A%20Presentation%20to%20Parliament

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A Presentation to Parliament By THENGISA
MEDIA (Sowetan, Sowetan Sunday World, Leadership
Magazine) Sales Marketing Division of New
Africa Publications
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South Africa - Post 1994

• Democratic dispensation
• Black empowerment
• Employment Equity Act
• Affirmative Action
• Skills Levy

These legislative framework has laid a foundation
for socio- economic transformation
Source AMPS 94 01A
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The current South African picture
Post-Apartheid
Black South Africans Transformation Since 1994
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Educational Shifts Since 1994
1994 Growth
2001 Educational Levels Matric 1 473
000 (133) 3 432 000 Post matric
466 000 (173) 1 274 000
Source AMPS 01A
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Economical Shifts Since 1994
S
1994 Growth
2001 Economic Status Working 6 182 000
(20) 7 416 000 Income (R6000)
203 000 (510) 1 238 000
Source AMPS 01A
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Black students make up an increasing share of
university students
Source Educ. Manpower Dev (98).
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Black South Africans dominate the professions,
according to CSS data
Source CSS, 1999
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Blacks have a growing share of income and this
is set to continue
Source CSS
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Collectively, the economic income of black adults
is powerful and is set to grow

• Latest AMPS figures show
• The annual personal income of black South
  Africans is R301 billion
• The annual personal income of white South
  Africans is R272 billion

Source AMPS 01A
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Home ownership has increased substantially
45 growth in 5 years
Source AMPS 94,98,99, 00A O1A
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Vehicle ownership has increased substantially
among Blacks
58 growth in 5 years
Source AMPS 94,98,99, 00A O1A
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Understanding Black South Africans transformed
since 1994

• ?Viable and high potential growth
• market previously neglected or
• untapped
• Have increasing access to opportunities
• and empowering institutions, services
• and facilities
• Status and brand conscious demand
• quality products
• ? Increasingly go getters trend setters
• and role models for the next generation
• Growing up in numbers and in self-
• confidence and represent new South
• Africa and the future for many marketers

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Media Comparisons Black 1994 vs 2000
Media consumption among blacks has shown dramatic
growth
Source AMPS 1994 2001A
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Media Comparisons White 1994 vs 2000
By contrast, media consumption among whites has
shown decline/marginal growth
Source AMPS 1994 2001A
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• Dramatic shifts from 1994
• Shift in political and
• economic power to
• black South Africans

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• Does South Africa reflect this transformation?
• ? Business
• ? Advertising

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Impressive legislative framework in place yet
transformation lags behind

• Business in SA
• According to the Black Management Forum, 93 of
  company executive and chief executive officers
  are white and male.
• Of the total number of companies listed on the
  JSE
• 4 are black-controlled or black influenced
• 96 are White owned

Source Sowetan 12/10/2000
Source JSE
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expenditure on Education - School, College,
Technikon University Fees...
Whites still dominate top positions in companies
Executive Directors and senior managers and
officials
75,3
9,7
6,6
1,3
Source National Baseline Survey 1998 (Dept. of
Labour)
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expenditure on Education - School, College,
Technikon University Fees...
Whites still dominate top positions in companies
Junior middle management
50,4
18,8
11,5
3
Source National Baseline Survey 1998 (Dept. of
Labour)
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expenditure on Education - School, College,
Technikon University Fees...
The same situation prevails in national
departments and provincial administrations
Management/Senior Management
918
627
227
131
Source Public Service Commission, 1999
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AAA aims to achieve equality in the advertising
industry

• Advertising in SA
• According to the transformation document of the
  Association of Advertising Agencies (AAA), the
  organisation strives to
• ? Ensure the implementation of employment equity
  to redress the effects of discrimination (40
  target for 2004 in respect of black employment
  representation)

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yet the Advertising industry has not yet
transformed

• Advertising in SA
• ? The latest Brewers Survey shows that racial
  profile of advertising agencies is as follows
• ? 77 White
• ? 10 Black
• ? 7 Coloured
• 4 Indians
• The executive committees of AMASA in all
  provinces are made up of only whites
• ? The executive committee of the Media Directors
  Circle (MDC) is comprised of 98 Whites (2 Black
  members)

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Black media is still neglected by advertisers
Advertising in SA

• Advertising spend in SA miniscule investment in
  black media
• 78 of adspend is placed
• in white media
• Vs
• 16 in black media

Source AdIndex (Aug 00 Jul 01)
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An overview Adspend
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Since 94, investment in white media has grown,
while spend in black media has remained static
Source AdEx
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• A look at some categories
• cellular phones
• food groceries
• educational institutions

reflects the trends in other categories
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Cellphone usage among black consumers has shown
phenomenal growth
(839)
(86)
Source AMPS 98-01A
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The distribution of cellphone adspend does not
reflect shifts in the market
Source AdEx
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Adspend among cellphone advertisers, with its
focus in white newspapers, is out of sync with
market realities
Source AdEx
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Black South Africans make up the lions share of
actual spend in the food and grocery market
Billion rands
59,7 Billion Rands
32,3 Billion Rands
Source BMR 2000
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Bulk grocery shopping by race
The majority of bulk shoppers are black
(-2)
(3)
(3)
(19)
Source AMPS 98, 99, 01A
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Three Year Adspend Trend - Adspend by Food
Stores
In spite of these market realities, food and
grocery advertisers, continue to invest heavily
in white media
Source AdEx
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Black newspapers are getting a tiny share of the
food grocery adspend
Source AdEx
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expenditure on Education - School, College,
Technikon University Fees...
Expenditure on education by black South Africans
exceeds that of white South Africans
5 Billion Rands
4,5 Billion Rands
Source BMR 2000
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Black media is under- utilised in this arena in
spite of the considerable investment of blacks in
education
University/technikon spend
Source AdEx
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Black newspapers continue to attract a miniscule
share of university/tecknikon spend
Source AdEx
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And, now a focus on government spend (excluding
recruitment advertising which is not measured by
AdIndex)
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By far, the concentration of government
advertising is with white media.
Source AdEx
(Excludes recruitment advertising not measured
by ADEX)
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White newspapers rather than black newspapers
appears to be the governments choice medium
(Excludes recruitment advertising not measured
by ADEX)
Source AdEx
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Government Departments Aug 00 Jul 01 adspend
Department White Media Black Media
Dept. of Education Training R837,358 R203,308
Dept. of Environment R291,334 R264,603
Dept. of Agriculture R152,609 R285,623
Dept. of Justice R270,645 R44,253
Dept. of Labour R2,700,637 R443,557
Dept. of Local Govt. R667,511 R659,596
Dept. of Water Affairs R1,909,116 R673,723
Dept. of Arts Culture R785,314 R187,644
Dept. of Communications R376,065 R198,526
Source AdEx
(Excludes recruitment advertising not measured
by ADEX)
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Comment business sense dictates a greater
investment in black media
Across the board investment in black media is low
and has failed to keep pace with a society in
transition There is a need to invest far more
heavily in black media (driven by business
imperatives as well as the need to transform)
unequivocally, the market of the now and of the
future is the black market
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So how do we solve these problems?

• It is clear that the country has not met the
  transformation agenda of government. All levels
  of society have a long way to go in respect of
  this transformation agenda, particularly the
  advertising and marketing industry. We recommend
  the following
• ? Ownership within agencies has to be urgently
  addressed
• ? Employment practices within this industry needs
  to be structured in a way that is conducive to
  attract and retain black talent
• ? In respect of the advertising spend of
  government and the parastatals, either
  legislation or a mechanism or a policy needs to
  be introduced in order for black media to receive
  their fair share of this revenue

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WE THANK YOU Presented by Marlon Hitzeroth GM
Thengisa Media 082 777 0447, 011-471 4000