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A complete ban on alcohol advertising will result in a total loss of revenue, including sponsorship, sports development leveraging, events and below the line activities, of R2.6 billion, a preliminary impact study has found.
The actual impact on alcohol abuse would be negligible, independent marketing analyst Chris Moerdyk said in a statement on Tuesday.
Loss of above the line advertising revenue for the mass media would be R1.8 billion.
The SABC would lose about R400 million, Dstv and e.tv combined about R500 million, and radio, lifestyle magazines, and newspapers the balance.
Another impact on the mass media industry would be job losses of about 2500 - mainly low earner employees in the print and out of home (outdoor) sectors, as well as sports marketing and management companies.
However, many media companies believed the figure of 2500 was too low, Moerdyk said.
The impact on the alcohol industry itself would be a short-term drop in branded liquor consumption of between five and eight percent, but this would recover in the medium-term due to direct marketing.
“Brand leaders would, in fact, benefit from an advertising ban by increasing market share at the expense of lesser placed brands.”
The impact on dependants of retrenched employees would result in approximately 30,000 people losing their breadwinners due to the high number of dependants per breadwinner in the lower ranks of the workforces, in particularly the print and out of home industries.
The impact on alcohol abuse would be negligible, Moerdyk said.
Precedents in Canada, Denmark, and New Zealand found no evidence of reducing alcohol abuse - which resulted in bans on alcohol advertising being lifted.
The impact on substance abuse in poorer areas would also be negligible due to alcohol and substance abuse emanating mainly from non-branded liquor products such as home brews and methylated spirits as well as, glue, tik, and other substances.
Regarding the impact on the South African fiscus, Moerdyk said a study was still underway by an independent accountancy firm.
However, one example would be the loss of VAT on about R2
billion of the R2.6 billion, due to advertising budgets being allocated directly to the bottom line in most liquor firms. VAT loss would be some R280 million.
An unintended consequence of a ban on alcohol advertising would be increasing pressure from within South Africa and the World Health Organisation (WHO) to ban fast food advertising.
The WHO had identified obesity as the biggest global health hazard.
It would be difficult for government to justify banning alcohol advertising without banning fast food advertising, the impact of which would be a further 3000 job losses in the media and marketing industries.
The impact on television programming would be two-fold. Firstly, the inability to purchase sports programming from overseas due to a loss of revenue, and secondly, the inability to broadcast sports and lifestyle programming containing embedded liquor sponsorship or branded content.
“Given the role advertising leveraging plays in liquor industry-sponsored sports development projects, these projects would more than likely be curtailed or abandoned should the liquor industry not be able to derive any added value benefit.”
Further, liquor industry sponsored Drink/Drive advertising campaigns at Easter and Christmas could be severely compromised should liquor industry sponsors not be able to “brand” these campaigns.
South Africa's potential to host international sporting and commercial events and exhibitions would also be compromised should any of these events have global liquor sponsor, such as Budweiser for the 2010 World Cup, Moerdyk said. - Sapa
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Bridget, wrote
Advertising does not make people drink. I would like to know how the banning of cigarette advertising has impacted on the amount of cigarettes soldpeople who smoke. Tightening up the liquor laws would do more - stop selling booze on Sundays or Saturday afternoonsevenings; close the liquor stores at 6pm on weekdays. I think this would impact more on the abuse of alcohol than advertising.
tom, wrote
They banned cigarette adverts and everyone said F1 and other sports racing would not cope, it is now stronger than ever. Great move by the government, one of the only things they are doing that I fully support. Ban it now, dont wait another moment. The only ones to complain are the advertising agencies and the booze manufacturers who are encouraging our children to drink.
Dunne, wrote
Yes ban it. This woo haa created by this 'independent' marketing analyst (who is probably paid by some alcohol group) to save their market share is just looking at this side. I think rather lose some jobs than the thousands who die due to alcohol. Let the TV companies survive some other way. I didn't hear the woo haa when cigarette advertising was banned. And... Surprise Surprise...the country is still moving along...
SimpleSimon, wrote
Those that think by banning adverts of booze will make a difference are living in cookooland. Last Anonymous is short of any understanding by critisizing comparisons with other countries. What has poverty and related problems to do with banning adverts. Are these people the only ones who are abusing booze? Since they are poor and have problems, do you think they the only ones reading newspapers and watching tv so that they need to be reminded to drink booze. Can they read or afford to watch tv and do the adverts tell them to drink in order to overcome their problems?? Drugs such as heroin and tik are on the increase in SA and are a major cause of social problems, but where are the adverts for these social evils?? You and a certain governement minister need to think!!
Elizabeth, wrote
I think it's a great idea!! Still won't stop the 'masses' from purchasing, but we don't need this supposedly 'glamorous' idea in our face all the time. I'm particularly pleased because too many friends and an immediate family member were killed by drunken drivers.
Anonymous, wrote
Ban alcohol advertising altogether. You can't even watch a cartoon in the movie theater without being bombarded by alcohol ads. Who exactly is their target market, toddlers? Cigarette ads are banned, and alcohol is far more destructive in my opinion, so please ads for dop as well.
Juan, wrote
Clive, yes they will complain. But you need to remember that there are ordinary people working in these advertising unduastries that have families to feed. Typical government: destroys jobs and then blame apartheid when people riot.
Anonymous, wrote
Making comaparisons with Cananda, Denmark and New Zealand makes no sense. These are so called developed countries which do not have the same levels of poverty and other related problems. The aim of the ban is to try to stop people from being influenced both by the ads and the products they advertise.
Anonymous, wrote
Its agood move,hope there shall be reduction of fatal accidents on our roads as well as domestic violents-I have seen it,please stop it and our children will grow well
Clive, wrote
The only people who will complain about a ban on advertising will be the advertsing agencies and the product manufacturers. I like a drink, but don't need to see any advertsing at all for the product. I enjoy the effects of alchohol, I don't think for one minute that drinking a certain brand of Scotch, for example, makes me anything better or worse than the next man. Ban adverts, they feed on peoples insecurities. Case in point the TV ad for the Teen Shield Deoderant. "The fun stops when the stink starts" It's a pathetic way of terrifying teens into buying their product. Sub text is: "if you fon't buy this p[articular product, you will stink and never have any fun". Right, that's me done, I'm off for snifter!
Chifikamadhambu, wrote
Its agood move,hope there shall be reduction of fatal accidents on our roads as well as domestic violents-I have seen it,please stop it and our children will grow well
Anonymous, wrote
we've got some serious contradictions in the way we treat liquor in the public domain in RSA. we cut out tobacco advertising and yet every third ad on tv seems to be devoted to liquor. we're clamping down on drinkdriving (without providing public transport alternatives), enforcing earlier closing times of bars and restaurants, preventing retailers from selling liquor on sundays (if I were an alcoholic, I'm pretty sure I'd just find an open bar anyway) all of which sends the message 'don't drink' At the same time we are literally flooding people with images telling them to drinkdrinkdrink. Hansa will transorm you into a successful young black entrepeneur (castle lite has a pretty similar effect), klipdrift is seemingly a tool of racial unification (and, apparently, is palatable to drink neat 'met eis' - no thanks), some moron is apparently happy to drive halfway around the country for a bottle of drostdy hof plonk........ all stated along with the teenytiny little qualifier that we're supposed to enjoy it responsible, so that pilate can wash his hands and guiltfree can watch us as we continue to hemorrhage tax$$ into clearing up traffic accidents and barfights, caring for children born with foetal alcohol syndrome, absorbing the social costs of the damaged children and spouses of alcoholics and the 1000 other consequences of the liquor industry. The argument of potential joblosses (in the printing industry? Pull the other leg, Charles Glass) is a distraction from the real issues at hand - if we are reminded to drink less, why, I imagine that as a nation we will drink less. THAT is the end result that will have caught the attention of SABMiller and KWV and the like, really very little to do with concerns for the advertising industry.
Jacqui, wrote
http:www.sowetanlive.co.zanews20110705booze-is-blamed-for-rapes. Maybe this is a better argument?
Pieter, wrote
@John: So you say just because people don't see an ad for booze, they won't drink (and drive)? Advertisements do not create a need or want for something, it only serves to make you more aware of the already existing need want and possily sway you towards a particular brandname. I reckon the ban will do precious little to solve the current alcohol-related problems. Just a thought....
Anonymous, wrote
I hear what they are saying. Are they considering how much is also spend by RAF and insurance and relevent parties regarding drinking and driving, murders, rape, abortions etc?People still smoke even though adverts were banned so what difference will it make make?so it's best if people continue to work under this terms than those who lost the bread winners, love ones?
Anonymous, wrote
It's obvious government ministers have nothing better to do that push forward "easy" bills. Let's invent unnecessary legislation that creates the illusion of good governance while avoiding the real issues and problems with South Africa, Poverty, Education and Health. Keep distracting the public with asinine policies, keep squeezing the middle class for every penny, make everything a race issue to scare the majority voters and finally ride the corrupt gravy train into the sunset....crumble South Africa crumble....shame on you ANC...SHAME ON YOU!
goforit, wrote
If they ban advertising then the savings could bring the alcohol price down by R2,1 BILLION! We would be able to drink so much more! I say go for it!
Anonymous, wrote
blah blah bleh, if people want to drink the fact they are not advertising on tv is not going to stop them, so silly if its going to cause job loss why do it? It def wont put people off drinking.
James1, wrote
You forget one thing. What about the contribution of Alcohol to the yearly South African due to taxation? Force the breweries to contribute more to social development and teaching people not to abuse alcohol rather than outright bans. People are funny, ban something and you make it more popular.
Jacqueline, wrote
If only they had put in as much effort into banning ads for alcohol as they did for smoking. I feel alcohol is a bigger problem in our society than smoking. Deaths due to road accidents, crime, abuse and teenage alcoholics would have been much less.
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