MA(SA) proposes new research currency

For it to be viable and sustainable, the proposed new industry research survey will be funded through a voluntary subscription model requiring a minimum number of subscribers – thought to be between 60 and 90.

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It's estimated that Phase 1 of the survey will cost R35m per annum to deliver, although it might be less than that. When the other components are added (Phase 2 and 3), the total cost will be R55m per annum.

The best way to calculate contributions is as a percentage of ad spend. A three-tiered approach is thought to be the fair way to do it.

Tier 1: 0.5% of annual ad spend up to R250m with a minimum contribution of R35,000;

Tier 2: Plus (if applicable) 0.4% of annual ad spend between R250m and R500m;

Tier 3: Plus (if applicable) 0.3% of annual ad spend in excess of R500m with any subscription caped at a maximum of R2.5m per subscriber.

New research requires a new funding model and the funding model of SAARF and AMPS is dead and buried with AMPS. A new levy system is not feasible and too complicated. “It is important to get a high degree of participation and a voluntary subscription model is the most transparent, fair and equitable way of doing this,” explains Greg Garden, CEO of the Marketing Association of South Africa (MA(SA)).

He was presenting to industry who turned out in record numbers for a joint announcement of the proposed new media marketing research survey that best meets the needs of the marketers and agencies by the MA(SA), the Advertising Media Forum (AMF) and the Association for Communication and Advertising (ACA) at the Johannesburg Country Club in Woodmead on Thursday, 2 March.

The proposal comprises three phases.

Phase 1 will deliver the replacement survey for AMPS. While the categories will remain the same, the research will undergo a complete overhaul so that it is relevant, refreshed and efficient. Marketers' and agencies' input will be key in developing the new survey. It was felt that for South Africa, the best way to do this type of research is still the hard way, that is paper diaries and face-to-face interviews. Given that the market today changes so quickly, there is a need for in-between research and testing the market more frequently.

Phase 2 will give insights into consumer behaviour and brand interaction. The best way to do this is through 'a day in the life' diary. This will be done more frequently, with more frequent releases, giving richer insights.

Phase 3 will track shifts in behaviour and new trends. It will include the addition of a quick and focused survey that will provide a snapshot in time of behaviour and interaction with product categories or specific brands.

The proposal follows extensive consultation with the industry, which also found that 66% of marketers also want an industry body. The South African Audience Foundation (SAARF), which delivered AMPS for over 30 years, will be transformed into a new Marketing Research Foundation, which will be resourced to handle the scope and final implementation plan for this project if it goes ahead.

The report will only be available to subscribers. It is only when enough marketers buy into the new survey that it will be put out to tender to get a firm understanding of what it will cost.

At the session, Broadcast Research Council CEO Clare O’Neil said that what was happening was fantastic and she expressed her desire to cooperate and assist in finding cost effective ways to make this work. “Lets start talking. We can find ways to be effective.”