Clients worry a lot about “new” media. And often I have this uncomfortable feeling myself. The feeling that the world is turning a little faster than you are, and that you’re about to get left behind in the Dark Ages of— Mass Media!
But I find there are certainly only two areas that are mildly interesting to said clients. Their definition revolves strictly around cellular – SMS and MMS – on the one hand, and internet and online advertising on the other. Developments in outdoor, cinemas, TV or print are interesting enough, but don’t constitute “New” Media.
And to be fair whilst cellular telephone has exploded, and only God knows what the cellular giants will morph into as they become the gateway to unimaginable amounts of content, this development, whilst frantic and overwhelming, is still embryonic.
Furthermore, we know for sure there will be plenty of commercial opportunities and exploitation, but I doubt it will remain in the form of traditional advertising as we know it. And certainly it will spearhead, hasten and define convergence in the technology field.
And the internet? Well, compared to cellular developments the internet is old, tried and trusted. And without doubt will be swallowed up as a mere channel in the cellular bouquet and its offering.
But at this stage marketers still need it in its own space. Indeed, they often wonder and ask “How the internet is doing?” And as always, one has to discern between South Africa and first world economies when one answers such a question.
In countries where bandwidth is no problem, and the cost of connection (in whatever form) is reasonable, the internet is doing fine, thank you very much. In South Africa however, where bandwidths are a problem, and cost of connection not that cheap, it is a different story.
It goes back to the chicken and egg to put it simply. You have to be able to deliver audience through a medium to attract advertisers. Attract a little audience, means getting only a little ad revenue. Massive audience equates to massive revenue. We are the former, the USA and Europe are the latter! And the only way the internet will become a real commercial alternative in ad terms is to broaden its base of access. Simple isn’t it? Until this happens, despite all attempts to talk it up, it will remain very much on the fringes of advertising alternatives in South Africa.
And just how on the fringes? Well if we look at AdIndex for the past 12 months ending August 2006, we find that overall, the internet still has to crack one percent of all ad spend. It currently is being measured by AdEx at R151.8-million, but we all know that this is one medium where the measured spend bears no resemblance to reality.
This having been said, even if the spend figures were gospel, there are only 18 advertisers out there who spent over R1-million, and eight who spent over R3-million. And more worrying is the narrowcast spread of business – online casinos and lotteries, plus banks, insurance and a little motoring.
Funnily enough, I think it’s feasible to run a very successful internet based company, sans bricks and mortar, in this country. I think it’s the total future to a lot of tedious transactions. But in South Africa, it’s not going to be an advertising medium of consequence for a while yet. So clients can stop worrying…
Harry Herber is group managing director at The MediaShop Group.