/ 6 March 1998

Little black power in adland

A bright new agency says the advertising industry is still on the old path, writes Ferial Haffajee

‘Hi, I’m calling from MDS.DD&M.” Say what? In an industry where acronyms abound, this one can get you more tongue-tied than most.

The somewhat unwieldy name masks a new advertising agency with a very clear agenda. It wants billings of R15-million this year and R25-million next year. “We are not looking for a lot of work; just for effective and steady growth,” says managing director Liz Sangion.

Started four months ago, this new black- owned agency brings together a basket of marketing, strategic-planning and creative talent. And in case you were wondering, the acronym comprises the first letter in the surname of each of the six partners.

Housed in modest offices in the Johannesburg suburb of Rivonia – fast becoming ad land – the agency was born of frustration. “We saw the gap in the market. Black people are not getting a fair deal in the industry. It is closed to black input,” says Sangion. But that gap still needs to be prized apart, as she and her five partners have discovered.

The agency’s biggest account thus far has come from Engen and The Sowetan newspaper to promote SABC2’s programme, Kelebone. Now Kelebone’s audience ratings figures are climbing and the agency is also pitching for the multi-million-rand Independent Electoral Commission account together with another agency.

“We do not want to get work because we’re black,” stresses creative director Madoda Dhlamini who has worked on campaigns for Nandos, Radio Metro, South African Airways and Coca-Cola during time served at Young&Rubicam and Hunt Lascaris. But the new agency has found the going quite tough.

There’s little work coming in from black business where often only ownership and not management has changed hands.

Its biggest beef right now is that government is awarding advertising contracts to established agencies, many of whom have diversified and sold off equity to black partners. “They’re using black people for political leverage,” charges another creative director Tshenolo Motlhala. He seethes quietly. “How are we going to get the business when government doesn’t seem to realise this?”

Sangion is planning to blitz government departments that have been awarding tenders only to the big agencies, with little attention to the government’s stated support for affirmative action.

First within her sights is Transport Minister Mac Maharaj, whom she alleges has awarded three significant tenders to the same agency. The government’s advertising budget is among the largest in the country.

MDS.DD&M is the country’s second black-owned agency; the oldest and best known is Herdbuoys, while another agency – Azzaguys – is black-led but owned largely by Meintjies- Parker.

Sangion says “We can take the easy way out. We could merge but we don’t want to do that.”

In a world of opinionated and confident people, the debate about transformation in advertising has raged for many years. The new company feels much must still be done and they use figures to back up that view.

“In an industry worth R10-billion, less than 1% goes to black agencies,” says Sangion, who adds that only 6% of above the line campaigns goes to black agencies. Mothlala feels tokenism in the advertising industry is still rife and says he left because “I was tired of being a pot-plant.”

Instead, what they would like is greater appreciation of who they are and what they can do. “We have a track record,” says Dhlamini.

Sangion’s background is public relations. She cut her teeth at Liberty Life and Old Mutual before leaving to start her own company where her client list included Eskom, Coca-Cola, Dulux and a range of banks.

The agency’s strategic planner is Stanley Mphahlele who worked at Nestl and Eskom. Both its creative directors have worked for the country’s leading agencies on good accounts.

They want the ad industry to watch them for work that is more in touch with South Africa’s new markets. “White folk just don’t get it; we’ve had it with the Ndebele triangles and wire stuff,” says Dhlamini.