Who Owns Whom

Advertising Industry South Africa

The Advertising Industry in South Africa 2023

Yasmin Mahomedy | South Africa | 31 August 2023

The Advertising Industry in South Africa 2020

Kate Shand | South Africa | 05 June 2020

The Advertising Industry in South Africa 2018

Nina Shand | South Africa | 08 May 2018

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Report Coverage

This report on the advertising industry in South Africa includes information on the state of the industry, major trends and issues, notable players and factors that influence its success. There are profiles of 37 companies including major agencies such as Ogilvy, Dentsu, TBWA and Publicis, media agencies such as The MediaShop and outdoor advertising companies such as Outdoor Network and Tractor.

The Advertising Industry in South Africa

South Africa’s advertising industry has recovered since the pandemic. Digital advertising is growing more than four times faster than traditional advertising, fuelled by the increasing number of internet users. The main avenues are Google search engine marketing, social media advertising, and advertising on closed networks. With streaming services like Netflix advertising to subsidise cheaper plans, traditional advertising faces growing competition. Many South African agencies are subsidiaries of international companies WPP, Omnicom, Publicis, Interpublic Group and Dentsu, which together account for around 80% of South African advertising spend.

Changing Landscape

The advertising environment is changing as TV audiences and print readership declines and people read and watch online. Increased consumption of digital media has resulted in a significant shift to digital advertising spend. Facebook was the most used social media platform by South African companies for advertising purposes in 2022. Influencer marketing is becoming a tool for some brands to connect with their target audience. Companies are increasingly using customer behaviour data to inform their advertising strategies.

Challenges

A weak economy results in lower advertising budgets or even fewer adverts being created. The industry is largely owned by a handful of major international holding companies, making it difficult for smaller agencies to compete, although there are niche opportunities. The large presence of international companies has also resulted in the industry bring relatively untransformed. As digital advertising increases and more businesses are relying on technology to reach their audiences, the unreliable supply of electricity poses serious challenges and threats.

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The Advertising Industry in South Africa 2023

Full Report

R 20 000.00(ZAR) estimated $1070.90 (USD)*

Industry Overview

R 14 000.00(ZAR) estimated $ 749.63 (USD)*

Historical Reports

The Advertising Industry in South Africa 2020-06-05

R 1 900.00(ZAR) estimated $101.74 (USD)*

View Report Add to Cart

The Advertising Industry in South Africa 2018-05-08

R 1 900.00(ZAR) estimated $101.74 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 3
2.2. Geographic Position 3
2.3. Size of the Industry 4
3. LOCAL 8
3.1. State of the Industry 8
3.2. Key Trends 11
3.3. Key Issues 11
3.4. Notable Players 12
3.5. Corporate Actions 13
3.6. Regulations 13
3.7. Enterprise Development and Social Development 14
4. AFRICA 16
5. INTERNATIONAL 18
6. INFLUENCING FACTORS 19
6.1. Loadshedding 19
6.2. Economic Environment 20
6.3. Labour 20
6.4. Racial Discrimination and Racist Ads 21
6.5. Technology, R&D, Innovation 22
6.6. Environmental Issues 23
7. COMPETITIVE ENVIRONMENT 24
7.1. Competition 24
7.2. Ownership Structure of the Industry 24
7.3. Barriers to Entry 25
8. INDUSTRY SUMMARY 25
9. OUTLOOK 25
10. INDUSTRY ASSOCIATIONS 26
11. REFERENCES 26
11.1. Publications 26
11.2. Websites 27
APPENDIX 1 28
Summary of Notable Players 28
COMPANY PROFILES 33
Accenture Song Production Studios (South Africa) (Pty) Ltd 33
Ad Outpost (Pty) Ltd 35
Ad Outpost Two Thousand and Seven (Pty) Ltd 37
ADreach (Pty) Ltd 39
Black Khaki Advertising (Pty) Ltd 42
Blueprint Advertising Agency (Pty) Ltd 44
Boo Media and Communication (Pty) Ltd 45
Boomtown (Pty) Ltd 47
Busi Ntuli Communications (Pty) Ltd 49
Catgraphics (Pty) Ltd 51
Dentsu South Africa (Pty) Ltd 53
FCB Africa (Pty) Ltd 56
Grey Advertising Africa (Pty) Ltd 58
Horsley's Marketing Services CC 60
Incubeta SA Operations (Pty) Ltd 62
J Walter Thompson Company South Africa (Pty) Ltd 63
JCDecaux South Africa (Pty) Ltd 65
Joe Public (Pty) Ltd 67
Kena Outdoor (Pty) Ltd 69
McCann Worldgroup South Africa (Pty) Ltd 71
Media Shop (Pty) Ltd (The) 73
MetropolitanRepublic Integrated Communications (JHB) (Pty) Ltd 75
MMS Communications South Africa (Pty) Ltd 77
Mullen Lowe Group (South Africa) (Pty) Ltd 80
Nethwork (Pty) Ltd 82
Ogilvy and Mather South Africa (Pty) Ltd 84
Outdoor Network Ltd 87
Outsmart Outdoor Advertising (Pty) Ltd 89
Penny Black Outdoor (Pty) Ltd 91
Primedia (Pty) Ltd 93
Provantage (Pty) Ltd 97
Southern Ambition 1385 CC 100
TBWA South Africa (Pty) Ltd 101
Tractor Media Holdings (Pty) Ltd 103
VMLYR (Pty) Ltd 105
Wunderman Thompson (Pty) Ltd 107

Report Coverage

This report covers the advertising industry in South Africa, with a focus on advertising agencies and above-the-line advertising and includes adverts for print, radio, television, out-of-home such as billboards, digital, cinema, direct mail, e-sports and gaming. It includes comprehensive information on the state of the sector and statistics on advertising revenue, agency and brand rankings and trends. There are profiles of 35companies including major agencies such as Ogilvy and TBWA. Other profiles include agency FCB Africa, which has rebranded to Nahana Communications Group and outdoor advertising companies such as Outdoor Network and Outsmart.

Advertising

The total revenue of South Africa’s advertising industry increased, albeit marginally, in 2019, and continued to be dominated by television and video advertising spend. Internet advertising is, however, consistently gaining ground and is expected to overtake television in the next three years. Internationally, social media is expected to account for over 15% of global spend in 2020 and online video for almost 10%. South Africa has many advertising agencies offering different services and largely owned by a handful of major international holding companies such as WPP, Omnicom and Publicis, with role players estimating that almost 80% of the industry is in foreign hands.

Coronavirus

The knock-on effects of lockdown measures will see companies looking for areas where they can contain costs, and past experience shows that one of the first things to be affected are advertising budgets. Coronavirus has resulted in significant changes to the way consumers are using technology and accessing content, including an increase in television and digital consumption during lockdown. Advertisers are cutting costs, shifting to digital channels and rescheduling investments to later in the year. Filming of adverts and local series and soaps was allowed under lockdown levels 4 and 3 with some filming restrictions, while local shooting of international films and adverts is expected to resume towards the end of the year.

Read More..
The Advertising Industry in South Africa 2020

Full Report

R 1 900.00(ZAR) estimated $101.74 (USD)*

Industry Overview

R 1 330.00(ZAR) estimated $ 71.21 (USD)*

Historical Reports

The Advertising Industry in South Africa 2023-08-31

R 20 000.00(ZAR) estimated $1070.90 (USD)*

View Report Add to Cart

The Advertising Industry in South Africa 2018-05-08

R 1 900.00(ZAR) estimated $101.74 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 5
2.2. Geographic Position 8
3. SIZE OF THE INDUSTRY 9
4. STATE OF THE INDUSTRY 15
4.1. Local 15
4.1.1. Corporate Actions 22
4.1.2. Regulations 23
4.1.3. Enterprise Development and Socio-Economic Development 26
4.2. Continental 26
4.3. International 28
5. INFLUENCING FACTORS 31
5.1. Economic Environment 31
5.2. Input Costs 32
5.3. Technology, Research and Development (R&D) and Innovation 32
5.4. Coronavirus 32
5.5. Environmental Concerns 35
6. COMPETITION 35
6.1. Barriers to Entry 37
7. SWOT ANALYSIS 37
8. OUTLOOK 38
9. INDUSTRY ASSOCIATIONS 39
10. REFERENCES 40
10.1. Publications 40
10.2. Websites 40
APPENDIX 1 42
Summary of Notable players 42
COMPANY PROFILES 45
AD OUTPOST (PTY) LTD 45
AD OUTPOST TWO THOUSAND AND SEVEN (PTY) LTD 47
ADREACH (PTY) LTD 49
AEGIS MEDIA SOUTH AFRICA (PTY) LTD 52
BLACK KHAKI ADVERTISING (PTY) LTD 55
BLACK POWDER STUDIOS (PTY) LTD 57
BOO MEDIA AND COMMUNICATION (PTY) LTD 59
BOOMTOWN (PTY) LTD 61
BUSI NTULI COMMUNICATIONS (PTY) LTD 63
CATGRAPHICS (PTY) LTD 65
ELEMENTS CREATIVE DYNAMICS (PTY) LTD 67
FCB AFRICA (PTY) LTD 68
HORSLEY'S MARKETING SERVICES CC 70
INCUBETA SA OPERATIONS (PTY) LTD 72
J WALTER THOMPSON COMPANY SOUTH AFRICA (PTY) LTD 73
JCDECAUX SOUTH AFRICA (PTY) LTD 75
JUPITER DRAWING ROOM CAPE TOWN (PTY) LTD (THE) 77
KENA OUTDOOR (PTY) LTD 79
KING JAMES ADVERTISING CAPE TOWN (PTY) LTD 81
MCCANN WORLDGROUP SOUTH AFRICA (PTY) LTD 83
METROPOLITANREPUBLIC INTEGRATED COMMUNICATIONS (JHB) (PTY) LTD 85
MMS COMMUNICATIONS SOUTH AFRICA (PTY) LTD 87
MULLEN LOWE GROUP (SOUTH AFRICA) (PTY) LTD 90
NETHWORK BBDO (PTY) LTD 92
OGILVY AND MATHER SOUTH AFRICA (PTY) LTD 94
OUTDOOR NETWORK LTD 97
OUTSMART OUTDOOR ADVERTISING (PTY) LTD 99
PENNY BLACK OUTDOOR (PTY) LTD 101
POSTERSCOPE (PTY) LTD 103
PRIMEDIA (PTY) LTD 105
PROVANTAGE (PTY) LTD 109
SOUTHERN AMBITION 1385 CC 112
TBWA SOUTH AFRICA (PTY) LTD 113
TRACTOR MEDIA HOLDINGS (PTY) LTD 115
VMLYR (PTY) LTD 117

Report Coverage

The report on the South African advertising sector describes current conditions, recent developments and factors influencing the success of the industry. Profiles for 35 companies are provided. These include Black Powder Studios (Pty) Ltd, which was launched as a through the line agency and recently transformed from a majority black-owned to a 100% black-owned business. Also profiled are Provantage Media Group, which acquired a majority stake in leading African billboard company, Global Outdoor Systems in 2018, making it one of the largest out-of-home media owners on the continent, and Dentsu Aegis Network which purchased a 52.05% stake in advertising agency FoxP2, a deal that highlights the trend for media and creative agencies to work together.

Activities of Advertising Agents

The South African advertising industry includes advertisements for print media, radio, television, online media, cinema, direct mail and out-of-home media such as billboards. South Africa’s advertising sector is dominated by four foreign-owned international media groups, WPP (UK), Omnicom Media Group (USA), Publicis (France) and Interpublic (USA). The sector, which is predominantly male-dominated and white-owned and managed, set targets of increasing black ownership to 45% and increasing black women ownership to 30% by April 2018.

The Move to Digital

Although locally Television is still the predominant advertising medium, accounting for 56.3% of total advertising spend of R38.13bn between July 2016 and June 2017, the traditional platforms for advertising are being affected by a shift in the increasing usage of digital devices and the Internet. Statistics from the Interactive Advertising Bureau (IAB) report show that Internet advertising spend increased from R1.3bn in 2013 to R3.95bn in 2016, largely benefitting international companies Google and Facebook. Original digital video (ODV) advertising spend is also increasing. A recent study showed that more than half of media buyers are planning to increase their digital and mobile video spending in the next year. Investment in OVD programming has climbed steadily since 2016 and is expected to grow 68% by the end of 2018.

Read More..
The Advertising Industry in South Africa 2018

Full Report

R 1 900.00(ZAR) estimated $101.74 (USD)*

Industry Overview

R 1 330.00(ZAR) estimated $ 71.21 (USD)*

Historical Reports

The Advertising Industry in South Africa 2023-08-31

R 20 000.00(ZAR) estimated $1070.90 (USD)*

View Report Add to Cart

The Advertising Industry in South Africa 2020-06-05

R 1 900.00(ZAR) estimated $101.74 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 3
2.2. Geographic Position 5
3. SIZE OF THE INDUSTRY 5
4. STATE OF THE INDUSTRY 10
4.1. Local 10
4.1.1. Corporate Actions 14
4.1.2. Regulations 15
4.1.3. Enterprise Development and Social Economic Development 18
4.2. Continental 20
4.3. International 22
5. INFLUENCING FACTORS 24
5.1. Economic Environment 24
5.2. Ban on Alcohol Advertising 25
5.3. Labour Resources 25
5.4. Ad-free Business Models 27
5.5. Technology, Research and Development (R&D) and Innovation 27
5.6. Environment 31
6. COMPETITION 32
6.1. Barriers to Entry 33
7. SWOT ANALYSIS 34
8. OUTLOOK 35
9. INDUSTRY ASSOCIATIONS 35
10. REFERENCES 37
10.1. Publications 37
10.2. Websites 37
APPENDIX 1 39
List of ASA Members 39
APPENDIX 2 40
List of ACA members 40
APPENDIX 3 42
Acts Affecting Advertising 42
APPENDIX 4 44
List of SA POPAI Members 44
COMPANY PROFILES 45
AD OUTPOST (PTY) LTD 45
AD OUTPOST TWO THOUSAND AND SEVEN (PTY) LTD 47
ADREACH (PTY) LTD 49
AEGIS MEDIA SOUTH AFRICA (PTY) LTD 52
BLACK KHAKI ADVERTISING (PTY) LTD 55
BLACK POWDER STUDIOS (PTY) LTD 57
BOO MEDIA AND COMMUNICATION (PTY) LTD 59
BOOMTOWN (PTY) LTD 61
BUSI NTULI COMMUNICATIONS (PTY) LTD 64
CATGRAPHICS (PTY) LTD 66
ELEMENTS CREATIVE DYNAMICS (PTY) LTD 68
FCB AFRICA (PTY) LTD 70
HORSLEY'S MARKETING SERVICES CC 72
J WALTER THOMPSON COMPANY SOUTH AFRICA (PTY) LTD 74
JCDECAUX SOUTH AFRICA (PTY) LTD 76
JUPITER DRAWING ROOM (CAPE TOWN) (PTY) LTD (THE) 78
KENA OUTDOOR (PTY) LTD 80
KING JAMES ADVERTISING CAPE TOWN (PTY) LTD 82
MCCANN WORLDGROUP SOUTH AFRICA (PTY) LTD 84
METROPOLITANREPUBLIC INTEGRATED COMMUNICATIONS (JHB) (PTY) LTD 86
MFELANE CREATIONS CC 88
MMS COMMUNICATIONS SOUTH AFRICA (PTY) LTD 89
MULLEN LOWE GROUP (SOUTH AFRICA) (PTY) LTD 92
NETHWORK BBDO (PTY) LTD 94
OGILVY AND MATHER SOUTH AFRICA (PTY) LTD 96
OUTDOOR NETWORK LTD 99
OUTSMART OUT OF HOME ADVERTISING (PTY) LTD 101
PENNY BLACK OUTDOOR (PTY) LTD 103
POSTERSCOPE (PTY) LTD 105
PRIMEDIA (PTY) LTD 107
PROVANTAGE (PTY) LTD 112
SAATCHI AND SAATCHI (PTY) LTD 114
SOUTHERN AMBITION 1385 CC 116
TBWA SOUTH AFRICA (PTY) LTD 117
TRACTOR MEDIA HOLDINGS (PTY) LTD 119
VML SOUTH AFRICA (PTY) LTD 121