SAARFs Role in Media Audience Research Presentation to AGM 4 May 2006

1
SAARFs Role in Media Audience ResearchPresenta
tion to AGM4 May 2006

• (Discussion Document)

2
Introduction

• "The wireless music box has no imaginable
  commercial value.
• Who would pay for a message sent to nobody in
  particular?"
• David Sarnoff's associates in response to his
  urgings for investment in the radio in the 1920s.

3
The recent history

• PMSA September 2002 Discontent in Spring
• A summit of all stakeholders took place on 31
  October 2002 and mandated a working group,
  chaired by John Little, to review the functioning
  of MIT and the deliverables of its beneficiaries
• SAARF
• ASA
• FOCST
• The working group decided to conduct its work
  through five task teams
• The working group reported back to a summit held
  on 20 August 2003

4
The recent history

• Project Team 1 Industry Research (Convener Mike
  Nussey)
• Establish the research needs of the industry,
  optimal research methodology and cost/value
  benefits
• Project Team 2 Self Regulation (Convener John
  Little)
• Review the industrys self regulatory needs and
  cost implications
• Project Team 3 Other beneficiaries (Convener
  Howard Gabriels)
• Evaluate the need to support financially any
  other industry organisations
• Project Team 4 Funding model (Convener Brian
  Potinger)
• Develop an appropriate funding model and consider
  the merits of an industry forum
• Project Team 5 Governance (Convener Howard
  Gabriels)
• Establish agreed governance principles for
  beneficiary bodies and develop a migration
  strategy from MIT to the new funding
  model/institution

5
The recent history

• Project Team One the members
• Nina de Klerk ACA
• Howard Gabriels MFSA
• Nick Holdsworth PMSA
• Les Holley OHMSA
• Ross Jennings MFSA
• Ludi Koekemoer ACA
• Anina Maree SABC
• Brian McMillan etv
• Mike Nussey AMF
• Thomas Oosthuizen Independent
• Tracy Stafford NAB
• Brenda Wortley AMF

6
The recent history

• We looked at 63 surveys in 51 countries
• Joint Industry Committees 38 60,3
• Research companies 18 28.6
• Media Owners 7 11.1
• 63 100.0
• We agreed the merits of joint industry research
  taking into account different requirements.
• We should preserve technical experience and
  learnings that have been gained by SAARF over the
  years.

7
The recent history

• Principles That Guided Our Thinking
• The principle of a centralized, industry-wide
  clearing house to manage, run and mediate
  industry research requirements was agreed.
• Allowing for a common base survey with individual
  media types/client data linked on in a modular
  way (omnibus concept).
• All modules must be designed so that fusion
  between modules can take place.
• High level involvement by senior members
  representing key stakeholders is a prerequisite.

8
The recent history
9
Industry Structure
MASTER AGREEMENT All Stakeholders
ALL PRINT (PMSA)
LEVY COLLECTION AGENCY MFSA / ACA / AMF / AMO
STAKEHOLDERS
BENEFICIARY ORGNAISATIONS SAARF / ASA
10
SAARFs mandate

• The main object of the Company is
• To provide tools for targeting and segmentation
  of markets as well as to establish, commission
  and manage comprehensive, valid, reliable,
  continuous media audience and product usage
  research, surveys, investigations and reports,
  that provide comparable multi-media and
  multi-product/brand usage information that
  reflect the totality and complexity of the South
  African society.
• SAARF MEMORANDUM OF ASSOCIATION ADOPTED IN 2004

11
SAARFs mandate

• SAARF is an independent authority, acting as the
  custodian of the currency on which we buy and
  sell media and advertising space and a
  clearinghouse for industry research.

12
Objectives of SAARF

• Facilitating, co-ordinating and determining the
  joint industry research needs of its
  stakeholders.
• To ensure that these needs are met within the
  limitations of the funding available for this
  activity.
• To keep track of local and international
  developments, ensuring that new approaches are
  explored and developed, and that the necessary
  joint industry research programs, which
  accurately reflect South African society, are
  implemented, managed, and monitored.
• To provide tools for targeting and segmentation
  of markets.
• To establish, commission and manage
  comprehensive, valid, reliable, continuous media
  audience and product usage research, surveys,
  investigations and reports, that provide
  comparable multi-media and multi-product/brand
  usage information that reflect the totality and
  complexity of the South African society.

13
Objectives of SAARF

• To co-ordinate joint industry research amongst
  the advertising, marketing and media industries.
• To investigate any research techniques whether in
  practice or proposed and to establish the degree
  of validity and reliability of the results
  obtained thereby to seek improved methods in
  media audience and product usage research and to
  provide improved tools for targeting and
  segmentation of markets
• To act as a liaison between the advertising,
  marketing and media industry and universities,
  government and other official bodies involved in
  any form of education or research related to
  media audience, demographic and product usage
  research as well as tools for targeting and
  segmentation of markets.
• To arrange seminars and courses directly or
  indirectly sponsored by the South African
  Advertising Research Foundation on any or all
  aspects of advertising, media or market research
  as well as tools for targeting and segmentation
  of markets.
• To act as mouthpiece of the industry on matters
  pertaining to media audience and product usage
  research as well as tools for targeting and
  segmentation of markets.

14
Objectives of SAARF

• To promote and maintain fair, reasonable and
  proper standards of media audience and product
  usage research as well as for tools for targeting
  and segmentation of markets.
• To maintain and augment a library containing
  information concerning media audience, product
  usage, and related research as well as on tools
  for targeting and segmentation of markets, and to
  make it accessible to members, students and the
  general public.
• To do all such other acts, including the
  publication in print or electronic format, of
  books, memoranda, journals, magazines, circulars,
  reports and any documents or databases as the
  South African Advertising Research Foundation may
  consider expedient to promote the interests of
  members.
• Likewise to do all things and carry on any
  activity related, connected or associated with
  any of the above objects and purposes.
• To finance the operations of the Company by
  engaging in any lawful activity which may
  generate funding for the Company.

15
Guiding Principles of LCA

• Principle 1
• Beneficiaries Of The LCA Should Be Organizations
  Serving The Whole Industry.
• Principle 2
• The Boards Of The Beneficiary Bodies Must Decide
  What The Industrys Needs Are In Their Areas Of
  Expertise
• Principle 3
• Close Cooperation Must Exist Between The LCA And
  The Boards Of Beneficiary Organizations
• Principle 4
• The method of funding must be fair towards all
  stakeholders

16
The governance issue

• Following on the recommendations of the Industry
  Working Group, the SAARF Board appointed a SAARF
  Governance Task Team
• This Task Team met 6 times over a period of about
  4 months before it made its final report to the
  Board.
• Some of the important points that came out of
  these deliberations were
• The importance of the SAARF surveys for target
  marketing.
• Access to the currency mustnt be limited. SAARF
  must protect the currency but must give access to
  anyone who needs it.
• The analogy that the Reserve Bank does not allow
  anyone to print money but everyone must have
  access to printed money was mentioned.

17
The governance issue

• Subjects addressed by SAARF Governance Task Team
• The Functions, Structure and Functioning of SAARF
• Size and composition of SAARF Board
• Sub-committees of the SAARF Board
• Drafting of a new Memorandum of Association
• Drafting of new Articles of Association
• Dispute Resolution (included in the articles of
  association)
• The possibility of changing the name of SAARF
• Representation of SAARF Board members on Boards
  of Funding organizations

18
The governance issue

• The new Memorandum of Association as well as the
  new Articles of Association of SAARF were adopted
  on May 2004, giving SAARF a fresh new mandate and
  clarifying its future direction.
• But still it was not over
• The Governance task team also recommended that
  the full SAARF Board must meet as soon as
  possible for a 1 day workshop to look at future
  strategy

19
The SAARF Tender process

• The SAARF Tender Committee worked on the
  following 5 Tenders
• SAARF All Media and Products Survey (AMPS)
• SAARF Products and Brands, Interests and
  Activities (Life Styles) Self-completion Survey
• SAARF Electronic Measurement of Outdoor
  Advertising Survey (SAARF OMS)
• SAARF Tender for Data Integration of two or more
  surveys by using fusion or other techniques
  across all SAARF products such as AMPS, TAMS,
  RAMS, SAARF OMS, etc.
• SAARF Radio Audience Measurement Survey (RAMS)
• Key objective of the tender committee was to
  spread the net in terms of suppliers.
• The tender committee decided to award the AMPS,
  RAMS and self-completion tenders jointly to
  Shonigani and African Response.

20
Summary of SAARF Research
21
Summary of SAARF Research
22
Some of the achievements

• Participation in the Transformation debate
• Transformation of the Board of Directors
• The award of the tender to Shonigani and African
  Response
• The introduction of AMPS on the base research
  model
• The introduction of the new RAMS reporting 6
  times a year
• The introduction of overnight ratings in TAMS
• Participation in the outdoor pilot in South
  Africa and Chicago
• Extending Branded AMPS and making it freely
  available
• The growth of PAMRO and the development of JIC on
  the African continent

23
Way forward

• We agreed the merits of joint industry research
  taking into account the different requirements,
  of the advertising, marketing and media
  industries.
• We need to preserve the technical experience and
  learnings that have been gained by SAARF over the
  years and further strengthen local media audience
  and products/brands research expertise.
• The importance of SAARF surveys for target
  marketing is indisputable thus the provision of
  data and tools for targeting and segmentation of
  markets must continue.
• Access to multi-media and multi-product/brand
  currency by all SAARF stakeholders must be
  unlimited.
• SAARFs most basic task is to give access to the
  currency to all stakeholders.

24
Special thank yous

• Board of Directors
• The stakeholders
• The Marketers
• PMSA
• NAB (TV Radio)
• OHMSA
• ACA
• AMF
• The Staff of SAARF