Ad agencies splurge on Cannes entries

Johannesburg - With increasingly upbeat expectations for advertising this year, South African ad agencies have thrown caution to the winds and spent freely on entries for the Cannes Lions festival, opening in the south of France on June 20.

Together they have entered 793 pieces of work, taking in every one of the 12 Cannes categories, which include press advertisements, "film" (which includes television and other screen-based media), cyber (digital or online), public relations and design.

The cost? A cool R2.9m.

Cannes is considered the top international advertising competition, and its status is reflected in the costs.

About 12-15 South African groups enter Cannes every year, spending an  average of around R200 000 each on entries. But for the big groups, that could work out at half a million rand each.

Though winning is good for morale, the primary reason for entering is to attract or keep clients. Most agencies consider this a marketing expense.

The cost of a single entry ranges from €270 (R2 530 at the current exchange rate) for the radio category, to €1 150 (R10 800) for the titanium and integrated category.

Those who attend the week-long festival can expect to pay another R35 000 or so for the pleasure – and that doesn’t include the air fare. The delegates fee is over R20 000, a middling hotel would set you back R8 500 for the week, and food and drink could be R7 000.

Fortunately for the local ad industry, the rand is stronger than it has been for most of the last few years, so the rand cost is probably lower than in 2009.

If this year’s entries are any guide, an end to the worldwide recession is in sight. The competition has received more than 24 200 entries, the fourth-best entry level in the event’s 57 years.

This is 7% up on 2009, but that was a really bad year which suffered a calamitous 20% drop. This year’s entry is still behind 2008, when some 28 000 entries poured in.

South Africa’s tally of 793 entries made it the eighth biggest of the 90 countries participating, ahead of such giants as Canada, Japan, Italy and Russia.

South Africa’s biggest numbers are in the Press category, followed by outdoor, radio and ‘film’, which includes television and other screen-based media. But it has entries in every one of the 12 categories, including cyber (digital) – where we are a long way behind the developed world – public relations and filmcraft.

The top entering nations, which are usually the top award-winners as well, are the US (3370 entries), Brazil (2 115), Germany (1 891) and the UK (1 680).

South Africans usually boast that this country “punches above its weight” in awards, but this is not entirely true, especially with the introduction of new categories such as the Cyber Lions for digital and online advertising. Over the whole spectrum of awards, South Africa ranks creatively about the same as its rank in size.

 - Fin24.com