The Advertising Industry in South Africa 2023

Challenges

Concerns about accuracy and transparency of measurements in the out of home segment.

Lack of transformation in the industry. Loadshedding is a threat to digital advertising. The industry is dominated by a few international holding companies.

Introduction

South Africa’s advertising industry has recovered since the pandemic. Digital advertising revenue is growing more than four times faster than traditional advertising, fuelled by the increasing number of internet users. The main avenues are Google search engine marketing, social media advertising and advertising on closed networks. With streaming services like Netflix advertising to subsidise cheaper plans, traditional advertising faces growing competition. Many South African agencies are subsidiaries of international companies.

The five largest account for around 80% of South African advertising spend.

Opportunities

Growing digital out of home.

Growth of online advertising. Investment in marketing technology as data-driven insights are becoming more important.

Outlook

The industry is expected to continue to grow, led by growth in digital advertising. The digital out of home segment has significant growth potential. Over the next five years, internet advertising is expected to show the largest revenue increase to almost 80% of entertainment and media revenue.

It is forecast that digital advertising spend in South Africa will grow by 6.6% per annum between 2023 and 2027.

Report Coverage

This report on the advertising industry in South Africa includes information on the state of the industry, major trends and issues, notable players and factors that influence its success.

There are profiles of 37 companies including major agencies such as Ogilvy, Dentsu, TBWA and Publicis, media agencies such as The MediaShop and outdoor advertising companies such as Outdoor Network and Tractor.

Trends

Increase in digital advertising. Influencer marketing is being used to reach target audiences. The number of roadside digital screens is increasing, and many companies are trying out digital out of home for the first time.