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The Advertising Industry in South Africa
BY Kate Shand
South Africa
05 June 2020
R 14 400.00 (ZAR)  
estimated $ 866.18 (USD) *
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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.


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.


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