As someone who’s been in advertising a long time, and as a copywriter who considers himself to be reasonably creative, I take an active interest in the advertising put out into the South African market. One client’s advertising has caught my attention as of late.
That of Hollard Insurance.
For a company that has run some really nice work in the past, it’s advertising has gone south of late. In my opinion, anyway.
It’s not so much bad advertising as it’s boring advertising. It’s tired, devoid of creativity. Yes it gets its point across, but…
And then, it’s billboard headlined something along the lines of “Hollard. For people who are perfect and for those who are imperfectly perfect” featuring some guy with bizarre headgear on the R59 near Alberton takes the cake. Whilst a number of Hollard’s billboards elsewhere are OK (meaning decidedly average), the one mentioned is just silly.
This is not to say that the advertising of insurance products is easy. It’s not. But it should not be juvenile like the company’s Alberton board..
There is enough insurance advertising out in the market for most economically-active South Africans to know what insurance is, and to understand the need to have their property and possessions insured. (Especially in a country like South Africa where crime is an everyday reality). The goal is to produce advertising in this sector that stands out and communicates the product benefit succinctly: in a manner that is understood and acted upon.
Whilst the objective of the billboard in question is clearly to communicate that Hollard’s insurance is for everyone (something I get) surely there is something in the company’s s cover that is different and able to be expanded upon?
In short, there must be some sort of value-add. Something that could make the advertising catch the attention in a positive way?
Advertising is all about promoting a USP (Unique Selling Proposition). If a product or service doesn’t have a USP, then how about a perceived USP?
This particular billboard communicates nothing in the way of a unique selling proposition. Worse, it puts Hollard’s hand up in the air and says “I don’t have anything interesting to say, and there’s nothing that makes Hollard different, but please bear us in mind for any insurance cover you might need as we are here for all South Africans, not matter how perfect or imperfect you might be”
Harsh? Maybe. But knowing how much billboards on freeways cost these days – anything from 30K to 80K per month – it’s frustrating seeing good money spent on bad advertising.
Gerard Kavonic is an experienced copywriter, conceptualiser of advertising ideas and co-ordinator of marketing of projects. Based in Johannesburg, he runs This country’s smallest ad agency, Kavonic Hone. See www.kavonichone.co.za He can be reached on 083 444 9888 or [email protected]
If Nigeria is unchartered territory and new to you, know this: it’s nothing like South Africa.
Despite being only two thirds of South Africa’s size, the country has a staggering one hundred and eighty million people – three times South Africa’s population. Besides being the continent’s most populous country – with one sixth of Africa’s total population – Nigeria is the largest economy with a national GDP of $574 billion (versus South Africa’s $350 billion) (2014 statistics at prevailing official USD exchange rate)
The GDP per capita is $6 100 versus South Africa’s $13100 although Nigeria’s middle income segment – the fastest growing on the continent – makes up for the reduced spending power through its sheer volume and growth. And it is this fact primarily that multinational and South African enterprises are targeting for growth.
But don’t drop everything and head for Oliver Tambo International airport just yet. Too many South African companies have set up shop in Nigeria thinking they’ll clean up and have left with their tail between their legs, having had their lunch eaten.
You need to do extensive homework and research before laying down a marker here and it is strongly recommended that you make contact with the South Africa Nigeria Chamber of Commerce in Johannesburg (http://www.sa-ncc.co.za) early on in the process.
The organisation will prove invaluable in providing the information and processes critical to navigating the bureaucracy and kilometers of red tape typically encountered by companies and personnel wishing to enter Nigeria for business.
Nigeria is rich in culture, art and heritage where the people are genuinely friendly and helpful and communicate in some 500 indigenous languages. And know this: Almost all company management are degreed – at local and international universities and business schools – and are without doubt, more worldly than their South African counterparts. Nigerians are ardent travelers bringing their experience gained to the local market.
The cities are massive (Lagos has an estimated population of between 17 and 21 million where other cities have populations as follows: Ibadan (3.5 million), Abuja (3 million), Kaduna (1.6 million), Ogbomoso (1.5 million), Enugu (0.7 million), Ilorin (0.8 million), Benin City (1.4 million), Zaria (1.2 million), Jos (0.9 million), Onitsha (0.5 million), Oyo (0.6 million), Kano (3.6 million) and Port Harcourt (2 million) to name a few. Vast populations and choked traffic routes create commuter pressure. Peak traffic is from 05h30 – 09h00 and 16h00 – 19h30 with the average commute to and from work being as much as 3 hours.
Development in recent years – infrastructural, commercial and retail is enabling Nigeria to ‘catch up’ and, as evidenced by its fairly recent ranking as Africa’s #1 economy, is leapfrogging traditional competitors, like South Africa and Egypt. Improved living and working conditions translate into increased job opportunities that in turn fuel growth.
So who and where to target? Unlike in South Africa, in which disposable income is to be found primarily in a few major urban concentrations (Johannesburg, Pretoria, Cape Town, Durban, Port Elizabeth and to a lesser extent, East London, Bloemfontein and Polokwane), Nigeria’s economically viable LSMs are spread across a much wider footprint. But the challenges are not limited to geographical and language considerations.
From a media and communication perspective, too, Nigeria can be perplexing. Especially when you consider that there are:
More than 20 local TV stations in Nigeria – excluding DStv, which has more subscribers than South Africa.
100 mainstream radio stations in Nigeria
Approximately 45 newspapers in Nigeria with the weekend tabloids being considered ‘magazines’. Most international magazines are readily available on the street in major CBDs.
A great many outdoor media options available.
And that:
o Nigeria’s digital landscape is vast with many opportunities to take advantage of.
o Social media is enjoying exponential growth.
o Nigeria has 70 million internet users in 2015 (growth >16% over 2014)
o Nigeria has 53 million unique mobile phone users
o 80% of online access is from smart phones
o 25% of FaceBook users in Africa are Nigerian
o The top 1 000 companies in Nigeria have websites
Obviously, once you have a Nigerian business presence and have your distribution channels set up and your products in-store, you’ll need to support them with marketing, both online and offline. Compared to South Africa, where as a marketer, you already have the creative, digital and media resources available, the Nigerian market can be quite daunting. Exciting too, though.
With the weakening rand and a sluggish South African economy showing no signs of improving in the short-term, more and more South African companies are looking to Africa, and will be looking to Africa – with Nigeria, Ghana, Liberia, Sierra Leone and other key markets in the region being given attention.
Nigeria – and for that matter, Ghana and the other aforementioned countries – remain largely untapped and present a far better prospect than looking for the more expensive ‘1st world’ market opportunities. It’s imperative however that you understand the region and market that you’re considering.
A colleague of mine, Simon Willar, who worked in South Africa in marketing and communication for many years, is now based in West Africa and has extensive contacts in Nigeria and knowledge of the region.
Besides being able to advise marketers as to how best to tackle the Nigerian and Ghanain markets, he could also assist in – for example – locating office space, legal resources, banking partners and advising on key logistical matters.
Whilst he makes trips back to Johannesburg from time to time, he can be reached at anytime on [email protected] and I’d suggest he’d be a good call.
Knowing him as I do, he’d be happy to help. Even if it’s just to point you in the right direction or answer any questions you may have.
In the meantime, here’s some Nigerian-related info you may find interesting, and handy:
Hotel room: Average, Lagos 02/2016: – $375/ZAR6000 pppn
Leased apartment: Average, Victoria Island, Lagos: +-$65,000/ZAR1,052,129 pa
Burger: Victoria Island, Lagos: N5,500/ZAR446
Transport: Uber and local taxi services
Telecomms: Landline, 4G cellular, data. Wifi available in hotels, coffee shops and mobile
My name is Gerard Kavonic of This country’s smallest ad agency, Kavonic Hone and I can be reached on [email protected] and 083 444 9888. I’m based in Johannesburg and you can see what I’m about on www.kavonichone.co.za
It was with some pride that my ad agency, positioned as This country’s smallest ad agency, was recently adjudged “Best ad agency Johannesburg” in the African Corporate Excellence Awards 2015.
To be honest, I was surprised that I was even short-listed – but many thanks to all those who nominated me. (And when I say me, I mean “me” as to all extents and purposes, I’m the only one at the coalface).
Whilst both are visual electronic advertising mediums, they don’t really compare – not in terms of reach anyway.
Whereas Television advertising is mass media, reaching millions, cinema advertising is more niched and its reach is limited.
That said, cinema advertising has a lot going for it, and as an ad agency, I’ll often look at incorporating it into a media schedule where there is a product/target audience fit. It’s clear that the advertising medium appeals to many marketers, judging from the number and types of advertisers currently flighting ads on cinema screens around the nation. Advertisers include the large national advertisers as well as small advertisers and hence, its appeal spans the divide.
In my opinion, the strengths of cinema as an advertising medium are the fact that it allows for:
Targeting
Flexibility
Intimacy
It’s also cost-effective and affordable, and comes in far cheaper than TV advertising which, is by and large, expensive.
Television advertising is a national medium, reaching millions of people whereas cinema advertising lends itself more to geographical targeting.
Irrespective of the product being advertised, TV advertising will always have “wastage” – where a percentage of people will not, and will likely never be, interested in your product or service. Whilst this is the case, though, people talk. So whilst someone will have no interest in your product, he or she may know someone who may be – and may well choose to tell that person. The importance of “Word of mouth” can never be underestimated in terms of advertising. People will always be more open to making a purchase if a friend or family member has made a recommendation.
Whilst this is true of both TV advertising and cinema advertising, cinema advertising has less wastage as advertisers can better target their advertising. In terms of targeting, an advertiser with a limited advertising budget could decide which cinemas to advertise in and which not to advertise in. So if, for example, you run a plumbing supplies business in Boksburg, you could advertise in cinemas in only the Boksburg area. Or you could choose a number of cinemas in adjoining areas so as to reach a wider audience. This is a huge advantage as it means that you won’t be advertising in places where your target market is too geographically distant to take advantage of your products or service, and you won’t be wasting money unnecessarily.
Besides deciding on cinema location, the cinema advertiser could also select particular cinema releases. This is important. As Ster-Kinekor and Nu Metro will always make a big splash about forthcoming releases they consider to be “blockbusters”, you’ll have the time to plan your campaign. By booking your ad in the cinemas of your choice, and before a movie that you know will be well attended, you’ll be in a good place.
Ster-Kinekor or Nu Metro will promote the movie with a view to getting bums on seats, and so long as you have an ad that “talks” to those there for the movie, you’ll be positioned to capitalise. You must have a decent commercial to flight though.
There are a number of really good advertising agencies in South Africa as well as a number of really good TV producers who could produce a quality cinema ad for you, and the costs do not have to exorbitant. Whilst a quality TV commercial could set you back R650 000 (and upwards), a cinema ad could be produced for a lot less – depending on the concept, storyboard, location and number of actors.
Unless you’re an established marketer with an unlimited budget for production, there are a number of ways to keep your cinema ad production costs down:
Have it produced in-house (there are a number of talented people about who could help you with this)
Call in a freelance TV producer
Get in a good freelance copywriter and art director (a Google search will likely bring up a few)
Insist on a simple storyboard (requiring no actors, or maybe one at the most)
Consider simple animation or pack shots with titles
Source library music (and avoid well-known soundtracks)
Do your homework and you could probably get a decent cinema ad shot for R150 000 to R180 000 excluding VAT.
Once you have a cinema commercial produced, you’ll need to have a media planner compile you a media schedule which will show you when, where and how many times your commercial will air or flight. If you have an ad agency, they’ll be able to put this together for you. (If you don’t, I could put you in contact with someone).
Advertising on the big screen ticks a number of boxes in my opinion – although it’s product-dependant ie a chocolate bar or new energy drink would lend itself to being advertised on cinema whereas a new brand of cement might not be.
If your target market is children, parents of children, or people aged 34 or less, advertising in cinema is worthy of consideration. Especially when you consider that you have a captive audience that will be receptive to your message – and focused on your message. (Something that can’t be guaranteed with TV advertising).
Also in cinema advertising’s favour is that, as an advertiser, you could bolster your advertising on-screen by, for example, give-aways, leaflets or other promotional items in cinema foyers. (It’s difficult to do this with TV advertising).
At the end of the day, cinema advertising and TV advertising are both excellent advertising mediums, with the former probably more suited to smaller companies with smaller advertising budgets looking for local penetration and television advertising more suited to companies with larger advertising budgets, looking for a national reach.
Whilst those within the advertising industry would know the difference between “billboard advertising” and “outdoor advertising”, some marketers may not – judging from the volume of enquiries I receive for eg billboards when what they are looking for are street pole posters, or maxi posters.
So, a quick explanation:
Billboards are generally the free-standing boards you see on the sides of freeways or on main roads in suburban areas. They come in all shapes and sizes, and in portrait or landscape-formats. Of all the outdoor media-types, these type of billboards are normally the most expensive (together with building wraps) and can range from around R20 000 per month to around R70 000 a month – depending on their geographical location, and how many people would see, or pass by, the billboard in question in any month. In addition, there would a reproduction cost for printing the artwork, which would be a once-off cost, ranging from about R15 000 and upwards.
Billboards could be in the form of static billboards and digital billboards; the difference between them being that on a static board, only one advertising message could be shown at a time, whereas on a digital billboard, a number of ads could be shown one after the other. Digital billboards are becoming more and more popular as they are generally cheaper to flight, the messages can be changed quickly and the creative can be “walked” around a pre-determined area, so as to reach more people in different locales.
Outdoor advertising is a more encompassing term than billboard advertising and includes all outdoor advertising types – ranging from billboards, maxi posters, mini posters and street pole posters to building wraps, signage at taxi ranks, dustbin advertising, trailer advertising and bus shelter advertising.
Of these, the most expensive are building wraps where a side of an entire building can be branded if need be. Not only can this be impactful, it can be incredibly costly and can generally only be afforded by large marketers with expansive ad budgets. (Typically, companies in the banking, insurance, telecommunications and liquor industries).
Maxi-posters are also popular and are to be found between the north-bound and south-bound lanes of major freeways. These are extremely effective, so long as the creative messaging is kept simple and eye-catching. The rule of thumb here is to communicate the USP (Unique Selling Proposition). There’s no point in having a poster with a long headline that a motorist travelling at speed would have no chance of absorbing.
But this is true of all outdoor. You have to keep things simple, and understandable. Eye-catching is also good.
Take street pole posters. Generally put up in series of three or four, if the message is complicated, you’ll lose most motorists and your advertising money will be money down the drain. Street pole posters are cost-effective and hence popular with advertisers with limited advertising budgets. Anyone with R15 000 to R20 000 available could probably afford a series of street pole posters (depending of course on what an ad agency or design studio might for charge for the creative concept and design) although that said, one would normally get a better result by having more than one row of street pole posters.
Then there are mini-posters. Like street pole posters, they can work well. But their success is largely dependent on the creative.
In general, outdoor advertising is incredibly popular with marketers and probably always will be.
Many marketers will look at billboards in conjunction with radio advertising and as a strategy, this makes a lot of sense in a country like South Africa.
As with all advertising, however, billboard or outdoor advertising needs to be approached strategically and professionally and the process typically commences with identifying your target markets and researching their media consumption habits. There are ad agencies and media agencies specialising in outdoor advertising who can crunch the numbers. More than this, they could give you current outdoor availability in a specific area, provide reproduction and rental costings and recommend and purchase space on your behalf. Simplifying the outdoor or billboard advertising process as a result.
Whichever the outdoor advertising type, there will always be three costs:
The cost that an advertising agency will charge you to conceptualise the advertising message and supply artwork
The cost that the media owner will charge you to print the artwork
The cost that the media owner will charge you to flight your advertising per month
If you ever need help in this area, I’d be happy to point you in the right direction.
As someone who’s been in advertising a long time, and as a copywriter who considers himself to be reasonably creative, I take an active interest in the advertising put out into the South African market. One client’s advertising has caught my attention as of late.
