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The Advertising Industry
BY Nina Shand
South Africa
08 May 2018
R 10 080.00 (ZAR)  
estimated $ 718.97 (USD) *
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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.


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.


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