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Digital drives S African adspend

News, 21 September 2015

JOHANNESBURG: South Africa's total entertainment and media advertising revenue is expected to rise by 5.6% between 2014 and 2019 with digital fuelling much of that growth, according to a new report from PwC.

The consulting firm's 'Entertainment and Media Outlook: 2015 – 2019', covers South Africa, Nigeria and Kenya, with forecasts for 11 entertainment and media segments.

South Africa's entertainment and media industry is expected to grow from R112.7bn in 2014 to R176.3bn in 2019, while ad revenues will increase from R39.7bn to 52.1bn over the same period, Biz Community reported.

"This year's outlook shows consumer demand for entertainment and media experiences will continue to grow, while migrating towards video and mobile," according to Vicki Myburgh, entertainment and media leader for PwC Southern Africa.

"Increasingly, though, it is clear that consumers see no significant divide between digital and traditional media," she added. "What they want is more flexibility, freedom and convenience in when, where and how they interact with their preferred content."

Driving the overall market is internet access, where spending will more than double, from R32.5bn in 2014 to R76.2bn in 2019, putting this category far ahead of any other and making it the largest contributor to South Africa's total entertainment and media revenues.

Rapid growth rates are also predicted for video games, business-to-business and filmed entertainment. "But it is internet access itself that is acting as a driver of revenues in video games and film, creating new revenue streams by making over-the-top (OTT)/streaming or social/casual gaming viable to more consumers and thereby cancelling out physical falls," said Myburgh.

Books, magazines and newspapers will be hardest hit by this development and while consumer revenue will grow over the five years it amounts to an increase of just R1.3bn in total.

Television will remain a major contributor to consumer spending: combined revenues from TV subscriptions, advertising and licence fees are projected to reach R40.9bn by 2019.

Data sourced from Biz Community; additional content by Warc staff