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Ad-funded programming: tonic for crisis-hit broadcasters?

3 Jul 2009 07:212 commentsBizLike
Vulnerable and financially unsustainable African broadcasters, including the ‘mighty' SABC, which generate a big slice of their total revenues from advertising, are feeling the pinch of the current hostile economic climate as companies slash their marketing budgets and others just close. One marketing expert believes, however, that where there is a will, there is always a way.
“Instead of relying only on 30-60 second ads, programme sponsorships and inserts to generate revenues, broadcasters should promote and develop the concept of advertising-funded programming (AFP), which could be a good recipe in these difficult economic times,” Kgaugelo Maphai, MD of Omnicom Consulting and former SABC radio national sales manager, told Bizcommunity.com this week.

AFP is a form of advertising whereby a client develops his own content, gives it to the production house and buys time from a broadcaster to flight the final product.

Content must engage with the audience

“The final product must be entertaining, however… vibrant and engaging with viewers and reflect the line of policy of the channel's programming strategy,” Maphai pointed out.

“AFP gives a client an opportunity to come up with any interactive programme, which could be a game show, or a sport or any educational programme.”

Vodacom's Yebo Millionaire, produced by Urban Brew Studios and flighted on SABC, is one concrete example of an AFP.

Maphai also previously worked for East Coast Radio, Peermont and e.tv; his company has no relation with overseas-based Omnicom Group.

“We are in the recession and I don't think in times like these many broadcasters, even the SABC, are willing to produce or commission too many products. So, AFP is the way to go because it is a win-win situation and helps both clients and broadcasting houses to save money,” he added.

AFP coming to SA, but…

“AFP is coming to SA, but not as fast as it should be, but this is the right time and right climate.

“Creative guys would love the AFP. Here, broadcasters would have a total control on their production costs, and clients pay for production costs and for media exposure, which are fairly negotiable.

“AFP also allows clients to use the media in a more impactful way, helps viewers to engage intensely with the brand, and ultimately gives clients another option to bring big value out of their brand.”

He added: “As long as we have products on the shelves and consumers still exist, we will have advertising. So there is no need to despair.

“You should try AFP, for example, for 13 weeks and give it a break and see how it impacts on the market, and you come up with another series. It should be a cyclical episode.”

It has been established that when broadcasters send people overseas to buy content, they are forced to take the good and the bad, and as a result, some of this content - probably the boring shows - end up not being used. That's a waste of resources.

Maphai firmly believes that broadcasters would rather focus most of their energy and resources on local content, which he said is doing well in terms of AR (audience ratings).

He cited Rhythm City (e.tv, 6.30pm, Monday to Friday) as one example of local content's success story.

For more on AFP, email Maphai at .
 
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About Issa Sikiti da Silva

Issa Sikiti da Silva is a winner of the 2010 SADC Media Awards (print category). He freelances for various media outlets, local and foreign, and has travelled extensively across Africa. His work has been published both in French and English. He used to contribute to Bizcommunity.com as a senior news writer.View profile and articles...
Mondli Trevor Jwara
Ad-funded programming-
I agree with Maphai, what I've also noticed is that we hardly ever have product placement on our local programmes. This I believe is a less intrusive way of exposing products to a specific market without taking away from the creative quality of the programme, this can be achieved through visuals or mentions. I believe that production houses have to be incentifised for coming up with creative ways including products to their story-lines, the best watched local soapy ( Generations ) has no product placement and why that is.....baffles me they have a bar called Tsalanang with no single authentic product on their shelf. I know they used to have Amstel at some stage but something went sour with that deal, I also know that PEP did something with them and that was commendable.

But I believe more can be done in this avenue, on both the story side to make it more believable and we may even have products written into the story which would make for a good flow in the final product. This would require this would require more collaboration between production companies and content managers. Companies can run full campains on a production as long as proper communications between all stakeholders is good. Posted on 3 Jul 2009 11:11
Michelle
An expensive form of advertising for clients-
Having worked on television sponsorships for broadcasters as well as clients, I agree that AFP is a good idea going forward for SA however, I must hasten to add that it is a very expensive option for the advertiser since they pay to produce the programme, they pay the broadcaster to flight it but only get airtime value back for the flighting cost (no airtime return for the production cost). So unless the broadcasters are willing to change that policy it works out way too expensive for an advertiser. Posted on 9 Jul 2009 16:46
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