Advertising agencies remain hesitant of pumping money into Video Cab’s new medium, reports Jacquie Golding-Duffy
Some in the advertising industry regard the Video Cab concept — a television monitor in minibuses — as a viable means of advertising. But they are hesitant to put their money where their mouth is.
Monitors fitted in taxis was a “superb medium”, said Doug Maritz, Business Development Africa managing director for Young and Rubicam. But it had to be approached with a “conservative optimism”, as it was a “completely new media category”.
“This concept definitely has potential, but as always happens when a new medium is launched, we tend to adopt a wait-and-see attitude,” he said.
Video Cab, the consortium responsible for the novel idea, installed the first television/video combination in minibus taxis in mid-1995. There are now a total of 1 000 taxis fitted with monitors in and around Gauteng.
The main objective of Video Cab is to create an advertising medium directed at the black market via the taxi industry and to inform, educate and entertain commuters in transit. The 90-minute entertainment video is supplied on a monthly basis to taxi-owners and features include sport clips, banking advice, simple medical knowledge and music.
Taxi-owners have to meet certain criteria. They have to be holders of legitimate driving licences, own their minibuses and have secure parking. Drivers are paid nominal fees for playing the videos in their taxis, but there is a drawback: they cannot play their own music, but are obliged to punt the supplied video.
The Pretoria-based company has, so far, secured 14 minutes of advertising on the 90- minute video tape.
There are two options for advertising on the taxi monitors. The first is the sponsorship of a promotional slot, and the second is conventional advertising, where commercials are played between entertainment clips.
Video Cab general manager Gerald Mills said the concept was “groundbreaking” since three million commuters could be reached monthly. With about 90 000 taxis on South African roads transporting about 13-million commuters daily (80% of the South African population use taxis), the potential for growth in advertising was great.
Mills said the company, when it started out, met with a lot of opposition from the advertising industry, as agencies were, to a large extent, targeting a predominantly white audience and were only now coming to grips with the emerging market of black spenders.
The cost for a one-minute advertising insert which runs for one month is R25 000, compared with a 30 second television flighting which costs R60 000. Despite this seemingly attractive offer, advertisers are still slow to take the bait offered.
Hunt Lascaris group managing director Reg Lascaris said the concept could work because it had a “captive audience”, but said it was not yet recommended to clients.
“If the clips are short and interesting, you are guaranteed that commuters will watch, but I think it would be more effective if used on long distance routes,” Lascaris said.
Jupiter Drawing Room media director Belinda Vosloo said there was no good nor bad medium. The success of the monitors used as an advertising medium depended on the strategy used by advertisers, she said.
She said she was concerned that it was “intrusive” and that advertisers would be “invading the space of commuters by forcing them to watch”.
Eurospace chairman Darryl Bernstein said he did not know what conditions prevailed within a taxi during rush hour, but in theory it sounded like a good idea.
Video Cab said all passengers could see the monitor except those seated in front with the driver. The main concentration of video cabs operated from three ranks in central Johannesburg.
Among the contracts received has been an Aid awareness programme commissioned by the Health Ministry. Supermarkets like OK Bazaars and Checkers have also used the medium.
Taxinet launched a similar concept five years ago in the form of a 90-minute cassette recording which featured advertisements between music slots. The company’s Star Taxi music was a “phenomenal success”, with a total of 22 000 cassettes circulating in the taxi industry, said sales director Brendan Taylor.
He said the problem with installing monitors was not only a huge initial capital outlay, but the logistics involved in servicing monitors were huge.
Johannesburg Media Shop managing director John Barham said he had misgivings about both concepts as one had to rely heavily on the driver to make sure the medium is switched on.
The biggest problem was the concentration level of commuters, he said, as there was continuous disruption with passengers boarding and disembarking.