Transformation in South Africa's advertising industry: Moving beyond compliance to genuine change

Author: Sharleen James, chairperson of the ACA, and associate director at Accenture Song.

The debate on transformation in South Africa’s advertising industry touches on a complex and sensitive reality; while many agencies are complying with BBBEE regulations and adjusting their demographics on paper, the spirit of transformation lags behind.

This disconnect between regulatory compliance and genuine transformation lies at the heart of the issue, highlighting the difference between adhering to the letter of the law and embracing its spirit.

The BBBEE (broad-based Black economic empowerment) framework was designed to address deep-rooted inequalities by promoting Black ownership, management, skills development and representative employment across all sectors.

While many agencies have aligned their numbers with BBBEE targets to remain business-viable, meeting these targets alone does not guarantee a shift in agency culture, leadership decision-making, or real empowerment of Black talent.

In my discussions with senior executives (both Black and White), who are equally invested in meaningful transformation, several key actions were identified that will help drive this process forward:

1. Eliminate surface-level transformation: Some agencies have been criticised for symbolic transformation programmes that lack the depth required to equip Black employees with the skills and exposure necessary for career advancement. Black junior creatives or professionals in training programmes often do not receive meaningful opportunities to lead projects or build networks within the industry. Although many training programmes exist, we must ask why these efforts have not translated into the skills transfer and development needed to drive proper transformation across most agencies.

2. Limited career advancement opportunities: Many Black employees express frustration over the limited career progression paths available to them. While training and entry-level opportunities exist, there’s a clear bottleneck in moving from mid-management to senior or executive roles. This creates a cycle where the lower and mid-management levels show diversity, but top leadership remains predominantly White and homogeneous.

3. Retention of Black talent: The absence of a supportive and inclusive environment often leads to a higher turnover rate among Black professionals. Many leave because they feel marginalised or overlooked in favour of their White counterparts. This highlights the need for agencies to foster an inclusive culture where Black professionals feel represented, valued, and empowered to thrive.
   

Tokenism: A growing concern

Tokenism remains a pervasive issue in the industry, manifesting in two key ways:

1. Superficial representation: Some agencies, in their rush to meet compliance targets or appear transformed, rely on surface-level representation. Black professionals are often appointed to symbolic roles without real authority or decision-making power. This form of tokenism gives the illusion of diversity but does not translate into meaningful participation in the agency’s strategic direction or creative leadership.

2. Stereotypical depictions in advertising campaigns: Tokenism also extends to the work produced by agencies. While more Black faces appear in advertising campaigns, the narratives or roles often reinforce stereotypes or fail to connect with the lived realities of Black South Africans. The pressure to show diversity has, in some cases, resulted in tone-deaf campaigns that reinforce clichés instead of challenging them.
   

The disconnect between intent and action

The industry’s central critique is that while compliance numbers may suggest transformation, the lived experiences of Black professionals tell a different story. Many industry insiders and advocacy groups have expressed concern that agencies treat transformation as a box-ticking exercise, rather than as a genuine commitment to diversity, equity and inclusion.

The role of agency leadership

Leadership is crucial to bridging this gap. Yet, the reality is that many agency leaders still lack the understanding or commitment needed to fully embrace the principles of transformation. The absence of Black voices in decision-making roles reinforces existing power imbalances and perpetuates a culture where transformation initiatives are viewed as mere compliance obligations.

The industry needs leaders who champion diversity beyond numbers – leaders who invest time and resources in developing Black talent, challenge entrenched biases, and allow emerging voices to influence the creative and strategic direction of campaigns.

Consequences of failing the spirit of transformation

• Loss of credibility and trust: Agencies that fail to fully embrace transformation risk losing credibility with both their staff and their clients. Clients are quick to recognise tokenism in the teams presented to them or in the campaigns produced. This erodes trust in the agency’s authenticity. For Black employees, the gap between promises and actions often leads to disillusionment and high turnover, resulting in the loss of valuable talent.

• Impact on creativity and relevance: Agencies that merely comply with transformation guidelines, without embracing diverse perspectives, risk producing work that lacks authenticity. Black creatives bring critical insights into South African society, culture, and consumer behaviour. Failing to empower these voices undermines the potential for innovative and culturally relevant advertising. While Black-owned agencies are winning in this space, they struggle to secure large brands and budgets.

Moving forward: Embracing true transformation

For the advertising industry to progress, a deeper cultural shift is needed. Key actions include:

• Genuine empowerment of Black talent: Agencies must invest in training programmes that extend beyond mentorship to include leadership development, skills training, and real opportunities for project ownership. Black creatives and professionals should not just participate in campaigns but be empowered to lead them.

• Structural changes in leadership: Transformation cannot occur without Black representation at the highest decision-making levels. Agencies need tangible goals to increase Black representation in senior and executive roles, ensuring these positions come with genuine authority.

• Empowerment vehicles: Many agencies meet ownership targets by offering equity stakes to external investors or employees. While external investors play a crucial role by democratising access to equity and injecting capital into the industry, they typically lack the specific knowledge and operational insight needed to shape the agency’s unique transformation journey. As a result, they may contribute financial support without truly influencing strategic decisions or fostering empowerment within the organisation.

  Similarly, when employees receive equity without real decision-making power, their stake becomes symbolic rather than impactful. True transformation requires that those with ownership also have a say in guiding the agency's future. Without this, ownership becomes a formality, a checkbox for compliance rather than a meaningful step towards structural change. To drive real progress, agencies must ensure that equity comes with influence, empowering stakeholders who understand the business and are committed to its growth.

• Meaningful enterprise development: The rise of small, specialist agencies, particularly Black-owned firms, marks a positive shift in the business landscape. However, these agencies often face significant challenges in scaling up and accessing major business opportunities. To foster real growth and sustainability, these agencies need meaningful support systems and enterprise development programmes. With committed support from clients and larger agencies, these smaller players can develop the capacity to compete for larger projects, expand their influence, and play a transformative role in the industry.

A commitment to authenticity in storytelling

The industry must move beyond tokenism in its creative output. This means telling stories that reflect the diversity and complexity of South African society. Black creatives should have the autonomy to craft campaigns that resonate with their communities and challenge prevailing stereotypes. Embracing diversity in our work unlocks the potential for us to compete on a global scale.

By genuinely reflecting the richness of South African experiences and voices, we don’t just appeal to local audiences but create a distinctive style that resonates internationally. South American countries have effectively used this approach, turning their cultural narratives into powerful global assets. For South Africa, this isn’t just an aesthetic choice – it’s a path to meaningful socio-economic progress and a way to assert our creative identity on the world stage.

The ACA has consistently led the charge for industry transformation, playing a pivotal role in drafting the original MAC Charter codes. From the very beginning, we have actively represented the industry on the MAC Charter Council, championing its interests and ensuring alignment with these essential standards. Our commitment goes beyond mere compliance; we are dedicated to embedding the genuine spirit of transformation into our work and within the agencies we support. For us, this journey is not just about meeting legal requirements but about fostering the deeper impact these laws aim to inspire.

For us, transformation is not just about meeting regulatory requirements, it’s about fostering a culture where inclusivity, diversity, and genuine empowerment shape the future of the South African advertising industry.

This commitment is at the core of what the ACA stands for and what we believe will drive meaningful change for all.