Media Planning What is it all about and is it racist? Prepared by the Media Directors’ Circle

1. Nov 2001 Media PlanningWhat is it all aboutand is it racist?Prepared by the Media Directors’ Circle

2. What is the MDC? • The Media Directors Circle. • A voluntary organisation of individual of media directors that has been in existence since the mid 80’s. • Its objectives are to uphold and improve the quality of the media planning and buying industry and the necessary research required.

3. Introduction • We would like to start by acknowledging there is need for skilled black media planners and buyers in our industry, and that more must be done to address this need. This submission is not aimed at defending the current situation but is a genuine attempt to participate in changing the face of the media industry.

4. Introduction • Media planners have recently been challenged by the following allegation: • Certain Black media owners are complaining that they are not getting a fair share of the advertising pie. • The explanation put forward: • The same Black media believe that their share is compromised because the media planning industry comprises of predominantly white females living in Sandton who are not exposed to their particular media. • The solution put forward: • Bring in more Black media planners who will no doubt support black media more. • Possibly legislate until then.

5. Is this thinking sound? • Will Black planners only recommend advertising in media they personally consume? • Are all planners limited by their own culture and experiences? • Does the decision making power truly rest in the hands of a few “lily white Sandton females”. Media planning is merely at the end of a complex line of decision making involving company chiefs, marketing directors, brand managers, researchers, agency heads etc. • Who determines what is a fair share of the advertising pie and is race the only dimension that spend should be measured against?

6. Outline of this presentation • The following presentation will give a view on the “racism in media” debate from the perspective of the media planning industry. • We will attempt to:- • outline the media planning process • put forward our perspective on racism in our industry • outline the action steps that the industry is already actively undertaking to correct some of the imbalances of the past.

7. Definition of Media Planning “Reaching the right people, in the right place, at the right time in a cost efficient way.

8. Understanding the Communication process • At each stage of the communication process there is a 3 way team involvement:- Client Creative Agency Media planning

9. The target market Influence Scale • Influences: • Brand positioning in the market place (top end/bottom end) • Pricing • Distribution channels • Appeal • Brand objectives (new users vs existing) Client Creative/ Media

10. Inter-media decisions Influence Scale • Influences: • The role of advertising • The media environment • The physical characteristics of a medium • What the competitors are doing • The effectiveness of the medium Creative Media Client

11. Intra-media decisions Influence Scale • Influences: • Coverage • Focus versus wastage • Comparative cost efficiency • Environment • Execution of concept/advertising within each media vehicle Media Creative Client

12. Some background to the media market

13. Reach potential of media types % reach Source: AMPS 2001a

14. SA ADSPEND TRENDS 1990-2000 R Billions +11.6% +10.4% R8.936 +17.8% R8.002 +18.9% R7.247 +12.5% R6.148 +15.2% R5.170 R4.559 +20% +13% +26% +25% +25% +18% Source:Adex

15. Growth in Adspend vs Media inflation Indexed against 1994 The Advertising pie is not getting any bigger – we operate in a stagnant market Source: Adex & MIW

16. Fragmentation of SA Media 1991 to 2001 Number of vehicles available The market is becoming more and morecompetitive

17. The accusations that have been levied against the industry include: • White planners support white media. • Because we are white we cannot plan on black media. • We lack knowledge and possibly interest in the power of black consumers and the black media to reach them. • We remain “lily white” with no concerted effort to attract black planners.

18. White planners support white media • How is white and black media defined by ownership or audience profile? • It can only be based on audience profile. • If it were based on ownership then there is clearly no need for these hearings as the SABC is the largest media owner in the country.

19. In our multi-cultural society few “exclusive” black and white media remain in existence. • For most media vehicles there is huge cross-over of audiences. • The profile of media vehicles is a democratic process as it reflects the wishes of the people. • This suites most marketers as brands are targeted at people with the propensity to buy products who are of the same mindset.

20. Spend profiles of Top 10 media vehicles Newspapers Source: Adex Jan-Aug 2001 measured adspend at rate card costs & AMPS

21. Spend profiles of Top 10 media vehicles Radio Source: Adex Jan-Aug 2001 measured adspend at rate card costs

22. Spend profiles of Top 10 media vehicles Television Source: Adex Jan-Aug 2001 measured adspend at rate card costs

23. Spend profiles of Top 10 media vehicles Magazines Source: Adex Jan-Aug 2001 measured adspend at rate card costs

24. White planners support white media • The evidence presented suggests not.

25. 2)Because we are white we cannot plan on black media • Does the same hold true for women not being able to plan against male targets, English speaking people not able to target Afrikaans? To date the entire team for SA Breweries has been female. • With the right effort from both the planner and the media owner , planners worldwide can transcend their own immediate culture and media consumption patterns and reach those of other cultural groups. • SA has exported many communication specialists to new markets of diverse culture. Because of our understanding of multi-cultural communities SA planners are highly sought after and have been incredibly successful in managing communication companies in countries as “alien” as China and UAE.

26. 3) We lack knowledge and possibly interest in the power of black consumers and the black media to reach them • Research in this area could improve – we as the MDC are pushing for more empirical research to trend and capitalise on the growth of new markets. • Are media owners doing the same thing? What research initiatives have black media owners embarked on to “sell” their own medium. • The communication strategy “flows out of” the target market definition – it is our responsibility to optimise our efforts against a specifically defined group.

27. 3) We lack knowledge and possibly interest in the power of black consumers and the black media to reach them • If our clients perceive us as not having skills and understanding of black consumers and media – they have a choice to move the business. In our highly competitive market – not one agency has made its name as the agency for the black market. Its considered “entry level” skills to compete in our business. • Furthermore a medium (like any other offering) must be sold before it is bought. The selling and marketing of media opportunities by media owners has often been lacking. The media owner must take responsibility for informing planners of there unique offerings and to justifying their pricing strategies.

28. 4) We remain “lily white” with no concerted effort to attract black planners. • Simply put, the transformation process has been difficult amongst media personnel. There are a number of reasons which include: • A stagnant advertising spending market • Mergers and realignments that have compounded a slowdown in the market • Competitive environment which has put strain on training budgets • A competitive environment that places the emphasis on trained staff rather than untrained • The planning industry has been unable to retain black staff – media owners themselves have been active predators.

29. What’s been done about it? • Most media companies directly or indirectly subscribe to the AAA Charter. • We’ve got to start bringing in black talent from a junior level – senior personnel cannot be recruited from beyond the industry as much of the media planning experience is achieved with years of “hands-on” training. On-the-job training is essential. To this end the MDC is currently investigating a learnership programme in conjunction with the AAA and MAPPP. • Most agencies have run training programmes almost exclusively for black personnel for the past 4 years. Due to escalating salaries, competitive job offers, economic pressures and the intensity and pressure of our industry we have kept a small number of personnel within the industry for longer than 3 years.

30. Much investment in training has already happened • AMASA ( Advertising Media Association of SA) was formed over 10 years ago as training body. It therefore runs numerous training initiatives including: • One year diploma (part-time and full-time) • Intensive 4 day media workshops • Lecturers are sourced from the MDC and have given their time freely to educate students. • Over 30 media professionals give freely over 1000 hours per annum to lecture. • AMASA has written, compiled and printed the only media planning text book for the SA market.

31. Black component of formal training initiatives % Black profile Source: AMASA

32. What’s been done about it (contd) • The MDC will be re-constituted to become the Media Purchasers Council so as to become more representative and allow black media people to participate in this important industry forum without necessarily having the years of experience required to be a media director. This will come into effect February 2002. • The MDC has commissioned an audit to assess the current status of black representation within our industry – results are expected by end Nov. As part of the re-constituted MDC we will look at setting targets for our industry and monitoring the progress over time.

33. Additional initiatives • As part of the newly constituted MDC we are considering recommending to all our members that an agreed percentage of all media budgets be allocated to support developmental media. It will then be up to the marketers to agree to these recommendations or not. • We would like to discuss the concept of an ombudsman (or a self-regulatory body) to investigate and mediate between players when accusations of racism are made. • We are open to suggestions – our approach is transparent and participative.

34. In summary • Media Planning is profession, with SAQUA approved qualification. • The process of choosing a medium and individual media vehicles is a collaborative one that “flows” out of the target market definition and task at hand. Media planners cannot entirely take the rap for all media spending patterns. • In terms of the way the industry is currently spending probably only 30-40% of spend goes against white consumers. • Employment equity in the media industry has been problematic, not through lack of trying. We would like to see support and commitment from marketers, media owners and government to improve the black representation particularly at a senior level.