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A Presentation to Parliament By THENGISA MEDIA*

A Presentation to Parliament By THENGISA MEDIA* (Sowetan, Sowetan Sunday World, Leadership Magazine) *Sales & Marketing Division of New Africa Publications. South Africa - Post 1994. Democratic dispensation Black empowerment Employment Equity Act Affirmative Action Skills Levy.

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A Presentation to Parliament By THENGISA MEDIA*

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  1. A Presentation to Parliament By THENGISA MEDIA* (Sowetan, Sowetan Sunday World, Leadership Magazine) *Sales & Marketing Division of New Africa Publications

  2. South Africa - Post 1994 • Democratic dispensation • Black empowerment • Employment Equity Act • Affirmative Action • Skills Levy These legislative framework has laid a foundation for socio- economic transformation Source: AMPS ‘94 & ’01A

  3. The current South African picture Post-Apartheid Black South Africans – Transformation Since 1994

  4. Educational Shifts Since 1994 1994 % Growth 2001 Educational Levels Matric 1 473 000 (133%) 3 432 000 Post matric 466 000 (173%) 1 274 000 Source: AMPS ’01A

  5. Economical Shifts Since 1994 S 1994 % Growth 2001 Economic Status Working 6 182 000 (20%) 7 416 000 Income (R6000+) 203 000 (510%) 1 238 000 Source: AMPS ’01A

  6. Black students make up an increasing share of university students Source: Educ. & Manpower Dev (’98).

  7. Black South Africans dominate the professions, according to CSS data Source: CSS, 1999

  8. Blacks have a growing share of income… and this is set to continue Source: CSS

  9. Collectively, the economic income of black adults is powerful and is set to grow Latest AMPS figures show: • The annual personal income of black South Africans is R301 billion • The annual personal income of white South Africans is R272 billion Source: AMPS ’01A

  10. Home ownership has increased substantially 45 % growth in 5 years Source: AMPS ‘94,’98,’99, ‘00A & ‘O1A

  11. Vehicle ownership has increased substantially among Blacks 58 % growth in 5 years Source: AMPS ‘94,’98,’99, ‘00A & ‘O1A

  12. Understanding Black South Africans – transformed since 1994 • Viable and high potential growth • market – previously neglected or • untapped • Have increasing access to opportunities and empowering institutions, services and facilities • Status and brand conscious – demand “quality” products  Increasingly “go getters” “trend setters” and role models for the next generation • Growing up in numbers and in self- confidence and represent “new” South Africa and the future for many marketers

  13. Media consumption among blacks has shown dramatic growth Media Comparisons – Black 1994 vs 2000 Source: AMPS 1994 & 2001A

  14. By contrast, media consumption among whites has shown decline/marginal growth Media Comparisons – White 1994 vs 2000 Source: AMPS 1994 & 2001A

  15. Dramatic shifts from 1994 • Shift in political and economic power to black South Africans

  16. Does South Africa reflect this transformation?  Business  Advertising

  17. Impressive legislative framework in place yet transformation lags behind Business in SA: • According to the Black Management Forum, 93% of company executive and chief executive officers are white and male. • Of the total number of companies listed on the JSE: • 4% are black-controlled or black influenced • 96% are White owned Source: Sowetan 12/10/2000 Source: JSE

  18. Whites still dominate top positions in companies: Executive Directors and senior managers and officials expenditure on Education - School, College, Technikon & University Fees... 75,3% 9,7% 6,6% 1,3% Source : National Baseline Survey 1998 (Dept. of Labour)

  19. Whites still dominate top positions in companies: Junior & middle management expenditure on Education - School, College, Technikon & University Fees... 50,4% 18,8% 11,5% 3% Source : National Baseline Survey 1998 (Dept. of Labour)

  20. The same situation prevails in national departments and provincial administrations: Management/Senior Management expenditure on Education - School, College, Technikon & University Fees... 918 627 227 131 Source : Public Service Commission, 1999

  21. AAA aims to achieve equality in the advertising industry … Advertising in SA: • According to the transformation document of the Association of Advertising Agencies (AAA), the organisation strives to :  Ensure the implementation of employment equity to redress the effects of discrimination (40% target for 2004 in respect of black employment representation)

  22. … yet the Advertising industry has not yet transformed Advertising in SA:  The latest Brewers Survey shows that racial profile of advertising agencies is as follows:  77% White  10% Black  7% Coloured • 4% Indians • The executive committees of AMASA in all provinces are made up of only whites  The executive committee of the Media Directors Circle (MDC) is comprised of 98% Whites (2 Black members)

  23. Black media is still neglected by advertisers Advertising in SA: Advertising spend in SA: miniscule investment in black media 78%of adspend is placed in white media Vs 16% in black media Source: AdIndex (Aug 00 – Jul 01)

  24. An overview: Adspend

  25. Since ’94, investment in white media has grown, while spend in black media has remained static Source: AdEx

  26. A look at some categories • cellular phones • food & groceries • educational institutions reflects the trends in other categories

  27. Cellphone usage among black consumers has shown phenomenal growth (839%) (86%) Source: AMPS ’98-01A

  28. The distribution of cellphone adspend does not reflect shifts in the market Source : AdEx

  29. Adspend among cellphone advertisers, with its focus in white newspapers, is out of sync with market realities Source: AdEx

  30. Black South Africans make up the lion’s share of actual spend in the food and grocery market Billion rands 59,7 Billion Rands 32,3 Billion Rands Source : BMR 2000

  31. The majority of bulk shoppers are black Bulk grocery shopping by race (-2%) (3%) (3%) (19%) Source: AMPS ’98, ‘99, 01A

  32. In spite of these market realities, food and grocery advertisers, continue to invest heavily in white media Three Year Adspend Trend - Adspend by Food Stores Source : AdEx

  33. Black newspapers are getting a tiny share of the food & grocery adspend Source : AdEx

  34. Expenditure on education by black South Africans exceeds that of white South Africans expenditure on Education - School, College, Technikon & University Fees... 5 Billion Rands 4,5 Billion Rands Source : BMR 2000

  35. Black media is under- utilised in this arena in spite of the considerable investment of blacks in education University/technikon spend Source : AdEx

  36. Black newspapers continue to attract a miniscule share of university/tecknikon spend Source : AdEx

  37. And, now a focus on government spend (excluding recruitment advertising which is not measured by AdIndex)

  38. By far, the concentration of government advertising is with white media. Source : AdEx (Excludes recruitment advertising – not measured by ADEX)

  39. White newspapers rather than black newspapers appears to be the governments’ choice medium (Excludes recruitment advertising – not measured by ADEX) Source : AdEx

  40. Government Departments: Aug 00 – Jul 01 adspend Source : AdEx (Excludes recruitment advertising – not measured by ADEX)

  41. Comment: business sense dictates a greater investment in black media Across the board investment in black media is low and has failed to keep pace with a society in transition There is a need to invest far more heavily in black media (driven by business imperatives as well as the need to transform) unequivocally, the market of the now and of the future is the black market

  42. So how do we solve these problems? It is clear that the country has not met the transformation agenda of government. All levels of society have a long way to go in respect of this transformation agenda, particularly the advertising and marketing industry. We recommend the following:  Ownership within agencies has to be urgently addressed  Employment practices within this industry needs to be structured in a way that is conducive to attract and retain black talent  In respect of the advertising spend of government and the parastatals, either legislation or a mechanism or a policy needs to be introduced in order for black media to receive their fair share of this revenue

  43. WE THANK YOU Presented by: Marlon Hitzeroth GM: Thengisa Media 082 777 0447, 011-471 4000

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