21 September 2000

Advertising expenditure in South Africa rose in the first half of 2000 to $581 million, 10.4% up on the equivalent period last year, according to ACNielsen’s Adindex.

The nominal rate of growth was actually the slowest since 1985, but media inflation saw a record low rise, making growth in the ad market about 4.5% in real terms. This may be a sign that the industry is coming out of its recession.

Rate discounting has helped this trend. In radio, the most competitive South African medium, cuts in ad rates have seen its share of total adspend increase from 10.8% to 13.4% in the last year, with a 36% rise in expenditure.

Expenditure on print rose 8% (42.4% market share), TV 6% (39.1%) and billboards 30% (3.7%). However, nominal expenditure on cinema declined by 4% and community newspapers by 23%.

News source: Advertising Age - International Daily