28 November 2008
	DIGITAL COMMUNICATIONS An unstoppable tide By Pete Case . . . founder and creative director of Gloo Digital Design

Digital is here to stay, so get used to it. However, before we take a view on the shape of the digital landscape, let's start by defining what digital is. Simply put, it encompasses communication across a growing number of channels or platforms, from the cellphone, to e-mail, websites, interactive kiosks, digital outdoor billboards, interactive TV, the satellite navigation in your car, and the growing number of screens popping up all over the consumer landscape. So if you think it doesn't relate to you or your business, think again. Here and overseas it's starting to play a key role in the advertising and marketing landscape. It's growing and evolving faster than any other segment of the advertising mix. To give an idea of growth and the size of the audience connected to digital worlds, every minute six hours of video are uploaded to the YouTube website. In 2005 the world already had 1bn people connected to the Internet and 2bn had cellphones. Communicating across a growing number of platforms As Campaign magazine commented: "Digital has crept into all areas, got under the skin and into our psyche, so we scarcely notice when something is digital. Now it's just 'communication' or simply 'life'." Any advertising agency should take digital very seriously. In SA, we've made a good start in isolated areas, but in general there are many people who still need to embrace the future. From a creative perspective, we've seen some award-winning and internationally recognised work, which is a good sign of our ability to tackle the future. We've also seen an increase in digital work in the marketplace and this is reflected by entries to the Loeries advertising awards. For two years in a row, percentage growth in digital entries has outstripped other categories. From a client side, we've seen some prominent brands appoint specialist in-house e-marketers. Concurrently, we've had widespread increases in digital budgets, while many traditional budgets are being cut back. We've seen clients seek out digital talent directly, rather than wait for traditional agencies to crack the digital path. Winning digital design... The Cell C Hummerville and 5FM Youngblood5 campaigns won top honours at this year's Loeries advertising awards in Margate The result is an increasing number of brands dipping their toes into the digital ocean. Benefits include the ability to engage a mass audience at a relatively low cost, plus the medium's inherent ability to target audiences and the benefits of real-time tracking of campaign success or failure. The sector also has a fast-growing audience. In 2007 there were about 4,5m installed computers in SA. This is predicted to increase to 5,4m by the end of this year. Amps - the All Media & Products Survey - recently recorded 2,4m SA adults accessing the Internet over seven days, an increase of 30% from this time last year. According to World Wide Worx, there were 147 000 SA broadband users last year and it forecasts 277 000 by the end of 2008. Alongside this, there's been large growth in cellphone communication. 24.com Mobile GM Russel Atkins says: "We have a unique situation in that there is a very high mobile phone to personal computer ratio, one of the highest in the world. This is coupled with extremely affordable mobile data rates and high penetration of GPRS or 3G-ready phones." By one estimate, there were more than 42m cellphones in SA in 2007. Local growth in accessing the Internet from cellphones (the Mobile Web) is underlined by figures from the BBC, showing 20% of such traffic it receives from outside the UK originates from SA. Also, SA communications minister Ivy Matsepe-Casaburri said during her budget speech in parliament that the department would invest in wireless broadband networks and strengthen the policy framework to encourage more players to invest in wireless broadband. This will increase the audience size with access to digital media by cellphone or computer. The imminent launch of SA's first interactive TV service promises to be the first truly integrated TV, Internet and cellphone experience for a mass market. Some overeager minds have speculated all this growth signals the death of traditional advertising channels. Far from it. We'll always need the big idea and above-the-line advertising, but it does signify a re-balance of the communications mix and a shift towards digital. What we will see is a further and exciting change in the way the advertising industry moves to embrace digital technology. The way agencies choose to re-balance their focus towards different mediums will decide their future ability to connect with clients' audiences and maximise clients' budgets. Internationally, most agency networks have been integrating digital know-how and depth into through-the-line offerings for the past 10 years. A sign of how far ahead they are is seen in the fact that digital advertising spending in Europe overtook radio and print over a year ago. Studies in the UK and the US have found people spend more time interacting with the Internet than watching TV. A UK study shows 16-24-year-olds spent 10% more time on the Internet than watching TV. One-third of people access the Internet at least 16 hours each week. And it's not just the young. Between 2006 and 2007 in the UK, there was a 12% increase in Internet access by the over-50s - an age group sometimes called the Silver Surfers. Advertising industry awards events, from Cannes to the UK's D&AD, have responded to the importance of digital with new awards categories. Traditional agencies are changing their approach to evolve with the need for digital. Draftfcb in the UK has put in place financial measures to encourage cross-platform solutions. Creative director Loga Wilmont says: "There's a readily growing audience of people who embrace this new world of communications, where they can interact, question, fact-check, support, lobby, opt in or opt out. For them digital is not just about e-mails and Google, but about entertainment, socialising and self-expression." So where are we going wrong in SA? We must acknowledge our audiences are learning they can engage differently with digital. Their communication expectations have changed. They can decide the pace, time, place and medium. It's necessary to approach the creation of advertising differently. To achieve great digital work, the industry needs to embrace real integration and collaboration. At least 50% of entries in the integrated-campaign category at this year's Loeries were actually not integrated. They had similar messages adapted and resized across different mediums, as opposed to true integration where a coherent story and an evolved journey is created across multiple platforms. Each medium needs an engaging and relevant communication that suits it and its audience. Collaboration is required not only in the creative process but also in media placement and planning. The current popular approach is to divide the media budget among teams working in each medium. This creates mediocre solutions. The way forward is for a more collaborative approach, where creatives or specialists from all disciplines sit together to crack a big idea. At the very least, digital agencies should be brought into the creative process when a basic idea has been formulated, but before it is presented to the client. To achieve great digital work, the industry needs to embrace real integration and collaboration No-one should doubt the inevitable growth of digital channels. The next obvious step is communication that allows consumers to interact and converse, rather than simply being talked at. Conversation is king. This interactive approach grows an audience who come back for more and helps brands create their own communities. We'll also see increased personalisation of messages to consumers. In terms of content, the increase in access speeds to the Internet will mean video becomes more commonplace online and on cellphones. Globally we are seeing more digital agencies producing video as part of their campaign work. From a consumer perspective, we'll see increased connectivity between multiple digital channels, especially between the Internet, cellphones and TV. As for the future of digital agencies themselves, I believe there will be a split between those offering only a production service and those that offer creative and strategic solutions. Either you produce other people's ideas or provide an integrated and collaborative involvement. According to Campaign's annual digital review, some industry leaders predict: "Internet media will outstrip TV this year, meaning clients will look to experienced digital hands for strategic consultancy." So should we be concerned about our ability to embrace digital? SA has previously adapted fast to change. This, together with its pool of creative talent, convinces me we'll see digital embraced faster than some might imagine. Bring it on.