The coming of The Media three years ago heralded what can only be described as an unprecedented growth phase for the communications industry (not that I’m for one minute suggesting that the magazine can take credit for this occurrence!) For 20 years we saw the ad industry’s measured growth always outstripping CPI, and historically clients were grudgingly spending more to (hopefully) maintain ad volumes in the face of crippling rate increases. Actual true volume growth was usually limited at best.
The past three years have been different. Clients are bullish, there is an attitude of investment, and importantly there is most definitely an expectation of return. Advertising has certainly developed a hard-nosed “put an offer on the table” attitude, yet I feel this is coupled with an increase in the big brand and positioning ads that characterised the early 1980s. So return on investment – yes; but brand building and positioning too.
Not surprisingly, this has gone hand-in-hand with an ever-increasing desire for media innovation. While there have been some exceptional examples, one is more and more conscious of what I think of as “tricks” – usually based on the fact that spaces exist that traditionally (and often for good reason) haven’t carried ads before. Somehow, exploiting these spaces is determined as innovation. As I say, it only works sometimes.
The second area where I see tremendous shifts is new media. Generally one can link this back to technological advancements, and the enabling of one-to-one communication at speeds previously unheard of. Technology solutions, all developed around the web and cell phones, are swamping clients with communication options. While at this stage the communication is fairly limited – text-based only – the medium is in its infancy. Budget investment may still be small as clients and agencies grapple with the role these media should play, but they will pervade all communication methods and media going forward.
So technology-based communication is demanding a major shift in headspace. Creatively it poses new opportunities, media-wise too. Its role in the media and marketing mix is difficult to define due to its very strength; that is, its rapid evolution makes it tough to pin down in terms of how, when and what its usage should be. No sooner do you think you have a handle on it, and voila, G2 becomes G3 and Blackberry comes with Blueberry.
The final area where I’ve seen a definite change in the last three years is in how clients are using their media agencies. Very clearly, two types of marketers are now emerging on the South African scene.
Firstly, there are those marketers that treat media as a commodity and base any media decision solely on cost. What do the media and creative agencies charge, and how big is the discount that can be negotiated? One functions as a supplier, and your performance criteria, although basic, are clear.
The growing trend, however, is with the second group of marketers – those who recognise that the communication landscape is changing. That we’re seeing continued changes to the socio-economic make-up of our society. That not only are there exciting new audiences and consumer markets opening up to products, but that there are new communication channels. And with the new channels a plethora of innovative and different communication mechanisms exist which, when exploited, can seriously lead to new ways of saying old things.
So the communication world is spinning faster now than it was three years ago. Our economy is cooking, and one hardly sees time for a slowdown between now and the expected magic of 2010. And with the heat, one can expect that change will happen at an ever-increasing pace – hold onto your hats, ‘cos it’s coming!
Harry Herber is group managing director of the MediaShop.