MR MRP302 PROJECT

THE EFFECT THAT DIGITAL ADVERTISING IS HAVING ON PRINT
ADVERTISING IN SOUTH AFRICA
Presented to
The IMM graduate School of Marketing
In partial fulfillment of the
requirements for the degree
Bachelor of Business Administration (BBA) in Marketing Management
By Michelle Rebelo
R87389
18 May 2015

Marketing Research Project MRP302
Michelle Rebelo
R87389
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Declaration
I, Michelle Rebelo, declare that I am aware and fully understand the IMM GSM
policy on plagiarism. I hereby certify that this project is my own work unless
clearly indicated through referencing.
A complete list of sources used for this project is available on pages 16-18.

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Acknowledgements
I would like to give thanks to my company ghd South Africa for supporting me in
my quest to further my studies and understanding when I need to take time away
from work to focus on my studies.
Special thanks go to my parents, Luis and Candy Rebelo, for assisting me in
funding my studies and for their endless support and belief in me.
Lastly I would like to thank the IMM staff and lecturers for their dedicated support
they give to their students.

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Executive Summary
This research project was undertaken to understand the effect that the
emergence of internet advertising has had on print advertising and whether there
is an opportunity to combine the two mediums in South Africa. The research
problem “Is digital advertising negatively impacting consumer magazine
advertising in South Africa and should the two mediums be used in conjunction?”
was investigated through a literature review.
The literature review highlights the fact that by 2017 it is predicted that 60% of
the South African population will have access to internet; currently however, 63%
of the population don’t have access to the internet. Internet advertising is
increasing in its share of the advertising market year on year. By 2017 it is
expected that it will contribute over 8% to the South African advertising market,
this will be more than double its share in 2012. This growth has been brought
about by the growing internet penetration in the country and the large portion of
the population who have grown up with internet. Mobile advertising is predicted
to play a large role in the growth of internet advertising. The current low
broadband penetration in the country has resulted in internet advertising having a
minimal impact on print advertising in comparison to other countries. Print media
is predicted to grow by 21.3% by 2017 and consumer magazine advertising
specifically is predicted to increase by 6,1% in that time period. However, there
has been a 3% decrease in consumer magazine circulation from Q3 to Q4 in
2014 and several South African magazines folded in the past year.
Print and internet advertising each have their own strengths and limitations. The
research highlights that by combining both mediums in a campaign, marketers
will be able to minimize their limitations and enhance their strengths, therefore
maximizing the effectiveness of their advertising efforts.

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TABLE OF CONTENTS: PAGE
1. Title page 0
2. Declaration 1
3. Acknoledgements 2
4. Executive Summary 3
5. Table of Contents 4
6. Literature review 5-15
7. Reference list 16-18
8. Addendums 19-22

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Literature review
The research problem: Is digital advertising negatively impacting consumer
magazine advertising in South Africa and should the two mediums be used in
conjunction?
Introduction
We live in a society where communication technology is changing on an ongoing
basis at a rapid pace this affects how brands are communicating with consumers
(Strydom, J, 2011).
Advertising is the communication instrument used to communicate the marketing
message to the relevant target market. As communication has evolved so have
different advertising media types come about. Print, television, radio and outdoor
have been around for years; however the internet has most recently emerged as
an advertising medium. With it, have emerged numerous additional platforms that
brands need to be familiar with in order to remain relevant. The internet as an
advertising medium has soared with millions of people making use of the internet
on a daily basis. What effect has this had on the other advertising media, more
specifically what effect has this had on print and consumer magazines?
In this literature review, areas of focus will be:
1. Consumer magazines and their relevance as an advertising medium
2. Internet advertising, what it is and why it relevant as an advertising
medium
3. Consumer magazine advertising vs internet advertising
4. Consumer magazine advertising vs internet advertising in South Africa
5. Combining consumer magazine advertising and internet advertising

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1. Consumer Magazines and their relevance as an advertising medium
Consumers have become overloaded with media exposure and it’s no longer
sufficient to win a consumer’s attention, it’s become necessary to engage them.
Magazines deliver reader engagement through trust, support, status and
participation.
There are several other reasons for magazines to still appeal to consumers in
this digital age, such as they offer value for money, the time spent reading is
rewarding, they are relaxing, they are informative and improve knowledge, they
encourage reflection, they are high-quality and trust worthy and they reinforce the
reader’s identity (Consterdine G, 2005).
According to Consterdine (2005), it’s been established that nearly all
advertisements are at least glanced at when readers scan a magazine. If an ad
appeals to a reader they will look at it more closely if not, they will more than
likely move on to another page. A positive effect is seen on the perception and
absorption of advertisements as a result of the affinity between readers and the
magazine of their choice, this is of great benefit to the advertisers. According to
the “Media Future’s” survey, “Consumers are more likely to act as a result of
seeing advertisements in a magazine than as a result of seeing advertising in
other media.” Consterdine (2005) confirms this and indicates that consumers
were 50% more likely to have purchased a product as a result of seeing an ad in
a magazine; magazines are more action-oriented with internet coming in at
second.

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2. Internet advertising, what it is and why it is relevant as an advertising
medium
Doherty (2009) states that the internet has developed into a communication
channel allowing for dialogue with customers, providing data regarding market
conditions and promoting brands and products. Many advertisers have of late,
either increased their spend on digital advertising or have moved away from
traditional media completely and focused solely on digital advertising as a result
of its effectiveness (Fuxman, L., Elifoglu, H. et al. 2014).
Karimova (2011) believes that interactivity is the main advantage of internet
advertising, Lindberg et al. (2010) agree and added that this interactivity allows
for immediate feedback and dialogue, changing the way that companies interact
with customers. Aside from interactivity, Lindberg et al. (2010) goes on to add
that transparency and memory contribute to separating the internet from other
communication channels. Information published on the internet can be viewed by
any internet user at any point in time. Boundless Marketing (2015) believes that
there are additional key advantages that make internet advertising so appealing
to advertisers such as immediate publishing of information, more efficient and
precise targeting and the ability to overcome the challenge of geographic
limitations.
The internet is incredibly measurable where how many hits and the number of
page impressions can be measured (Lindberg et al. (2010). Data extracted from
the tracking of user activity on the internet is valuable and provides meaningful
insights into consumer behavior in response to particular experiences (SEM
outlook: 2013-2017).
The internet has led to the birth of new and rapidly growing marketing channels
(Lindberg, M., Nyman, C. et al. 2010). Internet marketing is made up of several
different types, these being: banner advertising, display advertising, affiliate

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marketing, search engine marketing, mobile marketing and social media
marketing (Boundless Marketing, 2015).
Banner advertising is a common type of online advertising involving banners
being displayed on a third-party website. When consumers click on the banner,
they will access the advertised website. The effectiveness can be measured by
evaluating the number of clicks through to the website (Almotairi M, 2014).
Display advertising is quite similar to banner advertising and also involves banner
ads being placed on a third-party website or blog with the purpose to drive traffic
to the advertiser’s website. Display adverts are however used to capture
demographic and geographic information, (demographic and geographic
targeting) as well as consumer’s browser history (behavioural targeting) and
determine their interests, therefore allowing advertisers the ability to target
consumers with the appropriate ads (Boundless Marketing, 2015). For example,
if a consumer has been looking at watches on Kalahari.com they may find that
while surfing the internet on another occasion they are being served with ads
relating to watches.
Affiliate marketing is another form of online advertising where advertisers place
their campaigns with a number of publishers (such as bloggers) and only pay
media fees when they receive web traffic. This web traffic is usually based on a
pre-determined measurable campaign result such as a sale (Boundless
Marketing, 2015).
Search Engine Marketing (SEM) is the form of online advertising that promotes
websites by accentuating their presence in search engine results pages.
Advertisers are not required to pay for the ad itself but rather pay when
consumers click on the listing and are redirected to their website (Boundless
Marketing, 2015). SEM is the most common and a very powerful online
advertising form and accounts for approximately 90% of consumer use (Almotairi
M, 2014).

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Mobile advertising also falls within the online advertising umbrella and involves
advertisers make use of cell phones to advertise their products or services. It
may be carried out via text messages or applications. The obvious advantage for
advertisers is that people take their mobile phones everywhere (Boundless
Marketing, 2015).
Social media networks make it possible for internet users to share and receive
text, images and audiovisual content with each other online, it may be seen as a
form of word-of-mouth and is very interactive. Social network advertising is a
form of online advertising that can be found on social networks such as
Facebook and twitter, where posts can either be sponsored or ads can appear on
social network sites (Boundless Marketing, 2015).
Digital marketing communication options have negatively impacted print
advertising globally, demonstrated by the decrease in print advertising spend and
the decline in ABCs. Semmelmayer (2014) states that there are four factors that
have led to the rise of digital media in preference to print: cost, flexibility,
accountability and demographics; these will be discussed in more detail.
Semmelmayer (2014) states, that publication space and artwork creation are
significant costs, which are incurred when booking a print ad. Online advertising
on the other hand, is relatively inexpensive and free in the instance of social
media. Lindberg et al. (2010) goes on to add that space is limited and an
expensive commodity in print media, online advertising however offers
advertisers unlimited space at a fraction of the price.
Publications work on strict, long-term material deadlines and once submitted, the
artwork and message can’t be amended until the next issue. In contrast, digital

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media provides more flexibility with regards to both the material deadlines and
the ability to change the artwork and message (Semmelmayer S, 2014).
It has always been a challenge to prove the ROI as a result of print advertising.
Online advertising provides several metrics to advertisers to assess the
effectiveness of their efforts (Semmelmayer S, 2014), however even online
advertising has its challenges. It is difficult to avoid double counting audiences
and distinguishing between visits, vistors, unique users, registered users and
active users. Furthermore, knowing what is going to be measured and how that
information should then be interpreted, needs to be established (Lindberg et al.
2010).
Consumers under the age of 20, have grown up in a digital technological space
and therefore that is where they are comfortable; they don’t relate to print media
(Semmelmayer S, 2014; Roy L, 2015).
As previously discussed under the digital advertising section, internet advertising
is said to be interactive. It is this two-way communication that makes up the
online experience specifically through social media channels (Lightcap, B.,Peek,
W. 2012). Print media advertising on the other hand, is one-way communication;
the brand pushes one-sided messaging to consumers (Lindberg et al. (2010).
Despite all of the advantages of internet advertising there are as with everything,
disadvantages. Roy (2015) declares that the internet is saturated with content
and online advertising therefore often gets lost amongst all of the noise. Pop-up
ads tend to annoy consumers; they are found to be intrusive and contradict the
claim of user control. Consterdine (2005) adds that the internet can be viewed as
time-consuming, addictive and has the possibility of taking over people’s lives
without a relationship with the medium ever being formed.

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There are some undeniable print advertising advantages that need to be
discussed:
Print is a personal choice where customers purchase magazines or subscriptions
because they choose to, placing the reader in control. Readers engage deeply
with the magazines that they purchase and form a trusting bond with their
magazine of choice. Consumers trust print content due to the publication’s
credibility and the reader will therefore be more receptive to the advertising and
will consume it with interest. Readers are thus more likely to take action as a
result of seeing advertising in magazines. Studies have shown that magazine
advertising can result in an increase in sales, market share, brand penetration
and weight of purchase (Consterdine G, 2005; Semmelmayer S, 2014; Roy L,
2015).
A substantial amount of time is spent reading the purchased magazine
thoroughly. Readers look at each page roughly 2,5 times, spending up to 74
minutes reading a magazine, whereas websites are often skimmed over within
15 seconds. Consumers are more engaged reading magazines and newspapers
as they are able to read at their own leisure (Consterdine G, 2005)
Print can communicate longer, more in-depth messages. There is also longevity
and the possibility of the pass-along taking place with the average number of
times a paid for magazine is picked up by a consumer is 5.4 times (Consterdine
G, 2005)
Certain types of print media allow for targeting with precision and without
wastage, the advertised product can be matched to the appropriate audience
through the relevant magazine (Consterdine G, 2005). For example, an Audi
advertisement would be placed in the CAR publication as this would reach
consumers who are interested in cars.

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Digital distribution has led to a change in consumer’s content expectation,
creating a demand for instant access (See Addendum C). Connected consumers
are in control and are forcing traditional media to adapt to their changing needs
and demands. Consumers are looking for the right media on the right platform at
the right time. Traditional media has consequently been forced to become more
flexible in the manner in which their products are developed and delivered.
Should the consumer not be able to access content as and when they want to
from a particular source, they will simply look elsewhere (SEM outlook: 2013-
2017).
4. Consumer magazine advertising vs internet advertising in South
Africa
The profile of the South African population is heavily weighted with youth under
the age of 15 years who have been born into a world of internet and technology,
who are less likely to be exposed to print media (Print & Digital Media SA, 2013).
Advertisers wishing to target that specific target market should be using internet
advertising as the medium to reach them. The number of internet users is
increasing in South Africa, it has been forecasted that by 2017, 60% of the SA
population will be online (Robertson G, 2015).
According to Print & Digital Media SA (2013) digital is exerting great pressure on
print media as a result of its ability to discard geography and obtain instant reach.
The SEM outlook (2013-2017) conducted by PWC determined that the South
African internet advertising market is currently the largest in Africa and is growing
at nearly twice the global rate. It is expected to grow to R3,7 billion in 2017 from
R1,2 billion in 2012, representing a 25,4% compound annual growth rate
(CAGR). This means that by 2017 internet advertising will reach over 8% share
of the SA advertising market, more than double its share in 2012 (See
Addendum B). The SEM outlook (2013-2017) went on to add that internet
advertising has proven itself resilient to the economic state in comparison to

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other media forms, whose advertising revenues have declined. The growth in
internet advertising has been brought on by a variety of factors such as growing
internet penetration, (brought about by an increase in smartphone and tablet
ownership and a decrease in data tariffs) declining broadband prices, faster
broadband speeds, increased consumer consumption and the increase in
targeted advertising (www.thespacestation.co.za).
According to the 2013-2017 SEM outlook (2013, there will be a 10,9% CAGR in
the South African entertainment and media market, with internet contributing
24,7% and print contributing 12,1% (See Addendum A). Mobile advertising will
be a big driver in the growth of internet advertising, accounting for a predicted
one third of total internet advertising spends in 2017 (SEM outlook: 2013-2017).
According to the SEM outlook (2013-2017), since South Africa has a low
broadband penetration, the effect on print advertising has been minimal in
comparison to other countries, and print media will grow by an estimated 21,3%
due to urbanization and an improvement in literary levels. Advertising spend on
consumer magazines is predicted to increase by 6,1% from 2012 to 2017.
However, according to The Media Yearbook (2015), consumer magazine
circulation is in trouble having decreased by 3% (176 000 copies) in the third
quarter of 2014 vs the previous quarter. There were several magazines that
folded in 2014 including FHM, Rolling Stone, Succeed Magazine, Opera SA and
PC Format (The Media Reporter, 2015).
Despite the overwhelming increase in internet figures previously discussed, we
need to bear in mind that according to www.themarketingsite.com there is
currently 63% of the population who do not yet have access to the internet whom
print media will appeal to.

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5. Combining consumer magazine advertising and internet advertising
Digital media advancement is leading to a different approach when choosing the
media channel to be used during advertising campaigns. Advertisers are no
longer focusing on traditional media only as a result of the availability of a greater
number of communication channels (Consterdine G, 2005).
Consterdine (2005) and Lindberg et al. (2010), explain that consumers are now
able to choose the media they would like to experience, along with the
information that they would like to pull from that media. Guzenko (2014) goes on
to add that different media platforms affect target consumer groups differently.
The youth are more inclined to interact with digital media via social media sites
whereas the older generations are more likely to interact with print media.
Lindberg et al. (2010) further proposes that customers now expect to be able to
interact with brands on several different channels. The challenge to marketers is,
understanding what their customer channel preferences are and their motivations
for using those specific channels.
According to Semmelmayer (2014), Roy (2015) and Lindberg et al. (2010),
integrating both print and digital media leads to successful marketing
communications by strengthening both forms of media, whilst minimizing their
limitations and complications. Consterdine (2005) adds that magazines work well
when combined with the internet as they have the ability to cross-reference each
other. He believes that magazines can arouse interest in topics, and then provide
website addresses in articles and advertisements for further exploration. It’s been
found that very often information found in print led to further research being
conducted online, which often led to a purchase; this confirms Consterdine’s
(2015) thoughts. The evidence therefore indicates that it is vital that advertisers
should include website addresses where relevant in print ads and that online
advertising should relate to the print ad (Consterdine G, 2005).

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Fuxman et al. (2014) determined that traditional media will not disappear as a
result of the increase in digital media and concurs with Consterdine (2005),
Semmelmayer (2014) and Roy (2015) that the two mediums work very well
together.
Conclusion
The digital revolution is certainly happening slowly but surely in South Africa and
with this, the media landscape is changing, however it will not take place
overnight. Digital advertising revenues are growing in the country and some
segments are experiencing a more rapid growth than others. South African
advertisers will however continue to demonstrate loyalty to traditional media for
the time being, as they understand and trust the metrics. (SEM outlook: 2013-
2017). It is imperative that marketers take more of a combined approach to their
marketing campaigns, encompassing both print and digital elements to ensure
that they are utilising the strengths of both mediums. As J.G. Sandon, a director
of Ogilvy said “you can’t build a brand simply on the internet. You have to go
offline.” (Pfeiffer, M., Zinnbauer, M. 2010).

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Reference list
1. Almotairi M, 2014, Intertemporal effects of online advertising channels on
customers. Found at:
ijbssnet.com/journals/Vol_5_No_9_August_2014/33.pd Retrieved on 18
April 2015
2. Boundless Marketing, 2015. “Types of Internet Advertising.”Boundless,
found at: https://www.boundless.com/marketing/textbooks/boundless-
marketing-textbook/social-media-marketing-15/introduction-to-social-
media-and-digital-marketing-98/types-of-internet-advertising-483-10593/
Retrieved on 07 May 2015
3. Consterdine G, 2005, How magazine advertising works, fifth edition, PPA
Marketing. Found at:
https://www.magazinescanada.ca/uploads/File/files/general/HMAW-05.pdf
4. Consterdine G, 2009. The case for magazine advertising: The research
evidence. Found at:
http://www.consterdine.com/articlefiles/77/The%20Case%20for%20Magaz
ine%20Advertising.pdf Retrieved on 11 May 2015.
5. Consterdine G, 2009. Magazine advertising works! Seven key points.
Found at http://www.consterdine.com/articlefiles/78/ppai_adv_works1.pdf
6. Doherty, N. F., & Ellis-Chadwick, F., 2009. Exploring the drivers, scope
and percieved success of e-commerce strategies in the UK retail sector.
European Journal of Marketing. Found at:
http://j.pelet.free.fr/publications/ecommerce/Exploring_the_drivers_scope_
and_perceived_success_of_e-
commerce_strategies_in_the_UK_retail_sector.pdf Retrieved on 17 April
2015

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7. Fuxman, L., Eifoglu, H., Chao, C.,Li, T. 2014. Digital Advertising: A more
effective way to promote businesses products. Journal of Business
Administration and Research. Volume 30, Number 2. Found at
www.sciedu.ca/jbar Retrieved on 17 April 2015
8. Guzenko, I. 2014, What’s this fuss about combined campaigns.
Salesforce.com. Found at:
https://www.salesforce.com/blog/2014/12/whats-this-fuss-about-
combined-campaigns-gp.html Retrieved on 13 May 2015
9. Humphrey P., Owen, R. The structure of online marketing communication
channels. Found at: www.aabri.com/manuscripts/09135.pdf Retrieved on
12 April 2015
10.Karimova G, 2011. “Interactivity” and advertising communication. Found
at: www.academicjournals.org/journal/JMCS/article-
abstract/F19F0E111444 Retrieved on 20 April 2015
11.Lightcap, B.,Peek, W. 2012. The effects of digital media on advertising
markets. Duke University. Found at:
http://econ.duke.edu/uploads/media_items/lightcap-peek-thesis-dje-
final.original.pdf retrieved on 12 May 2015
12.Lindberg, M., Nyman, C. et al. 2010. How to implement and evaluate an
online channel extension through social media. Linnaeus University,
School of Business and Economics. Found at: www.diva-
portal.org/smash/get/diva2:322517/FULLTEXT02 Retrieved on 16 April
2015
13.Pfeiffer,M., Zinnbauer, M. 2010. Can old media enhance new media? How
traditional advertising pays off for an online social network. Journal of
Avdertising Research, Vol 50, No.1. Found at:
https://www.warc.com/Pages/Store/PDF/JARSample.pdf Retrieved on 28
April 2015
14.Print & Digital Media SA, 2013. Report on the transformation of print and
digital media. Found at:
http://www.pdmedia.org.za/pressreleases/2013/PDMTTT%20FINAL%20P
RINTED%20REPORT.PDF Retrieved on 11 May 2015

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15.PWC South African Entertainment & Media Outlook: 2013 – 2017 (2013).
Found at: http://www.pwc.co.za/en/assets/pdf/entertainment-and-media-
outlook-2013-2017.pdf Retrieved on 2 May 2015
16.Robertson G, 2015, Global trends in Print and Digital readership
measurement. Found at:
http://www.askafrika.co.za/sites/default/files/Global%20trends%20in%20P
rint%20and%20Digital%20readership%20measurement.pdf Retrieved on
10 May 2015
17.Roy L, 2015, Print advertising still very much alive. Found at:
http://seedmarketers.com/print-advertising-still-very-much-alive/ Retrieved
on 1 May 2015
18.Roy L, 2015, Integrating Digital and Print Marketing. Found at:
http://seedmarketers.com/integrating-digital-and-print-marketing/
19.AMPS article, 2013. SAARF found at:
http://www.saarf.co.za/amps/internet.asp Retrieved on 12 May 2015
20.Semmelmayer S, 2014. Print advertising is dead, Or is it? Found at:
https://www.linkedin.com/pulse/20140403190830-1543783-print-
advertising-is-dead-or-is-it Retrieved on 2 May 2015
21.Strydom, J. 2011. Introduction to Marketing. Fourth Edition. Juta, CT.
22.The Media Reporter, 2015. New ways to keep readers happy. The Media
Online. Found at: themediaonline.co.za/2015/03/new-ways-to-keep-
readers-happy Retrieved on 25 April 2015
23.www.thespacestation.co.za Retrieved on 28 April 2015
24.www.themarketingsite.com Retrieved on 30 April 2015

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Addendums
Addendum A

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Addendum B

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Addendum C
Addendum D

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The research problem: Is internet advertising negatively impacting consumer
magazine advertising in South Africa and should the two mediums be used in
conjunction?
Constructs
6. Consumer magazines and their relevance as an advertising medium
7. Internet advertising, what it is and why it relevant as an advertising
medium
9. Consumer magazine advertising vs internet advertising in South Africa
10.Combining consumer magazine advertising and internet advertising
Key search terms
 Print advertising
 Digital advertising
 Print vs digital advertising
 Print vs digital advertising in South Africa
 Multichannel advertising
 Combining print and digital advertising
 The evolution of advertising
 Advertising
 Relevance of print advertising
 Advertising in South Africa

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