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Doing Media Business in Africa

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Pedro Casimiro
Pedro Casimiro

1. There are many challenges to doing media business in Africa, including a lack of reliable data for planning campaigns, slow response times from media owners, language and cultural barriers, and poor infrastructure. 2. Key competencies for success include understanding local media consumption, building good relationships, and adapting to different business practices in each country. Media owners need a strong local presence and innovative products. 3. South African agencies can learn from their African counterparts' diligent customer service and respect for media owners. African agencies are also eager to learn and progressive in applying new ideas.

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NOVEMBER 2015 | R50 (incl. VAT) KZN media alive and kicking! Weeklies bite the bullet Report back: doing media business in Africa
28 | themedia | November 2015 www.wagthedog.co.za MOST Awards P Pedro Casimiro, Managing Director ofAfrica MediaWarehouse (AMW);Adelaide McKelvey, Managing Director of Continental Outdoor MediaAfrica and Chris Hitchings, CEO of DStv Media Sales participated in this survey. Whatarethe biggest challenges of doing media business inAfrica? PC: There is a lack of credible AMPS data across the continent and due to no AMPS data input, you cannot plan and book media using ARs and GRPs as measurement tools.The turn-around times for media information from media owners is slow and there is a perceived lack of urgency from media owners in responding to queries.There is also no or little current census data and a lack of Nielsen’s FMCG shelf analysis information. Poor media compliance in terms of ads actually appearing in the right location at the right time and non-delivery of broadcast certificates on time is another issue. Skewed research when the media owner funding the research seems to always come out as the preferred choice is a problem as are upfront payments along with forex fluctuations of the ZAR against other currencies. Rate card variations (local rates vs. international rates); unstructured rate increases; cumbersome booking processes and the cost of travelling to each country to keep your finger on the pulse of each media market are other considerations. There are also the obvious language and cultural barriers. Government-owned media has very little interest in receiving and responding to the demand for advertising as they do not rely on it for funding. Internet connectivity is poor in some countries and there is poor quality of newspaper printing.This pertains to 4-colour print registration as well as ink saturation and course the screens used make image reproduction look “grainy”. There’s a lack of independent media monitoring services and local in-country tax issues where some media owners charge it and others don’t. AM:Some major issues are accountability, service delivery and turnaround times. Doing business in Africa can be very rewarding and extremely frustrating at the same time. However, having a good understanding of how things work and being able to constantly adapt and manoeuvre around ‘the norm” can work in your favour. You need a lot of patience, an abundance of energy and a good sense of humour to be successful in Africa. CH: While there have been improvements in this area, it remains a challenge to find credible, consistent media research across the continent. The devaluation of local currencies can cause havoc with forecasting in US or ZAR. Managing credit risk remains an important challenge to overcome and at times we struggle with the quality of material supplied.The importance of political and economic stability cannot be overstated. Whatarethe most important competencies required of media agenciesand media ownersthat buy and sell media inAfrica? PC: Media consumption insights – understanding who is consuming which media at what time and why; having good interpersonal relationships directly with key media personnel in each country in order to get work done efficiently and staying up to date with market dynamics in each country. This pertains to the country’s political, social and economic indicators plus identifying key players (clients and media owners) within each industry and monitoring their actions. AM: If media agencies want to succeed outside of SA borders, they need to have credibility and substance. No half measures. They must be 100% committed.Too often SA or international media houses attempt to launch in Africa with a 4m x 4m office space and a brand on the door, generally operated There are many complexities and challenges around the buying and selling of media space in Africa. Brad Aigner, MD of FGI Africa, spoke to some Africa media experts to gain some insight. Report back: doing media business in Africa PedroCasimiro AdelaideMcKelvey To page 30
30 | themedia | November 2015 www.wagthedog.co.za MOST Awards by one or two people.This model is doomed to fail.A well-established media house with competent staff and substantial operating systems will benefit from the high rewards Africa has to offer. Media owners need to have presence in the country where they offer their service, which should be fully supported by sales, operations and financial staff in the market.Their product should be of high quality and ideally in a format that can be bought regionally.Africans are forward-thinking and love innovation! So, creative and innovative products must be on the menu.Africa has a large young population who are early adopters and embrace new technology.Therein lies the opportunity! CH: Don’t treat “Africa” with one unilateral strategy – it’s a diverse continent with a multitude of nations and cultures.Also, avoid making assumptions – get on the ground and make an effort to understand the local issues. Technical skills remain important but given the scarcity of quality data it’s important to be resourceful and creative. What can South African media owners and media agencies learn from their African counterparts? PC: Trading in certain countries can be seamless as long as you constantly monitor how and when things are done and continuously follow up.When booking media, an email needs to be followed by a telephone call as there is a tendency for emails to be curtailed by network problems. Agencies and media owners are generally keen to assist but often get hampered by issues beyond their control. AM: It’s really easy to work with the agencies in Africa. There are less “egos” in Africa. Media staff are punctual and diligent. They treat media owners as partners and with the utmost respect. The client/ agency relationship is open and transparent. Local agencies could learn a lot about “going back to basics” – understanding how we all fit into the media buying process and work together for a common cause. The African media agencies are eager to learn, open to new ideas and progressive in their creative applications. Fortunately or unfortunately, we have the luxury of selling audiences from behind a desk in South Africa. Despite viewing our product in situ and experiencing our audiences in real life, we tend to buy/sell media from our desktops. That is the reality of how media buying has progressed worldwide! Having said that, African media agencies are not there yet and that’s the reason why media owners need to be more accountable and involved with these agencies. An agency that has placed its (and its clients) trust and advertising dollars with a specific media owner needs to be assured that the delivery, quality, and accountability, is guaranteed. The lesson for SA media owners is to be less complacent and more accountable and involved. CH: My feeling is that we all have a sense of entitlement in SA, whereas nothing is taken for granted in Africa. Please relate an amusing anecdote from your media experiences in Africa. PC: Up until recently, UBC in Uganda was still accepting TVC material in VHS fomat! Also, TPA TV network in Angola doesn’t accept electronic bookings so you have to go into their offices and book as follows: Stand in one queue with your media plan on paper and pay upfront for the booking; move to the next queue and hand in your booking plan and receive a proof of booking and finally, go to the next queue to deliver the TVC material. In Nigeria, all media creative material needs to get APCON (Advertising Practitioners Council of Nigeria) approval before it’s allowed to flight. There’s a fee for APCON certification. Plus, all “consumption" related advertising needs NAFDAC (National Agency for Food and Drug Administration Control) and APCON approval before being allowed to flight. CH: I visited a monitoring service in Nairobi where an employee was watching a bank of TV screens, whilst listening to a different radio station in each ear (via a headset) and simultaneously scanning a pile of print ads. How to fry your brain! Little-known African facts • Before the continental shift took place,Africa was joined to other countries in a massive continent called Pangaea. • Africa is the second largest continent in both land mass and population and covers 1/5th of the Earth’s total land area. • Early humans first migrated out of Africa into Asia about 2 million years ago. • The Sahara desert in northern Africa covers 9 million square kilometres and is the largest non-polar desert in the world. • Africa makes up 15% of the world population providing home to ±1 billion people and is origin to 25% of world languages. • Africa is home to the world’s largest living land animal - the African elephant. Males can grow up to 4m tall. • The Nile is the longest river in the world measuring ± 6700km and flows through 10 countries. • Lake Victoria is one of the seven natural wonders of the world. It forms the largest lake in Africa and the second largest freshwater lake in the world. • The vastness of the continent covers in excess of 30 million square kilometres. • One in every six Africans is Nigerian – the country has a population of about 180 million people. n FGI is sincerely thankful for the insights and experiences shared by the interviewees.

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Doing Media Business in Africa

  • 1. NOVEMBER 2015 | R50 (incl. VAT) KZN media alive and kicking! Weeklies bite the bullet Report back: doing media business in Africa
  • 2. 28 | themedia | November 2015 www.wagthedog.co.za MOST Awards P Pedro Casimiro, Managing Director ofAfrica MediaWarehouse (AMW);Adelaide McKelvey, Managing Director of Continental Outdoor MediaAfrica and Chris Hitchings, CEO of DStv Media Sales participated in this survey. Whatarethe biggest challenges of doing media business inAfrica? PC: There is a lack of credible AMPS data across the continent and due to no AMPS data input, you cannot plan and book media using ARs and GRPs as measurement tools.The turn-around times for media information from media owners is slow and there is a perceived lack of urgency from media owners in responding to queries.There is also no or little current census data and a lack of Nielsen’s FMCG shelf analysis information. Poor media compliance in terms of ads actually appearing in the right location at the right time and non-delivery of broadcast certificates on time is another issue. Skewed research when the media owner funding the research seems to always come out as the preferred choice is a problem as are upfront payments along with forex fluctuations of the ZAR against other currencies. Rate card variations (local rates vs. international rates); unstructured rate increases; cumbersome booking processes and the cost of travelling to each country to keep your finger on the pulse of each media market are other considerations. There are also the obvious language and cultural barriers. Government-owned media has very little interest in receiving and responding to the demand for advertising as they do not rely on it for funding. Internet connectivity is poor in some countries and there is poor quality of newspaper printing.This pertains to 4-colour print registration as well as ink saturation and course the screens used make image reproduction look “grainy”. There’s a lack of independent media monitoring services and local in-country tax issues where some media owners charge it and others don’t. AM:Some major issues are accountability, service delivery and turnaround times. Doing business in Africa can be very rewarding and extremely frustrating at the same time. However, having a good understanding of how things work and being able to constantly adapt and manoeuvre around ‘the norm” can work in your favour. You need a lot of patience, an abundance of energy and a good sense of humour to be successful in Africa. CH: While there have been improvements in this area, it remains a challenge to find credible, consistent media research across the continent. The devaluation of local currencies can cause havoc with forecasting in US or ZAR. Managing credit risk remains an important challenge to overcome and at times we struggle with the quality of material supplied.The importance of political and economic stability cannot be overstated. Whatarethe most important competencies required of media agenciesand media ownersthat buy and sell media inAfrica? PC: Media consumption insights – understanding who is consuming which media at what time and why; having good interpersonal relationships directly with key media personnel in each country in order to get work done efficiently and staying up to date with market dynamics in each country. This pertains to the country’s political, social and economic indicators plus identifying key players (clients and media owners) within each industry and monitoring their actions. AM: If media agencies want to succeed outside of SA borders, they need to have credibility and substance. No half measures. They must be 100% committed.Too often SA or international media houses attempt to launch in Africa with a 4m x 4m office space and a brand on the door, generally operated There are many complexities and challenges around the buying and selling of media space in Africa. Brad Aigner, MD of FGI Africa, spoke to some Africa media experts to gain some insight. Report back: doing media business in Africa PedroCasimiro AdelaideMcKelvey To page 30
  • 3. 30 | themedia | November 2015 www.wagthedog.co.za MOST Awards by one or two people.This model is doomed to fail.A well-established media house with competent staff and substantial operating systems will benefit from the high rewards Africa has to offer. Media owners need to have presence in the country where they offer their service, which should be fully supported by sales, operations and financial staff in the market.Their product should be of high quality and ideally in a format that can be bought regionally.Africans are forward-thinking and love innovation! So, creative and innovative products must be on the menu.Africa has a large young population who are early adopters and embrace new technology.Therein lies the opportunity! CH: Don’t treat “Africa” with one unilateral strategy – it’s a diverse continent with a multitude of nations and cultures.Also, avoid making assumptions – get on the ground and make an effort to understand the local issues. Technical skills remain important but given the scarcity of quality data it’s important to be resourceful and creative. What can South African media owners and media agencies learn from their African counterparts? PC: Trading in certain countries can be seamless as long as you constantly monitor how and when things are done and continuously follow up.When booking media, an email needs to be followed by a telephone call as there is a tendency for emails to be curtailed by network problems. Agencies and media owners are generally keen to assist but often get hampered by issues beyond their control. AM: It’s really easy to work with the agencies in Africa. There are less “egos” in Africa. Media staff are punctual and diligent. They treat media owners as partners and with the utmost respect. The client/ agency relationship is open and transparent. Local agencies could learn a lot about “going back to basics” – understanding how we all fit into the media buying process and work together for a common cause. The African media agencies are eager to learn, open to new ideas and progressive in their creative applications. Fortunately or unfortunately, we have the luxury of selling audiences from behind a desk in South Africa. Despite viewing our product in situ and experiencing our audiences in real life, we tend to buy/sell media from our desktops. That is the reality of how media buying has progressed worldwide! Having said that, African media agencies are not there yet and that’s the reason why media owners need to be more accountable and involved with these agencies. An agency that has placed its (and its clients) trust and advertising dollars with a specific media owner needs to be assured that the delivery, quality, and accountability, is guaranteed. The lesson for SA media owners is to be less complacent and more accountable and involved. CH: My feeling is that we all have a sense of entitlement in SA, whereas nothing is taken for granted in Africa. Please relate an amusing anecdote from your media experiences in Africa. PC: Up until recently, UBC in Uganda was still accepting TVC material in VHS fomat! Also, TPA TV network in Angola doesn’t accept electronic bookings so you have to go into their offices and book as follows: Stand in one queue with your media plan on paper and pay upfront for the booking; move to the next queue and hand in your booking plan and receive a proof of booking and finally, go to the next queue to deliver the TVC material. In Nigeria, all media creative material needs to get APCON (Advertising Practitioners Council of Nigeria) approval before it’s allowed to flight. There’s a fee for APCON certification. Plus, all “consumption" related advertising needs NAFDAC (National Agency for Food and Drug Administration Control) and APCON approval before being allowed to flight. CH: I visited a monitoring service in Nairobi where an employee was watching a bank of TV screens, whilst listening to a different radio station in each ear (via a headset) and simultaneously scanning a pile of print ads. How to fry your brain! Little-known African facts • Before the continental shift took place,Africa was joined to other countries in a massive continent called Pangaea. • Africa is the second largest continent in both land mass and population and covers 1/5th of the Earth’s total land area. • Early humans first migrated out of Africa into Asia about 2 million years ago. • The Sahara desert in northern Africa covers 9 million square kilometres and is the largest non-polar desert in the world. • Africa makes up 15% of the world population providing home to ±1 billion people and is origin to 25% of world languages. • Africa is home to the world’s largest living land animal - the African elephant. Males can grow up to 4m tall. • The Nile is the longest river in the world measuring ± 6700km and flows through 10 countries. • Lake Victoria is one of the seven natural wonders of the world. It forms the largest lake in Africa and the second largest freshwater lake in the world. • The vastness of the continent covers in excess of 30 million square kilometres. • One in every six Africans is Nigerian – the country has a population of about 180 million people. n FGI is sincerely thankful for the insights and experiences shared by the interviewees.