Dion Chang, Observer and Trend Analyst from Flux Trends, explored newly emerging urban tribes that are shifting the consumer mindset globally as well as locally.

Chang’s presentation was based on the 2018 edition of the New Urban Tribes of South Africa Trend Briefing digital report, subtitled Consciously Diverse, which tracks the moulding of locally-influenced, yet globally-connected tribes motivated by social purpose and experience. 

According to the report, Millennials and Gen-Z are driven by diversity and inclusion, therefore their interactions within society and commercial industries leans more towards diverse and inclusive brands. Through digital platforms, conversations and social movements, Consciously Diverse tribes feel liberated to express their truths and beliefs. This creates a need for businesses to understand and empathise with these value systems, not only because members are potential customers, but because they may be part of the current or future workforce.

Shifting social norms and the knock-on effect on issues of identity bring new challenges for businesses, but also new opportunities – if they understand what makes these diverse tribes tick.

The diverse tribes listed in the Trend Briefing Digital Report include:

– The Preventionists: a burgeoning fitness tribe which includes pre-natal moms, the over 50s fit club and the ‘fit-influentials’.

– The Cleanser: the less-stuff-more-stories mindset meets the meat-free movement.

– The Neo Afro-Culturist: successful business owners who straddle their culture and the corporate world.

– Femmepreneurs: globally influential women who are entrepreneurs

– Social Media Business for Families, which include Latte Dads, millennial dads who are fully present, as well as Insta Dads and Moms: parents whose kids have a huge social media following.

– Teenprenuers: teenage entrepreneurs.

Future tribes include:
– The Modern Refugees: a ripple effect of years of global human displacement.
– Ganjaprenuers: green rush, cannabis entrepreneurs which can be viewed as an investor opportunity for crop insurance companies. They might be a threat to the Pharmaceutical and alcohol industry as there is dagga pizza, dagga beer, etc. 

Click here to purchase the Trend Briefing Digital report.

FLUX TRENDS
www.fluxtrends.com

The AI Summit is Africa’s largest gathering of Artificial Intelligence leaders, data scientists and tech professionals and this year over 250 speakers will gather on 3 September 2019 at the Sandton Convention Centre from 10h00 to 20h00.

Attendees can expect to:

• Prepare for an AI future.
• Unpack AI use cases and best practice.
• Explore the latest Data Science and Machine Learning trends.
• Gain actionable insights on RPA and Automation.
• Get up to speed on computer vision and NLP.
• Discover emerging AI technologies and tools.
• Connect with incubators, accelerators and start-up platforms.
• Access funding, venture capital and mentorship opportunities.
• Network with AI experts and thought leaders.
• Fast-track your AI skills.

AI Summit www.aisummit.co.za

The new Board of Directors of the Association for Communication and Advertising (ACA) for the 2019/2020 fiscal were elected at the 72^nd Annual General Meeting held at the AAA School of Advertising campus in Johannesburg.

At the meeting, Outgoing Chair of the ACA Board, James Barty, reported on the ACA’s activities during the preceding fiscal. He started off his Chairmans’s Report noting ‘that the winds of change in the industry continue to blow at gale force.’ Adding that at both a global and South Africa specific level, the rate of change was ensuring that the industry has found itself in a constant level of flux.

Barty added that this has been exacerbated by a reduction in business confidence brought about by socio-political instability over the past year. Barty commended Mathe Okaba, appointed CEO during the period – for the manner in which she has settled into the role and for embracing the structures and practices of the association, thus ensuring a smooth and effective transition of this critical industry-leading position.

During the period under review, the ACA initiated a new relationship with the AAA School of Advertising, and the MOU put in place following the sale of ACA’s previously prized asset. Barty reconfirmed the ACA’s commitment to assisting the AAA to deliver courses and content that meet the high professional quality standards expected by the industry. In terms of the relationship, Barty singled out Sarah Dexter and the Education Portfolio team which she leads for retaining a good working relationship with the school and for continuing to hold high one of the industry’s primary roles – that of driving education and skills development.

Barty then went on to review further changes that have and will impact the industry. He thanked Odette van der Haar and Gareth Leck for their commitment to building one of the jewels in the ACA’s crown – the APEX Awards – as the programme transitions to the Effie brand.

Change was also seen within the self-regulation framework, with the transition of the ASA into the new ARB. Mike Gendel was singled out for his enormous contribution in representing the best interests of the profession in the establishment of the new body, and for the commitment he continues to demonstrate in the pivotal area of industry self-regulation.

‘Transformation remains at the forefront of the ACA’s activities, and it is pleasing that we are making continued headway in this area. I am very pleased that today the profession’s employee base stands at 60% female, and 54% ‘of colour’. There are challenges that we still need to overcome, however I encourage the next generation of industry leaders to become active within its structures and help drive not only transformation forward, but all the objectives of the association,’ said Barty.  

He thanked the secretariat for their ongoing professionalism and dedication, Prof Piet Delport for his ongoing guidance and counsel throughout the year, and bid a sad farewell to ACA CFO Russell Cory, who after 27 years of dedicated and irreplaceable service to the industry would be retiring to enjoy a well-earned rest with his family.

In conclusion, Barty thanked the Exco and the Board at large and wished the new incoming Board well, noting that they would be inheriting an association that was robust, hard-working and held in high esteem within the communities it serves.

New Board of Directors and Executives:

ACA SOUTH AFRICA
+27117812772
ceo@acasa.co.za
www.acasa.co.za

Belinda Kayton, Media Strategist at The MediaShop, discusses racism, sexism and other dangerous stereotyping in advertising. She says that there is a big difference between unacceptable bigotry and controversial advertising.

When I think of the best examples of controversial advertising, I immediately think of the Nando’s library of ads. These are controversial but also spectacular at opening up conversations that wouldn’t normally be frowned upon because this brand produces ads that say what many of us are thinking. Their latest ‘You People’ is a brilliant example. They are controversial, but not bigoted.

We are all aware of a recent H&M ad that caused physical destruction of some of their stores. There were two camps of opinions – one ranting that people were oversensitive and that it was blown out of proportion, and then there were those in the second camp that were extremely offended and wanted retribution. Who was right and who was wrong?

Offensive advertisements can be defined as any kind of communication that disrespects certain accepted norms of society, or offends someone. Marketers these days spend extra time to ensure not to offend anyone with their campaigns. It can be argued that this makes for some very boring advertising, but I firmly believe that ads can be both clever and exciting without being truly offensive.

Before we look at brands doing it right, there are some unbelievably blatant racist and sexist ads that beggars belief. I can’t believe that these ads were actually approved and flighted.

Are these ads controversial? Offensive? Both?

Many remember the outcry when the Joko/Hangar TV ad first aired. The ad was made and produced with pure intentions, but it created such controversy. Was the dignity of hard-working black South African women being compromised in this ad?

Even charities can get it horribly wrong. The charity Feed A Child created an ad that was enormously racially controversial. It shows a black child being petted and fed treats like a pet dog, by a rich white woman. The message was supposed be that the average dog eats better than millions of children – but boy, was that a terrible execution of the idea!

But some brands are getting it right by challenging stereotypes that have stood for generations. For instance, Johnny Walker is breaking gender stereotypes, and typically housewife-territory brands like OMO are shredding other stereotypes. Brands are also taking note of all religions and aren’t afraid to embrace this in their marketing.

Even cities are placing ads that are confronting racism, while LÓreal is embracing all races and celebrating our differences.

In conclusion, I’ve been horrified by what in the past has been seen as acceptable advertising, but I’ve also seen brands that are getting it right as well. There’s still work to be done, but embracing each other’s differences whilst seeing what brings us together is the key to advertising to all, in the future.

THE MEDIASHOP
+27112584000 
www.mediashop.co.za

The Crisis Response Index (CRI) study by US company, Hot Paper Lantern, researched 80 companies who between them had experienced 105 significant crises. It analysed over 450,000 media articles and 85,000 social media mentions of those crises to gauge investor sentiment about the way they were handled. Patrick Gearing, CEO Meropa Communications, highlights that alarmingly, 59% of the companies were judged to have handled their crises ineffectively, with 6% simply ignoring a crisis altogether.

The new study on companies in crisis has indicated that the way you respond and the speed with which you do it – can dramatically impact on your share price, and even your future viability.

The resignation of a CEO during a crisis ‘has a positive impact in the short-term (stock prices up 1% one-month post-crisis) but a negative impact long-term (-12% one year after) indicating that while investors applaud the quick change, the bump is not long-lasting.’

Summarising its results Hot Paper Lantern stated, ‘Shareholders take notice. The speed with which a company responds to a crisis combined with the quality of the response, as measured by stakeholder reaction, profoundly impacts stock price. In a perfect world, a swift and effective response is ideal; however, if a company needs to sacrifice one over the other, taking more time to respond intentionally and with purpose, outperforms a fast response lacking resonance.’

Ted Birkhahn, President of Hot Paper Lantern said, ‘Since the data shows that shareholders have the most to lose, crisis readiness must be a board-level issue. With trillions of dollars on the line, institutional investors should be scrutinising a company’s ability to respond swiftly and effectively to a corporate crisis.’

‘In an always-on, digital-first world, managing a company’s reputation is more challenging than ever. During a crisis, CEOs and their leadership teams face intense pressure to make quick decisions that would otherwise never be made in haste, while communicators face the daunting task of publicising those decisions with speed and accuracy. The stakes are high and our CRI proves that even small delays and missteps can wipe out billions of dollars in shareholder value. How and when a company responds to a crisis is directly linked to the performance of the stock price over the short and long-term,’ said Birkhahn.

To create the Crisis Response Index and monetise the value of crisis management, the firm researched 80 companies who had experienced 105 significant crises. They analysed over 450,000 media articles and 85,000 social media mentions about those crises according to two criteria – speed and effectiveness – asking:

• How quickly did these companies respond?
• How effective was the response, as measured by sentiment analysis?
• Were companies being transparent, authentic, and empathetic in their responses?
• How were these responses resonating with shareholders?

The Crisis Response Index is described as ‘industry-agnostic’, and covers all major sectors with a fairly even distribution. Only 41% of the companies were found to have responded effectively to crisis. 24% responded to their crisis within hours, 50% in days, 20% in weeks – and 6% didn’t ever respond.

The study noted that ‘(Lack of) speed kills. Hours vs. days vs. weeks matter; when companies are slow to respond, shareholder value takes a major hit while those who respond swiftly retain more value in their stock price.’

Companies that responded within days saw an average 10% decrease in their stock price compared to a decrease of only 4% when they responded within hours. Companies that waited weeks to respond saw a ‘sobering’ 14% decrease.

However, the CRI recommended that companies choose quality over speed, ‘Although speed is important, a poor or ineffective response will inflict far more damage on a company’s stock price. Never sacrifice the quality and effectiveness of your response for speed. It’s better to be late and good than quick. Companies that responded effectively – as measured through sentiment analysis of media coverage and social media content – actually saw no change in their stock price in the two years following the crisis regardless of how fast they responded. 

‘On the flip side, an ineffective response resulted in an average share price decrease of 14% over the same period. The CRI noted that crisis handling is ‘going to get worse before it gets better’, saying that ‘sweeping technology, societal and economic trends indicate that speed-of-response will continue to hamper a company’s ability to protect shareholder value during a crisis,’ according to the study. We face a ‘precarious state of affairs’ the report notes, with ‘no indication that companies have improved at responding over time. A majority of companies still put shareholders at risk by being unprepared to deliver a timely and effective response in a crisis.’

Birkhahn said, ‘Our findings raise a number of questions. Should investors demand that companies stress test their crisis response practices? Should regulators provide oversight of those stress tests? Do CEOs and Boards have an obligation to ensure that the company’s crisis communications function is built to succeed in the digital age?’

He added, ‘The CRI data is affirmation for any communications professional struggling to prove the value of building and maintaining a crisis communications function that can deliver the goods when the going gets tough.’

Download the study here. 

MEROPA COMMUNICATIONS
+27115067300
hello@meropa.co.za
www.meropa.co.za

Havas South Africa has appointed Tholoana Qhobela as its new Chief Strategy Officer. Qhobela will be leading a team of strategists who are at the forefront of the Havas insights generation using industry-defining tools such as Meaningful Brands, Havas #InRealLife and Prosumer Reports. Meaningful Brands analyses the extent to which brands can forge a meaningful relationship with their target audiences and Prosumer Reports are near-future projections and analyses of consumers behaviour.

‘I am a culture curious, frustrated nomad. When I returned to South Africa, my aim was to give all of that which I learnt abroad – as a social anthropologist who had long decided commercial application was better than the academic space. And so joining team Havas is part of that continuum – to continue applying what I know best to a real commercial value proposition that impacts people positively. I love that the strategy team is already on a continuous journey to uncover and share real human insights from people’s lived experiences. There’s a lot of similarities with my approach to insight generation, particularly with meaningful content in mind,’ said Qhobela.

‘And the Vivendi offering that Havas can bring to the table is interesting. No other agency comes with a heightened content development presentation that incorporates gaming and development through GameLoft and music and entertainment through Universal Music Group like this, and it will be very exciting to walk into market with this unique product,’ she concluded.

Qhobela started off as a Strategist with Ogilvy and upon her tenure completion, she sat on the board and was a shareholder. With over twenty years in the industry, she has worked on global leading brands such as Coca Cola, Vodacom/Vodafone, DStv, Konica Minolta, MTN and leading South African brands such as Liberty Group and Cell-C, to mention a few. 

Qhobela has also worked with White Hall Trading & Projects, Consumer Insights Agency, Berge Farrell Company, Masters and Savant, Metropolitan Republic, Ogilvy PR, The Jupiter Drawing Room and South African Tourism. Some of her professional achievements include speaking at the World Economic Forum and the Design Indaba; judging the Telkom Journalism Awards and AdFocus Awards; being nominated in the Mail and Guardian 200 Young South Africans; and participating in the International Media Forum and SABC’s Women on the Move.

She is a University of Manchester and University of Cape Town alumnus. She has lectured in the Ogilvy South Africa Training Programme and the Unilever Advanced Brand Communication Programme.

Lynn Madeley, CEO of Havas Southern Africa said, ‘We are excited to be welcoming Qhobela into the fold. She is a seasoned strategist and her vast understanding of the creative industry, having worked both from the agency side and from the client side, is just perfect for this role within Havas group. She joins a team of top performers in our industry, which is testament of our commitment to Africa. She has a keen understanding of content, particularly the importance of its meaningfulness to a consumer who is connected and well informed.’

‘Qhobela has a great affinity for education and training and that aligns beautifully with Havas Academy, our internship and training and development initiative focused on empowering black South African women in the marketing and communications industry. Her guidance will bolster our offering to young black women who want to get into marketing and communication, and therefore, our total contribution to the industry as a whole,’ said Madeley. 

HAVAS SOUTH AFRICA
+27115493600
info@havas.co.za
www.za.havas.com