Advertising & Bitcoin. Two Sides Of The Same Coin?

Bitcoin logo

OK, I confess – maybe the title of this blog article is a bit too clever for its own good. The reality is that there’s no correlation between advertising and bitcoin, other than the fact that I’m involved in both – and passionate about both.

I’ve been in advertising for nearly 29 years, running This country’s smallest ad agency (in Johannesburg) and am an experienced copywriter, conceptualiser of advertising ideas and co-ordinator of marketing projects – whilst I’ve been involved in bitcoin for no more than a year. Bitcoin excites me. When I heard that bitcoin, blockchain technology and crypto-currencies could eventually be as a disruptive as the internet, it had my attention – and I began to delve deeper.

 There’s tons of information about blockchain and bitcoin on the internet, but what really got me interested was the fact that bitcoin was endorsed – and enthused about – by the likes of Sir Richard Branson (founder of Virgin Group), Bill Gates (founder of Microsoft) and Al Gore (45th Vice President of the United States). See their comments below: 

Sir Richard Branson: “I have invested in bitcoin because I believe in its potential, the capacity it has to transform global payments is very exciting”

Bill Gates: “Bitcoin is better than currency in that you don’t have to be physically in the same place and of course for large transactions currency can get pretty inconvenient”  

Al Gore: “I think the fact that within the bitcoin universe an algorithm replaces the function of Government is actually pretty cool. I am a big fan of bitcoin”

There are many other people who believe in bitcoin. The head of Google, for instance. (And if he believes in the potential of the currency, it’s worth listening, I’d say.) 

If people of this calibre were excited about bitcoin, I decided that I would be guided by them rather than by friends or family who told me that yes, they had heard about bitcoin, but that I should stay away from it as it was an “illicit currency used for illicit activity” and that it was too risky and a “fad”.

 A fad, it’s clearly not. Bitcoin and blockchain technology will be as disruptive as the internet. Yes, we may be a few years away from that, but there’s a high probability of this being the case. One only has to surf the internet to see how many blockchain-related developments there are currently around the world. 

(Closer to home, ABSA bank have announced their intention to look into blockchain technology – the first African bank to do so). Others will surely follow. 

Internationally, Japan has made bitcoin a legitimate currency, and whilst Russia was wary about bitcoin in the beginning, there are a number of signs that the doors are opening to crypto-currencies in that country. 

Malaysia? BTC is huge there.

Korea: Gaining traction in a big way.

India? Getting started…

South Africa? Judging by the growth of BitClub network here, and the number of people enthusing about bitcoin, it’s just a matter of time before it takes off here…and other countries in Africa. (BTC is already being adopted in Kenya, Uganda, Nigeria and doors are opening in Dubai as we speak..)  

It’s just a question of time before crypto-currencies – of which bitcoin (BTC) is the most widely-known and accepted – become mainstream around the world. Governments will be come more embracing of the technology, as will banks and other financial institutions.  

In the meantime, many people around the world are already interacting with BTC (paying each other, or buying goods), and if you’d like to see the transactions happening currently, go to Blockchain on https://blockchain.info/ and look at the transactions at the bottom left corner of the page. Blockchain is the public ledger, on which every single BTC transaction globally can be viewed as it happens.

At the time of writing, the price of bitcoin is around the US$585 mark.  See http://www.coindesk.com/price/ for the current price. 

As there can only ever be 21 million bitcoin in circulation, the forecast for BTC is undeniably upwards. Yes, there will be volatility and yes, the price could go down before it goes up..but the curve will head upwards for sure.  

Whilst no-one can say for certain, a number of analysts believe that the price of BTC could get to as high as US$10 000 in 3-5 years. 

Even if it gets to $1 500, I’m in. BTC is the way of the future and I’m by no means the only South African to think so.

Gerard Kavonic is an experienced copywriter, conceptualiser of advertising ideas and co-ordinator of marketing of projects. Based in Johannesburg, he runs This country’s smallest ad agency, Kavonic Hone. See www.kavonichone.co.za He is also involved in the launch of Bitclub Network in South Africa. See www.bitclubnetwork.co.za He can be reached on 083 444 9888 and on the following email addresses: gerard@kavonichone.co.za and more@bitclubnetwork.co.za

 

How’s Hollard’s advertising?

hollardAs someone who’s been in advertising a long time, and as a copywriter who considers himself to be reasonably creative, I take an active interest in the advertising put out into the South African market. One client’s advertising has caught my attention as of late.

That of Hollard Insurance.

For a company that has run some really nice work in the past, it’s advertising has gone south of late. In my opinion, anyway.

It’s not so much bad advertising as it’s boring advertising. It’s tired, devoid of creativity. Yes it gets its point across, but…

And then, it’s billboard headlined something along the lines of “Hollard. For people who are perfect and for those who are imperfectly perfect” featuring some guy with bizarre headgear on the R59 near Alberton takes the cake. Whilst a number of Hollard’s billboards elsewhere are OK (meaning decidedly average), the one mentioned is just silly.

This is not to say that the advertising of insurance products is easy. It’s not. But it should not be juvenile like the company’s Alberton board..

There is enough insurance advertising out in the market for most economically-active South Africans to know what insurance is, and to understand the need to have their property and possessions insured. (Especially in a country like South Africa where crime is an everyday reality). The goal is to produce advertising in this sector that stands out and communicates the product benefit succinctly: in a manner that is understood and acted upon.

Whilst the objective of the billboard in question is clearly to communicate that Hollard’s insurance is for everyone (something I get) surely there is something in the company’s s cover that is different and able to be expanded upon?
In short, there must be some sort of value-add. Something that could make the advertising catch the attention in a positive way?

Advertising is all about promoting a USP (Unique Selling Proposition). If a product or service doesn’t have a USP, then how about a perceived USP?

This particular billboard communicates nothing in the way of a unique selling proposition. Worse, it puts Hollard’s hand up in the air and says “I don’t have anything interesting to say, and there’s nothing that makes Hollard different, but please bear us in mind for any insurance cover you might need as we are here for all South Africans, not matter how perfect or imperfect you might be”

Harsh? Maybe. But knowing how much billboards on freeways cost these days – anything from 30K to 80K per month – it’s frustrating seeing good money spent on bad advertising.

Gerard Kavonic is an experienced copywriter, conceptualiser of advertising ideas and co-ordinator of marketing of projects. Based in Johannesburg, he runs This country’s smallest ad agency, Kavonic Hone. See www.kavonichone.co.za He can be reached on 083 444 9888 or gerard@kavonichone.co.za

Doing Business in Nigeria May Require Advertising In Nigeria

If Nigeria is unchartered territory and new to you, know this: it’s nothing like South Africa.

Despite being only two thirds of South Africa’s size, the country has a staggering one hundred and eighty million people – three times South Africa’s population. Besides being the continent’s most populous country – with one sixth of Africa’s total population – Nigeria is the largest economy with a national GDP of $574 billion (versus South Africa’s $350 billion) (2014 statistics at prevailing official USD exchange rate)

The GDP per capita is $6 100 versus South Africa’s $13100 although Nigeria’s middle income segment – the fastest growing on the continent – makes up for the reduced spending power through its sheer volume and growth. And it is this fact primarily that multinational and South African enterprises are targeting for growth.

But don’t drop everything and head for Oliver Tambo International airport just yet. Too many South African companies have set up shop in Nigeria thinking they’ll clean up and have left with their tail between their legs, having had their lunch eaten.

You need to do extensive homework and research before laying down a marker here and it is strongly recommended that you make contact with the South Africa Nigeria Chamber of Commerce in Johannesburg (http://www.sa-ncc.co.za) early on in the process.

The organisation will prove invaluable in providing the information and processes critical to navigating the bureaucracy and kilometers of red tape typically encountered by companies and personnel wishing to enter Nigeria for business.

Nigeria is rich in culture, art and heritage where the people are genuinely friendly and helpful and communicate in some 500 indigenous languages. And know this: Almost all company management are degreed – at local and international universities and business schools – and are without doubt, more worldly than their South African counterparts. Nigerians are ardent travelers bringing their experience gained to the local market.

The cities are massive (Lagos has an estimated population of between 17 and 21 million where other cities have populations as follows: Ibadan (3.5 million), Abuja (3 million), Kaduna (1.6 million), Ogbomoso (1.5 million), Enugu (0.7 million), Ilorin (0.8 million), Benin City (1.4 million), Zaria (1.2 million), Jos (0.9 million), Onitsha (0.5 million), Oyo (0.6 million), Kano (3.6 million) and Port Harcourt (2 million) to name a few. Vast populations and choked traffic routes create commuter pressure. Peak traffic is from 05h30 – 09h00 and 16h00 – 19h30 with the average commute to and from work being as much as 3 hours.

Development in recent years – infrastructural, commercial and retail is enabling Nigeria to ‘catch up’ and, as evidenced by its fairly recent ranking as Africa’s #1 economy, is leapfrogging traditional competitors, like South Africa and Egypt. Improved living and working conditions translate into increased job opportunities that in turn fuel growth.

So who and where to target? Unlike in South Africa, in which disposable income is to be found primarily in a few major urban concentrations (Johannesburg, Pretoria, Cape Town, Durban, Port Elizabeth and to a lesser extent, East London, Bloemfontein and Polokwane), Nigeria’s economically viable LSMs are spread across a much wider footprint. But the challenges are not limited to geographical and language considerations.

From a media and communication perspective, too, Nigeria can be perplexing. Especially when you consider that there are:

More than 20 local TV stations in Nigeria – excluding DStv, which has more subscribers than South Africa.

100 mainstream radio stations in Nigeria

Approximately 45 newspapers in Nigeria with the weekend tabloids being considered ‘magazines’. Most international magazines are readily available on the street in major CBDs.

A great many outdoor media options available.

And that:

o   Nigeria’s digital landscape is vast with many opportunities to take advantage of.

o   Social media is enjoying exponential growth.

o   Nigeria has 70 million internet users in 2015 (growth >16% over 2014)

o   Nigeria has 53 million unique mobile phone users

o   80% of online access is from smart phones

o   25% of FaceBook users in Africa are Nigerian

o   The top 1 000 companies in Nigeria have websites

pic Nigeria

pic Nigeria1

Obviously, once you have a Nigerian business presence and have your distribution channels set up and your products in-store, you’ll need to support them with marketing, both online and offline. Compared to South Africa, where as a marketer, you already have the creative, digital and media resources available, the Nigerian market can be quite daunting. Exciting too, though.

With the weakening rand and a sluggish South African economy showing no signs of improving in the short-term, more and more South African companies are looking to Africa, and will be looking to Africa – with Nigeria, Ghana, Liberia, Sierra Leone and other key markets in the region being given attention.

Nigeria – and for that matter, Ghana and the other aforementioned countries – remain largely untapped and present a far better prospect than looking for the more expensive ‘1st world’ market opportunities. It’s imperative however that you understand the region and market that you’re considering.

A colleague of mine, Simon Willar, who worked in South Africa in marketing and communication for many years, is now based in West Africa and has extensive contacts in Nigeria and knowledge of the region.

Besides being able to advise marketers as to how best to tackle the Nigerian and Ghanain markets, he could also assist in – for example – locating office space, legal resources, banking partners and advising on key logistical matters.

Whilst he makes trips back to Johannesburg from time to time, he can be reached at anytime on simon.willar@icloud.com and I’d suggest he’d be a good call.

Knowing him as I do, he’d be happy to help. Even if it’s just to point you in the right direction  or answer any questions you may have.

In the meantime, here’s some Nigerian-related info you may find interesting, and handy:

Independence from UK: 1960

Government type: Federal republic

Transition to civilian rule:1999

Administrative divisions: 36 states, 1 capitol territory

Federal capital: Abuja

Business capital: Lagos

Official language: English.

Legal system: Mix of English common law, Islamic law (12 states), traditional law

Population: 185 million Inflation: 8,5% (2015)

Currency: Naira (Official buying rate: – N199/$1. Parallel market rate: – N308/$1)

Hotel room: Average, Lagos 02/2016: – $375/ZAR6000 pppn

Leased apartment: Average, Victoria Island, Lagos: +-$65,000/ZAR1,052,129 pa

Burger: Victoria Island, Lagos: N5,500/ZAR446

Transport: Uber and local taxi services

Telecomms: Landline, 4G cellular, data. Wifi available in hotels, coffee shops and mobile

My name is Gerard Kavonic of This country’s smallest ad agency, Kavonic Hone and I can be reached on gerard@kavonichone.co.za and 083 444 9888. I’m based in Johannesburg and you can see what I’m about on www.kavonichone.co.za

 

 

 

Why You Need to Keep On Advertising

business couple at computer In a recession, or when things are tough (as they most definitely now are), business owners and marketers tend to put a lid on their advertising spend as a means of capping their expenses. And yet, whilst understandable, it’s often a mistake to do so.

The reason that advertising is often the first expense to face the chop is that it’s the easiest thing to cut. It’s far easier to send out an instruction to your ad agency and media agency to cut, by way of an example,  TV advertising or radio advertising from a media schedule than it is to, for example, retrench staff.

History has shown that advertisers who stop advertising in recessionary periods have some catching up to do when the economy turns for the better. This stands to reason, as the advertiser who continues to advertise in a downturn will be better positioned to capitalise in an upturn as his or her advertising would have remained uppermind over time.  The advertiser who has stopped advertising will have lost ground in the minds of his or her target market. (A matter of out of sight, out of mind..)

One of the most prevalent reasons given by marketers looking to cut, or stop, advertising is: there’s no money out there, so what’s the point? Fact is, that whilst some South Africans have no money (OK, many South Africans have no money), many do..something that was brought home recently when my wife and I tried to find a week’s timeshare on the coast.  After days of searching, it became clear that there was none to be had.

How could this be, if people don’t have money? The cynic would say that they don’t have money because they spent on things like timeshare, but this rings hollow.

South Africans are spending WEEKS on holiday. And as a family who was fortunate enough to have eventually found somewhere to stay and as a result, went away for ten days, we can vouch for how much an extended holiday would cost. Eating out every day and keeping the kids entertained costs plenty. And yet, restaurants are pumping and queues at the movies or fun parks never seem to end.

Another thing that struck us is how many people have second homes on the coast: homes that cost millions. And boats, that sit idly moored to those homes..

People short of money? Certainly not all of them…

It is clear that there are many people in this country (admittedly in the upper LSMs) who have money to burn. And these are people who continue to eat, continue to drink, continue to entertain, continue to drive, continue to bank, continue to invest and continue to holiday.

Quite simply, they need to be advertised to – regardless of the state of the economy.

The bottom line is that if you’re not advertising to them, you’re not in the picture. Simple as that.

But what about the middle class? Or the lower income-earners in our country? Here a different picture emerges because they’re more under pressure, financially-speaking. That said, they still need to eat and drink, still need to buy household goods, still need to put food on the table. So they also need to be advertised to.

What marketers need to do when things are tough is box clever.

If your product is not moving, you need to think of ways to GET it moving. Discount the price, offer a “buy one, get two” offer, start a loyalty program…think out the box and get creative.

The worst thing is to put a stop to your advertising efforts. But if you have absolutely no choice other than to cut back, do it strategically. Cut back on media that you consider to be “nice-to-haves” – this might be in the form of TV advertising, radio advertising, cinema advertising, outdoor advertising, newspaper or magazine advertising – and continue with advertising that brings you response. (Digital advertising more than likely).

With people googling practically everything these days, make sure that your website is professionally optimised for search engines. You need to come up on the first page of Google when people search for the type of product or service you offer. This is imperative. It’s said that the best place to hide a dead body is on the second page of Google. Why? Because no one ever searches there. Quite simply, if you’re not on the first page of Google, you’re dead in the water.

Google Adwords are also good. If you’re running Adword campaigns, continue running them. And if they’re not delivering the type of response you expect, find someone professional to manage them.

Google Display? Also good. Keep it going.

Blogs? They work well. Blog more than you have in the past.

If your business is struggling, cut your advertising spend if you must – but at the very least – maintain a presence online. You’ll regret it if you don’t because , despite what you may believe, there ARE  people with money out there. And amongst them will be people looking for what you offer.

My name is Gerard Kavonic of This country’s smallest ad agency, Kavonic Hone and I can be reached on gerard@kavonichone.co.za and 083 444 9888. You can see what I’m about on www.kavonichone.co.za

I’d be happy to advise you.

Kavonic Hone. Adjudged “Best ad agency Johannesburg” 2015

 It was with some pride that my ad agency, positioned as This country’s smallest ad agency,  was recently adjudged “Best ad agency Johannesburg” in the African Corporate Excellence Awards 2015.
To be honest, I was surprised that I was even short-listed – but many thanks to all those who nominated me. (And when I say me, I mean “me” as to all extents and purposes, I’m the only one at the coalface).

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Advertising On Facebook Or Setting Up a Google Adwords Campaign. Anyone Can Do It, Right?

Absolutely. IF you know what you’re doing. Unfortunately, many marketers lack the required knowledge – despite them THINKING they know what they’re doing.

The sad thing is, they lose heart once they find that the only responses they get are from people looking for jobs and from people trying to sell them something.

When I first heard of Facebook (all those years ago) and was told how it was a potential gold mine waiting to be tapped, I set up ads promoting another business that I was involved in at the time and sat back waiting for the phone to ring. Needless to say, it didn’t.

I then allocated a budget to Google Adwords and set up a series of ads. I ran the campaign for three months or so. The result here too was disappointing. (Although I’m sure Google were happy).

The lesson I learnt was that as much as I THOUGHT I could set up successful Google Adwords and Facebook advertising campaigns, I was pretty clueless – even though I’ve been in the ad industry nearly 30 years.

This said, Google Adwords and Facebook advertising can work amazingly well. IF set up correctly and managed professionally.

There are way too many people out there – website designers and developers in the main – who profess to be experts in online marketing, when they’re nothing but. They may know how to design and build a website, but when it comes to marketing that site online, their knowledge is basic at best.

I’ve learnt over the years that really good online marketers in South Africa are few and far between. (Over the last few years, I’ve handed online advertising projects to a number of “online marketers” only to be disappointed by the results. Invariably, they talk the talk, but fail to walk the walk).

Fortunately, a year or so ago, I was introduced to a really good digital agency so my frustrations are now over. These guys are good and they have an in-depth understanding of how to make facebook advertising and Google Adwords work for their clients.

Setting up a Google Adwords account can be a time-consuming process as it involves setting up multiple accounts – of which a Google Plus account, Google Places account and Google Partners account are some. Detailed keyword research, competitor analysis and marketing research and analysis then need to be conducted.

Once done, and the Google Adwords have been set up and activated, the ads need to be managed. This, to see which ads are working, which are not, and if not, why they’re not. Simple things like changing words here and there could make a world of difference. (The managing of Adwords campaigns is crucially important).

Then there’s the “cost-per-click” aspect. When someone clicks on your ad, it costs you – and often-times, it could cost you more than it should.

By having a professional online marketer manage your Adwords campaign, your cost-per-click can be brought down with the aim of getting you more clicks per your allotted ad budget. (Once your ad budget has been used up, your ads stop appearing).

As a marketer, you’re looking for as many clicks as you can get – but not just any clicks. Clicks from people who have nothing better to do all day than click on ads are a waste of time and your ad budget because they have no interest in your product or service. What you’re looking for are clicks from people who ARE interested. By having your Adword campaigns managed by people who know what they’re doing, your online advertising can be targeted – so that you reach the right people, at the lowest cost.

This pertains to Facebook advertising too. You need to have the right ads on facebook, communicating the right things and aimed at the right target market, for less cost. All this may seem obvious, but online marketing is a science – and should be left to savvy online marketers who know the tricks of the trade.

With approximately 1.28 billion monthly active users, Facebook is the 2nd-most visited website (behind Google) and all these eyeballs means a lot of exposure for your advertising, so long as it’s targeted. Fortunately, targeted advertising is catered for on this platform in that you are able to target a specific group of people based on (for example) their age, geographical whereabouts, personal interests and more. Facebook can even comb through user profiles to place your ads only on pages that mention a specific keyword.

As an advertiser, you can also choose between CPC and CPM pay structures (cost per click and cost per impression) allowing you to tailor your ad campaign any which way. When all’s said and done, advertising on Facebook can be inexpensive (and profitable), if you know what you’re doing.

My advice? Call in a good online marketer, and ask to see the deliverables ie what he or she has achieved for others. It’s important that you separate the wheat from the chaff, and the talkers from the doers.

Facebook advertising and advertising on Google needs to be approached professionally. If they are, advertisers can reap the rewards.

Chabad’s Billboard and Street Pole Advertising Campaign. All Good, Save For…

Chabad is an excellent organisation with a good heart, there for South Africa’s Jewish community and to foster more involvement amongst its members, but I believe one of two elements of its outdoor advertising “kosher” campaign are
a tad misplaced – in that some of its billboards are oddly positioned.

With the Jewish population in Johannesburg largely spread over the North Eastern suburbs of Glenhazel, Sydenham, Sandringham, Orange Grove, Fellside, Houghton, Highlands North, Norwood, Orchards, Gardens, Melrose North and Oaklands, and to a lesser extent, the northern suburbs of Gallo Manor and Sandton, I would have thought that its billboards should have been concentrated in these areas – to the exclusion of any other areas.

And yet, driving north along Rivonia Road this morning – in Rivonia – and north of Sandton, I see a Chabad billboard urging people to keep kosher and wear tefillin.

Now, whilst not privy to how many Jewish households there are in Rivonia, I would guesstimate that there are very few and further, that a good 90% motorists passing this billboard each day would have no interest in keeping kosher (simply because they’re not Jewish) and would have no idea as to what tefilin are (for the same reason).

So, a bad site for a billboard in my opinion.

If a billboard on Rivonia Road was free (or donated), I’d say great – go wild. But billboard advertising in Johannesburg is not free, and by no means cheap.

The billboard in question probably costs in the region of R20-30 000 a month to flight, which is by no means an insignificant amount. In my opinion, this money would have been better allocated to online marketing in the form of either running a Facebook campaign or a video (or series of videos) on You Tube. Or by sending out newsletters to members of the South African Jewish community. Or by blogging. Or remarketing.

I also have a question mark over the street pole posters in the Marlboro area – even though it’s possible that some members of the Jewish community might work in the area and drive past the boards on occasion.

The issue is one of wastage. Far too many people not of the Jewish faith would see the advertising and have no interest in the advertising. So why advertise to them?

Better, to my mind, would be to focus on the low hanging fruit ie the people in the predominantly Jewish areas of Johannesburg who might be inclined to go to shul once in a while and to participate in Jewish affairs to a degree. It is these people who would be more inclined to “go kosher” or “lay tefilin”.

That said, as billboards or street pole posters, Chabad’s outdoor advertising works. And hats off to the organisation for the initiative. I just feel that the campaign should be more geographically-focused so as to reach the target market more effectively.

Rivonia and Marlboro, to my mind, are suburbs too far.

And then, just a general comment regarding outdoor advertising: I’m a great believer in billboard advertising and street pole advertising working with other advertising types so as to increase the chances of success. So it would be interesting to see what other advertising media Chabad are using, or looking to use. These days, online marketing and social media – used correctly – can work extremely well and besides being effective, are extremely cost-effective.

If Chabad wants to see results, where more members of the Jewish community decide to “go kosher” and “wear tefillin” they’d do well to commit to a medium-term campaign, using a multi-pronged marketing approach.
Also to come up with advertising that stands out and gets talked about.

The current billboard and street pole campaign may raise awareness in the short term but I feel that it needs to be upped a notch, and to be a bit more “creative” in execution.

First things first though: the Rivonia billboard should go, and consideration should be given to removing the Marlboro street poles.

Unless I’m missing a trick, of course, and there’s a strategic reason for them being there..which I guess is possible.

Advertising in Newspapers. How much?

With hundreds of newspapers in South Africa, advertising rates vary tremendously.

There are many variables – of which the size of the ad, the position of the ad, the numbers of colours in an ad, the day the ad is booked for, and the number of times the ad is booked for, are just some of them.

Then, full colour newspaper ads are more expensive than black and white newspaper ads. (Normally, a lot more expensive). And two colour newspaper advertisements cost less than full colour advertisements. Also, publishers of newspapers charge different rates depending on their number of readers and their circulation figures. So it’s no easy task answering the question “How much to advertise in newspapers?” (even though I get asked this A LOT).

To give you an idea of newspaper advertising costs:

A full page black and white advertisement in The Sunday Times will cost you R399 600 excluding VAT
A full page black and white advertisement in The Sowetan will cost you R69 264 excluding VAT
A full page black and white advertisement in The New Age will cost you R169 344 excluding VAT
A full page black and white advertisement in Ilanga will cost you R28 413.84 excluding VAT
A full page black and white advertisement in Isolezwe will cost you R37 223.55 excluding VAT
A full page black and white advertisement in The Sunday Sun will cost you R45 045 excluding VAT
A full page black and white advertisement in The Daily Sun will cost you R93 093 (Mon-Tues), R96 642 (Wed-Fri) excluding VAT
A full page black and white advertisement in The Business Day will cost you R108 000 excluding VAT
A full page black and white advertisement in The Times will cost you R 58 656 excluding VAT
A full page black and white advertisement in The Cape Argus will cost you R44 499 excluding VAT
A full page black and white advertisement in The Cape Times will cost you R70 983 excluding VAT
A full page black and white advertisement in The EP Herald will cost you R45 900 excluding VAT
A full page black and white advertisement in The Sunday Tribune will cost you R89 424 excluding VAT
A full page black and white advertisement in The Natal Mercury will cost you R57 056.40 excluding VAT
A full page black and white advertisement in The Daily News will cost you R67 008.60 excluding VAT
A full page black and white advertisement in The Natal Witness will cost you R25 488 (Mon-Tues),
R28 296 (Wed-Fri) excluding VAT
A full page black and white advertisement in Die Beeld will cost you R92 400 (Mon-Tues),
R96 250 (Wed-Fri) excluding VAT
A full page black and white advertisement in Die Burger will cost you R85 250 (Mon-Tues),
R89 100 (Wed-Fri) excluding VAT
A full page black and white advertisement in Die Volksblad will cost you R32 400 (Mon-Tues),
R38 880 (Wed-Fri) excluding VAT
A full page black and white advertisement in The Citizen will cost you R38 688 excluding VAT
A full page black and white advertisement in Rapport will cost you R230 0400 excluding VAT
A full page black and white advertisement in The Star will cost you R140 551.20 excluding VAT
A full page black and white advertisement in The Pretoria News will cost you R40 969.80 excluding VAT

Whereas

A half page black and white advertisement in The Sowetan will cost you R35 520 excluding VAT
A half page black and white advertisement in The New Age will cost you R84 672 excluding VAT
A half page black and white advertisement in Ilanga will cost you R14 571.20 excluding VAT
A half page black and white advertisement in Isolezwe will cost you R19 089 excluding VAT
A half page black and white advertisement in The Sunday Sun will cost you R23 100 excluding VAT
A half page black and white advertisement in The Daily Sun will cost you R47 740 (Mon-Tues), R49 560 excluding VAT
A half page black and white advertisement in The Business Day will cost you R54 000 excluding VAT
A half page black and white advertisement in The Times will cost you R30 080 excluding VAT
A half page black and white advertisement in The Cape Argus will cost you R22 820 excluding VAT
A half page black and white advertisement in The Cape Times will cost you R35 491.50 excluding VAT
A half page black and white advertisement in The EP Herald will cost you R22 950 excluding VAT
A half page black and white advertisement in The Sunday Tribune will cost you R44 712 excluding VAT
A half page black and white advertisement in The Natal Mercury will cost you R28 528.20 excluding VAT
A half page black and white advertisement in The Daily News will cost you R33 504.30 excluding VAT
A half page black and white advertisement in The Natal Witness will cost you R12 744 (Mon-Tues),
R14 148 (Wed-Fri) excluding VAT
A half page black and white advertisement in Die Beeld will cost you R45 360 (Mon-Tues),
R47 250 (Wed-Fri) excluding VAT
A half page black and white advertisement in Die Burger will cost you R41 850 (Mon-Tues),
R43 740 (Wed-Fri) excluding VAT
A half page black and white advertisement in Die Volksblad will cost you R16 200 (Mon-Tues),
R19 440 (Wed-Fri) excluding VAT
A half page black and white advertisement in The Citizen will cost you R19 840 excluding VAT
A half page black and white advertisement in Rapport will cost you R115 200 excluding VAT
A half page black and white advertisement in The Star will cost you R70 275.60 excluding VAT
A half page black and white advertisement in The Pretoria News will cost you R20 484.90 excluding VAT

Looking for the cost to place a quarter page newspaper ad? Work on approximately halving the cost of a half page ad. (Although it doesn’t always work like this). Want to place a third page ad? Or an island solus ad? Or a 20 x 4 column ad? Or a 30 x 6 column ad? Or a 39 x 7 column ad? Or a full colour ad? Or a two colour ad? Or a wrap-around? You’d need to get hold of an advertising rate card by contacting the newspaper in question. But, what if you’re not sure about which newspaper to advertise in? Ah, now there’s a thing. And the reason why you’d be better served by speaking with a media planner or media consultancy. (Or an ad agency if you have one).

By briefing one of them, and by giving them your advertising budget, your target market and your marketing objective(s), they’d be able to recommend the newspapers you should be considering. Not only that, they could give you advertising rates, negotiate these rates (if possible) and make advertising bookings on your behalf.

And maybe – just maybe – you could get all this done for FREE. (Although there would likely be terms and conditions attached). That said, this would be a far better route than approaching newspapers directly. (Unless you have plenty of time on your hands).

Newspaper media planning and media scheduling is a science and best left to the professionals. If you don’t know of a good media planner, I could give you a name or two.

At the end of the day, a good media planner, media placement agency or advertising agency could help you take the guesswork out of newspaper advertising – by replacing subjectivity with objectivity and thumbsucking with data.

Advertising and PR, And Why They Work So Well Together.

Advertising says: We’re a great company
PR: News24 says: They ARE a great company

Differences and similarities between advertising and public relations (PR) have long sparked fierce debate as to which discipline is the most effective in interacting with a target market, whilst delivering the highest return on investment.

Advertising and PR differ substantially. Firstly, in the way in which messages are conveyed to the public and secondly, to the extent of control the business has of the communication once it’s been released into the public domain.

When, where and how one’s advertising appears is controllable. Whereas in PR, whilst message creation is controllable, once the news is out there, there’s no turning back. The fact is, viral communication and the internet render a large portion of corporate communication outside the control of the client, or PR agency. Be it positive or negative. But, this is where fame turns to fortune. As Oscar Wilde said “The worst thing than being spoken about, is not being spoken about”

Despite these differences, PR and advertising go together like salt and vinegar in flavouring the perfect marketing mix. They are both vital tools through which to generate and manage public interest and awareness around a brand or service, with the aim of increasing sales.

PR and advertising also engage the same channels of communication ie print, television, radio and the internet.
As such, the combination of the two communication types is extremely powerful. Consumers receive ‘one way’ messages through advertising, but by adding the power of PR, are able to be moved closer to the purchasing decision through interactive calls to action through the media, online articles and social media platforms.

Whereas advertising raises awareness NOW, and shouts the message from the proverbial rooftop, PR amplifies and supports the message over time, and in a variety of ways – with the aim of keeping the communication uppermind.

Well positioned and timed PR increases public exposure to niche target groups while third-party communicators such as bloggers and journalists increase the importance of the brand message via endorsements through blogs, articles and reviews.

Advertising ensures paid for strategic and creative visual exposure while PR secures free editorial exposure based on tailored, timeous, well-written and relevant news around the product or service. The two combine to ensure that consumers not only see the brand advertised on the various advertising media-types, be they TV, cinema, radio, outdoor, print or online, but come across articles online a day later, see a column in their community paper or a link to the company’s Facebook and YouTube through inbound marketing.

PR adds to an advertising campaign and gives it longevity. It also adds credibility.

Whilst advertising can break through the clutter and stop people in their tracks, it is after all only advertising and is seen as “just advertising”. Public relations, on the other hand, has more credibility and is seen to be more believable. In a cynical world, this is important.

By adding credibility to hype, advertisers get more bang from their buck.

That said, if your marketing budget extends to PR, it makes perfect sense to do so. Just make sure you utilise the services of a PR person who has contacts amongst the press, and who lives in the digital space.

There are too many PR companies out there – in my opinion anyway – that are stuck in the 1980’s and do the same tired things over and over. These days, the action is online and digital PR is the way to go. By appointing a young, savvy, go-getting PR person, you can get great coverage at little cost. And your advertising – be it TV advertising, Radio advertising, Cinema advertising, Print Advertising or Outdoor advertising – will be aided in the process.

How Does Cinema Advertising Compare With TV Advertising?

Whilst both are visual electronic advertising mediums, they don’t really compare – not in terms of reach anyway.

Whereas Television advertising is mass media, reaching millions, cinema advertising is more niched and its reach is limited.

That said, cinema advertising has a lot going for it, and as an ad agency, I’ll often look at incorporating it into a media schedule where there is a product/target audience fit. It’s clear that the advertising medium appeals to many marketers, judging from the number and types of advertisers currently flighting ads on cinema screens around the nation. Advertisers include the large national advertisers as well as small advertisers and hence, its appeal spans the divide.

In my opinion, the strengths of cinema as an advertising medium are the fact that it allows for:

Targeting
Flexibility
Intimacy

It’s also cost-effective and affordable, and comes in far cheaper than TV advertising which, is by and large, expensive.

Television advertising is a national medium, reaching millions of people whereas cinema advertising lends itself more to geographical targeting.

Irrespective of the product being advertised, TV advertising will always have “wastage” – where a percentage of people will not, and will likely never be, interested in your product or service. Whilst this is the case, though, people talk. So whilst someone will have no interest in your product, he or she may know someone who may be – and may well choose to tell that person. The importance of “Word of mouth” can never be underestimated in terms of advertising. People will always be more open to making a purchase if a friend or family member has made a recommendation.

Whilst this is true of both TV advertising and cinema advertising, cinema advertising has less wastage as advertisers can better target their advertising. In terms of targeting, an advertiser with a limited advertising budget could decide which cinemas to advertise in and which not to advertise in. So if, for example, you run a plumbing supplies business in Boksburg, you could advertise in cinemas in only the Boksburg area. Or you could choose a number of cinemas in adjoining areas so as to reach a wider audience. This is a huge advantage as it means that you won’t be advertising in places where your target market is too geographically distant to take advantage of your products or service, and you won’t be wasting money unnecessarily.

Besides deciding on cinema location, the cinema advertiser could also select particular cinema releases. This is important. As Ster-Kinekor and Nu Metro will always make a big splash about forthcoming releases they consider to be “blockbusters”, you’ll have the time to plan your campaign. By booking your ad in the cinemas of your choice, and before a movie that you know will be well attended, you’ll be in a good place.

Ster-Kinekor or Nu Metro will promote the movie with a view to getting bums on seats, and so long as you have an ad that “talks” to those there for the movie, you’ll be positioned to capitalise. You must have a decent commercial to flight though.

There are a number of really good advertising agencies in South Africa as well as a number of really good TV producers who could produce a quality cinema ad for you, and the costs do not have to exorbitant. Whilst a quality TV commercial could set you back R650 000 (and upwards), a cinema ad could be produced for a lot less – depending on the concept, storyboard, location and number of actors.

Unless you’re an established marketer with an unlimited budget for production, there are a number of ways to keep your cinema ad production costs down:

Have it produced in-house (there are a number of talented people about who could help you with this)
Call in a freelance TV producer
Get in a good freelance copywriter and art director (a Google search will likely bring up a few)
Insist on a simple storyboard (requiring no actors, or maybe one at the most)
Consider simple animation or pack shots with titles
Source library music (and avoid well-known soundtracks)

Do your homework and you could probably get a decent cinema ad shot for R150 000 to R180 000 excluding VAT.

Once you have a cinema commercial produced, you’ll need to have a media planner compile you a media schedule which will show you when, where and how many times your commercial will air or flight. If you have an ad agency, they’ll be able to put this together for you. (If you don’t, I could put you in contact with someone).

Advertising on the big screen ticks a number of boxes in my opinion – although it’s product-dependant ie a chocolate bar or new energy drink would lend itself to being advertised on cinema whereas a new brand of cement might not be.

If your target market is children, parents of children, or people aged 34 or less, advertising in cinema is worthy of consideration. Especially when you consider that you have a captive audience that will be receptive to your message – and focused on your message. (Something that can’t be guaranteed with TV advertising).

Also in cinema advertising’s favour is that, as an advertiser, you could bolster your advertising on-screen by, for example, give-aways, leaflets or other promotional items in cinema foyers. (It’s difficult to do this with TV advertising).

At the end of the day, cinema advertising and TV advertising are both excellent advertising mediums, with the former probably more suited to smaller companies with smaller advertising budgets looking for local penetration and television advertising more suited to companies with larger advertising budgets, looking for a national reach.