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Gloomy picture for TV and radio advertising spend in South Africa

by Michael Bratt
April 23, 2018
in Advertising
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Gloomy picture for TV and radio advertising spend in South Africa

Shoprite, SA's biggest advertiser by spend.

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NOTE: Last year Nielsen concluded the net/gross project where data from Jan 2017 going forward was being reported at Net rates and data from December 2016 and back-data remained at Gross rate (including 16.5% agency rate).

Television advertising spend in the United Kingdom in 2017 dipped 3.2% from the previous year, while radio spending last year jumped 5.2%.

Even though television dropped, it fell from a record high achieved in the previous year, following seven consecutive years of growth. The drop was attributed to a number of factors, including economic and political uncertainty, with a weakened pound and inflationary pressures weighing on advertisers.

Radio’s impressive increase was made even more impressive when you know that it rose to a record high.

The South African situation

Unfortunately the same positivity cannot be claimed for South African television and radio adspend. Even though the former remains the behemoth in terms of  share of adspend, it fell 12% year on year to R22 billion (Feb 2017 – Jan 2018) from R25.2 billion (Feb 2016 – Jan 2017).

Radio fared slightly better, but fell 5.6% year on year from R7.3 billion (Feb 2016 – Jan 2017) to R6.9 billion (Feb 2017 – 2018).

Print and out of home also dropped, with the former shedding 7.7% and the latter seeing a substantial loss of 24%.

The top advertisers

Year on year, the five advertisers who spent the most remained fairly constant, with Shoprite coming out top both years, and Clientele Life and Unilever SA both in the top five. SABMiller and ABSA moved into the top five in the last year, while Outsurance Insurance and Coca-Cola SA were both featured the previous year, but dropped out of the top five.

Here are the top 10 advertisers each year:

Grand Total Feb16-Jan17
Advertiser Rand Rand
Grand Total 27 545 413 991 27 545 413 991
SHOPRITE HOLDINGS LTD 1 479 551 827 1 479 551 827
UNILEVER SA 1 435 146 104 1 435 146 104
CLIENTELE LIFE 1 136 053 121 1 136 053 121
SAB MILLER 797 747 805 797 747 805
ABSA 751 887 093 751 887 093
OUTSURANCE INSURANCE 697 967 950 697 967 950
PICK N PAY 632 702 663 632 702 663
VODACOM COMMUNICATION 604 555 341 604 555 341
MASSMART 569 068 539 569 068 539
COCA COLA SOUTH AFRICA 540 831 389 540 831 389

 

Grand Total Feb17-Jan18
Advertiser Rand Rand
Grand Total 24 665 601 168 24 665 601 168
SHOPRITE HOLDINGS LTD 1 420 782 834 1 420 782 834
CLIENTELE LIFE 1 147 916 076 1 147 916 076
UNILEVER SA 918 049 156 918 049 156
OUTSURANCE INSURANCE 616 641 089 616 641 089
COCA COLA SOUTH AFRICA 614 080 345 614 080 345
PICK N PAY 600 217 679 600 217 679
VODACOM COMMUNICATION 567 634 720 567 634 720
MASSMART 539 818 319 539 818 319
SAB MILLER 538 962 674 538 962 674
MOBILE TELEPHONE NETWORK 527 011 606 527 011 606

All South African statistics and the top 10 advertiser data was kindly sourced by Nielsen. NOTE: Last year Nielsen concluded the net/gross project where data from Jan 2017 going forward was being reported at Net rates and data from December 2016 and back-data remained at Gross rate (including 16.5% agency rate).


Michael Bratt is a multimedia journalist at Wag the Dog, publishers of The Media Online and The Media. Follow him on Twitter @MichaelBratt8.


 

Tags: ABSAadspendClientel LifeCoca-Cola SAMassmartNielsenOutsuranceradio adspendShopriteShoprite HoldingsTV adspendVodacom

Michael Bratt

MIchael Bratt is a multimedia journalist working for Wag the Dog Publishers across all of its offerings, including The Media Online and The Media magazine. Writing, video production, proof reading and sub-editing and social media. He has plied his trade at several high-profile media groups. A passionate writer, news connoisseur, sports fanatic and TV and movie addict, he enjoys spending time with family and friends, reading and playing x-box.

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