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    • 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

    Report Info

    Report Summary Table of Contents
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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.

    Introduction

    • South Africa’s advertising industry has recovered since the pandemic.
    • Digital advertising revenue 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. The five largest account for around 80% of South African advertising spend.

    Trends

    • Increase in digital advertising.
    • Influencer marketing is being used to reach target audiences.
    • The number of roadside digital screens is increasing, and many companies are trying out digital out of home for the first time.

    Opportunities

    • Growing digital out of home.
    • Growth of online advertising.
    • Investment in marketing technology as data-driven insights are becoming more important.

    Challenges

    • Concerns about accuracy and transparency of measurements in the out of home segment.
    • Lack of transformation in the industry.
    • Loadshedding is a threat to digital advertising.
    • The industry is dominated by a few international holding companies.

    Outlook

    • The industry is expected to continue to grow, led by growth in digital advertising.
    • The digital out of home segment has significant growth potential.
    • Over the next five years, internet advertising is expected to show the largest revenue increase to almost 80% of entertainment and media revenue.
    • It is forecast that digital advertising spend in South Africa will grow by 6.6% per annum between 2023 and 2027.

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    The Advertising Industry in South Africa
    The Advertising Industry in South Africa 2023

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    Industry Landscape

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    Historical Reports

    The Advertising Industry in South Africa 2020-06-05

    R 1 900.00(ZAR) estimated $101.90 (USD)*

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    The Advertising Industry in South Africa 2018-05-08

    R 1 900.00(ZAR) estimated $101.90 (USD)*

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    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.

    Introduction

    This report covers the advertising industry in South Africa, with a focus on advertising agencies and above-the-line advertising. The total revenue of the advertising industry was estimated to be R30.4bn in 2019 (a 2.8% increase on 2018’s R29.5bn) with television and video dominating advertising spend at 21% of the total. The internet is expected to account for 25% of the advertising market in 2023 from 13.1% in 2019, and by then it will have overtaken television advertising. It is difficult to predict how the coronavirus crisis will affect the industry.

    Strengths

    • Adspend continues to grow steadily.
    • Establishment of the Advertising Regulatory Body.
    • Strong growth in mobile advertising.
    • Well-established industry with decades of performance and experience, including international award-winning ads and campaigns.
    • Well-established large agencies owned by international holding companies.

    Weaknesses

    • Environmental impact of outdoor and print advertising.
    • Lack of transformation in the advertising industry.
    • Migration from traditional print and broadcast to digital leading to a reduction in billings.
    • Point of purchase industry tends to be fragmented.
    • Skills shortage when it comes to core technological skills needed to compete with the advances technology has afforded the advertising industry.

    Opportunities

    • Digital transit advertising is an under-utilised ad space.
    • In-house agencies offer an attractive alternative to the current model.
    • Online shopping.
    • Programmatic advertising makes adverts more target-based.
    • Rise in online advertising opportunities.
    • The development of augmented and virtual reality.
    • The growth of social media has created opportunities for advertising.
    • The performance of South Africa’s most valuable brands poses a potential source of growth for the economy.
    • TV advertising.
    • Video games, e-sports and podcasts are relatively new and are growing at a similar rate to online advertising.

    Threats

    • Ad-block technology.
    • Ad-free business models.
    • Agencies are noting a decline in work commissioned and billings, and a rise in retrenchments and forced pay cuts due to the coronavirus pandemic.
    • Alcohol advertising may be threatened by coronavirus alcohol restrictions.
    • Closure of Caxton magazines and Associated Media Publishing.
    • Coronavirus is a threat as there is no point in advertising in outside spaces when everyone is staying at home.
    • Coronavirus threat to various advertising awards events, sporting events and other events attracting advertising and sponsorship.
    • Ownership of industry in the hands of international holding companies.
    • The increased spend on digital advertisements, further increased by coronavirus, is threatening traditional advertising agencies.
    • The poaching of creatives between agencies would have ramifications for the future of advertising.
    • There are concerns about accuracy and transparency of measurements, as well as ongoing breaches of consumer privacy and brand safety with regards online advertising.

    Outlook

    With so many people at home, there is an increasing use of online and social media. Out-of-home advertising has been affected. In an IOL interview, Richard Lord, media and operations director of media agency, Meta Media encouraged business to keep advertising during this time of recession and lockdown. “There’s very clear evidence that shows that brands that continue to advertise through a recession come out far stronger at the end of it.” With more people on social media than ever before, it is a good time to invest in digital and influencer marketing. More people are using, or considering using, online shopping options and this is pushing the retail space to online. People are also watching more television. Where products are available, television advertising spend has remained or increased but where products and services are not available, spend has been suspended for now. The rapid changes in the digital advertising industry coupled with the uncertain future the world is facing make it difficult to predict the industry outlook.

    Read More..
    The Advertising Industry in South Africa
    The Advertising Industry in South Africa 2020

    Full Report

    R 1 900.00(ZAR) estimated $101.90 (USD)*

    Buy Now +

    Industry Landscape

    R 1 330.00(ZAR) estimated $ 71.33 (USD)*

    Buy Now +

    Historical Reports

    The Advertising Industry in South Africa 2023-08-31

    R 9 500.00(ZAR) estimated $509.52 (USD)*

    View Report Add to Cart

    The Advertising Industry in South Africa 2018-05-08

    R 1 900.00(ZAR) estimated $101.90 (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.

    Introduction

    According to the most recent statistics from Nielsen, South African advertising spend totalled R38.13bn between July 2016 and June 2017. Television and Newspaper together accounted for 72.6% of the total advertising spend over this period while Direct Mail’s share of the total decreased further to 0.4% or R146m. While Television advertising dominates the industry, Internet advertising is expected to be the largest contributor to growth in the sector in the next five years. Media agencies have already seen a reduction in billings with the migration from traditional print and broadcast platforms to digital, thus adding pressure to revenue streams.

    Strengths

    • A well-established sector with a variety of channels and a variety of role players.
    • Outdoor advertising is an effective and low-cost means of communication for businesses.
    • The local Point of Purchase industry has strong international links.

    Weaknesses

    • Lack of transformation, with the sector remaining largely white-owned and male-dominated.
    • Negative environmental impact of outdoor advertising.
    • The sector is dominated by four international companies.
    • The sector is impacted by economic conditions.

    Opportunities

    • Increasing technological developments in the sector.
    • Increasing use of mobile devices and the Internet.
    • The rapidly growing middle class and increased market sophistication in Africa.
    • The rise in digital, omni-channel advertising opportunities.

    Threats

    • Ad-block technology.
    • Ad-free business models.
    • Inability of agencies to innovate and adapt to latest technological and consumer trends.
    • Legislation banning the advertising of alcohol and cigarettes.
    • Migration from traditional print and broadcast to digital leading to a reduction in billings.
    • The trend for advertisers to work directly with Facebook and Google on their digital marketing strategies.

    Outlook

    A key issue facing the advertising industry in South Africa is transformation. The Marketing, Advertising and Communication Charter deadline was 31 March this year and many companies and creative entrepreneurs are scrambling to ensure they have met all the requirements. At the same time Government is preparing legislation that threatens to restrict the quantity of alcohol marketing in South Africa, a move that will have a negative impact on the advertising revenues of agencies. Spend on Internet and digital marketing is expected to continue on its upward trajectory and although TV adspend is decreasing globally, in the domestic market it is likely to remain a popular medium. An increase in the popularity of and spend on online video advertisements is also forecast.

    Read More..
    The Advertising Industry in South Africa
    The Advertising Industry in South Africa 2018

    Full Report

    R 1 900.00(ZAR) estimated $101.90 (USD)*

    Buy Now +

    Industry Landscape

    R 1 330.00(ZAR) estimated $ 71.33 (USD)*

    Buy Now +

    Historical Reports

    The Advertising Industry in South Africa 2023-08-31

    R 9 500.00(ZAR) estimated $509.52 (USD)*

    View Report Add to Cart

    The Advertising Industry in South Africa 2020-06-05

    R 1 900.00(ZAR) estimated $101.90 (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

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