Adspend and small publications out in the cold

The Association for Communication & Advertising (ACA) made a presentation to the Print & Digital Media SA transformation task team recently, outlining the challenges in allocating advertising media budgets to small independent publications.

The task team was formed last year to investigate anticompetitive practices by large publishers, advertisers and marketing agencies. Former City Press editor Mathatha Tsedu heads it

ACA board member and CEO of advertising agency Ebony & Ivory, Paul Middleton, says media buyers are unable to allocate media budgets to unknown publications that do not have Audit Bureau of Circulations (ABC) accreditation.

"Small publications cite difficulties in getting access to advertising because they are unable to prove circulation," says Middleton. "But it costs only R400 to become a member of the ABC."

'No free handouts

He says agencies that manage clients' advertising budgets cannot advertise in publications that do not have ABC certification. "There are no free hand-outs. At the moment we don't even know who these publishers are. They need to market themselves," he says.

Khathorus Mail publisher Sipho Khumalo says advertisers have consistently ignored his 10-year-old publication.

"The general perception is that we are unreliable and don't exist," he says. "But there's a facility created by Print Media SA where the ABC figures of small publishers are available."

Though he concedes that there are some fly-by-night publications, Khumalo says the majority are credible.

He says Khathorus Mail, a free-sheet distributed in the region that covers Spruitview, Vosloorus and Katlehong, has a daily circulation of 11,000 with an average of eight readers a copy.

Its most consistent advertiser is hardware retailer Build It, as well as other small businesses in the area. However, this has not been enough to maintain the business. "The fact that I've survived for the past 10 years doesn't mean I'm profitable," he says.

Small publishers need to unite for a stronger voice

Publisher of the Limpopo Mirror Anton van Zyl says he is not confident of the task team's chances of success, after Times Media Group (TMG) and Caxton Publishers withdrew from the process.

Van Zyl says small publishers need to unite in their respective regions to be a stronger voice.

"We're not really active in the task team but we assist other small publishers where we can," he says. "I'm a bit sceptical, but any debate is positive.

"We started LiN Media on our own to represent small publishers in Limpopo and a few outside the province. We assist each other on common issues, uplift standards and make presentations together."

Van Zyl says there is much animosity against the bigger groups, which tend to act like bullies. "Most of the complaints we get are around undercutting and other unethical marketing tactics."

Despite this, says Van Zyl, the Limpopo Mirror has remained profitable with a daily circulation of between 4,000 and 5,000 copies sold in the Thohoyandou region.

"We're doing OK because we sell our paper and function in an established market," he says.

Tsedu says without the participation of Caxton and TMG the task team may shut down. "If two of the four big publishers aren't participating, we'll close shop. We'll draw up a report on existing information, but without any findings," he says.

Source: Financial Mail, via I-Net Bridge