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The Advertising Industry in South Africa 2018

The Advertising Industry in South Africa 2018

  • May 2018
  • 126 pages
  • ID: 5405401
  • Format: PDF
  • By Who Owns Whom

Summary

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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.

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