SA in Africa is closing the gate

Sean McCoy, CE of branding and design agency HKLM, says the idea that SA is the natural gateway to Africa for global consumer brands and advertising is already being challenged. Until now, many countries have relied on SA expertise to get their communications industries under way. That is changing. McCoy says Nigerian agencies, specifically, are starting to "export" their skills.

He says demand for advertising, branding, media and other skills is "thundering ahead" in West Africa. Advertising spending in Africa is still dwarfed by that in other parts of the world but Philip van Rensburg, Cape Town-based head of advertising group Draftfcb's African operations, says Africa will become "very important" within 10 years. He adds, "SA will soon be less than Nigeria."

Josh Dovey, CEO of media agency OMD, says there are still hazards associated with Africa. For example, media monitoring in some countries is almost non-existent. "You mustn't assume that because you have booked and paid for advertising to appear, it will happen."

Much of the new demand is led by multinational brands, lured by high GDP growth rates when many developed markets are stagnant. Dovey says last year's soccer World Cup accelerated interest. "Many marketers, particularly Americans, had not been exposed to Africa before."

McCoy says there is still scope for SA agencies to profit from Africa's growth. But he says, "When we first started pitching for business in West Africa, we had almost no competition and were paid a premium. Now everyone is there and it's much more competitive."

Some SA skills, he says, are still in demand. Plenty of agencies offer traditional advertising such as radio, print and outdoor. But specialist skills like branding and digital are in short supply in many regions.

However, he says anyone hoping to do well in Africa must be prepared to get their hands dirty. "You can't go in as an SA agency and expect to be welcomed with open arms. It's about building relationships, partnerships and trust. That means you must actually go there. You can't understand Africa from behind a desk in Jo'burg."