Is Netflix a threat to TV advertisers?
Netflix has been live in South Africa for just over 2 months now and comes at the fraction of a price for a DSTV subscription. Although there hasn’t been a dramatic decrease in DSTV subscriptions and a sudden influx in Netflix subscriptions, the opportunity opens up a new playing field for other online streaming services to become widely accessible to South Africans. However this may or may not come at a cost to TV advertisers. Netflix has continued to resist advertising since inception, making it the perfect platform for consumers but an absolute nightmare for advertisers. DSTV still holds a competitive advantage in South Africa due to the high demand for sport and therefore we do not foresee Netflix being a threat for TV advertisers in the near future.
Industry Data and Statistics
Consumers left increasingly confused by rise of native advertising
Drum Magazine recently reported that consumers are finding it increasingly difficult to differentiate between advertising and editorial content as publishers muddy the waters through their choice of wording and placement, according to new research. Although this might be a problem for publishers who are trying to keep a distinct line between content and adverts, it may not be such a problem for advertisers. For many years advertisers had to constantly push through the negative advertising stigma associated with print adverts in magazines. Many readers would skip adverts entirely simply because the content was paid for. Knowing that readers are now embracing both content and adverts as a whole provides insight into their reading patterns and behaviours. Advertisers can now tailor their adverts to suit the reader in the form of short stories, user generated case studies and guest blog posts.
Exciting Media Campaigns
Rhodes Food Group creates a commercial highlighting the love of food
Petar Spiljevic, together with Owen Kessel Leo Burnett, created a commercial about the love of food and the simple beauty of sharing it. Advertisers, over the recent years, have been shying away from adverts that focusses solely on products but rather about sharing a story and a journey. We think it’s perfectly articulated throughout this video.
Is mall advertising a part of your media strategy?
Independent research company, Millward Brown, conducted a recent case study that showed in-mall media to be as effective as TV advertising. “The numbers do not lie,” says Deshendri Smit, Primedia Unlimited’s Mall Division Executive Head of Sales. “Over this research period, while only making up 10% of the overall media spend, in-mall media accounted for a very distinct 12% increase in sales and audience attendance.” Due to the power of proximity for point of purchases, in-mall advertising is a great way to go for advertisers with physical retail stores located in the mall. Offering unique specials to passers by has always been a great way to attract new customers but creating brand awareness through close advertising is proving to be effective for a successful ROI.
What’s happening in Africa
Namibia’s super-fight open’s up the way for advertisers
Paulus Ambunda intends to prove that Namibia is on par with the world’s top boxing nations when he puts his IBO bantamweight title on the line in a unification contest against Mexico’s WBA champion Moises ‘Chucky’ Flores on 7 May. This one of kind contest is a milestone for Namibian history and is set to be beamed live on SuperSport across the African continent and around the world. But what does this mean for TV advertisers? With the spotlight being on the upcoming fight, advertising space in Namibia will soon be sold to businesses looking to advertise on Supersport, and possibly NBC, during the fight. Not only do these businesses reach a Namibian audience but a global one as well. Negotiations are currently under way with NBC to sell some advertising space to local corporates which do not necessarily have a global footprint.