"At the end of the day we weren't good enough and we were physically dominated by a better side," admitted Gatland.
"We came here to earn the respect of the South Africans, but we did not get it. We are proud of what we have achieved in the last six months, but we have to be more accurate and disciplined.
"Even though we were talking coming into the game about confidence and self-belief, we didn't demonstrate it.
"There is plenty to work on and we won't be throwing in the towel. In the first-half we could have been in the game because there were a few opportunities we didn't take and there were a few soft penalties.
"The exciting challenge of being a coach is having to try to lift the team before the next Test. I thought we scrummaged well, but the line-out didn't function at all."