The SABC's drop in its long term advertising rates is a major indication of the dent that loadshedding and other factors have made in the value offered by TV advertising. This loss of value could well see companies move away from traditional advertising into mobile advertising, given that the mobile channel is the least affected by loadshedding.
Riaan Groenewald, Multimedia Solutions CEO, says the SABC's recently announced that it has dropped long term advertising rates by 15 percent because of the "difficulties faced by the South African advertiser, brought about by power outages, escalating interest rates and soaring fuel prices".
“The SABC announcement is important because it highlights the fact that adverts are not being seen by large portions of the population at various times because of loadshedding. This has a direct impact on the value of adverts and therefore has to result in a lowering of the cost of a 30 second TV advert,” he says.
Figures around the direct impact of loadshedding on viewership numbers are currently not available according to Michelle Boehme, technical manager at the South African Advertising Research Foundation.
“The reason for this is that there is no way to accurately and scientifically calculate the impact of loadshedding due to the number of variables involved,” she says.
Variables include a lack of accuracy in when and where loadshedding and power cuts actually occur, the number of consumers with generators and whether some people go to friends or family in non-loadshedded areas to watch TV when they are affected.
Hypothesising:
While there is no research data, Groenewald says an analysis of advertising rates and loadshedded areas starts to shed light on the impact of loadshedding on viewership figures and therefore advertising value.
“There is a huge variance of cost to a 30 second advert depending on the TV channel and programme. A 30 second slot could vary between R16 000 and R110 000 during the prime time viewing slot of 18:00 and 22:00 at night. An average price per advert/per channel across the four hour slot ranges between around R33 000 and about R78 500.
“Drawing that average per advert out into an estimated revenue total for all the adverts on a channel over the four hour period ranges between around R5.2 million and about R11.4 million, depending on the channel. If you multiply that by the free-to-view channels and satellite channels, whatever the variables at play, it's a vast sum of money for advertising over one four-hour period,” he says.
Companies advertising on TV also have to also consider who doesn't have power between 18:00 and 22:00 as a result of loadshedding?
In Johannesburg, the areas affected by loadshedding between 18:00 and 22:00, according to City Power, include large portions of Roodepoort, Eldorado Park and large parts of Lenasia, Sandton East, all of Soweto, the north west of Johannesburg and Randburg, east of the N1 highway.
“The millions of rand spent on advertising during prime time are therefore most likely not reaching the people in these areas once or twice a week, depending on scheduling and that is in Johannesburg alone. What of the other cities and provinces in the country where loadshedding is often more regular? Clearly TV advertising value is being eroded,” he says. “Examining total advertising spend against loadshedding schedules would produce some interesting results.”
While loadshedding has been temporarily suspended, the fact that winter is on the way and Eskom expects rolling blackouts for years to come means it is likely it will return, Groenewald says.
Looking to mobile:
The difference with cellphones is that while people's TVs are off, their cellphones are on as long as they have battery life. There are a number of ways in which mobile can be used to interact with consumers, Groenewald says.
Firstly, mobile websites can carry a whole host on information from the company and can include streaming video even at GPRS speeds. Mobisites can also include newsfeeds, weather feeds, feedback options and even the ability to initiate purchasing decisions. This means that mobisites are capable of keeping the attention of consumers for a significant amount of time.
Secondly MMS campaigns can also be utilised to drive consumers to mobisites during loadshedding. Thirdly, a branded mobile game gives an opportunity for consumers to play a mobile game while the power is out.
The latest mobile games are not only equipped with a multiplayer function but also facilitate the placement of advertising during game play “Advertisements for the company, partners or even clients can be placed in the game and detailed reporting provides cumulative viewing times for each banner. Furthermore, high scores are uploaded to a server via GPRS and the top gamers can be awarded with prizes for their efforts,” he says.
Most importantly mobile gives companies the chance to interact with consumers during loadshedding as cellphones are the only devices people will utilise if they have no power, meaning companies will most likely have a captive audience.
Locally, Groenewald says while the three cellphone networks together claim to have a combined base of over 36 million subscribers1; there are an estimated 24.5 million adult TV viewers in South Africa, and over 28.5 million radio listeners2; with PCs and landlines coming in around the five million mark3. This means that the cellphone is already a bigger channel than TV, which is why is even more reason for companies to use the channel more effectively.
References:
Figures from Cellular networks financial reports.
South African Advertising Research Foundation's AMPS (All Media and Products Survey) 2006 report.
World Wide Worx referenced
About us:
Multimedia Solutions is a mobile marketing company, providing a host of marketing, advertising, informational and educational solutions to our clients using mobile technology.
Not to be confused with a Wireless Application Service Provider (Wasp) or an advertising agency, Multimedia Solutions is a Value Added Service Provider. Launched in 2005, Multimedia Solutions has developed a number of mobile marketing solutions including a mobile marketing platform. The company has created mobile marketing solutions in the automotive, financial, cellular, FMCG and eventing industries.
Visit our PRESS OFFICE: Multi Media Solutions is the MMS Capital. We've built the only Multimedia Messaging Service that allows leading companies to liberate their content and fuel dynamic business communications. Front-line selling and marketing professionals can create and send text, sounds, images, and video in customised, attachment-free messages.- more....
Connected by: Uninet
muti
del.icio.us
stumbleupon
yahoo
google
facebook
newsvine
Digg
Reddit
GoGuide
