The research levy debate

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Mongezi Mtati

John Farquhar questions the long term viability of funding SAARF with a 1% levy on ad spend in an article on MarketingWeb.

"The market mood suggests that the funding of media research in this country will probably change," comments John Farquhar.

South African is the only country in the world that levies advertising to fund media research. The South African Advertising Research Foundation (SAARF) is financed through and industry levy of 1% on advertising expenditure (ad spend). Other beneficiaries of the levy are the Advertising Standards Authority (ASA) and the Freedom of Commercial Speech (FOCS).

While SAARF has received kudos internationally for their research, the question has to be asked why other countries have not followed South Africa's lead? Next year Millward Brown plans to launch its Target Group Index, which is used in more than 30 countries.

Farquhar mentions that Print Media SA is questioning the advertising levy and members will debate the issue at a meeting to be held on Thursday, September 12.