Trends in advertising in Africa
The advertising marketing in Africa has grown significantly in the past five years, due in part to investment from international advertising networks, as well as the digitisation of the industry.
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.
And 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.
For over a year, 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 five 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.
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:
In the coming years, the liberalisation 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, digitisation and media fragmentation will force many African brands to re-invent themselves, and to communicate differently.
*The report is available from Balancing Act here.