 320 31 555 (32 025)
Job Mail: resigned Jan-March

Daily Sun 497 376 497 376 497 376 (513 291)
Drum East Africa: resigned Jan-March
Diamond Fields Advertiser 9 153 9 153 9 890 (9 437)
Hong weekly Chinese magazine: Isolezwe 99 022 99 022 99 110 (98 565)
suspended Jan-March Son daily 105 419 105 419 105 419 (97 135)
Insig: ceased publication
SA Health Matters: no submission The top five daily newspapers (Oct-Dec) by subscriptions and copy sales are
Autolocator – Gauteng: ceased publication Daily Sun 497 376 497 376 497 376 (513 291)
Caperush magazine: suspended The Star 142 470 142 470 156 899 (163 839)
Maxpower SA: ceased publication
Sowetan 122 222 122 222 130 026 (135 514)
Xtreme Machines: resigned
Son (daily) 105 419 105 419 105 419 (97 135)
Complete Fly Fisherman: resigned
Isolezwe 99 022 99 022 99 110 (98 565)
Monthly Golfer: suspended
InStyle SA: ceased publication
True Love East Africa: resigned
SL – Student Life: no submission There are few daily newspapers posting positive results and even
The following publications were suspended due to non the top performers didn’t realise great gains. However, they are top
submission of their circulation data and audit reports for the performers against the other papers, even if it was a case of holding
4th quarter 2008: their own over 2008, despite lower figures than in previous year. It’s
OFM Wheels interesting to see that two local dailies are top performers – Daily
Get It: Potch/Klerksdorp Dispatch from the Eastern Cape and Diamond Fields Advertiser in
Get It: Bloemfontein the Northern Cape. The two tabloids, Daily Sun and Son, appear
TAPPSA along with the Zulu daily, Isolezwe.
Body Corporate News The Daily Dispatch didn’t have a smooth year in terms
Portfolio of Municipalities in SA of circulation figures, but held its own quite admirably and
Which? Industrial in general posted positive results over 2007. What’s good to
Big News for the Business Owner see is that the paper offers very few third party-bulk or
RB Magazine Print Media in Education (PMIE) results, which can skew total
Fleet Jewish Tradition circulation.
Y Magazine According to editor, Andrew Trench, the economic turmoil has
Manwees compelled the publication to focus on its core strength, which is
local content. “We also identified the developing political story as
An interesting aside is the number of new members key for our area and have worked it hard, producing some excellent
(corresponding previous period) suspended. sales on the back of this,” he says. > p24

>> p22 Working closely with the circulation

and marketing teams has also been beneficial. 2008 top performers:
Analysing sales against content has allowed the Ilanga Langesonto 90 006 90 006 90 915 (84 061)
Dispatch team to make changes as needed. A Isolezwe ngeSonto 48 034 48 034 48 034 (new member)
marketing campaign has also helped to either Sondag 47 727 47 727 47 727 (40 472)
maintain or increase circulation figures. “We have Sunday Sun 213 627 213 627 213 627 (201 132)
worked on postering and marketing our exclusive The Weekender 13 804 13 804 14 346 (12 404)
content on radio and online which I believe has
helped our sales,” says Trench. This year looks set
The top five weekend newspapers (Oct-Dec) by subscriptions and copy sales are:
to be a good one for the daily which recorded its
highest figures for the past 18 months during the Sunday Times 424 786 484 786 505 374 (504 401)
first six weeks of 2009. Rapport 271 784 271 784 281 026 (296 237)
The Daily Sun posted increased circulation Sunday Sun 213 627 213 627 213 627 (201 132)
figures for April to June 2008, both in terms of City Press 181 370 181 370 187 347 (195 150)
quarter-to-quarter analysis and in comparison to Sunday World 181 243 181 243 181 243 (199 499)
2007, comfortably taking it over the 500 000 mark
again. The other tabloid, Son, showed gains every
quarter over 2008 with significant gains over 2007.
The Diamond Fields Advertiser (DFA) is one of those stable figures from the third quarter to the fourth quarter. Its print figures
papers which has endeared itself to its loyal readers. Marketing Mix were more than likely boosted by its website and the introduction
is glad that its figures showed a drop in PMIE. of a mobisite.
According to Isolezwe editor, Thulani Mbatha, his paper, much Although the Mail & Guardian isn’t a top performer this year, it
like the Daily Dispatch, rests its success on editorial. “Sales increase is worth mentioning that it ended the year on a high – significantly
when hard news breaks – such as happened recently when police increasing its copy sales while at the same time decreasing its
gunned down a suspected crime kingpin on a busy road and protest third-party bulk sales.
action closed a major taxi rank. Average daily sales that week
reached over 110 000,” he says. Although Oct-Dec 2008 figures Weekend Newspapers
closed down on the Jan-March figures, overall its staying stable just As a category, weekend newspapers (Oct-Dec) have decreased
under the 100 000 mark. by 85 691 to 2 581 264 (including foreign papers). There were
24 15 editions, 107 037 PMIE, 39 253 third-party bulk, 1 952 874
Weekly Newspapers copy sales with 482 085 subscriptions. All figures include
As a category, weekly newspapers (Oct-Dec) have decreased by foreign papers.
45 842 to 683 918 (including foreign papers). There were 1 208 What a delightful mix of top-performing weekend newspapers –
third-party bulk, 647 112 copy sales with 35 598 subscriptions. it’s got everything – two Zulu papers, an Afrikaans and a black
All figures include foreign papers. tabloid, and a high-brow paper.
Again, the two Zulu papers feature as top performers, which is a
sign of health within the Zulu language market. Ilanga Langesonto
started and finished 2008 strongly with a slight dip mid-year.
2008 top performers: However, its figures were significantly up on its 2007 circulation
Ilanga 103 085 103 085 103 085 (105 673) numbers.
Soccer Laduma 312 659 312 659 312 659 (321 986) Isolezwe ngeSonto, may only have just over half the circulation of
Ilanga Langesonto, but it has only just celebrated its first birthday –
The top five weekly newspapers (Oct-Dec) by subscriptions still plenty of time to grow. “It’s proving to be a commercial success
and copy sales are: with sales heading into the high 50 000s and advertisers supporting
Soccer Laduma 312 659 312 659 312 659 (321 986)
us from the first issue,” says editor, Thulani Mbatha.
Mbatha also says that the weekend paper is finding an increasing
Ilanga 103 085 103 085 103 085 (105 673)
‘pull-through’ from daily readers and is using promotions to
Mail & Guardian 57 050 57 050 58 258 (51 842)
stimulate this dual buy. Other marketing efforts include tie-ins with
The Post 28 829 28 829 47 356 (47 218)
popular contemporary DJs, picnics and more traditional events
UmAfrika 31 329 31 329 31 329 (33 996) such as Isolezwe’s Isicathamiya Traditional Music Festival. The
newspaper is also available in around 3 000 outlets ranging from
large retail chains to township tuck shops.
Sondag, the relatively new Afrikaans tabloid, celebrated its first
birthday in May last year and ran competitions with substantial
Ilanga started the year with great figures, almost reaching 110 000 prizes throughout the year. In September, Sondag was restyled and
copies. The next two quarters represented a drop from that initial repackaged after much reader input and November saw the launch
figure, but were still significantly up over 2007. The last quarter saw of a new travel guide, Ritsgids. “I am modestly proud of what
Ilanga increase its circulation again although it was down on the Sondag achieved last year. There was no ‘Harry Potter’ to create
corresponding period in 2007. magic – everything we achieved was through hard work, long hours
Soccer Laduma, while down significantly on its 2007 results, is and creative thinking. The redesign did a lot to improve perceptions
still the biggest weekly in the country and third biggest newspaper around the newspaper as South Africans still tend to see tabloids as
overall. Marketing Mix applauds Soccer Laduma for clawing back its down-market, sensational and tacky,” says Willem Pretorius,
circulation figures over the course of the year, with just a dip in editor, Sondag. > p26

>> p24 The Sunday Sun has managed to gain fairly

2008 top performers:
substantial numbers over the 2007 period, with a steady
tvplus 143 754 143 892 143 892 (107 329)
increase from quarter to quarter finishing 2008 over 11 000
LIG 33 234 33 234 34 452 (29 261)
copies up from the beginning of the year.
The Weekender might not possess the gains that the Move! 194 967 194 967 194 967 (130 917)
Sunday Sun demonstrates, but then it’s not a mass-market Farming SA 5 210 6 473 9 986 (new member)
title. Still, it managed to reap a couple of thousand or more Food and Home Entertaining 33 423 34 283 46 282 (33 593)
copy gains over its 2007 figures while remaining stable over Popular Mechanics 41 777 41 803 35 930 (43 978)
the first three quarters of the year. Then it posted another SA 4x4 17 178 17 178 17 178 (107 329)
2 000 copy gain in the last quarter of 2008 both in terms of Animaltalk 13 238 13 255 15 078 (14 393)
its corresponding previous period and over it preceding Game & Hunt/Wild & Jag 9 417 9 417 9 948 (9 106)
quarterly results. Kick Off 53 993 54 160 54 160 (57 653)
To boost its profile, The Weekender began
Real magazine 63 081 63 081 64 166 (57 211)
co-hosting a series of public events with universities and
SA Hunter/Jagter 26 879 27 212 27 312 (26 476)
think tanks. “We have found that we complement each
SA Rugby 10 103 10 103 18 956 (14 078)
other’s desire for stimulating intellectual debate, especially as
there is a huge desire for information and debate on current Essentials 35 269 38 280 39 830 (39 328)
issues; not just politics, but culture and literature as well,” Leef 42 859 42 859 44 454 (40 953)
says Rehana Roussouw, executive editor, The Weekender. National Geographic Kids 42 631 42 631 43 226 (40 405)
Not only has The Weekender hit its target market’s sweet
spot with such events, but it gives the newspaper the chance
to establish a huge database of readers it can communicate with
directly. “At every event, we ask attendees to fill in a questionnaire activities and a revamped website, which included the launch of a
detailing their interests and then inform them of events in the site for teenagers. LIG also joined forces with Christian publishers
future they might be interested in attending. Not just our events, to encourage subscriptions by giving away free books – it worked
but other organisations’ as well. For some of our readers, attending a judging from the rise in individual subscriptions; single-copy sales
debate or listening to an intelligent speaker is far more stimulating also increased. Other marketing initiatives included handing out
than a night at the cinema or theatre. This dynamic relationship LIG at cultural events and festivals, sponsorships and new branding
with our readers makes it easier to provide content that suits their as well as an intensive radio campaign.
26 changing needs,” says Roussouw. “In 2009, we will also be splashing out at major festivals such as
According to Roussouw, in the absence of massive spending on the Volksblad, Cultivaria and Aardklop festival, offering incentives
traditional marketing, word of mouth is helping to drive sales. The to subscribers and, of course, continuing to raise the bar in terms of
expansion of its distribution networks looks set to put the content,” says Estelle Nagel, marketing and communications, LIG.
newspaper on the path to becoming a national weekend paper. Move! magazine is one of the highlights of the consumer
magazine section, demonstrating that a perfect mix of marketing
Consumer Magazines and editorial content that perfectly matches its target reader can
As a category, consumer magazines (11 magazines or more per ensure significant increases in circulation even in tough times. The
annum) for the Oct-Dec ABC, figures have decreased by 152 553 Move! team attributes its immense success last year to a number of
to 5 014 142. There were 65 036 third party bulk sales, 295 284, marketing initiatives, such as its quarterly Stokvel Workshops, as
1 491 336 copy sales with 618 285 subscriptions. well as partnering with Positive Heroes and Avon for its charity
Well done to all those top performing magazines, it is indeed an work around breast cancer. Over and above this, the magazine was
achievement with declining circulations so evident. However, all given a fresher look and embarked on an aggressive trade PR drive
magazines could do well to ensure the control of any third-party bulk and brand awareness exercise. This year, Move! has launched some
distribution, individually non-requested distribution and back issues new brand extensions, including a gospel CD (joint project with
considering that Telmar has decided on a ‘core circulation’ – EMI) and a parenting magazine.
single-copy sales and subscriptions – in its Printplan program. All Faming SA only started reporting its ABC figures from the
of the ABC circulation breakdown info will also be made available second quarter of 2008, but in that time has managed a very credible
to planners and strategists. set of results – doubling subscriptions and tripling single-copy sales.
tvplus magazine managed to increase its 2008 circulation figures The magazine is the first mainstream magazine for small-scale
substantially over 2007 figures – between 20 000 and 30 000 copies. farmers and hit the shelf in April last year. Before that, it had a
Looking to increase these figures this year, as well as break new seven-month stint as a supplement to Landbouweekblad. “Apart
ground, it is introducing a photo-novel – with a twist – to its from getting the basics, – content and distribution – right, we embarked
editorial section. Readers will be able to enter themselves as on a path of carefully planned marketing and promotion in 2008.
potential actors in the photo-soapie, which will also feature cameos Although this is done within the limitations of the current economic
by local celebrities. Readers are asked to choose the winners by circumstances, we regard continued efficient marketing during 2009
SMS, where prizes can also be won. as crucial,” says Jacques Claassen, managing editor of Farming SA.
In terms of brand presence, sponsor logos will appear on the According to Riaan Weyers, Farming SA’s circulation manager,
initial competition pages and, more importantly, their products will combining its strengths with those of some of the major role
be placed within the story. Characters could be seen eating a players in this market such as the National Red Meat Producers’
particular brand of take-away or shopping at a certain grocery chain Organisation and others helps with its figures.
or retailer, for example. Only the last quarter of 2008 spoilt Animaltalk’s success last year
The success of LIG – an Afrikaans Christian family interest (but due to the time of year and the fact the magazine is in the Pets
magazine – last year was boosted by a number of marketing category, it’s not surprising). “We always engage in > p28

>> p26 new ways of trying to broaden our footprint and

have worked extensively on cover designs to appeal to our read-
ers. We’re constantly improving and evolving the magazine to an Top selling consumer magazines in each category Oct – Dec
ever-changing but niche target market, which is why the maga- Please note that the top selling mags are based on subscriptions
zine is growing with the industry,” says Urs Honneger, manag- and single copy sales and only for magazines with 11 issues or more
ing director, Panorama Publications for AnimalTalk. per annum.
Honnegar says that this year will see the magazine extending
its reader interaction and is looking at expanding into the school
Arts, Culture and Heritage
and youth market. “Also, our extensive online development on
Live Out Loud 4 492 4 544 5 643 (new member)
www.epets.co.za will dovetail and improve the growth of the
Business and News
print magazine’s circulation, as it did in 2008.”
Finweek 27 431 29 766 30 802 (36 835)
One of the two hunting magazines that are in this year’s top
Celebrity
performers is Game & Hunt/Wild & Jag. The magazine’s figures
dipped towards the end of 2008, although importantly it People 92 654 94 870 94 924 (107 745)
showed increased Conservation and Wildlife
single-copy sales and slightly increased subscriptions over the Africa Geographic 25 419 25 419 27 486 (28 826)
year. When compared to its overall 2007 results, it increased its Entertainment
figures. According to managing editor, Jan L van der Walt, last tvplus 143 754 143 892 143 892 (107 329)
year saw an intensified liaison with the organised hunting and Family Interest
game ranching industry as well as coverage of topical conserva- Huisgenoot 324 664 326 229 326 229 (332 306)
tion matters. He also attributes its success on quality – layout, Move! 194 967 194 967 194 967 (130 917)
paper, photos as well as an intimate knowledge of the wildlife You 193 820 194 372 194 372 (205 719)
industry as well as its editorial being technical correct whilst still Farming
being reader friendly. “Close relations with our distributors, Landbouweekblad 42 048 42 048 42 048 (43 860)
RNA, also played a significant role in getting our publication on Health
the shelves where the demand was greatest,” says Van der Walt. Shape 41 396 41 511 41 511 (44 530)
Kick Off has managed to pick itself up and dust itself off after Home
being suspended for a time in 2007. For this, and for managing
Tuis Home 71 375 71 392 71 879 (82 780)
to post figures higher than some of its 2007 quarters, we
28 applaud Kick Off. “The key to Kick Off selling more magazines
SA Garden and Home 60 017 61 877 64 234 (78 559)
SA Garden /Tuin Paleis 47 920 47 920 50 890 (rebranded)
and reversing a downward sales trend is to ensure that our con-
Male
tent lives up to the magazine’s slogan, which is ‘Soccer at its
Best’. We need to maintain our position as the absolute authori- FHM 71 408 71 408 71 408 (70 972)
ty on soccer in South Africa,” says Neil Greig, editor, Kick Off. Motoring
Kick Off’s main priority, according to Greig, is to put its Car 83 732 87 710 89 693 (104 543)
resources behind its editorial, which he says has never been Speed and Sound 46 010 46 185 46 636 (46 294)
more important in this difficult time for the media. “The web- Bike SA 33 626 33 626 35 157 (32 716)
site www.kickoff.com plays a major role in maintaining the Parenting
popularity of the brand. The site is the biggest single-sport Parents 36 834 36 834 36 834 (40 288)
website in the country, and third overall behind the two major Living and Loving 30 384 30 411 31 668 (36 904)
multi-sport sites,” says Greig. Its development of Web 2.0 Pets
elements for the website should further endear it to its Animaltalk 13 238 13 255 15 078 (14 393)
community of readers during 2009. SciTech
Unlike most of the top performing magazines, Real magazine NAG 20 383 20 383 20 802 (19 160)
deployed no marketing initiatives during 2008, instead, according Sport and Hobby
to Jonathan Harris, managing editor/founder of Real, circula-
Kick Off 53 993 54 160 54 160 (57 653)
tion figures are driven by word of mouth. “I believe that editori-
Sports Illustrated 38 305 41 115 41 115 (43 968)
al is our best marketing and that this leads to circ growth. Our
Tight Lines 32 442 32 442 32 442 (35 993)
readers love Real and feel it is an important part of their lives.
Travel
We constantly assess what we do and how we do it editorially to
make sure we never lose touch with our readers. If we are a Weg/Go 83 432 85 505 85 505 (99 708)
must-have and not an impulse buy then I believe we can hold on Women
to our circulation position. The magazine is also great value for Sarie 113 836 114 369 115 794 (123 186)
money which is always a winner in a weak economy,” he says. Rooi Rose 104 844 105 871 109 482 (106 810)
The second hunting magazine also making its first appearance Cosmopolitan 102 615 101 987 106 315 (125 454)
on the top print performers list is SA Hunter, which posted True Love 94 404 94 471 94 558 (95 050)
gains in every quarter except in its Oct-Dec figures, which was- Finesse 92 156 92 238 93 171 (88 937)
n’t a significant drop. While the majority of its subscriptions Youth
went to members of the SA Hunter and Game Conservation National Geographic Kids 42 631 42 631 43 226 (40 405)
Association, over the course of 2008, its individual subscriptions 37 826 39 493 40 088 (40 447)
Seventeen
and single-copy sales increased quarter on quarter. Over the past
year, the magazine has run newspaper ads and conducted radio
interviews, which have boosted its public profile. > p30

>> p28 The magazine was revamped with a redesigned Springboks to promote the brand at shops like Spar,” says Ross.
cover to appeal to the general public as its visibility increased by its Leef managed to increase its core circulation with each passing
availability in 2 800 retail outlets – as opposed to the previous 800. quarter last year, and managed this on a decreased marketing
“Hunting is expensive so we know our readers have money and is a budget. The women’s mag also managed to continually increase its
desirable audience being male, aged 45-65. We also know that 98 per individual subscriptions. According to editor, Christine Ferreira,
cent of our readers keep the magazine,” says Andre van Dyk, editor Leef’s distribution was widened last year to increase its reach, but
of SA Hunter. A new feature for 2009 will be ‘celebrities who hunt’, she doesn’t believe this is the main reason for its growth. “I believe
and a website is due to go live by September. that the main reason for our growth is related to the increasing
SA Rugby posted increased total circulation results and just need for spiritual direction that we’ve have been seeing in our
squeezed itself into top print performers as it ended with a higher country over the past few months. People are now – more than
circulation at the end of the year. However, while there was a slight ever – looking for a glossy with more depth due to widespread
increase in single-copy sales, its controlled free distribution bumped uncertainty in terms of the economic and political situation. I
up its circulation. Marketing Mix isn’t too concerned with this as believe we have managed to connect deeply with our target market
the CFD was achieved through sponsorships and other agreements offering them a consistent quality read,” she says.
with a number of rugby stadiums, institutions, academies and National Geographic Kids made incremental increases in both
schools that agree to distribute the title directly to rugby fans. This individual subscriptions, while single-copy sales held their own over
means the likelihood of the magazine picking up new readers within the year. Overall, compared to 2007, the 2008 circulation results
its target market is high. were up. According to Fiona Thomson, editor of the kids’
“As far as controlled free distribution is concerned, magazine, the second half of the year saw a brightening up of the
SA Rugby magazine tried to reach people who had not previously magazine with a new logo, fresh look features and quirky design
read the publication, but who fitted into our target market tweaks throughout. “In 2008, we continued strategic partnerships
from an editorial and advertising point of view,” says Kara Ross, to promote the brand, such as the second NG Kids Young
group marketing manager, Highbury Safika Media, publishers Photographers Competition in conjunction with Spur.
of SA Rugby. This year, NG Kids is aiming for stability considering the current
Rugby events also sent its single-copy sales up, which was evident climate, although more initiatives are on the way. “Our buzz word
in its July-September results which coincided with the Tri-Nations. for 2009 is ‘interactivity’ –making the pages of the magazine more
“SA Rugby magazine has focused on providing added incentives for interactive for the kids –for example, the introduction of Explorers’
the consumer. For example, a free Springbok sweatband was given Corner within the magazine and launching more ‘Young…’
away with every issue during the Tri-Nations. In addition, SA Rugby initiatives, so that our readers see themselves reflected in the
30 magazine used life-size cut-outs of the World Cup winning magazine,” says Thomson.
Experiential marketing
You don’t need to spend

big money to get results.
Local agencies believe we can expect the
You just need to be
same growth in interest in South Africa.
smart with your targeting
The approaching 2010 FIFA World Cup
and flexible with your
is positive and is encouraging brands to
message.
up their game, too.
A meaningful connection
xperiential marketing has long been held as a powerful way Marketing Institute and Agency George P. Johnson, in the USA)
E to reach consumers and engage them. Experiential marketing

is about a one-on-one, deep, meaningful interaction, says
David Boon, director, Exp.
reports that events – experiential events, conferences, roadshows,
etc – are the face-to-face activities that will play an increasingly
crucial role in marketing. Fifty-three per cent of respondents in
It makes sense then, that with economic pressures forcing EventView’s 2009: North America study chose event marketing as
marketers to deliver evidence, marketing spend is spurring growth, the discipline that best accelerates relationships with target
experiential marketing is coming into its own, especially those audiences; 26 per cent of respondents see event marketing as the
campaigns that are measurable. “Experiential marketing is about discipline that drives the greatest ROI. The findings indicate a
creating the connducive platform for the positive feeling you get strong shift in priority towards experiential events. “With smaller
when you drink a Coke or drive a Mini,” says Abey Mokgwatsane, audiences, experiential activations will cost more, but that kind of
CEO, VWV. “Of course, you should have a product that does a lot interaction really builds better relationships,” says Boon.
of the work for you in creating these feelings.” “Experiential marketing incorporating a number of elements
Experiential marketing is about the brand giving something that creates not only a customer experience but when it is focused
32 back, instead of taking, with the result that the consumer on a journey through the brand, it achieves short term sales and
experiences the brand in a different way, says Pippa Capstick, long term loyalty,” says Lee Grant, managing member, Leegra.
deputy executive creative director, draftfcb. Traditional advertising Local agencies believe we can expect the same growth in interest
is now becoming secondary and instrumental in experiential in South Africa. The approaching 2010 FIFA World Cup is
campaigns (and not the other way around). positive and is encouraging brands to up their game, too. Capstick
Advertising cannot deliver the kind of ‘aha’ moment that says that in the past 18 months, draftfcb’s experiential division has
experiential marketing delivers, and for this reason it is also seen an upswing in business. “About two and a half years ago, our
becoming a viable option for small brands. “You don’t need to division was responsible for about one third of the company’s
spend big money to get results. You just need to be smart with income. This year, it’s substantially more,” she says.
your targeting and flexible with your message. It doesn’t cost a lot Experiential marketing and alternative marketing platforms in
to make mistakes since the message and placement can be tweaked general, will find an expanded niche in the current economy. “As
and changed reasonably quickly and easily,” says Damon Freeman, budgets are cut, advertisers need to be more careful with their
founder, Foozi. limited funds, which means fewer massive television campaigns
The EventView report (compiled through the collaboration of and more targeted exposure with measurable results, which is
the Meeting Professionals International, or MPI, the Event where experiential marketing really comes into its own,” says
Freeman. He goes on to say that there’s also more room to
manoeuvre with this form of marketing, since subtle placement
and budget changes can make big differences in results (and these
“Experiential marketing incorporating changes can be done quickly).
For smaller experiential agencies, the competitive edge will
a number of elements that creates be gained by having specialist skills in each aspect of the
campaign design and execution offering clients a total solution.
not only a customer experience but “Small businesses need to acknowledge their point of uniqueness
and once they have this, start compiling the customer journey in
the most simple and measurable manner,” says Grant.
when it is focused on a journey
Client needs
through the brand, it achieves short With client budgets static at best, local agencies are seeing demand
for ‘more bang for buck’ from their clients. “Clients are spending
term sales and long term loyalty.” – more money below the line (BTL), in areas like experiential
marketing, but they are still cutting back,” says Mokgwatsane.
ROI is being watched more carefully, and clients are being specific
Lee Grant, Leegra and firm about the objectives the experiential agencies must meet;
they are increasingly stepping in to hold their service > p34

>> p32 providers accountable.

In some cases, budgets are not growing, but are Putting brands into hands
being redeployed, especially as clients look for Nine Mile Media’s Billads folders reach consumers at breakfast, lunch, afternoon coffee and
means to integrate experiential marketing with dinner, with brand messaging. For Wrigley’s Orbit SugarFree Chewing Gum – that believes that
multimedia campaigns, so the whole campaign lives if you taste Wrigley’s, you’ll buy it – it did the trick. Working with NineMile, Wrigley’s identified
longer. “Interestingly, it’s the guys with the small those restaurants that would attract its own target market, and prepared a sampling campaign
budgets who are going the non-traditional route and to be run in the Billads folders. On-site interviews with consumers who received the Wrigley’s
are connecting in different ways,” says Marthinus Orbit SugarFree Chewing Gum samples as well as follow-up telephone interviews with these
Duckitt, executive creative director, draftfcb. same consumers yielded some interesting results. Not only did Wrigley’s acquire new gum
Within the B2B world, experiential marketing has
chewers, but they also converted gum chewers from competitor brands.
not seen a decline; events, conferences and road
Research conducted by Interact RDT showed that 66 per cent of respondents that were called
shows are still understood and powerful business
two weeks after the sampling campaign reported having bought Wrigley’s Orbit SugarFree
tools, but companies are cutting out the over-the-
top events, such as awards ceremonies and team Chewing Gum gum after tasting the sample; of these, 74 per cent were regular gum chewers (of
builders, that don’t deliver results. competitor brands), while 50 per cent were non-chewers. Brand recall two weeks later was
found to be around 56 per cent, while 73 per cent of respondents said the campaign had posi-
Greater measurability tively changed their perception of the brand.
Measurability has become the name of the game. “Sampling is very powerful, if carried and managed out correctly, because it allows the con-
“Experiential marketing in the past has been ‘fluffy’ sumer to experience a brand for free,” says NineMile MD, Craig Segal. Clever sampling seg-
with few direct measurements in place to gauge ments and targets consumers, and distributes samples in a way that is meaningful and
response and effectiveness,” interesting (with supporting ATL and/or BTL activity). “For some campaigns, we incentivise the
says Grant. Too often, the experience is great, but
establishments to get on board: waiters or restaurant managers will be trained to take part in
there is no measurement tool built into the activity.
the activation, thereby widening the experience for the consumer,” he says.
The question needs to be asked: So what was the
result and why did we do this? Boon points out that
there is no specific measurement tool for activations and
events, to calculate the ROI; it’s necessary then, to track sales or One of the easiest ways of collecting consumer data is through the
use of digital platforms – website, e-mail and cellphone – given
that these platforms reach the consumer directly and allow for
34 personal communications.
“If people aren’t opting in and Digital and new media platforms, such as mobisites, web pages,
SMS and short-code competitions, blogs and social networks are all
perfect tools for data experience collection, and are also experience
passing on the viral elements of their enhancers. “Not only do these tools allow you to monitor what a
specific consumer is doing and hence the response to a campaign,
own accord, then it’s still the old but it also gives a client the power to contact this consumer over
and over again,” says Grant. But, as he points out, care has to be
paradigm of push advertising.” – taken not to create a U-turn effect with this type of marketing as
consumers can become overwhelmed. Integration with digital media
Marthinus Duckitt, draftfcb as well as new media platforms is something that must be handled
carefully. “The youth approach new media more favourably, so it’s
easier to run a campaign over mobile for this market. But it must
still be relevant and involving,” says Boon.
new leads, for example. However, he says, some clients neglect to Setting very clear objectives from the outset is crucial. Some of
set the right measures in place up front and effect measurement, the new digital media can be costly, such as online and e-mail
and sometimes, this is because measurement is a costly add-on. campaigns that require the marketer to establish a fully fledged
“Clients realise that measurement is important, but budgets some- interactive website at the outset. Have a very clear understanding of
times don’t allow for it,” says Boon. who the target consumer is as well as the limitations of each of the
In the retail environment, measurability is easier to achieve, given mediums, and what can and cannot be delivered via each. Keep in
that sales can be tracked and measured against an activation. But in mind too, the limitations of the mediums, and understand what can
other sectors (service sectors, brand building, etc), measurement is and cannot be delivered via each. As Grant points out, while many
a little more complicated. But a good way to start is by collecting phones have MMS capability, many are not registered for the
consumer data. The use of consumer data to achieve more intelligent service; it is therefore essential to verify standards and access with
marketing is something direct marketers have been doing for some service providers at the outset.
time. It’s being adopted to tailor brand experiences that deliver a Trial and error is a part of the process and the learning curve –
real ‘wow’ factor. After all this is achieved, by understanding who there is no blueprint for success for digital media and new media.
the consumer is, and what tickles them, allowing the brand to “Mechanics should be constantly monitored to ensure that the
deliver the interactions, incentives and experiences that they’ll objective is being attained throughout the campaign, rather than
talk about. “Opt-in database collection and direct communication leaving it to post-campaign analysis. This will allow the flexibility of
are vital to establishing relationships between the brand and the changing the dynamic throughout the course of the campaign to
consumer,” says Grant. offer maximum value at all times,” says Grant.
Integration with digital media as well as new media platforms is
Integration with new media and digital platforms something that must be handled carefully. “If people > p36

Exp Agency is an empowered experiential agency which focuses on alternative routes in brand communication. Our expression is one of how we approach
a 360o brand engagement through the power of experiential marketing. We are fanatical about giving our clients strategic insight (think), creative
experience and design (create) and unmatched execution (d o) – all of which is measurable.
We design, execute and measure Sixth SenseT M experiences that are relevant to the target audience and ownable by the brand. We apply this
methodology within two fields of expertise:
• Exp Brand Activation creates brand experiences which contribute in creating trust between the customer, the society and the brand through functional and
emotional levels. Trust is a key factor to create loyalty between consumers and brand.
• Exp Sponsorship identifies sponsorship properties that most closely meet the business objectives of our clients and manage the end-to-end engagements
from the rights negotiation to programme management, “on-the-ground” activation and evaluation ensuring a measurable return on the investment.
Toyota Prado Ramp Overview

Seeing is believing: Exp took the Toyota TV advert and turned it into a reality for those who simply couldn’t believe it was
possible, when we created a campaign to demonstrate the magnificent capability of the vehicle – a ramp which featured
the Toyota Prado driving up at a 43 degree angle, and retaining its grip without rolling back.
Summary/Return on Objectives
Increase in sales 1,8%. The Prado Ramp has been to 7 national show events and to 8 dealerships. Statistics since launch
2007: Ramp Test Drives: 2250; People reached: 4872
Stimorol Overview
Sampling activations, more mouths getting more gum
more often. A secondary element was the launch of new
flavours.
5 Weeks. 30 Beach Activations. 55 Club Activations. 400,000
Consumers (each sampled with one of the new variants).
Virgin Money Overview

Virgin Money was the presenting sponsor of
TV show “Deal or No Deal”. The brief was to
create brand awareness in order to attract new customers. Exp created roving zones which moved to various
shopping malls around the country: an attractive stand, well trained brand ambassadors, engaging
customers on the Virgin brand.
Over 3000 new customer applications received through this new channel in 6 weeks. Massive positive
warmth towards the brand and a significant positive PR drive.
Hansa Experience Overview

A brand penetration drive towards the targeted
consumers. Exp developed a promotion to
generate interest amongst consumers to sample
Hansa. Once sampled, consumers were invited to
the Hansa Experience – a beer & entertainment festival.
Summary/Return on Objectives of Year 3
2286 Tavern activations. 23,400 Targeted consumers invited. 9 Shows performed, nationally.
11,700 Perfectly targeted people attended. 50% Hit rate to a selected target audience.
Contact
Contact us to bring your brands alive in unique and exciting ways.
Wayne Flemming, Brand Activation Director
(011) 549 5340
>> p34 aren’t opting in and passing on the viral elements of clothing, body language, etc) of shoppers, and to react appropriately.
their own accord, then it’s still the old paradigm of push advertis- It’s about translating experiences into areas of business that were
ing,” says Duckitt. not originally marketing or experiential territory.
The trick is to make sure that at every touch point, the experience Service excellence is something that experiential agencies should
is relevant and pleasurable, and reflects the shift away from the be getting more involved in, says the VWV team, especially as more
show-and-tell model of marketing, to one which offers real and more companies are looking for ways to drive their business
interactivity; bombarding the consumer with product information through service delivery. It will become about managing the
and hard-sell marketing will undermine efforts. Understanding the emotional response of the individual.
lifestyle of the target market is key, as this will reveal the potential
opportunities for mechanisms that make the consumer feel The future of experiential marketing
involved and intrigued. The experts are clear that experiential marketing will become an
increasingly integral part of the media mix, especially in an age that
Turning it inwards finds the consumer more empowered and demanding interactions
Experiential marketing is not only relevant as a tool to drive with brands. “All advertising will become experiential as technology
consumer loyalty and external brand equity – it is equally useful improves, you’ll interact with your TV, radio, website etc. You’ll be
applied inside organisations. Since each and every touch point of a able to choose the ads you see or hear; the more ads you ‘accept’ the
brand is key to creating the right experiences, more companies are cheaper your service will be, so it will pay consumers to watch,
turning experiential marketing inwards, in order to turn every listen to or read particular ads, which will be brilliant for targeting
employee into a brand ambassador. the right market,” says Freeman.
The Gap stores in the US have been practicing this for some Gressel says that now, and for the foreseeable future, clients will
time, says Ricardo Gressel, business development director, VWV, as be demanding a high-value return on spend. “The proof is in the
Gap store staff is trained to pick up certain cues (behaviours, pudding, and better in the eating!”
Expert opinion
Private media networks

he proliferation of technologies Messages run continuously, increasing the
T and resultant segmentation of

audiences means that marketing and
communication managers have to
possibility of repeat views and understanding
of the information.
Video to mobile is a significant aspect of
introduce new channels to their strategies the private media network. It works mainly
if they are to achieve the required results. through the element of interactivity where
The media environment is changing at a the audience is asked to send a short
rapid rate, which requires managers to message to a certain number to receive a
constantly update their knowledge of the video that will tell them about a product.
industry and structure their strategies This can be used to promote a variety of
accordingly. With the world economy set products and services from cars to movies.
to take a while to recover, strategies simply Interactivity further allows the marketer to
cannot miss the mark. obtain first-hand feedback from potential
Over the years, pay-TV and the Internet customers regarding its product.
have created new and smaller audience Linked to video-to-mobile is the concept
demographics. The overwhelming number of video on demand on (VOD), which
of TV channels means that people have allows the audience to select the videos
more choice when it comes to television they’d like to see, elevating the interactive
content and some spend more time in front aspect to a higher level. VOD can also be
of their computers, surfing the Web, while used as a measurement tool to track the
others spend their time seeking entertainment popularity of campaigns and provide a
in shopping centres or at restaurants. sound indication of return on investment.
Marketers have to reach all these audiences Various measurement systems have the
through cost-effective channels with capability to report and analyse viewership 37
proven track records. This gap in the volumes and trends.
market has led to a gradual introduction of The various technologies that fall
‘private media networks’, a term I use to under the umbrella of private media
describe a combination of TV, mobile and networks can also be used to market
Internet video solutions that create a brands within an organisation. An
promotional platform which also provides internal TV network is an effective tool for
entertainment and information. These communicating a company’s brand purpose
products include digital signage, video to within the organisation. Clearly crafted
mobile phones, interactive television, communication is broadcast to staff,
webcasting and a private DStv channel. updating them on various corporate events
Private media networks deliver that are of strategic importance. Less
video-based content to a known audience. formal content can be broadcast with a
These include videos that one sees in banks view to energising the brand promise of the
and shopping centres, and those that one company among employees.
can receive through a cellphone or view The same content can be uploaded to the
online. Private media network screens are company’s website for all stakeholders to
strategically placed in areas where people view at their leisure. It’s a good idea to
are required to wait for service. Banks, complement streaming video with an
shopping centres and restaurants are the option to download the clip to a cellphone.
ideal spaces. The private media network A simple prompt to the user to send a
uses a formula that attracts, entertains and message containing a code for the video
encourages people to transact. will suffice. Short-code messaging is the
The marketing message is delivered most user-friendly way to download video
alongside entertainment content of some to cellphones.
kind, usually DStv movies or sports. The The cost of advertising through private
screen may be split into two or one level of media networks is significantly less than
video will be ‘squeezed back’ to allow both that of mainstream broadcast and print.
levels to be displayed simultaneously. The Given increased audience segmentation and
entertainment draws the eye while the ever-changing consumer behaviour, private Rick Grantham
marketing messages are running. The media networks must play an expanded MD, Global Access
information displayed in this way has to be role in any marketing communications (011) 350 2117
useful to the target audience so that they strategy in order to plug the gap left by rick@globalaccess.co.za
can see value in what is being proposed. mainstream media.

Commuter media
Riding pretty
he commuter market in South Africa represents a sizeable
T and valuable market, and can no longer be ignored or treated

with half measures. Commuters number almost 20 million
(according to AMPS 2008A); and given that the LSM profile of
this market is climbing the ladder (albeit in small measures), this is a
market that’s absolutely worth getting to know.
Black consumers account for the majority of the commuter
market. In terms of an age profile, the average commuter is
anywhere between the ages of 16 and 49 years. ComutaNet has
found that for the majority of commuters the average household
income is between R2 500 and R5 000 per month, and they fall into
LSM 4-7.
Over 80 per cent of this market is employed, says Tiff Willemse,
MD, MassivTV; these are decision-makers with purchasing power.
It is dangerous to assume that this market suddenly has greater
wealth and disposable income. “This market is more affluent now
than previously, and we are seeing them climbing the LSMs, but fair proportion will have access at work or via the Internet cafes that
this is a very slight movement, not a dramatic change,” says are becoming ubiquitous in the townships. “This is a market that is
Jacques du Preez, MD, Provantage Media. After all, some far more educated about online media than we think, so brands
commuters have moved from rural areas into a township, where must be online, but again, there needs to be value in
they live in RDP houses, and are suddenly classified into a higher going online,” says Nelson. According to AMPs 2008, of the
LSM, even though they don’t have a higher income, for example. respondents that have access to the Internet, 25 per cent are
“One needs to be careful in interpreting the numbers for this commuters, and this signals a growing appreciation of the Internet
market,” says Du Preez. and of new technology.
38 The aspirational drive of this market is one of the reasons
brands should be maintaining a sizeable media adspend, in spite of What commuters want
economic downturns and shrinking marketing budgets. Being top This is a market that wants value and will respond well to brands
of mind and creating big-brand perception is key to creating this that teach them how to get more value and stretch budgets further.
aspiration. And there are cost-effective and engaging ways to break For example, says Nelson, there is room for financial services
into the commuter market. However, as says Brad Aigner, MD, brands to educate this market about savings, financial packages
Freshly Ground Insights (FGI): “Commuters are a very desirable and so on.
market, but we don’t know enough about them. Due to the fact that this market is brand loyal, they will not
switch brands easily; similary, they cannot afford to revert to their
Media and technology preferred brand if the new one turns out to be a poor choice. Trial is
Branded communications via mobile is hot in this market; but it’s thus a major tool for brands that want to encourage this market’s
about value for money. “The perception of ‘cheap’ is out,” says adoption of them; it allows the commuter to understand where the
Gary Nelson, CEO, ComutaNet. value is in purchasing it. In this regard, sampling has worked well in
While the bulk of the commuter market may still be getting to helping the trial of different brands.
grips with online media, it is a figure that will grow, given that a
Shopping habits
Has spending evolved? Not much at all, says Du Preez. The
economic crunch is having an impact on disposable incomes and
we can expect this to be felt at the tills. On the other hand,
infrastructural changes are changing the way commuters shop. They
can shop at their local mall, instead of clubbing together to pay for a
taxi to go further out.
“Except for Cape Town commuters, there is a general preference
nationally, for township shopping malls over urban shopping malls
because of their convenience,” explains Aigner. These township
malls are closer to home (requiring fewer taxi trips) and commuters
feel more at home in this environment (surrounded by community
members). However, this is not to say that commuters don’t visit
urban malls, as some of the township malls don’t yet have the
entertainment facilities that this market desires.
Taxis
The taxi industry may just be among the most customer-centric
sectors in SA. “It’s all about convenience,” says Nelson. “Taxi

Commuter media
Gautrain – an update
According to Ingrid Jensen, of the Gautrain’s communications
department, the Gautrain will target the LSM 6-10 market, including
private car owner. “The first phase between OR Tambo and Sandton
is expected to be completed towards 2010, while all other stations
will be completed towards 2011,” she says. As to whether the
Gautrain will steal business away from the existing commuter
markets, she says that by implication, there will be an impact.
“However, the Gautrain fare structure ensures the cost will be higher
than for other public transport modes, while cheaper than using
one’s own car. This will help not to take too much of the public
transport market away from current modes, while also getting the
car user off the roads.”
As yet, there is little that can be said about potential marketing,
communications and branding opportunities via the Gautrain. Says
Du Preez, it is early days, and we don’t know how the Gautrain will
be used nor by whom. However, successful underground systems in
countries like Britain and the US will prove useful case studies.
drivers truly understand customer service – they stop where and

when their customers want, as long as it’s on designated taxi
routes.”
The taxi fleets are being upgraded, and Du Preez estimates that
there are between 120 000 and 130 000 new Quantum taxis on South
African roads, nationally. “They are transporting about 15.6 million
people each week, through at least 60 major taxi ranks nationally,” he
says.
Key to the development and growing sophistication of this
market is the upgrading of the taxi ranks, which is seeing them go
from being tin-roofed buildings to fully fledged commercial hubs,
complete with radio and TV media. In Gauteng, says Willemse, the
ranks at Alexandra as well as in Midrand and Baragwanath, have all
been upgraded and are sophisticated hubs. “They have money to
spend at these retail centres,” he says.
The upgraded taxi ranks are more attractive as communications
environments, given that they are clean and secure. “The challenge
for commuter marketing specialists is bringing innovation and
accountability into this space,” says Du Preez.
As it stands, the commuter market attracts less than one per cent
of all above-the-line (ATL) adspend, says Du Preez. And until brands
and advertisers have been educated properly about the commuter
market this won’t change. “Transformation has not happened in the
ranks of the media planners. And until we have more black planners
who understand the commuter space inherently, brands will continue
to make blind decisions in this space,” he says. Education of clients
and the marketing industry at large is still needed, as is independent
research.
The spray-and-pray approach is a dead end, say the experts, and
brands are encouraged to take a more careful approach, > p40
Regions to watch
According to Gary Nelson, CEO, ComutaNet, the regions of the country
that are seeing increasing commuter activity include Mpumalanga and
Polokwane as well as the Western Cape. “Obviously, where there are
new taxi ranks built we can expect to see growth in commuter
spending and activity; this means stores and brands can afford to be
more strategic in deciding where to position themselves.
Commuter media
>> p39 making sure to do the right market research and targeting
campaigns to specific groups within this market. Nelson stresses the
A day in the life of a taxi commuter importance of partnering with service providers that understand local
(Freshly Ground Insights) regional culture, for example, so that strategies and messaging executed
For client ComutaNet, Freshly Ground Insights (FGI) carried out a will resonate with the market.
study among the commuter market and found that there are around
110 000 taxis on SA’s roads. It found that taxis travel 27.5 million Buses
km each day. The average household income of this market is AMPS 2008A reports that there are about three million commuters
around R6 536, says Brad Aigner, MD, FGI. And as such, this travelling by bus each week. Du Preez points out that since the
places this market in LSM 7-10. This means that this market is, in average bus commuter is urban their profile is of a slightly higher
its own right, an elite market (and, in fact, the black diamond falls LSM than taxi commuters.
According to Charl Timms, CEO, SP Media, bus advertising has
into this bracket). “The average household income of the commuter
grown by 32 per cent in the past seven years, with a national audience
has increased at a rate above inflation,” says Aigner.
of almost 1.3 billion; this medium has a national reach of over 41 per
The average commuter (70 per cent of respondents) wakes up
cent. He reports that the majority of bus commuters are aged 16-34
between 4am and 6am on weekdays and prepares for work (with years, with an average household income of R4 700 per month.
very little time for traditional media consumption, beyond perhaps While 70 per cent of this commuter market is black, almost 17 per
listening to the radio). cent is white.
“Bus advertising is unique in that with it we can reach two
distinctly segmented target markets at one time – those travelling on
the bus and the motorists who see the bus,” he says. The exterior of
the buses are viewed by motorists who generally fall into a higher
LSM bracket of 6-10.
Internal advertising and branding reaches bus commuters, who are
mainly LSM 5-7 consumers. Internal bus advertising research for
Metrobus finds that 42 per cent of commuters spend, on average,
between 20 and 30 minutes on a bus travelling to or from work. “As a
captive audience, this allows for highly effective engagement
marketing opportunities for brands,” says Timms. “Through internal
40 branding in the form of interior strips and activations, campaigns
can be reinforced with sampling promotions and brand experiences
en route.”
With the Bus Rapid Transport (BRT) system coming into play the
The commuter then walks to the nearest taxi rank, where the upgraded buses will provide an attractive environment through which
average duration of the wait in the queue is 12 minutes. Most to advertise. “The BRT programme will go ahead, as it is part of the
commitment to FIFA. We are not sure just yet what the commuter
commuters surveyed are simply preoccupied with the wait for the
mix will look like. It is uncharted territory and the media rights have
taxi, while buying food and reading the newspaper are also
not yet been put into place,” says Du Preez.
mentioned as taxi rank pastimes. It was found too, that commuters
recall the advertising screened on the TV screens in the ranks, Trains
primarily because there are no immediate distractions in the rank According to AMPS 2008A, there are just over a million commuters
environment, as compared with the distractions of the home travelling by train each week in SA. These commuters are urban
routines and the family within the home TV viewing environment. based, and thus have a higher LSM profile than the average taxi
The commute to work takes place between 6am and 9am each commuter. ComutaNet has found that 76 per cent of train
weekday, and finds the commuter using the time to read the commuters are black and 16 per cent are coloured; the majority of
newspaper, if they are not listening to radio, looking out of the these commuters are aged 25-49 years.
window, chatting with fellow passengers or chatting on their Railway passenger numbers continue to decline and this is in part
due to the fact that trains are unsafe and rundown (the last time the
phones. Billboards and branding on other taxis is noticed and
railways upgraded the carriages etc was in 1956, says Du Preez).
recalled, and to Aigner, this indicates a high awareness of
However, news reports (The Times, 23 March 2009) indicate
advertising. But, perhaps most interesting, respondents to the FGI
that the Passenger Railway Agency of South Africa (PRASA) is
study claim that it is advertising that is placed in trusted media that investing R25 billion in upgrading the railways. Of this, R14.7 billion
is most likely to influence decision-making. will be spent on upgrading coaches and the technology on the rails.
Following the afternoon’s work, the commuter will stand in the taxi “As with the taxis and the buses, we are seeing upgrades that are taking
rank queue for an average of 16 minutes for the homeward these systems from third world to first world standards,” says Du Preez.
commute, which takes place between 4pm and 6pm, though the Another reason for the decline in passenger numbers is that rail is
majority of commuters are not yet home by 6pm, indicating that the the most inflexible commuter mode; railways are limited to certain
homeward commute is taking longer and longer. Once home, the geographic areas (such as Gauteng and the Western Cape), and the
commuter will watch TV, and quite often, will head out for routes are fixed. Plus, the transportation infrastructure after
passengers disembark from trains is inadequate. “The train commuter
entertainment of some sort (watching soccer at the local tavern or
also uses taxis to get from the station to their workplace in town. So
shebeen, or visiting neighbours).
by targeting taxi commuters brands are by default also targeting train
commuters,” says Du Preez.

Shopper Insights – 12 May 2009
What and who influences the shopper, and when to do the
influencing – these are the million dollar questions for any brand.
Effective Marketing in the Townships – 27 May 2009

The workshop focus is on pragmatic advice complemented by
appropriate case studies. This year includes an eKasi Marketing
Village.
CRM Masterclass 2009 – 18 June 2009

The fourth annual CRM Master Class is again led by
Nici Stathacopoulos with the focus on ‘best practices in action,
applicable to ‘09’. It’s a ‘who’s who’ of CRM in South Africa.
Digital Marketing Masterclass – 23-26 June &

3 July 2009
A 5-day intensive course targeting professional marketers and
agency executives with some experience of digital marketing. The
course provides an expert appreciation of the key components of
the digital marketing mix, to enable the compilation of a digital
marketing plan and budget appropriate to specific campaign
requirements.
For more information, visit

www.marketingmix.co.za, and check out
Marketing Mix Events.
Cinema marketing
Cinema
highs and lows
he global cinema business is enjoying the economic
T recession, since audiences perceive movie-going as an

affordable outing. When cash is tight, people tend to travel
less, and look for opportunities to get out of the house for a few
hours in search of social entertainment. “Cinema remains a very
attractive form of entertainment during the weekends and holiday
periods and importantly, the seven day availability and close to
home access makes cinema that much more appealing,” says Karen
Bailey, general manager, Popcorn Advertising.
Cinemark is reporting no loss to ad revenues, but will be
watching consumer patterns closely. “Although revenue remains
stable, client budgets are increasingly coming under threat. This
has forced us to relook our strategies going forward,” says Jenni
42 Critchfield, CEO, Cinemark. Clients are being encouraged to push
the boundaries
Advertising revenues for the cinema groups has been impacted
somewhat, but the industry players remain positive about the
growth in the industry (Ster-Kinekor, for example, is reporting ad
revenue growth year on year). The cinema groups are not seeing
adverse impact as a result of the recession, but will not be
complacent either.
Nonetheless, client budgets are increasingly coming under threat,
so the cinema advertising groups are under greater pressure to
develop the right strategies and advertising solutions. “The severity
and duration of this recession remains to be seen; this may naturally
change consumer’s behaviour if the economic cycle continues to
impact heavily,” says Fay Amaral, managing director, Nu Metro
Entertainment Group.
Across the board cinema rates have generally increased along it is not a focus for most of them,” says Bailey. The real value
with media inflation. “We are currently assessing our rates and and core benefits of the cinema medium are not always fully
where demand is high, a rate adjustment will take place. At the understood to the less experienced planner.
same time we are also introducing more flexibility within our What should be understood is that a multiplatform approach
premium product offerings such as Golden Reel. Rates will be works well, especially using multiple touch points within the
reflective of this,’ says Critchfield. cinema environment (eg foyer branding, linked to activations).
Digital advertising is a viable solution, being that it is cost And they should also understand that just because an audience is
effective (advertisers don’t need to spend the same fortunes on sitting watching the screen before the film, doesn’t mean the
production, as they do in creating 35 mm content), and visually advertiser can get away with a second rate TV ad. “In most cases
strong. “For around R100 000 an advertiser can buy 20 screens a inferior creative execution is responsible for campaigns that do not
week for four weeks, resulting in 2 800 screenings of any one work because of the high impact the cinema medium delivers,”
commercial,” explains Bailey. For the same budget an advertiser says Critchfield.
could only secure two spots on television during prime time. For In terms of activations at the cinemas, experts find that paper
this reason, more clients are using cinema for an added impact that doesn’t work (leaflets are quickly relegated to the nearest dustbin.
upweighs TV bursts. We can expect that the demand for digital New technology options (MMS or SMS, for example) have also
advertising will drive rates increases. not taken off. “Instead, what consumers enjoy is product sampling,
The question is, do media planners and advertisers really entertainment type demonstrations, live-theatre experiences and
understand this medium? “As cinema is known as the one per cent interactivity. ‘Advergames’ and competitions with immediate
medium, agencies only tend to know the broad strokes of cinema as rewards, also do extremely well,” says Bailey. Cinevation recently

Cinema marketing
held a ‘live’ Xbox gaming challenge in real time on the advertising

reel, and they are also toying with the release of aromas via the air Cinema in the townships:
conditioning ducts, allowing advertisers to take advantage of a more Currently, there are only a handful of cinemas in the townships of
sensory experience. “All marketing activity is intended to drive South Africa. Maponya Mall in Soweto is the only traditional cinema
sales, however there is a big difference between using cinema to complex (all others are low cost alternatives), according to Bailey.
showcase a funky new car, thereby creating awareness and demand For this reason, the experts are not able to offer comprehensive
for it and using cinema to try and sell this week’s special of baked insights into the viewing trends and preferences of the township
beans. Certain types of sales objectives are not best suited to the market. “Plus, Each cinema complex has a varied audience,” says
cinema medium,” says Bailey.
Critchfield. For this reason, advertisers need to be cognisant of the very
Cinema audiences are captive, and they expect to be seated and
different lifestyle and shopping behaviours relevant to the townships.
entertained, and this is where the opportunity lies for advertisers.
There needs to be more research into this, say the experts. “One
Not to mention the fact that depending on the genre of a film, the
advertiser can reach an audience of a specific age, within a specific would argue that in fact, cinema going is based on exposure and
geographic region. content offering – if the content is appealing, audiences will come,
A further consideration for advertisers is the location of the even if it means a planned trip and some distance to be covered.
cinemas within malls, which are powerful purchasing environments, Cinema-going is universal, it is the content that may differ in
and tend to attract consumers from the catchment areas directly appeal,” says Fay Amaral, managing director, Nu Metro
surrounding them (making it possible for cinema advertisers to plan Entertainment Group
their campaigns geographically). Says Fiaz Mahomed, CEO
Ster-Kinekor Theatres, in partnerships with tenants of the malls,
value added items are included to enhance cinema experiences (eg
the Ster-Kinekor group’s Ladies Nights are proving to be a hit). for new media formats. “It is clear that we must fit into their
“Although cinema is essentially a branding medium, various vehicles schedule rather than try and seduce them away from other activities.
are available that, if planned and managed correctly, can deliver a The channel through which we should be reaching them is clearly
measurable result, such as voucher campaigns. Cinema is a key online; but trailers at cinema are still the number one channel,” says
medium in reaching consumers closest to point of purchase,” Mahomed. The youth are early adopters, both of new technology,
says Critchfield. and of big buzz trends. And this can be great if the cinemas are
debuting a much hyped Hollywood blockbuster. Youth markets are
The cinema market driven by what is current and relevant, and this in turn, is informed
The core cinema audience remains the upper LSM consumer, by new media in particular. 43
aged 16-34 years (a lucrative audience); 49 per cent of the total The youth also tend to go back and watch the same movie again
Ster-Kinekor cinema audience is black. and again if it’s particularly popular. Bailey says that after the
Segmenting the market has proved easier since the launch of the runaway success of the film Titanic (which some teens reportedly
movie club services, which allow the cinemas to measure their watched up to 15 times in theatre), Hollywood finally understood
audiences, and target communications to them more specifically. the enormous buying power of this youth market, and has put their
“We have recently completed the segmentation exercise as well as money behind the production of films aimed specifically at the
the strategic message and channel per segment. We are busy with youth (such as Hannah Montana, and High School Musical). Sci-fi,
the tactical plans for this segmentation,” says Mahomed. Movie fantasy and action remain very popular amongst the youth, as are
genres, seasonality, location etc are all filters for determining the animated movies and teen comedy.
segment to be targeted (as well as the channel best positioned). In terms of attendance, things are looking good. The Ster-
The cinema market is a youth market, predominantly; and this is Kinekor group is reporting growth in volumes when they compare
the market that is most difficult to target, given their predilection their first-half results to those for 2008. “The majority of our
cinemas have a top ticket price of R19.00 which makes our medium
affordable,” says Mahomed. The group’s partnerships with
Discovery Vitality and Edgars is strongly supported by their mem-
bers, and this low ticket price strategy has played a role in a report-
ed growth phase for Ster-Kinekor over the last six months (ending
December 2008).
Figures from Ster-Kinekor and Nu Metro, comparing cinema
attendances for the periods January to December 2007, and January
to December 2008, find that there was a two per cent drop in
attendance, something that these groups find insignificant. “However,
comparing December 2007 with December 2008, we see a 23 per
cent increase in attendance due to great product coming through,
like the latest James Bond movie Quantam of Solace, Mr Bones 2
and Madagascar 2, all of which boosted figures over the December
period,” says Bailey.
Taking it up a notch
While it is true that cinema groups are not being negatively
impacted by the recession, in general, they remain challenged to
differentiate the movie-going experience, particularly for the top
end cinema-goer who has fancy leather recliners and a big screen TV.

Cinema media
Incorporating new technologies into the

cinema is one means of upgrading the movie Cinema Blockbusters 2009
experience. Consider 3D cinema, which is Night at the Museum 2: Battle of the Smithsonian: May 2009.
something that IMAX is taking very seriously,
Cast: Ben Stiller; Amy Adams; Owen Wilson and Ricky Gervais.
as a survival strategy for the downturn
Angels & Demons: May 2009. Cast: Tom Hanks; Ewan McGregor.
(as well as the means by which the group is
Director: Ron Howard.
differentiating itself). Ster-Kinekor Theatres
have 3D Hollywood introducing more titles in X-Men Origins: Wolverine: May 2009. Cast: High Jackman.
3D, and they are set to expand this footprint in Director: Gavin Hood (of Tsotsi fame).
the near future. “We are constantly evaluating Star Trek: May 2009. Cast: Winona Ryder; Simon Pegg; Zachary
opportunities but will focus on 3D for the next Quinto. Director: J.J. Abrams.
two years. From a technology perspective we Brüno: 15 May 2009. Cast: Sacha Baron Cohen. Director:
are on par with international trends. We have Dan Mazer. Following the worldwide success of Borat, Cohen
one of the highest ratios of 3D to 2D screens brings us Brüno (the flamboyant Austrian fashionista).
in the world,” says Mahomed. The speed of Fast & Furious 4: June 2009. Cast: Paul Walker and
future expansion is dependent on agreement
Vin Diesel.
with Hollywood studios on a viable commercial
G.I. Joe: Rise of Cobra: June 2009. Cast: Christopher
model as has been agreed in the US and more
Eccleston; Sienna Miller; Brendan Fraser and Arnold
recently in Europe. The medium is attracting
new audiences and bringing traditional Vosloo. Director: Stephen Sommers.
customers one more time. It also allows Hannah Montana: May 2009. Cast: Dolly Parton;
for the introduction of alternative content Tyra Banks; Heather Locklear; and the uber-popular
such as specialised documentaries, or ‘Miley’ Cyrus.
entertainment content. Transformers: Revenge of the Fallen: June 2009.
Cinema groups will be re-designing foyer Cast: Michael Bay; Shia LeBoef and Megan X.
areas, too, and will look at new ways to Inglourious Basterds: June 2009. Cast: Brad Pitt,
enhance the comfort and the sound quality Mike Myers, Diane Kruger and Samuel L.
experiences of the cinema-goer.
Jackson. Director: Quentin Tarantino.
Some cinema chains are using mobile
44 technology to offer cinema audiences a more
Terminator Salvation: June 2009. Cast: Christian
Bale, Helena Bonham-Carter. Director: McG’s.
pleasant movie-going experience. Ster-Kinekor,
for example, recently launched MiMoney, a Ice Age: Dawn of the Dinosaurs: July 2009.
cardless, cashless method of purchasing tickets Harry Potter and the Half-Blood Prince: July 2009.
online or at the self-service terminals. Public Enemies: July 2009. Cast: Christian Bale;
“You also have the complete movie line-up, Johnny Depp. Director: Michael Mann.
including trailers on your mobile, 24/7/365. The Taking of Pelham 123: August 2009. Cast: Denzel
We have also introduced electronic gift Washington; John Travolta and James Gandolfini.
vouchers that enable you send a gift via SMS,” Director: Tony Scott.
says Mahomed. Jennifer’s Body: 18 September 2009. Cast: Megan
Fox. Director: Karyn Kusama.
The future of cinema:
Shutter Island: 2 October 2009. Cast: Leonardo DiCaprio and
3D and digital will feature strongly and a wide
Mark Ruffalo. Director: Martin Scorsese.
range of alternative content will be available.
“Cinema will be more than just Hollywood Ruffalo. Director: Martin Scorsese.
movies,” says Mahomed. Amelia: 23 October 2009. Cast: Hilary Swank. Director: Mira Nair.
“The appeal of cinema is a long standing one Sherlock Holmes: November 2009. Cast: Jude Law; Rachel
that cuts across age, race and social lines. The McAdams and Robert Downey Jr.
obvious attraction both here and abroad has to Nottingham: November 2009. Cast: Russell Crowe. Director:
primarily be a high standard of movies that Ridley Scott.
appeals to diverse markets and therefore to the Avatar: December 2009. Cast: Sigourney Weaver;
advertisers wanting to be seen in these new Michelle Rodriguez; Sam Worthington and Zoe
releases. To really market the cinema as a
Saldana. Director: James Cameron.
destination, cinema owners need to bring in
The Imaginarium of Doctor Parnassus: No release date
more innovation and set themselves apart in
announced. Cast: Heath Ledger (his final performance);
terms of visual appeal, providing a quality
service and exciting and engaging activations in Johnny Depp; Colin Farrell and Jude Law. Director:
the foyers to romance the moviegoers and Terry Gilliam.
passers by,” says Bailey. UP: No release date
Customers will be a lot more demanding in announced. This is the 2009
respect of the quality of service, believes Pixar release. That’s pretty
Critchfield, and cinemas will need to deliver much all you need to know.
more than just a movie. Look out for new
formats and alternative content too.

Expert opinion
From E1 to E4
hat’s all this E1 and E4 business Simplistically, the answer is none of them.
W Let me explain. This is a kind of

shorthand that I developed to
explain the evolution of the human race. It
It’s my belief that there is only one principle
that defines the world in which we live today
and that is individualism.
all began in E1 when man, as we understand People no longer want the same prod-
him today, started to evolve. During this ucts as everyone else. They want what they
period (which lasted for millions of years) want, when they want it, tailored to their
primitive creatures lived in caves, discovered personal needs and desires.
simple tools and fire, and lived by hunting They no longer wish to be told what to
and gathering. believe, and formulate their own views
At some point the hunters and gatherers based on a plethora of information via the
started to till the soil and where they Net. Today, we firmly subscribe to the view
planted, civilisation took root. This was the that you don’t need to be an expert to
period that I call E2. know what you want.
Somewhere around the middle of the People have less interest in mass media.
17th century we saw the beginning of E3 Newsletters, ezines and the Web are more
(aka the Industrial Revolution). Most likely to be the preferred conduits for
people, if you ask them, would tell you that information.
we are still in E3... simply doing the same Television viewers, because of either
things quicker, better, faster. I disagree; it’s personal predilection or the use of
my contention that we have left E3 behind technology, have learned to bypass all
and entered E4. those nasty one-size-fits-all adverts that
There were a number of principles that marketers still insist on producing.
defined E3: If it isn‘t already apparent, mass media
Standardisation: It wasn’t only units of was a product of E3. Mass media
46 production that were standardised, but disseminated standard messages, standard
also working hours, rates of pay, time images and standard stories to an
allowed for holidays and so on. audience that was largely willing to accept
Specialisation: Another term for this is them. I’m a fan of the TV programme
division of labour. By breaking down the Boston Legal. The latest episode I watched
production process into small specialised was from series four. My middle son told
units the volume of output was increased me that the night before he had watched
exponentially. the whole of series five – his version,
Synchronisation: In E2, an agrarian courtesy of a friend from overseas,
society, there was some focus on time came without ad breaks. But it’s not just
but it was mainly seasonal. Machines, on the fact that he is so far ahead of me in his
the other hand, have a time and a rhythm viewing habits that is so interesting. It’s
of their own. Suddenly it became rather that he is no longer willing to wait a
important to teach children to tell the week at a time for each episode to be
time; pupils were conditioned to get to trickle-fed by the media owner.
school when the bell rang so that they Because E3 mass media are so prolific
would later arrive at the factory when and pervasive we still cling to the belief
the whistle blew. that they ought to be the main channels of
Concentration: For the first time we communication, losing sight of the fact
brought people together into towns and that mass media were simply an E3
cities. Children were put into schools, response to a changing environment (ie in
lunatics into asylums and workers into E2 one-to-one communication was the
factories. norm).
Maximisation: In the 19th century and In the days when I used to do a lot
most of the 20th century the message of lecturing I made statements like
was not that black is beautiful but that mass media builds brands, direct
big is beautiful. marketing builds customers. What a
Centralisation: Manifested itself in many load of crap. Why can’t we build brands
ways (eg central economic planning, using only direct media? Why should
Keith Wiser nationalism). a television commercial be more effective
MD, 5th Dimension Now ask yourself how many of those are than a customised file that I downloaded,
(011) 781 6396 at play in the world today (I could give you at your request, to either your PC or
keithw@5thdimension.co.za the answer to that question but I would cellphone?
rather you read my book, out soon). Direct marketers... our time is now!

Services SETA
What does it mean to be a

Chartered Marketer SA?
There is a certain ring to the word ‘chartered’. It carries with it evidence of one’s successes in marketing. It requires the candidate
nuances of absolute professionalism, high levels of education, to undertake a process of self-reflection that makes one question
actual mastery of the discipline and serious credentials. Having a and deliberate the reasons behind the actions that were taken, what
‘chartered’ designation means you are positioned as the voice of was learned and assess how these lessons were applied subsequently.
authority and that you are fully competent to strategise and It also challenges one to learn as much from their failures as from
implement. Being a Chartered Marketer SA (CMSA) is the sign of their successes. Candidates need at least 10 years’ experience at a
recognition of marketers who have reached a level of ‘mastery’ in senior level to qualify and get through the process. Thereafter they need
marketing in SA. to maintain their CMSA status through ongoing CPD involvement.
In marketer speak it means you have got the T-shirt, washed the
car with it and lived to tell the tale. Your knowledge does not only Responsible, ethical
come from textbooks, but from real life and gritty experience. It Being a CM brings with it many responsibilities. CMSAs are
doesn’t end there – you had the courage to stand up and be required to abide by a stringent Code of Conduct and Ethics that
counted, to put your skills and knowledge to the ultimate test of has been drawn up by the Chartered Marketer Council. Failure to
competence, to have your innermost beliefs questioned and probed do so can result in the designation and status being withdrawn.
– and you came out with your guns blazing! CMSA is not only Included in the CPD process is the requirement to help develop
about a ‘paper process’ that gives you a fancy title after your name other marketers and to promote a culture of life-long learning
– it’s the acid test of competence. among marketers. It is anticipated that CMSAs will soon be
encouraging their marketing staff to enter the Marketing
Practitioner SA process – a feeder to CMSA – or making it part of
48 the ongoing training that they include in their workplace skills plans.
The CMSA designation is a vehicle that can lead to A seat at the board table
There have been concerns among marketers that they are not
getting seats on the boards of their organisations in the same way
this sharing and the realisation that we need to
that other professionals are. One reason for this has been the
perception that marketing is not a ‘profession’ and that anyone can
pool our experiences and stories in order to build a do it. The reality is that every rand in the company’s coffers is
somehow linked to marketing – it defines the entire purpose of an
organisation’s existence.
knowledge base and a code of conduct. The reinvigoration of the CMSA professional marketing
designation will go a long way to overcoming this perception and to
providing reassurance to shareholders. CMs will have to earn this
respect by demonstrating their mastery of marketing and how
The CMSA designation has been in existence since the late 1990s marketing is essential to the success of any organisation.
and is now, courtesy of the Services SETA and a dedicated team of
individuals drawn from the marketing industry, taken off again after Bridging to CMSA status
the demise of the Marketing Federation of South Africa (MFSA). For young marketers who do not have 10 years of rock-face
Existing chartered marketers have been through an extensive experience as a marketing professional to become a CMSA, but who
Continuing Professional Development (CPD) process and those have ambition and desire to achieve the ultimate career and income
that completed this process were re-certified with their certificates distinction, Marketing Practitioner South Africa (MPSA) is the
presented by the Services SETA at a ceremony in Johannesburg in perfect primer. While the 10 years’ experience is not mandatory, it
February. These CMSAs and those yet to come are recognised not provides a good guideline of the requisite skills and experience
only in SA, but also in 16 countries in Europe through the needed to complete the CMSA process successfully.
European Marketing Confederation (www.emc.be/activities_rss.cfm).
The first new cohort of potential CMs is approaching the end of What is it?
its CMSA process and will be sitting for the board exam at the end Registered on the NQF in June 2008, this is the first professional
of March 2009. The designation is set at Level 7 on the NQF. designation for mid-level marketers.
A true challenge of competence and tenacity What is a professional designation?

Becoming a CMSA is no walk in the park. It is not a tick-box This is formal recognition of an individual’s competence by a
process, but a rigorous examination of a candidate’s marketing life. professional body of marketers that entitles the successful candidate
It is not just about producing and structuring many years of to put the letters ‘MPSA’ after their name.

Services SETA
What’s in it for me? Assessment of your portfolio and the video recording of your
Being an MPSA shows your current and potential employer that: presentation and panel interview.
You have demonstrated competence in tactical marketing at a MPSA designation: If found competent you are advised and are
practical level awarded the Marketing Practitioner SA designation.
You are a marketer who is serious about your work CMSA designation: Write board exam based on a case study. If
You subscribe to a Code of Ethics found competent you are advised and are awarded the Chartered
You are committed to keeping up to date with marketing thinking Marketer SA designation.
You are committed to increasing your marketing knowledge,
both practical and theoretical, through Continuing Professional
Development(CPD)
You should be top of the list when promotions are considered or
We need people who continue to evolve and learn,
when new staff are required (HR departments and headhunters
will be looking at MPSAs as the first choice for new jobs). who are unquestionably competent to guide their
The designation is internationally recognised with the European
Marketing Confederation (EMC) that represents marketing across clients and provide modern solutions to new-age
the European Union. On completing the process you gain yourself
a South African certificate from the South African Qualifications
business problems.
Authority (SAQA) and Services SETA, as well as one from the
EMC.
Who can achieve the designation? How long does this take?
The MPSA designation is targeted at individuals who have around The process is dependent on the enthusiasm of the candidate and
three to five years of practical marketing experience at a tactical the availability of evidence. For individuals who are totally
level in the ‘doing and implementing’ of marketing strategies. Such committed to achieving either designation and have access to
individuals should also have some management experience at a evidence, it could take three months, while others have taken six
supervisory level. months or more. Once you commit to the process, you have one
The designation is set at Level 5 on the NQF, but you do not year to complete the CMSA/MPSA.
need to have any formal academic qualifications to apply if you
have real-world experience. Conversely, having an academic What does it cost? 49
qualification without practical experience will not be enough. The total cost for the MPSA is R6 000 (excluding VAT).
The total cost for the CMSA is R12 000 (excluding VAT).
What do I have to do? The Services SETA is offering various subsidies to candidates.
The process leading to the CMSA or MPSA designation is based on
recognition of prior learning (RPL). This means that you have to How do I find out more? What do I do next?
produce evidence that you are competent when assessed against the Contact Recognition of Prior Marketing Learning at
outcomes that are specified in the registered qualification. The info@rpml.co.za – the company handling the designation process
evidence is compiled in a Portfolio of Evidence (PoE). This is a for the Services SETA to receive more information as well as the
structured process which has an ongoing set of quality assurance relevant application forms.
checks to ensure that those who complete the process are worthy
of the designation. Accept the challenge!
The steps in the process for CMSA and MPSA are: Now is the time for marketers across the profession to act and be
Attend a full-day Initial CMSA/MPSA workshop, which seen as professionals. Enrol for the CMSA process and demonstrate
explains all aspects of the process so that you can decide your mastery in the science and art of marketing. For more
whether you want to continue with it. information about either CMSA or MPSA contact info@rpml.co.za.
Start gathering evidence against the specified outcomes and
associated assessment criteria and consider the self-reflections Views from CMSAs on their journey into marketing
that led you to taking those actions. The specific outcomes for territory…
MPSA are at a tactical level while CMSA outcomes are at a
strategic level. A gourmet marketing touch
Attend a half-day Evidence Review workshop at which you Gianni Mariano is a successful businessman with a passion for
work both in groups and on a one-to-one basis with RPL branding and a flair for food. The effortless combination of these
advisers to discuss and evaluate the evidence that you have two skills paved the way for a gourmet journey that delivered two
compiled and to see whether there are any gaps. If any are exceptional brands to the South African hospitality market.
identified, you make plans to remedy these. Gianni completed his B.Com degree at Wits University and
Complete your portfolio and submit it. pursued his dream of a career in the food industry. His first serious
Your portfolio is then assessed by registered constituent assessors. project evolved into the Brazilian Coffee Shop brand. He sold his
If anything is seen as not meeting the requirements you will be interest in 1996 to start Mastrantonio, epitomising ‘the art of good
advised and will then correct the situation (remediation). eating’. The dream expanded and grew into what is known today as
Attend an hour-long session where you make a 15-minute Mastrantonio Holdings, comprising three very distinct disciplines
presentation to a panel on why you should be awarded the focused on branding, brand consulting and his insatiable passion
designation and answer questions from the panel. for food.

Services SETA
“A brand is very similar to the human body in a simplistic way. on the subject. This is significant in that we are in a field of study
When you talk to a person, you can make deductions about them that is relatively new, yet it is based on principles that are timeless.
from the clothes they wear and their body language, but there is We need to share information as much as possible. The CMSA
something that makes that person unique – a soul, a personality. designation is a vehicle that can lead to this sharing and the
Brands have similar characteristics and managing brands involves realisation that we need to pool our experiences and stories in order
understanding a number of key elements and ensuring that they to build a knowledge base and a code of conduct.
communicate the essence or ‘soul’ of the brand across all its “It is interesting that there are people out there that have little or
manifestations. even no formal education in their particular line of work, and yet
“Branding in its purest form has been misused in our modern they can be regarded as marketing geniuses. This may be both as a
world. Anyone who has a logo thinks they have a brand. I believe result of their character and from what they have learned from the
that the current economic crisis is a direct result of a fever that was ultimate teacher – real life experience. For this reason, we have to
caused by twisted views of the concept of value. True value requires realise that as marketers we need to grow.
integrity, honesty and commitment; so do brands.” “Being a CMSA is not a designation that allows you to sit back
Financial language has a clear and precise context whereas the and say ‘I am a marketer’ as it will mean nothing in the absence of
language of branding also talks profits and return on investment, ongoing development and learning. This is exactly what the CMSA
but from a different angle. “Real business success stories occur should be – a never-ending journey into the world of marketing
when these two disciplines start speaking the same language and that should challenge you to go into uncharted territory, yet provide
business leaders manage to see them as one. Accounting is a you with the skills and knowledge to safely stay the course. The
discipline that looks mostly at yesterday, marketing and branding is very essence of being a CMSA is about the commitment to lifelong
something that looks to the future,” says Gianni. learning, it is the beginning,” concludes Gianni.
He believes that at the moment, branding is used in the context
of putting a mark on something, but you can’t ‘put a brand on’ Embracing Africa
as if it were an item of clothing. True branding is not a badge Nathalie Chinje is professional, driven and ambitious, and yet
that is placed on a company – it should be infused into every fibre totally humble and committed to imparting her vast skills to young
of the enterprise. people. With a philosophy of investing in human capital and not
Gianni furthered his career and with the help of his friend and capital cost, you are assured that a conversation with this marketer
mentor Gordon Cook, completed his honours degree in 1992. is going to be both enlightening and philosophical.
“The M designation was later established and Gordon suggested Nathalie comes from a retail and financial services background,
that I take the plunge and register. We were part of the first having done her marketing communications degree through the
50 inaugural class of CMs to graduate in July 1999. IMM and then qualifying as a CMSA in 2004. For good measure,
“If you look at the marketing books of the ‘70s the word ‘brand’ Nathalie also completed her MBA through the Stellenbosch
was rarely mentioned. By the end of the ‘80s there were hundreds University Business School – obtaining a cum laude for her thesis
of mentions of the word and today there is a proliferation of books on MTN’s economic impact on Cameroon.
“I started Upbeat Marketing five years ago, initially providing
branding, marketing and communications solutions to South
African businesses. As the business evolved and on the back of my
experience of African and world travel, we found our niche in
helping South African companies expand into the rest of
Africa,” says Nathalie. Sectors of specialisation include financial
services, ICT, infrastructure development and projects in the
public sector.
“Real business success stories occur when these
two disciplines start speaking the same language
and business leaders manage to see them as one.
Accounting is a discipline that looks mostly at
yesterday, marketing and branding is something
that looks to the future.” – Gianni Mariano
Gianni Mariano

Services SETA
“Having gone through the ranks and experienced
marketing from the lowest entry level and working
through to finally achieve CMSA status means I
can call myself a professional marketer without
being arrogant.” – Nathalie Chinje
As to Nathalie’s success in the marketing arena, she attributes

her success to the fact that she started at the very lowest level and
worked hard to get herself all the way to the top, in a senior,
decision-making position. There is no better teacher than
experience – the good, the bad and the ugly! “My first job was at a
printing company as a marketing assistant to the group marketing
director. After six months I was promoted to group marketing
executive. With a number of acquisitions, management’s challenge
to me was to reposition the company as a business communications
company and not just as a printing house. I worked hard at this and Nathalie Chinje
my efforts paid off. I then joined Woolworths Financial Services a
year and a half later as the brand manager responsible for its in- level in marketing and you need to be a highly driven and organised
store charge card, personal loan and coupon insurance products. individual.” 51
My last corporate job was at the Shoprite Group where I held a On the key challenges ahead for CM, Nathalie believes it is now
senior marketing position. This very much set the scene for my time for the designation to be driven as a brand and desirable icon
entrepreneurial growth and I have never looked back. of marketing excellence, and to be put in the same league as, say, an
“Having gone through the ranks and experienced marketing MBA. The ongoing learning that this designation requires, and the
from the lowest entry level and working through to finally achieve new perspectives that it brings, are key. “If we are to ensure the
CMSA status means I can call myself a professional marketer socio-economic development of Africa, we need more marketing
without being arrogant,” explains Nathalie. entrepreneurs. We need people who continue to evolve and learn,
who are unquestionably competent to guide their clients and
Why CMSA? provide modern solutions to new-age business problems.
“I wanted to be recognised as a professional marketer. Having “How many marketers out there are truly equipped to cope with
travelled extensively I was aware of the CM concept pioneered in the impact of the recession and global meltdown? How many can
the UK, so when a similar designation was launched in SA I successfully navigate through the storm to calm waters. This is the
jumped at the opportunity. Upfront it’s important for any essence of what CMSA is about – challenging everything you
planning on going the CM route to understand that this is no thought you knew about marketing, why you made the decisions
walk in the park. It is hard work and the process is rigorous, an you made and whether they had the desired effect – then turning
important testimony to the quality of the process and CMSA everything on its head and seeing new ways and perspectives of
designation. You must have experience at a senior decision-making doing things better.”

Expert opinion
Confederations Cup:
what’s your goal?
T
he Confederations Cup arrives in the bank launched its campaign with soccer
South Africa on 14 June 2009 and sees legend and brand ambassador Lucas
the six continental champions up Radebe sending an SMS to each customer
against the FIFA World Cup holders and the (personalised marketing is one of the smartest
host nation. Being on African soil for the first tools that can be activated and yet it is
time, the Confederations Cup will provide an massively under used).
unparalleled marketing platform. The question These campaigns are all very encouraging,
is: how can you score and make this event yet I still feel that a number of the FIFA
count for your brand? The answer is simple: partners have been a little slow off the mark.
creation. Whether it is an above-the-line Having engaged with a number of these
campaign driven by an ambassador, creation of parties, I get the impression that head office is
an event or an internal campaign to drive sales in control of the strings and has forgotten to
and staff morale, the ‘pitch’ is available. What allow for and afford the South African
you need to do is ‘walk onto it and put the companies the independence and budget to
ball in the back of the net’. capitalise on this enormous opportunity. This
Samsung is not an official FIFA partner; goes back to a fundamental principle of sports
however, with the creation of the ‘NextHero’ marketing: without suitable leverage spend,
campaign driven by ambassadors, Shaun you may have a beautiful car but it will not
Bartlett and Itumeleng Khune, it has managed get you from where you are to where you
to position itself superbly. Samsung joined want to be.
52 forces with Play Soccer South Africa to form In addition, I think that, to date, the FIFA
this campaign, which teaches children life family of sponsors and partners has failed to
skills, self-confidence and discipline through collaborate successfully with one another. A
the medium of football, while also focusing joint-force road show both locally and
on driving sales for the brand. A percentage of internationally driving excitement around the
sales from the J700 handset was donated to tournament together with ticket information
the ‘NextHero’ target of raising R1 million and timeline details would be most effective
for this worthy cause. and something that I think is greatly needed.
Chivas Regal and Soccerlife magazine The Confederations Cup and the 2010
recently created a series of intimate targeted FIFA World Cup are enormous events, so
football cocktail parties. The events were knowing when, where and why to spend in the
hosted at the Saxon Hotel and gave their business of sports is another challenge which
clients the opportunity to hear from some of one needs to focus on. This is where sports
South Africa’s leading football personalities marketing agencies can add significant value,
about the beautiful game. The partnership of through the understanding of the history, the
brand and media principal together with excellent people, the opportunities and the structures.
public relations has worked exceptionally well What I would like to suggest to marketing
in this B2B space. teams out there is to listen to what people say
The creation of a Confederations – everyone has a story and everyone has
Cup/FIFA 2010 environment within your dreams and ideas. Sometimes the most
office space, ticket giveaways, and ‘public’ mind-blowing campaign can be staring you in
viewing at the office is something every the face. We have one of the most diversified
company in SA should be focusing on to drive nations on earth, which gives us the freedom
staff morale, sales and national pride. to run with a series of completely different
On the ‘official’ FIFA partner front, First campaigns. But, because of this diversity,
National Bank pledged its support to SA’s setting objectives upfront is one of the most
greatest sporting event by coming on board as important steps in the campaign construction
a FIFA national supporter. From November process. Another vital area of focus would be
last year, the bank has been giving hundreds to think of the individual – what do they want
Neil Jankelowitz of tickets to new FNB account holders, to or need? Making sport count for individuals is
MD, MSCSports drive new acquisitions. A simple, yet smart an influential and exceptional tool which
(011) 646 7340 way in which to leverage its sponsorship, every company should make use of in order
neil@mscsports.co.za position the bank and drive new business. To to make a statement at this year’s
educate the market of its official FIFA status, Confederations Cup.

Digital and mobile at-retail
Upgrading the retail space

n the retail marketing space, digital branding and offers, says Grantham.
I signage and mobile marketing are

among the fastest-growing areas of
interest. The Marketing Mix Digital and
Digital screens of this nature mean no
more looped content and no need for
audio. Plus, messaging and content can
Mobile at-Retail Workshop brought be localised and tailored even down to
together industry experts who illustrated store level.
the power of digital and mobile media in Neil MacArthur, MD, Mediachoice, on
the retail environment. the other hand, says that digital screens
need not only provide value for retailers
Digital screens but for other businesses. He refers to his
Rob Draper, sales director, One Digital experiences in the over-the-counter (OTC)
Media, says that digital retail solutions are health care world. He found that screens in
becoming prevalent in SA and are of doctors’ waiting rooms, for example, were
“Mobile barcodes and world-class standards. However, while very powerful in educating consumers not
South African adspend in this area is not only about medical issues but also about
vouchers (sent to the yet on par with countries such as the US solutions. “There was a positive impact
and the UK (where adspend on digital on sales where the screens were used
shopper via WAP, signage doubled between 2007 and 2008), correctly,” he says.
the growth potential is huge. Draper
MMS, SMS or believes that industry acceptance of digital Mobile
media has been slow off the mark, and that There are many mobile media and marketing
the medium is being under-used. techniques being used to great effect in the
Bluetooth) deliver According to Draper, recent research retail space to drive sales and deliver
54 proved that digital screens are noticed by greater brand health. The use of mobile
this. But the key shoppers, are shown to make the shopper vouchers, for example, provides consumers
feel closer to the brands on-screen and with convenience and ease of service,
consideration is that increase sales. while at the same time driving shoppers
However, the rules for effective creative in store to purchase certain products.
the target market on these screens are unique:
Colours need to be bold
“Mobile barcodes and vouchers (sent to
the shopper via WAP, MMS, SMS or
Text needs to be limited with around Bluetooth) deliver this. But the key
must be able to five seconds to get a message across consideration is that the target market
A shopper needs to understand quickly must be able to download and render the
download and render what’s in it for them. barcode and voucher correctly,” says
Shifting ad budget to digital signage Ahmed Kajee, MD, Cellsmart.
the barcode and would stretch budgets and increase brand Mobile 2D barcodes can be customised
impact, says Draper. Having digital at shelf according to what a marketer wants to
(and not only at the tills) works best. achieve and can carry more information
voucher correctly.” – “You’ve got to interrupt consumers while than conventional linear barcodes. Linear
they are shopping, not when they’ve bar codes get wider when you add more
Ahmed Kajee, already shopped,” he says. info, and this means that some phones are
Rick Grantham, MD of Global Access, not able to capture the whole barcode,
Cellsmart takes digital one step further with while this is not an issue for 2D barcodes.
video-on-digital screens. Grantham says From a retailer side, the right scanner
that video can attract more customers, systems must be available for mobile
entertain, encourage interaction with vouchers and barcodes to become more
brands, and make them spend more. widely used.
The most effective way to achieve this is While consumers are not educated on
to provide the viewer with useful info, the mobile vouchers, says Kajee, there is
education, entertainment and unique opportunity for growth (mobile service
offers. An impactful way to do this is to providers and brands need to educate the
split the screen into segments, for example, consumer). Currently, a major challenge
entertainment content alongside news and barrier is the lack of true partnerships
snippets and branded info. People between the brand, the retail client, the
immediately watch the screen, and if systems integrators and the mobile
they’re interested, they will respond to the marketing partners.

Digital and mobile at-retail
The advantages of mobile vouchers and says Eddie Groenewald, CEO, Multimedia
ticketing: Solutions. Then, it is essential to use the
Reduced print costs right strategy, one that takes into account
Measurability the rules of engagement. Reporting and
Cost-effective analysing the back-end stats is key, too.
Immediate. Compared to online media, says
Challenges: Groenewald, mobile is more measurable.
Not all handsets compatible Even in more mature markets where
Backend system in stores broadband is uncapped and media options
Scanning system integrating are highly proliferated, mobile penetration
Redemption issues is growing. Marketers are warned not to
Initial set up cost. assume that the top-end LSM consumers
On a different retail front, Derek van use top-end phones (some lower LSM
Wyk and Jan van Wyk de Vries from users have got very fancy phones, while
TransUnion, are in charge of mobile some LSM 10 consumers stick to simple
technology that automates credit account phone models and hand upgrades over to
management processes. Via SMS, customers their kids).
can be encouraged to open an account and Still, before mobile can be measured,
driven to make their payments on time. indeed before mobile media can be used,
Marketers are warned
How does it work? Customers requiring the target market needs to identified (there
credit can send their name, surname, ID are different solutions, each ideal for not to assume that
number, monthly income and expenditure reaching the different target markets).
to a short-code number. A central system “Selecting the right activation media the top-end LSM 55
verifies the customer’s data (checks for options is key, and so is the crafting of the
fraud and earnings, and credit scores).
Within seconds, the consumer receives an
appropriate message,” says Raymond
Buckle, CEO, SilverstoneCIS.
consumers use
SMS which says whether or not the Branded content, which is downloaded
application is successful. “Retailers can by the user on a daily basis in the form of top-end phones (some
decide what kind of messaging is mobisodes, is an option for brands. When
delivered,” says Van Wyk. content goes viral it pays for itself, and lower LSM users have
If successful, a customer can enter the brands get huge mileage thanks to the
store with the right supporting documents pass-on. When using short codes, be got very fancy phones,
and the retailer simply captures new details careful to pick intelligent short codes and
(all the originally submitted details are already make sure the back-end system is able to
captured and don’t need to be re-entered). pick up errors and prompt the user to
while some LSM 10
If a customer enters their details incorrectly, resend the code. Interactive bi-directional
an SMS asks them to re-enter their details. communication is cool – it allows the user consumers stick to
The reply SMS can be enhanced by adding to interact directly with more than one
voucher or discount mechanisms (this could option. For example, they can click to call simple phone models
encourage the customer to follow through or to book a test drive.
and start spending). Roughly 50 per cent of the local market and hand upgrades
Plus, says Van Wyk de Vries, for companies has a mobile Internet-enabled phone, says
with call centres and websites, the system Buckle, which allows for measurement and
can be added to give the customer a seamless consumer insights. Competitions can be
over to their kids).
total store experience. All these solutions built in, which allow a brand to ask
can be sent via a Web services API, making profiling questions and collect customer
the customer’s details (profile) available to information. But whatever you do,
call centre staff, for example. measure everything and learn from it,
While the TransUnion credit system says Buckle.
employs SMS, MMS and mobisites they Mobile videos too, are powerful, says
can be powerful branding and sales tools. Grantham. Research conducted by UCT
There are challenges, however, such as the found that the average age of the mobile
number of different handset models, screen video downloader is between 25 and 40
sizes and memory capabilities. “These years. Also, information that is sent in video
different handsets need to be understood format is more likely to be found useful
before a marketer can begin a campaign?,” and influential in purchasing decisions.

Expert opinion
Brand interaction online

This is the fourth in a series of articles written by the HelloComputer team focusing the core
competencies which are the essence of website creation.
rand interaction is not a new marketing users and their behavioural patterns or, on a
B concept; its genesis dates back to the

earliest pioneers of direct marketing
practices. Other modern examples include the
very basic level, data capturing. The
consumer is rewarded, as the brand gives
something back (the good ones do anyway),
association of a brand to a relevant event. But in terms of motivating this interaction.
the evolution of the concept in the light of Gathered information and insights are then
technology is an interesting one. This is due to easily harnessed to strengthen and guide the
a wonderful idiosyncrasy in digital media – the revision of future marketing plans.
ability to facilitate a dialogue. Remember that user data should include
So, what exactly constitutes successful more than the traditional fields of information.
brand interaction? Ultimately, it is You should start to build a profile of your
encouraging human activity while delivering users that includes browser preferences,
a salient brand message. what time of the day they are most active
As brand interaction has evolved we’ve online, what sites are frequently visited etc.
seen an increase in the number of touch The depth of data available is limited only by
points available to marketers to communicate your patience and users’ willingness to trust
with consumers and vice versa. This has been your brand.
largely the result of advances in technology, A successful example of a brand that under-
with Web 2.0 leading the revolution in new stands the nature of its content and which
channels of communication. With multiple media is relevant is Mavericks (www.maver-
touch points available to your brand icks.co.za), a revue bar. This adult entertain-
you need to consider what serves your ment-orientated night club has chosen to use
requirements best. the Internet as an avenue through which to
Below are a few considerations and simple communicate with its target audience. The
steps that should be followed to maximise online experience simulates that of the night
56 your brand’s dialogue with consumers: club. In order to increase the number of regis-
Be relevant tered users in the database that the club mar-
Both with the content or interaction you’re kets to on an ongoing basis a number of
offering and the channels you’re using to strategies were put in place.
communicate with your target audience. For To stimulate attendance the club has an
example, WAP sites are a great way of innovative system that allows users to view
extending reach, but is your target audience all the dancers at the club. However, the
familiar with the technology? Does it have enticing prospect of seeing a more revealing
access to WAP sites? image presents the user with a mandatory
Be realistic registration process (a little give and take).
Put yourself in your consumer’s shoes, The result? A database build of over 6 000
would you take the time to interact with highly relevant consumer acquisitions in
your offering? Play devil’s advocate and 12 months. The club interacts with this
investigate this objectively, it may help audience through the transmission of brand-
you to avoid communication that isn’t ed, personalised e-mails inviting them to
worthwhile to the consumer. attend special events or providing
Be unique notification of exciting site updates.
Are you the first brand to be doing what Furthermore, users are encouraged to
you’re doing? If you’re not, is your consider the products available in the
execution original enough to separate you commerce section of the website.
from the competition? Internet users are In terms of brand interaction, the
constantly screening messages; will yours be Mavericks example is worthy for a number
glanced over or interacted with? of reasons. The brand has been successfully
Be rewarding translated into the online environment with-
With so many brands competing for out losing the essence of the
information from consumers it is real-world club experience. Not only is the
important to reward them for their time and chosen medium relevant to the adult nature
information. of its content, but it has understood the
Brand interactions in the realm of the needs of the predominantly male, over the
David Moffatt Internet are not one sided, passive age of 18 target audience. It has also reward-
marketing director, HelloComputer monologues. The effective ones are ed its users for joining the database by
(021) 488 1380 increasingly becoming active and rewarding allowing access to unique content. This is a
dialogues. These dialogues result in the considerate, realistic approach, and it works
david@hellocomputer.net
brand learning more about its individual online.

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MarketingMix

M E A S U R A B L E M A R K E T I N G I N S I G H T S I Vol 27 Issue No. 3/4 I 2009 I R25.00 incl. vat

I 0 5 I TV audience measurement: current scenario

I 1 0 I HD and DTT: preparing for the switchover I 4 2 I Cinema marketing

I 1 6 I Brand anatomy: Absolut Vodka

I 5 4 I Digital and mobile at-retail

I 2 2 I Top print performers I 5 6 I Expert opinion: David Moffat

vol 27 / issue 3/4 / 2009 marketingmix.co.za

marketingmix.co.za / vol 27 / issue 3/4 / 2009

A brave new TV world

T massive change. Measuring local TV audiences over

marketingmix.co.za / vol 27 / issue 3/4 / 2009

T audiences, that consume TV programming (and TV ads)

Advertiser 2007 Expenditure Advertiser 2008 Expenditure

1 Unilever SA 482 277 906 Unilever SA 473 331 032

4 Vodacom Communication 221 703 465 Coca-Cola SA 204 406 5911

6 Distell 167 526 039 Vodacom Communication 186 101 996

9 Ford Motor Co 157 396 235 Distell 144 371 323

vol 27 / issue 3/4 / 2009 marketingmix.co.za

Meanwhile, the new DStv-i panel (the measurement solution that

marketingmix.co.za / vol 27 / issue 3/4 / 2009

vol 27 / issue 3/4 / 2009 marketingmix.co.za

New media devices and broadcast platforms:

marketingmix.co.za / vol 27 / issue 3/4 / 2009

Understanding return path data

History of RPD services

been able to analyse the viewing habits of customers pre-churn to detect

vol 27 / issue 3/4 / 2009 marketingmix.co.za

HD and DTT: preparing for

marketingmix.co.za / vol 27 / issue 3/4 / 2009

African DTT channels will be broadcast in

vol 27 / issue 3/4 / 2009 marketingmix.co.za

The ideal measurement today and

C with increasing competition and a constant call for

marketingmix.co.za / vol 27 / issue 3/4 / 2009

Marketing Mix: In other countries, high definition TV

MMX: In some countries, mobile TV is part of the mainstream media.

RGI: The 2008 survey on new television technologies reports that 13

vol 27 / issue 3/4 / 2009 marketingmix.co.za

The best people

Shopper Insights 12 May 2009

marketingmix.co.za / vol 27 / issue 3/4 / 2009

vol 27 / issue 3/4 / 2009 marketingmix.co.za

marketingmix.co.za / vol 27 / issue 3/4 / 2009

Am I the only one?

vol 27 / issue 3/4 / 2009 marketingmix.co.za

Top print performers 2009

W over Media24 and its ABC figures, it should have been a

Job Mail: resigned Jan-March

InStyle SA: ceased publication

True Love East Africa: resigned

marketingmix.co.za / vol 27 / issue 3/4 / 2009

>> p22 Working closely with the circulation

marketingmix.co.za / vol 27 / issue 3/4 / 2009

>> p24 The Sunday Sun has managed to gain fairly

marketingmix.co.za / vol 27 / issue 3/4 / 2009

>> p26 new ways of trying to broaden our footprint and

marketingmix.co.za / vol 27 / issue 3/4 / 2009

You don’t need to spend

E to reach consumers and engage them. Experiential marketing

marketingmix.co.za / vol 27 / issue 3/4 / 2009

>> p32 providers accountable.

marketingmix.co.za / vol 27 / issue 3/4 / 2009

Toyota Prado Ramp Overview