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Loadshedding hits advertisers hard

IOL Technology (Friday, May 09, 2008)

While Eskom has temporarily suspended load shedding, it is expected to continue for years to come and industry players expect a move towards new methods of advertising, particularly via cell phones. The SABC recently reduced their long-term advertising rates by 15 percent, in response to "difficulties faced by the South African advertiser, brought about by power outages, escalating interest rates and soaring fuel prices". The move has been interpreted in part as an indication of the dent that load shedding has made in the value of television advertising. According to the South African Advertising Research Foundation, the extent of revenue and viewership loss is not known as no figures are currently available. However, according to City Power, the areas in Johannesburg that are usually affected by load shedding between 6 and 10pm include large parts of Roodepoort, Eldorado Park, Lenasia, Sandton East, north west Johannesburg and Randburg, as well as the whole of Soweto. CEO of mobile marketing company Multimedia Solutions, Riaan Groenewald, says that the millions of rands spent on advertising during prime time are therefore most likely not reaching the people in these areas. The areas are affected once or twice a week (except during the current suspension period), depending on scheduling. "That is in Johannesburg alone," says Groenewald. "What of the other cities and provinces in the country?" He adds that "television advertising value clearly is being eroded". Groenewald is one of many mobile marketing players who are confident that there will be a shift towards mobile advertising, particularly if load shedding persists. While the television is off during a power outage, a cellphone remains on, as long as the battery is charged. This means that consumers remain accessible to advertisers, who can market their clients' products and services in various ways. Mobile websites (mobisites) provide opportunities for banner or other web adverts, while mobile games can be branded or used for in-game advertising. MMS campaigns, such as those used by large stores like Macro, are another option. There are reportedly 36 million subscribers on South African cellular networks, a figure, which, as Groenewald points out, is significantly higher than the estimated 24,5 million adult television viewers in the country.

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