Louise Marsland

SCREEN AFRICA EXCLUSIVE:

In a market where there is only uncertainty, and where many industries have already collapsed, as businesses face ruin and scared consumers are hiding out in their homes – how do you market anything to anyone?

Firstly, there is an end in sight: look at China emerging to a semblance of normality in some areas in March, albeit with temperature checks all over, three months after the pandemic took hold in that country and mass lockdowns started in February. Yes, we have already been told that this pandemic may be with us for two years, as treatment protocols are refined and a vaccine possibly developed, but – in about six months’ time, after our winter – South Africans will have an economy to rebuild, as will most of the rest of the world.

That is what we all need to start planning for now. Even in the face of total shutdowns, we all have skills and careers that we have invested in. We now need to reengineer them and look at how to do things differently. In any crisis situation, be it war or this unprecedented lockdown of our global society and economies, innovation thrives. We have to be creative to work remotely; to start new businesses if our current ones fail; to look at how to take our unique skills or hobbies or passion-projects and turn them into businesses.

South African futurist and future of work consultant at TomorrowToday, Graeme Codrington, has been releasing a series of videos on his YouTube channel to counsel business leaders on what to do next – this after his globetrotting career speaking at events and to companies for 11 out of 12 months each year was abruptly curtailed by travel restrictions. We all have to start thinking differently and more virtually, using online tools to connect and work and be more effective, he says.

Influential American site Politico also surveyed 34 leaders and thinkers across society, technology, the economy, health and politics, to find out how the world will be changed by this pandemic. It is a long but excellent read and will spark ideas as to how we will need to do things differently and how we will all be changed by remote-working and self-isolating for months, while trying to keep our work going. The main take-away from the article: “Coronavirus will change the world permanently. A crisis on this scale can reorder society in dramatic ways, for better or worse.” It is not only our ways of working that will change, but society in general. This needs to be taken into account in future business decisions.

Purpose over profit

However, before that, we need to support our immediate communities: our families, friends, customers and clients. Purpose over profit – that is how we have to go forward. All the futurists say plan and prepare. Accept there will be massive personal and business losses financially, which are unquantifiable at this stage, and so prepare for the worst-case scenario and plan what to do when society returns to a semblance of normality. What do people need now? Where do consumers need support now?

A young filmmaker in Italy, for example, had people share their stories from quarantine with him about what they would have done differently before the pandemic – his short docudrama has gone viral. There are many such projects that filmmakers and film editors could take on from their homes, for example. It may not be enough to pay the bills in the short-term, but may ensure a future in the long-term. Now is the time for empathy, supporting others and passion projects.

Global advertising agency Ogilvy has prepared a communications plan for its clients and partner agencies worldwide and shared it globally to aid other brands. Called COVID-19: How to Communicate in Turbulent Times, the agency advises: “Using your expertise or brand capital to help during a crisis is not about commercial advantage or profit. It is about doing the right thing for society and showing a company’s true values and citizenship.”

Summing up the main findings in the report, Scott Kronick, Ogilvy’s regional lead of PR and influence in the Asia-Pacific region, says that this challenging time for broader society is also a challenging time for marketers and communicators as they have to go into full-scale crisis communications mode. There is no normal right now.

This is Ogilvy’s advice, as outlined by Kronick: “First, it’s crucial that communicators make sure they are dealing with accurate information. Times of crisis can be confusing and frightening, resulting in an amplification of speculation, conspiracy theories, obfuscation and censorship. Communicators must ensure that they are dealing with facts and not fiction, real information and not rumour.

“Second, it’s crucial to have an understanding of the ultimate goals of the communications being delivered. This is not a time to try to market or sell, but rather it is a time to reinforce the values that define leading organisations. What can be done given the various objectives we are working to address? It all comes to down communicating effectively.

“And last, communicators need to properly place the ongoing crisis and issue in a greater context. What does it mean for globalisation, economic growth and more—and how does that play out as the world works to get through the crisis together?”

Survival strategies

AdWeek reports that agencies will be forced to address technology shortcomings during this time and advises brands that cause-related marketing may work better than any other kind, as consumers need to feel supported. A growth in ecommerce is also expected, as all transaction systems move online and retailers beef up their online shops. I believe many small businesses will also upgrade to shop windows on social media and ecommerce platforms and online marketplaces will thrive.

While companies grapple with everything required to allow workers to work remotely, brands and retailers are also having to cope with massive drops in revenue as retailers close the world over and foot traffic all but disappears across much of the retail sector. What brands have to remember is that consumers will develop new habits over this period: people will shop online, order groceries online and order prepared food online in their communities (restaurants have to evolve in this direction)  – and get all their entertainment online, from gaming to movies. Safe delivery will be key, of course, but as more consumers get comfortable with shopping and ordering online, these consumer habits will still be there after this is all past and a massive technological leap-frog will have taken place in retailing, meaning brands will have to do things differently going forward.

Reports AdWeek: “Industry watchers also suggest that if a brand hadn’t devoted major resources to ecommerce in the past, now is the time to do it. While many analysts have said ecommerce cannot replace all lost foot traffic (especially if consumers hit by curtailed or lost incomes have less money for shopping), it’s also true that in the wake of the coronavirus, over 46% of consumers are more likely to buy clothing online, and nearly 65% are more likely to head to the internet to buy personal care products, according to recent data from Red Points.”

The one comforting thought, as South Africa stares down the barrel of this pandemic, is that after two months of lockdown, China is slowly getting back to normal. We have to hold on to that and plan for the disruption that will face all business sectors this year.

The link to the Ogilvy full paper for free download is: https://www.ogilvy.com/uploads/O200316_Paper_COVID(1).pdf.

SCREEN AFRICA EXCLUSIVE:

Standing at the beginning of a new year in a new decade is exciting. This new decade, in particular, will herald in an important time for our continent, as countries scramble to meet the global United Nations 2030 Sustainable Development Goals; and the real work on implementing the Africa Continental Free Trade Agreement (AfCFTA) starts.

AfCFTA is a real gamechanger for Africa, as it will create the largest trading block in the world once trade barriers fall, boosting internal trade on the continent, which will lead to economic prosperity in many regions and an infrastructure boom and job creation – sorely needed for the continent with the biggest and youngest population in the world.

What this means for every industry, including the creative industries, is that opportunities to do business within Africa will increase because investment will increase. It won’t be easy or without major challenges, but to anyone launching or growing a business in South Africa’s depressed economy, Africa presents another opportunity for growth – particularly since, in 2018, seven of the 10 fastest growing economies in the world were in Africa! (South Africa and Nigeria weren’t on that list – everyone is still waiting for us to grow into our potential!).

I believe this decade will signal that it is Africa’s time and an ‘Africa Rising’ presents unique opportunity beyond our borders for every industry. The impact of AfCFTA and its potential should feature in all long-term business plans of all industry in South Africa going forward. That is my most important trend for this decade and this year.

The other massive gamechanger, globally, for this coming decade, is Generation Z. Apart from the fact that we can finally stop talking about Millennials, this next generation of youth have the onerous task of saving our planet. They will also, like the generation that heralded in massive social change in the 1960s across the world, have one of the biggest impacts on our consumption patterns. They are also going to be the most vocal in calling out everyone – from politicians to companies to brands – if they are corrupt in anyway and do not behave in a transparent and authentic way.

Think Gen Z, think Greta

Going forward, into industry specific trends for the creative industries, Generation Z and their consumption habits will probably be one of the biggest gamechangers since social media revolutionised the last decade which was dominated by the focus on Millennials. Generation Z is a surprising generation and their poster child is Greta Thunberg.

Also called the iGen or Centennials, this generation of youngsters was born between 1996 and 2010, following on from the Millennials. They have been immersed in our digital society, growing up with the internet and on social media. The oldest of them are now just finishing their tertiary education and entering the workforce.

This generation will very much likely have as much impact as the 60s generation, whose marches were for peace at the beginning of the Cold War. Except their platform is climate change and they will have to save our planet from mass extinction.

So how will brands, marketers and advertising creatives market to this generation? What can you sell a generation that is starting to reject conspicuous consumption and anything that raises their carbon footprint?

Global thinktank, McKinsey, says the one characteristic that defines this generation, is “truth”. Generation Z avoid labels, preferring to express themselves individually. They believe in standing up for causes they believe in; and believe dialogue and negotiation is the way to resolve conflicts, not war.

“They make decisions and relate to institutions in a highly analytical and pragmatic way,” reports McKinsey, calling them the “True Gen”. This is in contrast to the Millennials, called the “Me” generation, which focuses more on itself. Remember, it was this generation that invented the ubiquitous selfie!

McKinsey advises brands and business to think about how they deliver value to this consumer and make sure they practice what they preach when addressing marketing challenges, work ethics, environmental issues and impact on the planet.

Time is not on your side: within just five years, this generation will be leaving school and becoming students that will agitate for change or they will be joining their peers in the workplace and creating change – from within or as consumers.

This quote from McKinsey is striking: “Companies should be attuned to three implications for this generation: consumption as access rather than possession, consumption as an expression of individual identity, and consumption as a matter of ethical concern. Coupled with technological advances, this generational shift is transforming the consumer landscape in a way that cuts across all socioeconomic brackets and extends beyond Gen Z, permeating the whole demographic pyramid.”

Don’t think for one moment that we are immune down here in Africa, either: Africa, including South Africa, has the single biggest youth demographic in the world. This decade to come is one of the most important in history – change is coming, there is no doubt, for our way of work and how brands are consumed – in fact, the entire marketing eco-system will be impacted.

Personally, I have hope for Generation Z, that they can save us from our worst excesses. They are searching for authenticity and embrace greater freedom of expression, while they are more tolerant and accepting.

There are three types of consumer behaviour that Gen Z display that will profoundly affect brands:

• Sharing economy: Gen Z does not believe in ownership. For them, consumption means access to products and services, not necessarily ownership. They value services that connect them, as services they use, rather than products that they own (like car-riding services, video streaming and subscriptions). McKinsey advises that companies need to rethink their value-creation models and look at leveraging “more direct relationships” with consumers, as well as alternative and new distribution channels.

• The cult of the individual: This generation want more personalised products; they do not want to look like everyone else. And here is where they will pay for it. Interestingly, they also don’t want brands which classify them by gender, as male or female. So, dump the pink and blue, male vs female thinking. For some brands this will be a stretch. The other significant consumption trend is that this generation sees no “line” between online and offline shopping. They want to be able to access products they want to buy or use 24/7, anywhere.

• Purpose-driven marketing: More than any other generation before them, this generation expects marketers to believe in something and “take a stand” with their brands. It makes sense too. Brands have worked so hard in the past two decades to appear ‘human’ – with human characteristics and emotions – to consumers that they now have a generation of consumer that does not make a distinction between individual causes and corporate causes and corporate ethics. Ownership, ethical behaviour, giving back to the community, taking a stance on causes that matter, having an articulated purpose – these are all things expected of brands and organisations, as well as anyone Gen Z connects with. How’s this for a scary stat: 80 percent of Generation Z surveyed by McKinsey indicated that they refuse to buy goods from companies involved in scandals.

I love this generation; I think they will make the world a better place. And we could sure use some of that after these past few difficult years in our own country’s history as well as the shenanigans going on elsewhere in the world. They bring as hope. And that is what we want trends to do: provide hope for the future so we can take that next step, launch that new business, plan for a future. Happy 2020!

SCREEN AFRICA EXCLUSIVE:

The demand for media investment on the continent of Africa is being driven by an empowered media consumer demanding access to communication, social media, entertainment content, streaming services and mobile commerce.

Group M, in collaboration with In On Africa, released the first Africa Media Index (AMI) report in June to assist global brands and global agencies with investment on the continent, as – despite the abundant opportunities that exist in Africa – it has not yet attracted “significant advertising investments.”

Africa is a continent with the youngest and fastest-growing population in the world, as those of us who live here know all about. We’re proud of the fact that seven out of 10 of the fastest-growing economies in the world are in Africa and that the African Continental Free Trade Agreement (AfCFTA), ratified in May, has the potential to create the largest trading block in the world and transform the continent.

The Africa Media Index has focused on specific categories to provide information to global clients in: Economy and Business, Media Landscape, Media Consumers, Technology and Governance and Legislation, across 14 key sub-Saharan African countries. This is the first report of its kind, and subsequent reports will cover more of the African continent in time, Group M South Africa reported.

The countries included in the report are: South Africa, Ghana, Botswana, Kenya, Namibia, Nigeria, Cote d’Ivoire, Tanzania, Uganda, Ethiopia, Zimbabwe, Angola, Zambia and Mozambique.

According to the report summary, “the African media landscape is a whirlwind of change and activity, and its power can be harnessed by knowledgeable investors and advertisers/” The report describes how mobile phone access, which gives communications access to millions of people and a voice to the voiceless through social media, has opened up societies and influenced governance change like never before seen.

The impact on the media sector, where television and streaming services – including entertainment, sports, news and music – are flourishing, has been profound and there is growth in every sector, including print: “Enabled by the latest technology, investors can meet consumer needs and advertisers can tap into consumer desires,” the report states.

Key insights

1. Economy and Business: Service sectors dominate most countries’ economies, with the media a key contributor. The internet has created an explosion in financial services opportunities, enabling the previously-unbanked to access financial services such as loans via mobile commerce.
2. Media Landscape: Mobile devices are responsible for connecting the continent to the internet, as the massive rollout and uptake of smartphones has opened up digital media and a myriad additional services and opportunities for the African consumer. The report states that traditional media lost customers to digital media, but also found new opportunities to repackage content. Broadcast media still dominates, as television is the preferred method of entertainment. Radio remains the most popular medium overall, as it is unaffected by data issues or power outages, which affect other channels to varying degrees on a country-to-country basis.
3. Media Consumers: Interestingly, the growth in digital media corresponds with continuing efforts by the countries to increase literacy. Affordability, however, is what drives consumer media choices, and data prices determine internet usage in the main. But of course, with the growth of Africa’s aspirant middle-class and technologically-savvy youth, media use is increasing rapidly, particularly as data prices come down or free access is granted in public spaces and malls.
4. Technology: There is a rapid move to have digital TV replace analogue television and satellite TV services are also now widely available in the 14 territories surveyed. 3G penetration is expanding and 4G coverage has been introduced. Poor electricity connectivity and power outages are constraining media growth, however. Only South African and Ghana have more than three-quarters of their populations connected to electricity. All the countries do, however, have energy plans in place to boost local electricity supply.
5. Governance & Legislation: There are two positive factors which are growth indicators for the media industry across the continent – the fact that information technology is seen as key to economic development and economic prosperity; and that government reform in some media sectors is creating more opportunities for media investors.

A key point from the report states that: “Africa’s middle class is growing in all countries, and with it, more media consumers. As they become more self-empowered online, the consumers are demanding from their governments better economies to obtain, among other things, more media. Access to media devices has prompted Africans to also demand a wider array of services.”

The AMI report states that Africa’s mobile phone revolution is leading the expansion of media technology on the continent: “Television’s technological transformation from analogue to digital broadcasting is ending, and flat screens and satellite TV dishes are now common. Digital radio requires no additional technology than the computers and smartphones used to access all internet. Coupled with new delivery systems – Amazon is scheduled to begin deliveries using drones in South Africa in 2021 – e-commerce services will expand as the African middle class grows. African technology consumers have the same desire as tech buyers everywhere – to have the latest smartphone models, apps and better broadband through 4G.”

These are the market opportunities identified in the media technology sector:

• 3G data coverage exists in over half of the country in all countries surveyed, from 53% in Zambia to 98% in South Africa
• Internet speeds are improving as fibre optic and submarine cable systems expand, with Ghana achieving Africa’s highest speed at 26.82 Mbps
• Urban populations, where tech consumers are concentrated, are growing in all surveyed countries, led by South Africa, which is now 63% urban.
• Growing economies are producing more middle-class income earners, who are the primary force behind demand for media technology

Of course, there are market challenges to be aware of:

• Electricity supplies remain inadequate in all surveyed countries, with power blackouts disturbing even the most advanced nation, South Africa
• Only three countries have achieved half-coverage of 4G for its population, namely Botswana, Ghana and South Africa
• The number of servers to facilitate internet vary hugely, from 1.49 in Ethiopia per million people to 12,114.29 per million in South Africa
• Affordability drives technology sales and, because of the number of low-income buyers, counterfeit technology is a problem in the market

One of the most important points that the research identifies is that the media consumer is the new “king” of the African economy, as the demand for digital media has not been from governments, but from ordinary Africans who find their mobile phones invaluable and regard data as a necessity to access satellite TV and social services such as Facebook.

“Media consumers are powerful additions to the economic performance of countries’ retail and service sectors, and foreign media consumers – in the form of tourists and business people – have ensured good connectivity in places like Tanzania’s game reserves and Zambia’s copper belt. Investors in Africa’s media industries can be assured that African media consumers are the same as media consumers everywhere, perpetually craving better media services.

“While the technological trend is definitely towards mobile devices, there remains a preference for traditional technology when the viewing experience is enhanced by the presence of others – movies seen in theatres and sports and entertainments seen on home or bar TVs. Technological advances in home entertainment systems and cinemas will be welcomed,” the AMI report concludes.

SCREEN AFRICA EXCLUSIVE:

Can you sell your ideas only? That’s what advertising agencies say they do, but South African advertising doyen Matthew Bull – now based in New York – is adamant that ideas are the most important thing he is selling. He has launched his agency SoloUnion in South Africa, with the message: “The heads without the overheads.”

Bull founded SoloUnion in 2017 in New York. A member of AB-INBEV North American Marketing Council, this is what he had to say after the South African launch in March: “I’m incredibly excited and proud to partner with two of South Africa’s greatest advertising talents, Gillian Rightford and Rob McLennan, in forming SoloUnion SA. Gillian, Rob and I were partners at Lowe Bull when we were a dominant creative force in the world and we intend to bring that same flair and ambition to our new venture.

“We have lined up some wonderful talent as members of the company and are already working with a couple of the country’s premier brands. We’re in competition with ideas, not agencies, and our ultimate goal is to get our industry back to focusing on the reason we exist – great ideas. Finally, I personally, am so proud to be involved again in my home country’s industry. I owe much of what I have professionally to it, and I understand my duty to the country and the country’s talent.”

The loss of talent at the top of the advertising industry is a global challenge, not just a South African one, and the SoloUnion concept allows for talent, which has enormous value, to be applied to create value for brands and business. It is an agency that charges for ideas, not hours, and does not implement the strategy it crafts for a brand, explains Rightford, whose consultancy Adtherapy, is a strategic lead for SoloUnion in South Africa.

As Bull says, “I feel that I spent the last ten years before SoloUnion making ads for clients; now I’m genuinely part of delivering solutions to them – big ideas that embrace the over-arching vision of the company or brands. On top of that, clients treat us differently – I feel a greater sense of partnership, a greater sense of trust than I have for a while. I think this is primarily because it’s all about the work, not about the relationship.”

The clients they believe may find this agency approach valuable are in-house agencies; consultancies; C-Suite executives that have big juicy problems to solve; agency or client teams that are struggling to crack an idea; and clients who have brands that desperately need to rediscover their soul and their purpose, and communicate it in a contemporary, relevant way.

Screen Africa spoke to these advertising legends on the power of ideas:

How do you ‘only’ sell ideas? How do you market yourselves differently?

Many agencies claim to sell ideas but in fact they sell the output of ideas. They sell TV, radio or print ads, banners, adwords, promotional materials, or activations. They will come up with an idea, and they will sell that, but the vast portion of their resources, and therefore their costs or fees, will be used to execute the idea. The challenge to many clients is that if the idea is not as strong as it could be in the beginning, it obviously sets up difficulties in the executional phase. We aim to provide the idea – giving them the platform from which to launch their executional output with their existing resources. In terms of marketing differently – the one area is “idea only”, but the other area is the level of expertise. You will have noticed a lot of discussion in the industry about the “crisis of youth.” We are a highly experienced, awarded group of talent – and the big thing is – you only pay for us when you use us. There are no retainers, there are no massive overheads. In a project SoloUnion did for a global client, only 11% of the fee was used for strategy and creative. Our model means you get 100% and only when you need it. The most pertinent point is we don’t sell the servicing of the idea, but the idea itself. Therefore, we put all our energy and focus into delivering what all clients go to agencies for: ideas.

Is this an entirely new business model – a game-changer for the industry?

It’s a game-changer. There will be, going forward, several iterations of our businesses model, but the principle is the most important thing – hopefully it will be part of a new wave of companies that focus on the product they produce, on creating work that sells, rather than selling their work. The creative agency model will probably remain as it is, but it is in deep trouble. Michael Farmer’s book, Madison Avenue Manslaughter, shows that as fees have come down, delivery timings have become shorter, workload volume has gone up. The bigger problem is the value equation. We strongly believe, as most good agencies do, that the power of a big idea is worth its weight in gold, and it can have a lasting effect on a brand’s success. What we do know is that it is plugging a gap in the industry which is a source of frustration for both marketers and agencies. The writing is on the wall. Various permutations of re-modelling the way communicators do business are popping up all over the world. The traditional advertising/communications agency model is flawed, and marketers and agencies alike know this. It is inevitable that the game plan will change.

So, how do you ‘sell’ an idea to a client? How do you get their buy-in?

What SoloUnion has found in the practical application of the model in the US and Europe, is that we get much more intimately involved with the overall ambitions of the business. We are fortunate in that we only have to concentrate on one thing – creating big strategic and creative solutions for the client’s business problem. All of the partners in our business are highly experienced and awarded creatives and strategists. That, in its own way, separates us from the relationships and expectations clients have from and with their agencies. They are not expecting us to solve the myriad other complexities that are expected from an agency, which creates a different relationship.

What constitutes a brilliant ‘idea’ to you?

It’s no different from time immemorial, really. All new ideas are influenced by other ideas that surround us at any particular time or place, but they are always a ‘new’ or fresh interpretation of these influences. And hence people find that compelling and interesting. No one likes a rerun as much as an original. Creativity is all about one thing – creating desire. So, if an idea creates desire for a brand or product, then that counts as brilliant to me. As for the old fresh vs stale argument, take a look at the Adidas Originals ad – everything new has its origins/inspiration in something old. Brilliant is also in the sweet-spot where brand insight and human insight meet.

How does one actually measure the ‘value’ of a thought or an idea?

This is the hard part. It’s impossible to ‘cost’ it, but you can place a value on it. We will charge what we think is fair value. But you measure the value by the effect it has on the top line of a business. As simple as that. We know we deliver the goods for our clients, we know what it takes to get great talent to work with us, and we know the margin we want. The question is more like, “How does one measure the value of talent?” People should expect to pay more (and do) for work from talented people because they provide the most compelling solutions.