Financial Mail

CHANGING OF THE GUARD

Exiting elder believes the ad industry as it currently functions is outdated and won’t survive in the digital age, and that locally it has failed to transform

- Jeremy Maggs jmaggs@iafrica.com

Another high-profile advertisin­g elder is quitting the industry. Y&R Africa chairman Yossi Schwartz is leaving the agency group he founded 16 years ago. His departure follows that of TBWA chairman Reg Lascaris earlier this year and is a sign of the gradual changing of the guard in SA advertisin­g leadership.

Schwartz is recognised as an industry maverick, famously shooting a high-cost television commercial in a weekend to win a pitch, starting his own whisky brand and managing the Pick n Pay account for decades before losing the business last year.

He believes the current structure of ad agencies won’t survive. “It’s an outdated format. Advertisin­g discipline­s don’t work in the digital space. The industry needs to change in order to keep moving forward and there’s a definite need for structural change within the industry,” he says. “I also don’t believe in a special-purpose structure offshoot. It didn’t work for us as a retail unit within Pick n Pay and results in spreading agencies too thin and leaving them weak and vulnerable.”

As he departs adland, Schwartz (58) also ponders the question of whether the halcyon days of advertisin­g are over or if the best is still to come.

“Advertisin­g was something to be proud of. We loved the process, the creative product and its influence and ability to change perception, but this will never happen again. The industry won’t disappear, it will just take a different shape,” he says.

“In the next few years the ability to deliver a tailormade message to the individual will be perfected and will rule the game. No doubt there will be less mediadrive­n advertisin­g such as TV, print and outdoor.”

After the loss of Pick n Pay, it would be remiss not to ask Schwartz in what state he leaves Y&R. “The loss of Pick n Pay was a big blow to us, not only in terms of revenue, but also talent. That said, Y&R is in a better place, we are more independen­t, not reliant on one big client and pulled down by the magnitude that was the account. Our creative ranking has improved, we are producing interestin­g cross-platform work and are no longer run and managed by retail advertisin­g.”

Schwartz believes the local ad industry has failed in transforma­tion. “If there’s one thing the entire industry has failed on, it is investing in transforma­tion and skills developmen­t. We said 10 years ago this was critical and fundamenta­l to the industry, yet here we are in 2017 and little investment has been made.

“As an industry we failed not through lack of intent but because we couldn’t afford to. Our ties to global networks meant that we needed to satisfy stakeholde­rs driven by share price, and so investing in transforma­tion and black talent became less of a priority.

“I find the industry as a whole extremely light on local talent, and I don’t see much work with true SA flavour coming through, which directly correlates with the lack of serious investment in local black talent.”

Looking ahead, Schwartz sees more industry consolidat­ion. “There are too many global advertisin­g brands and the big holding groups are going to consolidat­e their brands for better economy of scale and better use of talent. Consolidat­ion is a necessity, and should be a priority.” Five Grand Prix accolades have been awarded at the 2017 Loeries Awards for creative excellence. A campaign for Johannesbu­rg restaurant Marble called “Meat

Made Luxury” was given to Grid Worldwide Branding in the Communicat­ion Design category. In addition Nathan Reddy, chief creative officer and founder of the agency is this year’s Hall of Fame inductee.

Other Grands Prix went to the multiaward­ed KFC’S “Sad Man Meals” by Ogilvy Johannesbu­rg in the radio category. La Libanaise Des Jeux’s “Skip Friday 13” campaign by Impact BBDO Dubai in the websites or microsites category was also a winner as were Nissan’s “Camelpower” by TBWA\RAAD

Dubai in the integrated campaign section, and The Cartel’s “Be Seen” campaign by Y&R Dubai in the print communicat­ion category. Mike Middleton of KFC Africa won the Marketing Leadership & Innovation Award.

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