Broadcast Reports

Advertising in Africa - Retaining a share of the pie (2016)

Document type: 150 pages in PDF - 24 Excel spreadsheets
Availability: Available
Publication date: 15 July 2016
Number of pages: 150 pages

Price: £820.00

Advertising in Africa - retaining broadcast’s share of the pie (2016)

State of play (drivers & trends) - Revenues and forecasts to 2020 - Audience data points

Contact directory of advertising agencies


Description:

Advertising helps companies communicate, and is one of the main financial sources on which the majority of media in Africa survive. This report looks at how advertising is growing in different African country markets, revenues by country (across 56 countries), projections, drivers for growth and current trends. It also touches on the differences in market share for broadcast radio and television.

It takes some of the available data on advertising spend by country in 56 African countries, and in the case of Ghana, looks at what impact discounting might have on projected figures.

The key segments studied in this report include:

TV, Radio, Print, Cinema, Out-of-home (OOH), and Digital advertising (including Social Networking and Mobile advertising).

This report is available from July 2016. It can be updated and customised upon request for additional fees to cover research costs.


In Excel spreadsheets: 


Release date: July 2016

 

Methodology:

 

Use of previous reports produced on the topic, press articles and media audience surveys.

Primary data was collected through on-site face to face interviews and phone discussions.

Advertising revenues by country were collected using three methods: directly from industry experts (analysts, associations, etc.), from agencies and using macro-economic data.


Table of Contents

  

Advertising in Africa - About this report

Methodology

Introduction

 

1.Drivers

Economic growth 

Investments

Multinationals

A growing middle-class

A large youth segment

Mobile services

Retail

 

Drivers and weekly Reach – What percentage each media segment achieves

Traditional media 

• TV 

• Radio 

• Newspapers

• Cinema

• OOH

Internet

Broadcast radio and TV growth as a proportion of total spend

 

Ghana Case Study – All that glitters is not gold

 

2.Trends

Changes in Audiences and Advertising – Future fragmentation

Changes in Audiences 

Increased use of media

Access to more TV channels and radio stations 

Increasing number of TV households

More devices

The Impact of Internet and mobile: a brand new game

Increases in wealth, differences of interests

 

Changes in Advertising 

African countries where advertising is big

The explosion of advertising agencies

Top advertisers 

Massive investments from mobile operators

Advertising: Using 11 tricks to stand out!

An advertising revolution is taking place: new technologies to book adverts

Media audience surveys

The explosion of TV and Radio

Current issues in the advertising sector

 

Conclusions

Recommendations

• Recommendations for broadcasters 

• Recommendations for advertisers and agencies

Reference Documents:

Video interviews

Definitions

Key Contacts


Data (Stats, Contact Lists, etc.) - Tables, Maps, and Charts   in this report:

 

Table - Advertising spend – World vs. Africa - in 2015

Table - Africa Economic Statistics – 2016

Table : Foreign direct investment (FDI) to Africa - 2010 to 2014

Chart - Africa’s middle class - % of population in selected countries – 2014

Chart - FDI inflows in Africa, top 5 host economies in 2014

Table - Access to electricity figures in 7 selected African countries - 2015

Table – top 25 cities in Africa – number of inhabitants - 2015

Chart - Reality checks for consumer markets across Africa

Table - Population projections to 2050, the African continent, in million

Map - World Population – density by region, in 2016

Table - Sub-Saharan Africa - % of connections by technology (2G/3G/4G)

Table - Africa - smartphone penetration and projection in key countries, 2015 to 2020 (in million)

Chart – Future choice of handset brands – SA market, 2015.

Table - Senegal – Audience Share of Key Broadcasters (2013)

Table - Ethiopia: Top radio stations listened to on a daily basis

Table - Ethiopia: Top TV channels watched on a daily basis

Table - List of key cinema theater chains in Africa- 2016

Chart – Africa: Web penetration by country

Table – Internet Usage stats, 2015

Table – The growth of Facebook users in a selection of Sub-Saharan African countries (2010 to 2014)

Table - Facebook users in selected African countries - Nov. 2015

Table - Selected social media site rankings for selected African countries

Table - Ghana – TV rate card spend vs Actual spend

Table - Ghana – TV spend broken down into spot advertising and sponsorship

Table - Sub-Saharan Africa: radio and TV market liberalisation - September 2011 vs. March 2014

Table - Sub-Saharan Africa: number of radio and TV in 4 countries 

Table - Summary - FTA terrestrial TV channels in Africa – comparison between June 2011 to 2016

Chart – Number of free-to-air terrestrial TV channels for 53 countries in Africa: June 2011 to 2016.

Table - Summary: DTT roll out stages by country in Africa - July 2016

Table - Forecasts by 2020 - # DTT channels in Africa

Table - List of TV channels in Africa dedicated to news - June 2016 

Table - Top 10 markets in Africa: Number of TV Households by country - April 2016

Chart – Africa : The Growth of Feature and smartphone ownership and other devices

Table - Telecoms Statistics - Africa  - to June 2016

Table - Top 10 countries in Africa for advertising expenditure - 2015

Table - Estimates for advertising revenues in Côte d'Ivoire - 2014, in Euros

Table - Number of advertising agencies by country – April 2016

Table - The five largest agencies, with their estimated worldwide revenues – 2014

Table - Largest agencies' networks in Africa, presence by country – 2016

Table - Top six advertisers' sectors in Africa – 2015

Table – Advertising awards - 2015/2016

Table – Key Audience survey agencies in Africa - 2016

Table - Top 25 countries with the largest number of FTA TV channels - 2016

Table: Issues affecting the advertising sector in Africa - 2016

Table - Issues reducing companies’ advertising investments in Africa - 2016

Chart - gaining a complete understanding of the highly fragmented retail industry - 2016


On separate Excel spreadsheets:

 

1/3

Short analysis – July 2016

Table - Africa: advertising revenues - projections 2015 to 2020 (in USD) 

Table - Africa: advertising spend, TV advertising revenue by country - Population in Africa by country - in millions US$ - estimates for 2015 - (updated June 2016)

Table - Estimates for advertising revenues in Côte d'Ivoire, based on tariffs (TV, radio, Press, OOH) – 2014

Table - Top 15 Advertising markets in Sub-Saharan Africa (2006, 2009 and 2010 ad spend in US$)

Table - Top 10 Advertising markets in  Africa - 2016 (in US$)

Table - Facebook users in selected African countries (Aug. 2010-Oct. 2011-Nov. 2015)

Table - Foreign direct Investment (FDI) in Africa by region - 2010 to 2014

Table - Africa: Telecoms Statistics - 2014, 2015, 2016

Table – Africa: Projection estimates for smartphone penetration in million people - 2015 to 2020

 

2/3

Advertising and Communication agencies in Africa (or focused on Africa) - contact directory (selection of 300 agencies) (2016)

Number of advertising and communication agencies in selected countries by advertising agency brand (selection of 1070 agencies) (2016)

Family trees: Number of advertising and communication agencies by country in Africa - advertising agency brand - A non-exhaustive list - key agency brands (2016)

Largest agencies in the World by revenue (2014)

Table - Top six advertisers' sectors in Africa – 2015 

Top Advertisers in Africa (selection of 77 brands) (2016)

The African advertising ecosystem: Associations, awards, events & data agencies - contacts details where available (2016)

Media audience agencies by country in Africa -2016 (selection of agencies in 56 countries)

 

Francophone Africa - media advertising agencies (2016)

Table - List of key cinema theater chains in Africa (2016)

Issues affecting the advertising sector in Africa (2016)

  

3/3

Examples of adverts from Africa posted on YouTube with the # of views/likes. (2016)

Table – Advertising - key awards (sélection of 17 awards – 2016)

Loeries awards for communication campaigns - 2015 winners

Table - South Africa TV Ratings: 21–27 December 2015 (TV Audience) - Top 20 shows across TV channels

 

Optionnal at small extra fees

Number of inhabitants, households and TV households by country in Africa (2015)

Table - List of TV channels (terrestrial FTA and PayTV) by country in Africa - July 2016

Table - List of Radio stations by country in Africa - July 2016


Some of the organisations quoted in this report: 

 

Advertising Media Forum (AMF) 

Advertising Standards Committee (ASC) / ASBK

Africa Media Initiative (AMI)

agence française de coopération médias (CFI)

Aim Group

Association Camerounaise de Marketing Social - ACMS   

Association for Communication and Advertising - ACA SA

Association of Communication Agencies – ACA - Mauritius

Association of Independent Publishers (AIP)

Association of Practitioners in Advertising (APA) of Kenya

CIRTEF

Direct Marketing Association of South Africa (DMASA)

Forum of Community Journalists (FCJ)

Haurte autorité de la publicité, Cameroon

Independent Federation of Religious Broadcasters (IFRB)

Jeune Afrique

Kenya Audience Research Foundation (KARF)

l'Association camerounaise pour une publicité responsable (Acpr) 

Le Groupement des annonceurs du Maroc (GAM)

Nielsen

Pamro

Pan African Media Research Organization (PAMRO)

PARC (Pan Arab Research Centre)

Print and Digital Media SA (PDMSA)

Rapaf - Réseau de l'Audiovisuel Public d'Afrique Francophone

South African Audience Research Foundation (SAARF)

The Advertising Standards Authority of South Africa (ASA)

The Broadcast Research Council of South Africa (BRC)

The Cristal Festival 

The International Advertising Association (IAA)

The Loeries

The Marketing Association of South Africa, MA (SA)

The Marketing Society of Kenya (MSK)

The Media Owners Association

The national association of Broadcasters South Africa

The National Community Radio Forum (NCRF)

The SA National Editors Forum

Union Africaine de Radiodiffusion (UAR)

URTI

World Federation of Advertisers (WFA)

Yacast

  


Press Release – 15th. July, 2016

Advertising in Africa: New report provides an industry health check

 Advertising in Africa - retaining broadcast’s share of the pie (July 2016) is a new report published in July 2016 by Balancing Act, an independent consultancy and research company focused on ICT and media in Africa, that provides a health check of the advertising industry on the continent.

The report was produced to collect data about the industry on the continent and to highlight emerging trends.

The revenues of the advertising industry are crucial for a number of business sectors in Africa. The media in general and radio and television in particular thrive or contract on the money brands spend on them. Increasingly, mobile phones are becoming advertising channels and operators are getting revenues from this channel. As Africa is increasingly online, advertising money spent on digital banners and social media is growing in size and has become a key part of many online start-up business models.

It took over a year to produce this report's update: Balancing Act has studied market trends, innovations, weaknesses and opportunities, the impact of advertising in the media and in particular television advertising revenue. The report includes spreadsheets providing: advertising revenue by country; TV advertising revenue by country; and projections of advertising revenue by 2020 for the continent. This report provides advertisers, agencies, content producers, media and other players in this ecosystem a part of quantitative, qualitative information and contact details they need to assess market conditions, identify trends, seize opportunities, make purchase and investment decisions, and assess training needs.

Among the things identified by the report, it notes a "rush of global advertising agencies to many countries across Africa over the past 5 years", also citing equity investments and acquisitions in African communications groups. Advertising agencies come with major advertisers that are investing in Africa, which they see as markets with new opportunities.

Also the rush to buy companies has included several agencies that have purchased new digital agencies, allowing them to get into the newly emerging African online advertising and social media space.

Three major trends have emerged:

. Firstly, market analysts confirm a significant improvement in the quality of advertising campaigns over the last three years, improvements stimulated by competition between existing and new agencies who are “upping their game” and existing advertisers who are sticking to local expectations.

. Secondly, the 2010 FIFA World Cup was a catalyst that put the continent in the spotlight for multinationals. South Africa has been the main gateway of African advertising, but Nigeria, Kenya and the Ivory Coast are now among the other countries that are also serving as platforms to reach neighboring regional countries.

. Thirdly, although there is considerable disagreement about the size of the emerging African middle class, there is no doubt it exists and it is the target of many marketing strategies. After mobile telephony, financial services, food and the transport sector, there are new brands in other sectors that need to communicate to keep or gain market share.

 In the coming years, the liberalization of many sectors, regulations to strengthen competition rules, the emergence of national brands, the need for diversification of economies and the transition from informal to formal economies will provide further fuel for growth to brands and advertising agencies. Furthermore, digitization and media fragmentation will force many African brands to re-invent themselves, and to communicate differently, on different channels (TV, VoD, the internet, mobile apps, etc.). 

 

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Communiqué in French:

 

Publicité en Afrique: un rapport fournit un bilan de santé dans l'industrie

Une étude sur la publicité en Afrique publié en juillet 2016 par Balancing Act, une société indépendante de conseil et de recherche axée sur les TIC et les médias en Afrique, avait fourni un bilan de santé de l'industrie de la publicité sur le continent.

Le rapport a mis en évidence les tendances émergentes qui sont toujours d’actualité.

Les revenus de l'industrie de la publicité sont cruciaux pour un certain nombre de secteurs d'activité en Afrique. Les médias en général, et la radio et la télévision en particulier prospèrent ou survivent grâce aux marques. De plus en plus, les téléphones mobiles deviennent des chaînes publicitaires, et les opérateurs obtiennent des revenus de ces nouveaux canaux. Comme l'Afrique est de plus en plus en ligne, les fonds publicitaires consacrés aux bannières numériques et aux médias sociaux augmentent en taille, et sont devenus un élément clé de nombreux modèles d'affaires pour les startup en ligne.


Parmi les éléments identifiés par le rapport, on note une «effervescence des agences de publicité mondiales dans de nombreux pays d'Afrique au cours des cinq dernières années», citant également les investissements en actions et les acquisitions dans les groupes de communication africains. Les agences de publicité globales arrivent avec des annonceurs importants qui investissent en Afrique, continent qu'ils considèrent comme nouveau levier de croissance.

Cet élan a permis le rachat de nouvelles agences numériques, ce qui permet de s'intéresser à l'espace africain de la publicité numérique et de médias sociaux en Afrique.

Trois grandes tendances sont apparues:

. Tout d'abord, les analystes de marché confirment une amélioration significative de la qualité des campagnes publicitaires au cours des trois dernières années, des améliorations stimulées par la concurrence entre les agences existantes et les nouvelles agences, et les annonceurs existants qui respectent les attentes locales.

. Deuxièmement, la Coupe du Monde de la FIFA 2010 a été un catalyseur qui a mis le continent en vedette pour les multinationales. L'Afrique du Sud a été la principale porte d'entrée de la publicité africaine, mais le Nigeria, le Kenya, le Maroc, le Ghana, l'Ethiopie et la Côte d'Ivoire font désormais partie des autres pays qui servent également de plate-forme pour atteindre les pays voisins de la région. Enfin, les grandes villes telles que Londres, Paris, New York, Dubaï, Washington D.C., Los Angeles, Tokyo, Amsterdam, Bruxelles ou Pekin concentrent des sièges de multinationales qui sont des hub de communication vers l'Afrique.

. Troisièmement, bien qu'il existe un désaccord considérable quant à la taille de la classe moyenne africaine émergente, il ne fait aucun doute qu'elle existe et qu’elle est l'objet de nombreuses stratégies de marketing. Après la téléphonie mobile, les services financiers, l'alimentation et le secteur des transports, il existe de nouvelles marques – dont des sociétés africaines - dans d'autres secteurs qui doivent communiquer pour conserver ou gagner des parts de marché.

Au cours des prochaines années, la libéralisation de nombreux secteurs, la réglementation visant à renforcer les règles de concurrence, l'émergence de marques nationales, la nécessité de diversifier les économies et la transition des économies informelles vers des économies structurées permettront d'accroître la visibilité des marques et des agences de publicité. En outre, la numérisation et la fragmentation des médias forceront de nombreuses marques africaines à se réinventer et à diffuser différemment sur différents canaux (TV, VoD, Internet, applications mobiles, etc.).

Observation depuis 2009

Depuis 2009, Balancing Act a étudié les tendances du marché, les innovations, les faiblesses et les opportunités, l'impact de la publicité dans les médias et en particulier les revenus publicitaires de la télévision.

Ce rapport comprend des feuilles de calcul fournissant: les revenus publicitaires par pays; les revenus de la publicité télévisée par pays; Et les projections des revenus publicitaires d'ici 2020 pour le continent. Ce rapport fournit aux annonceurs, aux agences, aux producteurs de contenu, aux médias et à d'autres acteurs de cet écosystème une partie de l'information quantitative et qualitative et des coordonnées dont ils ont besoin pour signer des partenariats, évaluer les conditions du marché, identifier les tendances, saisir les opportunités, prendre des décisions d'achat et d'investissement et évaluer les besoins en formation.

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Main authors: Sylvain Béletre | Russell Southwood.

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Tag: advertising revenues Africa, market report, study, revenus de la publicité en Afrique, étude de marché, rapport.

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Special rates apply to small companies outside of Africa and SMEs in Africa.

 

Price: £820.00

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