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Home Agencies Media agency

SA media agencies must widen focus to be more competitive

by Glenda Nevill
February 11, 2022
in Media agency
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SA media agencies must widen focus to be more competitive
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The recent release of the SCOPEN research into the state of play at South African media agencies has revealed a need to “leave their comfort zone and go far beyond their actual offering”.

That’s the word from Cesar Vacchiano, CEO of Scopen International and author of the Agency Scope South Africa 2021/2022 report. He says, “There are lots of opportunities to develop so that their clients discover everything they have to offer and that will allow their fees to increase”.

Vacchiano’s five takeouts from the survey he believes media agencies need to know are:

  1. According to clients’ responses, South African media agencies are just focused in media planning and buying. They are not yet offering solutions in new territories such s social media, influencers, branded content, digital production and marketing automation
  2. Media agencies are being more active in new business now than in the past
  3. Marketers/media agencies relationships are longer than marketers/creative agencies relationships (closer to 5 years against closer to 4 years)
  4. Media agency’s fees are three times smaller than creative agency’s fees. But when paying incentives, one quarter of marketers pay an incentive to their creative agencies while one third of marketers pay an incentive to their media agency
  5. Even though marketers believe that media agencies contribute by 34% to their business growth and that creative agencies contribute by 26%, 14.8% of marketers are thinking of changing their media agency, very similar to the 14.5% that are thinking of changing their creative agency  

Vacchiano points out the differences between the findings for South Africa, and those globally.

“In other countries media agencies are offering diversified services. They are especially strong in data, and have invested in hiring the best planners and creative leaders to offer strategic planning and creative solutions as well. These movements are allowing media agencies to have a higher position in marketers’ minds and sometimes even being perceived as leading agencies ahead of the marketers’ creative partners,” he says.

In terms of the relationship between creative and media agencies, Vacchiano says we co-operate far less here than in other countries.

Data and clients’ feedback shows that creative and media agencies collaborate together far less in South Africa than in other countries. “We see more and more often creative and media agencies combining forces (talent and capabilities) when pitching for clients’ business.

“Media agencies have the data, understand the trends better, consumer, media … and creative agency’s have the strategic and creative talent. So both teams working together using data, identifying insights and producing big ideas combined with media agencies’ expertise produce 360º proposals for clients that are very difficult to find when each entity works separately and presents independently in creative and media pitches.”

And while the lines are blurring globally, in South Africa both types of agencies offer differentiated talent and services.

Increased digital growth, much of it spurred by Covid-19, presents major opportunities and is bringing interest and investment. But, says Vacchiano, “The challenges are still huge mainly related with marketers better understanding of digital media, its possibilities and effectiveness”.

The research undertaken during Covid-19 has presented difficulties, such as fieldwork.

 “Interviewees just dedicated one hour of their time to our videoconferences as programmed in their diaries. When we met with them at their offices, it was more relaxed and sometimes interviews extended to share more points of view,” he says.

“However marketers were very open to participate because they understand now that AGENCY SCOPE is a study that allows agencies to understand marketers’ needs better and that it is used by agencies that subscribe it to offer a better service to their clients. They talk more openly because they know everything is confidential and just big research with a solid statistical base to analyse the state of the industry accurately.

“We have also noticed that agencies have had difficult times in approaching prospective clients. It wasn’t easy to do so when everybody was working from home. On the other hand, they have been focused on helping their existing clients trying to solve their needs quicker than ever (many in new territories) and demonstrating that they were capable of offering solutions in digital territories, brand purpose, sustainability.”

Differences in the current research saw researchers, for the first time in South Africa, approaching media owners for their opinions about media agencies.

“They (20 of the leading media owners) have rated media agencies across a number of relevant attributes. There are some interesting results, which have been shared with the media agencies that have subscribed to the study.  This is definitely something we will be doing again in future.”


Tags: advertisingAgency SCOPECesar Veracchiocreative agencydataDigital MediaglobalIASIndependent Agency Selectionmediamedia agencyScopenSCOPEN InternationalSouth Africa

Glenda Nevill

Glenda Nevill is the editor of www.themediaonline.co.za She is also a writer, communicator, dog walker, mother, worshipper of Burmese cats. Loves rugby and beach walks. Hates bad grammar and bad manners.

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