Motive: Is there a viable market for black ad agencies in SA?

by Lufuno Makungo (@LMwonder) While I cringe at the title of this article, it’s a fair question. It’s like asking if there’s a viable market for Chinese advertising agencies in China. But the question is relevant here, given our political history and the current economic structure. The most-transformed sector in the county is the public sector, simply because we have the political power.

Broad and interlinked, not narrow

In talking transformation, we often narrow it down to only one thing — when the issues are broad and interlinked. In advertising, lack of transformation refers to the white-dominated industry but we fail to breakdown other parts of the problem: there are many areas also in need of transformation, besides white people.

When I heard the news that MTN and Edcon were looking for new agencies, I wasn’t excited about it and that lack of excitement was justified when I discovered the outlined pitch process. Both companies have been said to favour global agencies over local ones. While I believe there’s a viable market for black advertising agencies in South Africa, let’s unpack the challenges that make it difficult for those agencies to thrive.

Big multinational companies are not yet keen to give business to black agencies unless mandated to do so by government. That means, for black agencies to thrive, they would have to largely rely upon government businesses but it’s also not guaranteed that those businesses would go to black agencies. Some of the biggest government accounts, such as South African Tourism and Telkom, have always been largely handled by big multinational agencies, the ANC account included.

Sources of business

The biggest excuse for not awarding enough business to black agencies is lack of capacity, an excuse that makes no sense. There’s hardly an agency with the capacity to handle new business but they upscale as they win new businesses. If, today, you award Ogilvy & Mather South Africa or FCB Africa an Absa account, neither will have the capacity to service the account but will have to hire more staff. You don’t hire people you don’t need to build capacity for future business; it doesn’t make business sense. Any agency can build capacity if needs be, so the capacity excuse is flawed.

Let’s further explore other possible sources of business for black agencies. As mentioned, government is meant to be the biggest one but it is currently not doing enough to support black agencies. Unfortunately, the agenda is never to support and that’s what happens when you have incoherent regulations. On one side, you talk transformation; on the other side you have pitch criteria that don’t support transformation, such as the minimum number of years in operation. You won’t find a new agency that’s been operating for five years (simply because it’s new) so the years-in-operation disclaimer should have zero pitch-point allocation if the aim is to transform. The criteria should be skills-based and that may be verified by looking at individuals’ CVs and portfolios.

Another source would be other black companies looking for advertising services. Some of those are quick to advise you to start your own agency but also quick to let you down. A large part of black companies looking for black agencies is because they can’t afford big white agencies. Already, that’s a problem. If you can’t afford a white agency, what makes you think you can afford a black agency?

Determining marketing budgets

Some of the black businesses I’ve worked with lacked the internal marketing resources, and the business owners lacked the marketing knowledge. We would spend more time talking budget than the actual work and, eventually, the relationship would collapse because of budget.

When you ask for a marketing budget, they would tell you to present a campaign with a budget proposal. But that’s not how you determine a marketing budget. The marketing budget should be a percentage of your gross revenue or projected gross revenue, while also factoring in your grow strategy.

The truth is that there are many black businesses that are keen to give black agencies business but for almost nothing. Most of them don’t have marketing budgets and don’t even know how much to spend on marketing. It’s difficult to help them to work out the marketing budget because, often, they are not keen to disclose their revenue and they lack clear growth strategies. One client once told me they could only pay after 60 days and my question in response was: what would you do if your employer tells you they can only pay your salary after 60 days? They couldn’t answer.

Won’t help anything

Pushing white people to transform when we are not transformed ourselves won’t help with anything. For the advertising industry to transform in terms of ownership, it needs transformed pitch criteria and also transformed black clients which respect the industry and what it does.

Most black clients I’ve worked with are as untransformed as white people but they are not aware of it. If all black people were transformed, we wouldn’t be blaming white people for lack of transformation. Without black-transformed clients, black agencies will struggle to survive. Without more-accommodating corporate and government regulations that support small businesses, black agencies will always struggle to grow.

91 Comments
  • Boniseni
    Posted at 22:02h, 28 March

    Under: SOURCE OF BUSINESS

    -YES i extremely agree , black companies do want to work with black advertising agencies only because they expect black advertising agencies to be cheaper than white agencies, this black companies fail to understand that as a black agency you still use the same material , same resources , same expertise , same quality products as white agencies
    – An example: Its like this black companies expect you as a black spaza shop owner to sell them a 2liter Coke for R5,00 while they buy it for R14,00 at Pik & Pay, forgetting that the Coke product quality & manufacturer is the same. & that the wholesaler price charged to you as black owned spaza & the white owned spaza was the same

    “It all boiles down to lack of respect towards us as a black agencies”

    Under :DETERMINING MARKETING STRATEGY:

    Yes I extremely agree , Yes black businessses are keen to give black agencies business but they dont have the marketing budget & they dont know how much should the budget be, only because the black business owners have the money & budget to extravagantly spend on their families & themselves while not wanting to spend a penny on marketing budget for their business
    – Even if you want to meet them half way financially as a black advertiser by asking them how much revenue they make they still don’t want to disclose that to you

    – & this black businesses have a mentality of thinking that you as a black agency need them more they need you

  • gamefly free trial
    Posted at 06:38h, 28 May

    It’s very effortless to find out any topic on web as compared to textbooks, as I found this
    post at this web page.

  • gamefly free trial
    Posted at 01:10h, 30 May

    I like it when individuals come together and share views.
    Great blog, stick with it!

  • how to get help in windows 10
    Posted at 12:33h, 30 May

    It’s not my first time to go to see this web page, i am visiting this website dailly and take good data
    from here all the time.

  • gamefly free trial
    Posted at 22:57h, 30 May

    Wow! This blog looks exactly like my old
    one! It’s on a entirely different subject but it
    has pretty much the same layout and design. Wonderful choice of colors!

  • gamefly free trial
    Posted at 12:00h, 31 May

    I think the admin of this web page is in fact working hard in favor of his
    web site, since here every stuff is quality based stuff.

  • gamefly free trial
    Posted at 10:02h, 01 June

    Hello, yes this paragraph is really nice and I
    have learned lot of things from it about blogging. thanks.

  • gamefly free trial
    Posted at 12:35h, 02 June

    Hi there! This is my first visit to your blog! We are a collection of
    volunteers and starting a new project in a community in the same niche.
    Your blog provided us useful information to work on. You have
    done a wonderful job!

  • gamefly free trial
    Posted at 02:25h, 03 June

    Howdy! I know this is kind of off topic but I was wondering which blog platform are you using for this site?
    I’m getting sick and tired of WordPress because I’ve had
    problems with hackers and I’m looking at options for another platform.

    I would be awesome if you could point me in the direction of a good platform.

  • gamefly free trial
    Posted at 10:04h, 03 June

    bookmarked!!, I like your blog!

  • gamefly free trial
    Posted at 19:38h, 03 June

    I just like the helpful info you supply on your articles.
    I’ll bookmark your blog and check once more right here
    regularly. I’m relatively certain I’ll learn lots of new stuff proper right
    here! Best of luck for the next!

  • gamefly free trial
    Posted at 19:51h, 04 June

    This piece of writing provides clear idea designed for the new users
    of blogging, that actually how to do running a blog.

  • gamefly free trial
    Posted at 22:36h, 07 June

    Truly no matter if someone doesn’t understand afterward
    its up to other viewers that they will assist, so here it happens.

  • ps4 games download
    Posted at 10:05h, 08 June

    Can I simply just say what a comfort to discover somebody who genuinely
    understands what they’re talking about on the net.

    You actually know how to bring a problem to light
    and make it important. A lot more people need to read
    this and understand this side of the story. I was surprised that you are
    not more popular given that you surely have the gift.

  • http://tinyurl.com
    Posted at 04:20h, 10 June

    Hi there, I check your blog like every week.
    Your writing style is awesome, keep it up!

  • Gustavo Reines
    Posted at 07:06h, 12 June

    I will right away take hold of your rss feed as I can’t in finding your email subscription link or newsletter service. Do you’ve any? Kindly let me realize in order that I may just subscribe. Thanks.

  • playstation 4 best games ever made 2019
    Posted at 15:48h, 12 June

    Wow, awesome blog layout! How long have you been blogging for?
    you made blogging look easy. The overall look of your web site is great, let alone the content!

  • playstation 4 best games ever made 2019
    Posted at 19:02h, 12 June

    Hey, I think your blog might be having browser compatibility issues.
    When I look at your blog site in Firefox, it looks fine
    but when opening in Internet Explorer, it has some overlapping.
    I just wanted to give you a quick heads up! Other then that, terrific
    blog!

  • quest bars cheap
    Posted at 09:40h, 14 June

    I’m amazed, I have to admit. Rarely do I encounter a blog that’s equally educative and engaging, and let me tell you, you’ve hit the nail on the head.
    The issue is something which too few folks are speaking
    intelligently about. Now i’m very happy that I found this in my hunt for something relating to this.

  • quest bars cheap
    Posted at 05:20h, 15 June

    hey there and thank you for your info – I’ve certainly
    picked up something new from right here. I did however expertise
    several technical issues using this website, as I experienced to reload
    the web site a lot of times previous to I could get it to load properly.
    I had been wondering if your web host is OK?
    Not that I’m complaining, but sluggish loading instances
    times will often affect your placement in google and can damage your high quality score if advertising and marketing with Adwords.
    Well I’m adding this RSS to my e-mail and can look out for
    much more of your respective fascinating content. Ensure
    that you update this again soon.

  • tinyurl.com
    Posted at 01:26h, 19 June

    I like the helpful info you provide in your articles.
    I will bookmark your blog and check again here regularly.
    I’m quite sure I will learn many new stuff right here!
    Good luck for the next!

  • plenty of fish dating site
    Posted at 06:18h, 22 June

    What’s Taking place i am new to this, I stumbled upon this I’ve discovered It absolutely useful and it has
    helped me out loads. I’m hoping to contribute &
    assist different customers like its helped me. Great job.

  • Google
    Posted at 22:45h, 23 June

    Google

    Below you will discover the link to some websites that we believe you need to visit.

  • type 1 diabetes
    Posted at 08:59h, 26 June

    type 1 diabetes

    […]Every the moment in a whilst we decide on blogs that we study. Listed below are the most up-to-date sites that we decide on […]

  • how to get help in windows 10
    Posted at 23:03h, 28 June

    Hello! Do you know if they make any plugins to help with
    Search Engine Optimization? I’m trying to get my blog to rank for some
    targeted keywords but I’m not seeing very good success.
    If you know of any please share. Thank you!

  • gay bondage equipment
    Posted at 09:21h, 30 June

    gay bondage equipment

    […]although sites we backlink to beneath are considerably not associated to ours, we really feel they are in fact really worth a go by, so have a look[…]

  • storeholidayhours
    Posted at 09:00h, 01 July

    storeholidayhours

    […]that is the end of this article. Right here you will obtain some sites that we believe you will appreciate, just click the links over[…]

  • abroad education consultants in delhi
    Posted at 17:24h, 01 July

    abroad education consultants in delhi

    […]one of our visitors not too long ago suggested the following website[…]

  • 1Pro shipping (604) 721-4555
    Posted at 20:56h, 01 July

    1Pro shipping (604) 721-4555

    […]here are some hyperlinks to web pages that we link to because we assume they may be really worth visiting[…]

  • فني ستلايت مبارك الكبير
    Posted at 14:06h, 02 July

    فني ستلايت مبارك الكبير

    […]The information and facts talked about inside the post are a few of the most effective readily available […]

  • best lube for sex
    Posted at 08:49h, 03 July

    best lube for sex

    […]here are some hyperlinks to websites that we link to for the reason that we feel they’re worth visiting[…]

  • podcast
    Posted at 12:39h, 03 July

    podcast

    […]here are some links to web pages that we link to due to the fact we feel they may be worth visiting[…]

  • Google
    Posted at 13:14h, 03 July

    Google

    Please take a look at the web-sites we comply with, which includes this one particular, because it represents our picks through the web.

  • agen poker terpercaya
    Posted at 22:05h, 03 July

    agen poker terpercaya

    […]we like to honor a lot of other web web-sites on the net, even when they aren’t linked to us, by linking to them. Below are some webpages really worth checking out[…]

  • Dulles airport pick up & drop off
    Posted at 09:03h, 04 July

    Dulles airport pick up & drop off

    […]Here is a superb Weblog You might Uncover Interesting that we Encourage You[…]

  • adam and eve sex toys
    Posted at 13:59h, 04 July

    adam and eve sex toys

    […]Here is a good Blog You may Uncover Interesting that we Encourage You[…]

  • Free Funding
    Posted at 21:53h, 05 July

    Free Funding

    […]Here is a superb Weblog You might Come across Fascinating that we Encourage You[…]

  • home decor ideas on a budget
    Posted at 07:42h, 06 July

    home decor ideas on a budget

    […]here are some links to web sites that we link to simply because we feel they’re really worth visiting[…]

  • daftar sbobet
    Posted at 07:43h, 07 July

    daftar sbobet

    […]Here is a good Weblog You might Discover Intriguing that we Encourage You[…]

  • Ντετέκτιβ Θεσσαλονίκη
    Posted at 21:35h, 07 July

    Ντετέκτιβ Θεσσαλονίκη

    […]Here are a few of the sites we suggest for our visitors[…]

  • Remove The Background From An Image
    Posted at 07:38h, 08 July

    Remove The Background From An Image

    […]always a massive fan of linking to bloggers that I love but really don’t get a whole lot of link love from[…]

  • AOL Mail Login
    Posted at 20:10h, 08 July

    AOL Mail Login

    […]check below, are some completely unrelated sites to ours, nonetheless, they are most trustworthy sources that we use[…]

  • quest bars cheap 2019 coupon
    Posted at 02:06h, 09 July

    Excellent weblog right here! Also your site so much
    up fast! What web host are you the use of? Can I get your affiliate link
    for your host? I wish my web site loaded up as quickly as yours lol

  • hasta yatağı kiralama
    Posted at 09:01h, 09 July

    hasta yatağı kiralama

    […]The information talked about in the write-up are some of the ideal available […]

  • internet marketing company
    Posted at 08:14h, 11 July

    internet marketing company

    […]very handful of web-sites that occur to be in depth below, from our point of view are undoubtedly very well worth checking out[…]

  • Philadelphia Elibrary
    Posted at 20:23h, 11 July

    Philadelphia Elibrary

    Explore electronic resources for free, thousands of eBooks, accounting eBooks, business eBooks, Marketing eBooks, Accounting eBooks, Banking eBooks, Design eBooks, Customers eBooks, Travel and Tourism eBooks… and more

  • vagina stroker
    Posted at 17:30h, 12 July

    vagina stroker

    […]Here is an excellent Weblog You might Come across Fascinating that we Encourage You[…]

  • jockstrap try on
    Posted at 18:13h, 12 July

    jockstrap try on

    […]Sites of interest we’ve a link to[…]

  • turtle bracelet
    Posted at 21:58h, 13 July

    turtle bracelet

    […]we like to honor quite a few other world-wide-web sites on the web, even though they aren’t linked to us, by linking to them. Underneath are some webpages really worth checking out[…]

  • gay sex toys
    Posted at 10:19h, 14 July

    gay sex toys

    […]one of our visitors lately suggested the following website[…]

  • Hamburger sv
    Posted at 12:28h, 14 July

    Hamburger sv

    […]Wonderful story, reckoned we could combine a few unrelated information, nonetheless seriously worth taking a appear, whoa did one study about Mid East has got a lot more problerms too […]

  • adult toys for couples
    Posted at 13:07h, 14 July

    adult toys for couples

    […]here are some links to web pages that we link to because we think they’re really worth visiting[…]

  • pocket pussy by doc johnson
    Posted at 18:11h, 14 July

    pocket pussy by doc johnson

    […]although internet websites we backlink to below are considerably not associated to ours, we feel they may be in fact really worth a go via, so have a look[…]

  • ایرانی پورن
    Posted at 21:20h, 14 July

    ایرانی پورن

    […]we came across a cool site that you simply could delight in. Take a appear in the event you want[…]

  • MIDE-675
    Posted at 22:45h, 14 July

    MIDE-675

    […]Every as soon as inside a when we select blogs that we study. Listed beneath would be the most current internet sites that we opt for […]

  • free xxx
    Posted at 13:34h, 15 July

    free xxx

    […]although web sites we backlink to beneath are considerably not connected to ours, we really feel they are in fact worth a go by means of, so possess a look[…]

  • male toys
    Posted at 20:45h, 15 July

    male toys

    […]please visit the web pages we comply with, such as this a single, as it represents our picks from the web[…]

  • Yt Mp3
    Posted at 21:30h, 15 July

    Yt Mp3

    […]very couple of web-sites that happen to be in depth below, from our point of view are undoubtedly nicely worth checking out[…]

  • prostate toy
    Posted at 01:44h, 16 July

    prostate toy

    […]check beneath, are some entirely unrelated web-sites to ours, however, they are most trustworthy sources that we use[…]

  • roulette strategy james bond
    Posted at 09:16h, 16 July

    roulette strategy james bond

    […]check beneath, are some absolutely unrelated internet sites to ours, however, they’re most trustworthy sources that we use[…]

  • Baccarat Strategy 1326
    Posted at 09:54h, 16 July

    Baccarat Strategy 1326

    […]usually posts some quite fascinating stuff like this. If you are new to this site[…]

  • Chinese baccarat strategy
    Posted at 11:24h, 16 July

    Chinese baccarat strategy

    […]one of our visitors just lately proposed the following website[…]

  • how to get help in windows 10
    Posted at 13:36h, 16 July

    Can I just say what a comfort to uncover a person that really
    knows what they are talking about over the internet.
    You definitely realize how to bring a problem to light
    and make it important. A lot more people really need to check this out and understand this side of your story.

    It’s surprising you aren’t more popular given that you certainly possess the gift.

  • blackjack strategy chart
    Posted at 14:07h, 16 July

    blackjack strategy chart

    […]check below, are some absolutely unrelated internet websites to ours, nonetheless, they are most trustworthy sources that we use[…]

  • blackjack system tester
    Posted at 14:58h, 16 July

    blackjack system tester

    […]below you’ll locate the link to some web-sites that we feel you ought to visit[…]

  • Walmart One
    Posted at 21:01h, 16 July

    Walmart One

    […]below you’ll obtain the link to some web-sites that we consider you should visit[…]

  • how to get help in windows 10
    Posted at 01:21h, 17 July

    Thanks for sharing your thoughts on how to get help in windows 10.
    Regards

  • security
    Posted at 17:55h, 17 July

    security

    […]here are some hyperlinks to websites that we link to because we think they are really worth visiting[…]

  • how to get help in windows 10
    Posted at 00:08h, 18 July

    I think this is among the most significant information for me.
    And i’m glad reading your article. But should
    remark on few general things, The site style is perfect,
    the articles is really great : D. Good job, cheers

  • Small doctor
    Posted at 07:15h, 18 July

    Small doctor

    […]Sites of interest we’ve a link to[…]

  • 47xclusive
    Posted at 09:20h, 18 July

    47xclusive

    […]one of our visitors lately encouraged the following website[…]

  • plenty of fish dating site
    Posted at 10:12h, 18 July

    Everyone loves it when people get together and share thoughts.
    Great site, continue the good work!

  • framelessglass
    Posted at 20:01h, 18 July

    framelessglass

    […]the time to study or take a look at the content or websites we’ve linked to below the[…]

  • plenty of fish dating site
    Posted at 13:40h, 19 July

    Hey! This is kind of off topic but I need some guidance from an established blog.
    Is it difficult to set up your own blog? I’m not very techincal but I
    can figure things out pretty quick. I’m thinking about creating my own but I’m
    not sure where to begin. Do you have any points or suggestions?
    With thanks

  • pppd 780
    Posted at 01:48h, 20 July

    pppd 780

    […]always a massive fan of linking to bloggers that I really like but do not get a great deal of link appreciate from[…]

  • SSNI-547
    Posted at 01:58h, 20 July

    SSNI-547

    […]here are some links to web sites that we link to mainly because we assume they’re really worth visiting[…]

  • how to get help in windows 10
    Posted at 05:03h, 20 July

    It is appropriate time to make some plans for the future and it is time
    to be happy. I have read this post and if I could I desire to suggest you few interesting things or
    advice. Maybe you could write next articles referring
    to this article. I desire to read more things about it!

  • adam and eve rabbit vibrator
    Posted at 10:55h, 20 July

    adam and eve rabbit vibrator

    […]the time to read or check out the material or web pages we’ve linked to beneath the[…]

  • glass butt plug
    Posted at 07:14h, 21 July

    glass butt plug

    […]here are some hyperlinks to web-sites that we link to for the reason that we feel they are really worth visiting[…]

  • anal plugs
    Posted at 07:17h, 21 July

    anal plugs

    […]Here is a good Blog You might Find Intriguing that we Encourage You[…]

  • rabbit sex toy
    Posted at 10:38h, 21 July

    rabbit sex toy

    […]Wonderful story, reckoned we could combine several unrelated data, nevertheless genuinely really worth taking a look, whoa did one study about Mid East has got a lot more problerms also […]

  • beginners anal plug
    Posted at 14:53h, 21 July

    beginners anal plug

    […]just beneath, are a lot of totally not related web-sites to ours, even so, they are surely really worth going over[…]

  • افلام سكس زنوج
    Posted at 22:31h, 21 July

    افلام سكس زنوج

    […]The information and facts mentioned inside the report are a few of the very best readily available […]

  • how to get help in windows 10
    Posted at 06:58h, 22 July

    hi!,I like your writing so a lot! proportion we keep in touch extra approximately your article on AOL?

    I require an expert in this house to unravel my problem.
    May be that’s you! Looking forward to see you.

  • big boobs sex videos
    Posted at 07:30h, 22 July

    big boobs sex videos

    […]Every when in a whilst we opt for blogs that we read. Listed beneath would be the most up-to-date websites that we pick out […]

  • natalielise
    Posted at 19:50h, 22 July

    Hi there, i read your blog occasionally and i own a similar one and i was just curious if you get a
    lot of spam remarks? If so how do you stop it, any plugin or anything you can recommend?
    I get so much lately it’s driving me crazy so any
    support is very much appreciated. natalielise plenty of fish

  • search engine optimisation merimbula
    Posted at 09:34h, 23 July

    search engine optimisation merimbula

    […]check below, are some totally unrelated websites to ours, nonetheless, they may be most trustworthy sources that we use[…]

  • Sarkodie Music
    Posted at 10:05h, 23 July

    Sarkodie Music

    […]very few web sites that transpire to be comprehensive below, from our point of view are undoubtedly very well really worth checking out[…]

  • plenty of fish dating site
    Posted at 12:44h, 23 July

    This site was… how do you say it? Relevant!! Finally I have found something which helped me.
    Appreciate it!

  • reddit ama
    Posted at 19:00h, 23 July

    reddit ama

    […]very couple of web sites that take place to become detailed beneath, from our point of view are undoubtedly effectively worth checking out[…]

  • تحميل تطبيق فيزيتا
    Posted at 20:29h, 23 July

    تحميل تطبيق فيزيتا

    […]here are some hyperlinks to websites that we link to for the reason that we think they’re really worth visiting[…]

Post A Comment