Another boom year
Of the nearly R2,5bn total spend in 2005, print accounted for the lion’s share of about 39,72%, trailed closely by tele-vision (36,92%), with radio the tail-ender (13,78%). Judging by SABC TV, DStv, MultiChoice and free to air station e.tv’s revenue momentum, television broadcasting has certainly been one of the major beneficiaries of the advertising boom in the SA market.
However, multimedia messaging service (MMS) advertising, which in SA is emerging as an alternative means for advertisers to project their brands, could dent TV advertising’s growth run this year. Riaan Groenewald, operations director at technology group Multimedia Solutions, says the major draw card to MMS – now being punted as a viable through-the-line alternative channel of advertising – is that compared to TV it provides a platform for an advertiser to interact with its target market.
"Advertisers can deliver a content-rich message including video, sound, pictures and text to specific consumers, while the consumer has the choice of whether to accept or reject an incoming MMS and is also able to unsubscribe from the service at any time," says Groenewald.
While planning a TV campaign is an onerous process that includes actual creation of the advert and the booking of airtime slots, Groenewald says that an MMS campaign can be created instantaneously and provide direct access to the consumer.
"Consumers will also be happy to know that their interests have been prioritised. First of all, the advertiser pays for the MMS. That means even the downloading of MMS via GPRS is free.
Second, in Multimedia Solution’s case MMSs are only delivered between 8am and 5pm, unless the MMS is prompting an after-hours event and the company’s anti-spam policy ensures that consumers don’t receive unsolicited MMSs, as they’re only sent to consumers that have specifically asked to receive information concerning advertisers’ products."
Though not disregarding the predicted upswing in MMS this year, Tertia Smit, analyst at research house BMI-T, was more cautious regarding the anticipated uptake. Smit argues that the lack of MMS-capable handsets in SA could significantly hamper its adoption.
Smit says only 12m of the 27m handsets in the SA market are MMS capable.However, with BMI-T predicting the number of MMS-capable phones in SA to swell to 30m by 2010, Smit offers some consolation to the MMS faithful. "It’s a fact that advertisers in the SA market don’t mainly target the old TV consumer – the guy who sits in front of a set passively absorbing whatever’s on the screen.
They’re out to capture the attention of technologically savvy youngsters – aptly referred to as the iPod generation. If many such youngsters are able to buy MMS-capable handsets the tide could turn slightly in favour of MMS advertising."
Arguing the case for MMS, Groenewald says the increase in MMS traffic throughout SA cellular heavyweights MTN and Vodacom over the festive period confirms the prediction that MMS is poised to push TV for a chunk of the adspend this year.
MTN claims that it delivered close to 8,8m messages containing pictures and sound over the festive period, representing a 400% growth compared with the previous year. Vodacom reported a phenomenal 1,3m MMSs sent over Christmas, up from the previous year’s 780 000, and 1,4m sent over the new year, up from 450 000 for the previous year’s corresponding period.
Mark Jakins, CE SABC commercial enterprises, says the SA national broadcaster is undaunted at the prospect of squaring up to new advertising technologies. "We offer advertisers a multitude of communications solutions – from classical advertising to multimedia interactive sponsorship options – and as such we remain confident that our loyal advertisers will stick with us."
Jakins adds that thoroughly packaged local content – such as 7de Laan, Isidingo and Generations – continues to deliver its highest audiences. With the increase in household liquidity having attracted nearly 750 000 households to the market, advertisers keen to sell their wares will certainly exploit the SABC as an advertising medium of choice in 2007.
With more subscribers in the black middle stream signing up to its DStv offering, MultiChoice marketing and sales director Graham Pfuhl is equally undaunted at the threat that MMS poses to DStv’s advertising prospects this year.
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