Terry Murphy Low
-- --
Facebook
Twitter
Google
Pinterest
Brand spend on advertising and sponsorships last year totalled to a hefty R45-billion investment into the South African market, signalling it as the biggest marketing investment for most brands. However, while spend figures are up from 2016, growth is still muted (below inflation) with brand investment often one of the first costs to be cut when budgets are constrained.
This was the view of Nielsen South Africa Watch (Media) managing director, Terry Murphy speaking at a recent Nielsen Consumer360 event. The focus on marketing optimisation is not new but each year we have to get a bit smarter in how we deal with the increasing complexity and challenges arising from ongoing media fragmentation and changes in consumer behaviour, to make every interaction and rand spent count sheer value does not automatically equate to quality or efficiency.
-- --
In fact, when we look at the Top 10 advertisers (FMCG, Retail, Financial Services and Mobile) in South Africa, we see that four of the players in that group have reduced their advertising investment but ultimately, it's not about whether budgets are growing or declining but rather that the budget that is available is being used to generate maximum returns. This is due to the fact that the same budget, if deployed smartly, can yield returns multiple times that of an average media execution.
Rising competition for consumer attention
At a global level, consumer behaviour continues to evolve with a rise in demand for convenience, evidenced by an increase in on-the-go (mobile) and time shifted viewing. However, even as consumers become more immersed in seeking information their attention spans are declining resulting in 63 per cent switching channels when an advert comes on. Multi-tasking while viewing is also on the rise, be it time spent on social media or browsing the web. These factors all highlight the need for brands to vary their media tactics to optimise their advertising investment and effectiveness across multiple platforms.
Murphy elaborated that consumers in South Africa are particularly enthusiastic, early adopters of technology, with many consumers accessing the internet without a personal computer and 55 per cent of South Africans accessing the internet from home via mobile (3G etc) compared to only 3 per cent via broadband (Source: Establishment Survey Jun-Dec 2017). We have skipped the second screen and moved straight to mobile devices, so you need to reach and interact with your consumers where they are, revealed Murphy.
Make every Rand count!
Murphy said that return is higher on digital but digital execution is difficult. With conventional media, you are dealing with a finite set of options whereas in digital you have thousands of sites and platforms vying for your ad dollar'. One needs to understand how different brand campaigns for different platforms perform, using comparable measurement data. More importantly, one needs to understand which factors influence the ROI that will help stretch your media budget.
According to a Nielsen analysis which tracked the campaigns of 17 top brands over three years in South Africa, it was found that digital advertising return on investment leads the way at R2.30 per rand spent when compared to Television at R1.30 and three times that of radio.
However, Murphy said that despite the evolving media landscape, the reality remains that television is dominant in South Africa commanding close to 57 per cent share of spend. Digital is however becoming more influential as more brands incorporate metrics to master their execution and sometimes commit one third if not more of their media budget online.
Sponsorships evolve
Along with advertising investment, a sizeable part of marketing investment is in brand sponsorships. Previously, when it came to sports sponsorship, brands would buy visibility with relatively small or quantifiable expected returns. Now, brands are expecting to be partners and require integration across multiple touchpoints. As a result, sponsors and rights holders can expect to work towards shared objectives and mutual benefits, getting more visibility with event activations, influencer promotions, social integration and increased interaction, all measured in sales outcomes, publicity and engagement, explained Murphy.
Sponsorship activation is also extending beyond the property or event itself. Brands which explore fans' lifestyles are discovering a range of occasions for broader activation.
Murphy points out; Brands need to maximise their reach and impact, converting fans to consumers at every opportunity within their broader lifestyle.
As brand involvement in sponsorship advances there will also be new opportunities for brands and properties. Smaller brands and non-sports related brands will find that sponsorships can work well for them. Not only the big brands with big budgets can benefit as smaller, niche sports teams or events will provide focused and effective opportunities to reach a brand's super consumers.
With new avenues for marketers in advertising and sponsorship, brands can achieve more with less, while utilising conventional media as their base and strategising for a more focused digital reach, concluded Murphy.
Facebook
Twitter
Google
Pinterest
-- --
Most recent headlines
04/08/2024
Dalet, a leading technology and service provider for media-rich organizations, is excited to announce Santiago Solanas as its new Chief Executive Officer (CEO)....
03/06/2024
Dalet, a leading technology and service provider for media-rich organizations, a...
29/04/2024
Even though we've been doing this for over 40 years, a spark of excitement r...
29/04/2024
L3Harris is delivering manpack radios to U.S. Army CH-47 Chinooks as part of the Air-to-Ground Networking Radio program, providing seamless, resilient communica...
29/04/2024
He writes in Defense One: Despite the near-universal acknowledgement throughout the U.S. government and defense industrial base of the criticality of resilient ...
29/04/2024
eds3_5_jq(document).ready(function($) { $(#eds_sliderM519).chameleonSlider_2_1({ content_source:......
29/04/2024
Codemill aims to revolutionize media workflow efficiency at this years NAB Show by introducing Just-In-Time (JIT) playback technology in Accurate.Video Validate...
29/04/2024
April 29, 2024
-- TF1 Chooses Broadpeak to Power Targeted Advertising for New...
29/04/2024
LOS ANGELES Allen Media Group (AMG) has partnered with LG Electronics to bring 223 Local Now FAST channels to LG's free streaming service, LG Channels, avai...
29/04/2024
OTTAWA Ross Video has announced the introduction of Raiden, a data-driven weather graphics software that combines data gathering, processing, and visualization ...
29/04/2024
Panalux, a leading rental provider of lighting and power solutions for the motion-picture industry and part of Panavision's end-to-end service offerings for...
29/04/2024
Cobalt Iron Inc., a leading provider of SaaS-based enterprise data protection, today announced that it has received a patent on its technology for dynamic autho...
29/04/2024
SDVI, the leading platform provider for cloud-native media supply chains, today announced that Rally Access Workstation, a fully managed solution for editing in...
29/04/2024
Premier Sports, a premium sports broadcaster, has selected QuickLink's Remote Commentary solution for introducing professional, high-quality remote commenta...
29/04/2024
Glookast has chosen Jigsaw24 Media as the only UK channel partner to represent their portfolio of ingest and workflow optimisation products. The agreement, sign...
29/04/2024
Clear-Com played a pivotal role in the seamless coverage of the recent solar eclipse on April 8, 2024. Leveraging its cutting-edge Eclipse HX Digital Matrix i...
29/04/2024
PlayBox Neo will promote its complete range of television channel management, graphic branding and playout solutions to EMEA region media content owners and bro...
29/04/2024
Lingo, RuPaul's word-twisting game show, returns for season two on CBS Friday, May 24. Two episodes air that night, and stream on Paramount Plus, too....
29/04/2024
ESPN and Amazon Prime Video are reportedly close to scoring television rights to the National Basketball Association, according to published reports....
29/04/2024
Judge Judy and Hot Bench, CBS Media Ventures' genre-leading court shows, have been renewed through the 2025-26 TV season in more than 95% of the country, Gr...
29/04/2024
Premier Sports, an Irish-based premium sports broadcaster, has selected QuickLink's Remote Commentary solution for introducing professional, high-quality re...
29/04/2024
The awards celebrate the craft of behind-the-scenes TV talent and the best programmes of 2023
By Matthew Corrigan
Published: April 29, 2024
The awards cel...
29/04/2024
The team at Milk had to create and deliver the VFX and environment work for the royal residences featured in the drama from scratch
By Jenny Priestley
Publis...
29/04/2024
CEO Bob Bakish is expected to leave the company as early as today, with a new leadership committee likely to run the company on an interim basis
By Jenny Pries...
29/04/2024
Albena Ivanova, director, media and entertainment and strategic products at CHAOS talks to TVBEurope about her route into the industry
By TVBEurope Staff
Pub...
29/04/2024
The acquisition gives Grand Technix the opportunity to expand its footprint in the audio visual and broadcast technology sectors
By Jenny Priestley
Published...
29/04/2024
29 04 2024 - Media release Screen Australia announces James J. Robinson's debut feature First Light
First Light
Principal Photography is underway on Firs...
29/04/2024
Capitol Broadcasting recently became the inaugural company honored with inductio...
29/04/2024
Rebrand and refresh: SailGP talks bringing its graphics operations inhouse for a...
29/04/2024
Reflecting on a Storied Career: Sean McManus Looks Back While Keeping an Eye on ...
29/04/2024
Drones Take Flight Inside MSG: How Sky Candy Studios is Upping the Excitement fo...
29/04/2024
Back to All News
Netflix Announces a Diverse Lineup of Polish Titles to Debut i...
29/04/2024
Tonight on Smoke and Mirrors: Fanyana feels embarrassed about his sexual mishapDon't miss Monday, 29 April's riveting episode of South African soapie Sm...
29/04/2024
Talk about commitment. When startup SEA.AI, an NVIDIA Metropolis partner, set out to create a system that would use AI to scan the seas to enhance maritime safe...
28/04/2024
Mediahaus delivers the first SRT live-streaming sports production over 5G with U...
27/04/2024
On April 26, L3Harris Chair and CEO Christopher E. Kubasik joined CNBC's Mor...
27/04/2024
PORTLAND, Oregon Audinate Group Limited, the developer of the Dante AV-over-IP solution, announced significant new additions to Dante Connect, its cloud-based D...
27/04/2024
TORONTO Bell Media has launched 10 English and French-language FAST channels featuring entertainment, factual, news, and sports programming. The new free stream...
27/04/2024
An extensive new analysis of the news segments in the broadcast evening news programs of ABC, CBS, NBC and PBS has found that broadcasters devoted most of their...
27/04/2024
GERMANTOWN, Md. EchoStar's Hughes Network Systems has opened a new manufacturing facility and private 5G incubation center in Germantown, Maryland....
27/04/2024
Harry Pappas, one of three brothers who founded Pappas Telecasting Companies in 1971, died April 24. He was 78 years old....
27/04/2024
ATLANTA and LONDON Mexican telecommunications and broadcast company Televisa has selected Synamedia for an overhaul of its broadcast distribution....
27/04/2024
Participate in the Survey - The Impact of AI on Media and the Creative Industry
Pascal Wagner April 26, 2024
0 Comments
By participating in this surve...
27/04/2024
SDVI Rally Access Workstation Earns Two Top Awards at 2024 NAB Show
Brie Clayton April 26, 2024
0 Comments
SDVI, the leading platform provider for clo...
27/04/2024
Berklee's Music and Health Institute Launches Community Health Musician Cert...
27/04/2024
Charter Communications reported higher first-quarter profits despite continued cord-cutting and competition for broadband customers....
27/04/2024
Two environmentally-focused groups are partnering to engage the unscripted TV world in finding better ways to address climate change. Reality of Change is an ec...
27/04/2024
Sarah Garcia has been promoted to weekend anchor at KTLM McAllen, Texas, known as Telemundo 40. Starting April 27, she will anchor Noticias Telemundo 40 weekend...
27/04/2024
CBS Sports said it launched a new 24-hour free, ad supported streaming television (FAST) channel devoted to the UEFA Champions League....
Terry Murphy Low
