Q & A with Oracle Airtime Sales

OATS: Thinking of your current client base, what kind of percentage organic growth in budgets are you anticipating in the calendar year 2010?
It is questionable whether you could refer to this as real growth. More of a steady return to “pre-crisis levels” over the next 2 years. At best a response to media inflation, if there is any.
OATS: Apart from clients who may have a specific interest in, or affinity with, the World Cup, do you believe others will adopt the view that they should rather avoid or minimise advertising exposure during the period of the tournament? Would this be your personal advice?
Feelings are mixed. Some clients want to get as close as they can, subject to the FIFA restrictions and others want to stay away. I would advise clients that have no logical involvement in 2010 to stay away. There is no point in paying inflated rates (TV and Outdoor in particular) for audiences that are not primary to your marketing objectives and/or trying to anticipate disrupted TV viewing patterns for the remainder. That doesn’t mean that other normal advertising activity should not take place in unaffected media. No reason why Pick n Pay or Clicks shouldn’t be doing their normal stuff in local press for instance. Don’t force an involvement where it doesn’t fit and don’t get caught up in the clutter if your product doesn’t need day by day advertising pressure.
OATS: Would you agree with the view that the World Cup will stimulate growth in adspend beyond normal expectations and could you estimate by what extent?
It will stimulate adspend but it’s impossible to estimate because many of the major sponsor budgets will come from overseas budgets. A lot of it will depend on the exchange rate. If the Rand goes for a slide then adspend will pick up. Year on Year (Confed Cup v 2010) it’s got to be t least 30% bigger over those 6-8 weeks. A lot of spend will go into activations and fan park events at the expense of conventional media exposure.
OATS: Are you anticipating a change in adspend trends with a spike during the tournament and a lull before and after?
Certainly a lull afterwards but not sure that there will be a lull before. Adspends should start to build from AfCon Cup in February and peak during 2010.
OATS: As a massive television event, do you think we will see a shift in adspend by media-type? Do you think TV may gain adspend at the expense of other media?
TV and Outdoor should gain some share but it’s not an open cheque book. Looking at what happened in Europe and Germany specifically, a lot of other media picked up ad-revenue as well. Theres got to be a big win for online media as well.