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.
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 CartThe Advertising Industry in South Africa 2018-05-08
R 1 900.00(ZAR) estimated $101.74 (USD)*
View Report Add to CartTable 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 |
