As mentioned in prior text, there have been several attempts to obtain in-depth qualitative data in terms of the advertising industry’s BEE progress and other related matters over the past four years. These attempts have either been totally unsuccessful or received an extremely low response rate.
4.2.1 BEE Monitor survey
The BEE Monitor provided a range of professional services, which are designed to accelerate economic and social transformation in SA. It was established in March 2004 as a result of the coalition between the BMF and the University of Cape Town’s (UCT) Graduate School and was ultimately formed as a result of the government’s parliamentary hearings, which investigated racism in the advertising industry. It embarked on a baseline transformation audit of the entire marketing, media and communications industries in June 2004 (The BEE Monitor, 2004). The BEE Monitor aimed to gather and interpret market industry data pertaining to BEE and to provide best- practise strategies that would be effective in speeding up the transformation process. It intended to develop and establish a transformational index via continuously monitoring and evaluating transformation in the industry (Anon, 2004).
The results of the baseline transformation audit were supposed to be released in October 2004, but no results were forthcoming. Articles in Biz-community, SA’s leading advertising, marketing and
media news website, urged members to participate in the BEE Monitor audit, but the audit failed owing to the low participation of the industry (Loxton, 2004). The failure can also be largely attributed to the following: the collection method (the lengthy questionnaire was downloaded from a website), complexity and confidentiality of the questions, the sensitive nature of BEE, lack of incentive, magnitude and complexity of market dynamics, tight timeframes and transformation fatigue within the industry. The researcher learned from the errors of the failed BEE Monitor survey and consequently decided to use personal interviews to gather in-depth qualitative data from each advertising agency. This approach resulted in a hundred percent response rate.
4.2.2 MAPPP-SETA advertising skills needs analysis survey
The MAPPP-SETA established the advertising chamber in July 2004, which consists of industry representative associations and bodies such as CAFÉ, ACA, GCIS and Design SA. The advertising chamber’s main concerns were (MAPPP-SETA. 2007b):
• To promote PDIs to enter the industry via an introduction of bridging courses; • To develop new learnerships and qualifications;
• Conduct research on skills needs; and • Encourage industry participation.
The advertising chamber identified a need to conduct research on developmental needs within the advertising workplace. Kelello (specialising in skills development and SETA environment) and Mohlaleng (specialising in BEE in the advertising environment) were commissioned to conduct a national advertising skills needs analysis survey on the BEE needs of the industry, recruitment of PDIs, employee profiles, skills needs and retention of employees. Results of the survey were released in November 2005; however, these yielded limited data. Although a comprehensive follow-up strategy was undertaken, a response rate of 7% (40 out of 583 targeted companies in the advertising sector) was achieved. Companies in the advertising sector provided the following reasons for their non-participation in the survey:
• 19% simply gave no reason, other than they would not participate (probably as a result of the confidential nature of the information and reasons listed below);
• 16% maintained that they were not aware of the MAPPP-SETA or were dissatisfied with their SETA interactions;
• 16% cited that they had no interest in participating in the survey; • 15% highlighted that they no longer resided in the sector;
• 9% asserted that they did not have the time to participate in the survey as a result of deadlines and the stringent demands of clients; and
• 7% of small companies disclosed that they lacked resources, did not have time or could not perceive how the survey would benefit them directly (Kelello Consulting, 2005).
Companies that did respond provided basic and limited data. Therefore, in the light of these responses, the researcher was able to obtain a hundred percent response rate, since any of the abovementioned barriers could have been cited as reasons for non-participation in this BEE study.
The findings that emanated from the forty participating advertising sector companies (eight were from Cape Town, of which half also participated in this BEE study), were limited and primarily focussed on skills needs and training. This revealed the following:
• There was a need to ensure that learners acquired basic foundational skills (for example communication, conflict resolution, computer and numeracy skills) to enter the advertising industry and, therefore, the establishment of foundational training programmes to provide Black individuals with necessary skills, was essential.
• It was imperative that Black talent who embarked on advertising careers should understand how the industry operated, as well as the interrelating components. Therefore, the need for workplace experience as part of the education and training process was identified as essential, as well as implementation of learnerships and internship programmes. However, some participating advertising agencies raised negative experiences in their endeavours to implement MAPPP-SETA learnerships. This issue was also raised by several participating advertising agencies in this BEE study.
• There was a shortage of copywriting and art direction skills, especially in terms of Black creatives, as well as technical skills that included media, digital and strategic-related skills. Career guidance systems directed at PDIs in township schools, as well as improved recruitment and selection processes, were identified as means to solve this problem (Kelello Consulting, 2005).
The findings in this BEE study are in congruence with the above discussion. However, greater depth of information of not having or having skilled Black individuals (in terms of the insights into problems and benefits) and what advertising agencies have done to address the skills shortage in the industry, are revealed in this BEE study.
4.3 ACA Survey
The ACA has voluntarily monitored the progress of its members in terms of major empowerment elements since 1998 and has attained a 100% response rate for their two surveys. The ACA Employee Cost to Agency Survey measures Black employees and the ACA Empowerment Equity Survey measures Black ownership. No survey was conducted in 2005 (the mean figure for 2005 was calculated from the 2004 and 2006 results) or was available for 2007 (when the ACA was contacted in early 2008), but results from the 2006 survey do indicate a positive transformation outlook by member advertising agencies.
4.3.1 Advertising industry’s percentage of Black shareholding
The average percentage of Black shareholding in the advertising industry increased from 28.7% in 2004 to 37.6% in 2006, according to Figure 4.1. The average percentage of Black shareholding is held by Black persons and companies across all individual advertising agencies (MAPPP-SETA. 2005). The MAC Transformation Charter set a BBBEE ownership target of 45% by 2014 and the findings of this BEE study reveal the same positive trend in terms of Black ownership growth.
0 5 10 15 20 25 30 35 40 % 2001 2002 2003 2004 2005 2006
Figure 4.1: Average percentage of Black shareholding (Adapted from Da Silva, 2006 & MAPPP-SETA, 2005)
4.3.2 Advertising industry’s Black shareholding from any source
A little under 76% of ACA member advertising agency groups or individual agencies have BEE shareholding, which is a moderate increase when compared to 70.6% in 2004, according to Figure 4.2. The advertising agency groups or individual advertising agencies that have at least one type of equity participation by Black persons or empowerment companies qualify, as “Black shareholding from any source” (Clayton, 2004).
0 10 20 30 40 50 60 70 80 % 2001 2002 2003 2004 2005 2006
Figure 4.2: Percentage Black shareholding from any source (Adapted from Da Silva, 2006 & MAPPP-SETA, 2005)
4.3.3 Advertising industry’s Black representation
Overall, representation of Black employees increased from 35.2% in 2004 to 40.2% in 2006 of member advertising agencies, according to Figure 4.3.
0 5 10 15 20 25 30 35 40 45 1998 1999 2000 2001 2002 2003 2004 2005 2006 %
Figure 4.3: Black representation
(Adapted from Da Silva, 2006 & MAPPP-SETA, 2005)
The SA advertising industry has experienced a steady increase in terms of Black employees, but the findings of this BEE study will reveal that the employment pool of talented Black individuals is smaller in Cape Town in comparison to Johannesburg. Competition is fierce to acquire competent Black PDIs’ services in the small, but competitive market in the Cape Peninsula.
4.3.4 Advertising industry’s Black female employment
The total number of Black females employed in the industry increased from 21% in 2004 to 23.9% in 2006, according to Figure 4.4. The total number of Black females employed in management and professional levels increased from 13.8% in 2004 to 17.7% in 2006. Refer to Figure 4.4 for a graphic illustration of the total number of Black females who are employed in the advertising industry. These low percentages and slow growth clearly portray that the empowerment of women has a long way to go and much criticism has been directed at BEE for this phenomenon. However, in the next couple of years there should be a significant increase of women in senior positions, since the BBBEE scorecards favour advancement of Black females and entice companies with a substantial number of BEE bonus points. Cape Town advertising agencies have emulated the aforesaid national trend in terms of its slow advancement of Black females to senior positions.
0 5 10 15 20 25 30 2002 2003 2004 2005 2006 %
Any postion Management/professional positions
Figure 4.4: Black female employment (Adapted from Da Silva, 2006 & MAPPP-SETA, 2005)
The findings from this BEE study confirm the results of the ACA surveys and in some instances reflect improved results and indicate that the collective advertising industry is determined to persist and ultimately succeed with its transformation journey, although there will always be individual companies that resist change. However, numerous critics and national research on BEE revealed that certain sectors have not fully embraced transformation, perhaps they also require a parliamentary hearing or two to get the BEE process moving.