THE country’s total entertainment and media advertising revenue is expected to rise at a 5.6% compound annual growth rate, from R39.7bn in 2014 to R52.1bn in 2019, a new report by professional services firm PwC shows.
The Entertainment and Media Outlook report released this month says television advertising is the largest contributor to total advertising revenue, followed by newspaper advertising. But their combined 52% share of total advertising in 2014 will fall slightly to 51% in 2019, thanks to the meteoric rise of internet advertising, which has a forecast compound annual growth rate of 21.7% to bring its share of total advertising up from 5% in 2014 to 11% in 2019.
"Internet advertising’s appeal as the most measurable and accountable of advertising media, with advertisers easily able to track expenditure, has driven revenues," the report says. The proliferation of internet-enabled consumers has contributed too, and the direction of travel towards this advertising medium seems clear, it adds.
The future of the media industry in SA is digital, the report says. What will drive consumption of online media is growth in the number of smart devices in SA. The next five years will see a surge in such devices, with smartphone connections more than doubling from 22.8-million in 2014 to 52.3-million in 2019 and active tablet devices rising from 2.6-million to 5.6-million over the same period.
Mobile internet penetration will have risen more than 32 percentage points from 2014 to 2019, reaching 69.1%. Most people who access the internet in SA will use a mobile device, with mobile internet penetration forecast to rise from 37% to 70%.
Yet the distinction between "digital" and "nondigital" is seen as mostly irrelevant by consumers. Instead, their focus is on choosing a convenient and compelling content experience that suits their needs depending on where they are and what they are doing — without caring how it is delivered.
More relevant is what content, services and experiences consumers are willing to pay for.
In the report, Vicki Myburgh, PwC entertainment and media leader, writes that the outlook shows consumer demand for entertainment and media experiences will continue to grow, while migrating towards video and mobile.
"However, it’s increasingly clear that consumers perceive no divide between digital and traditional media. What they want is more flexibility and freedom (for which read choice) in when and how they consume. And they are choosing offerings that combine an outstanding and personalised user experience with an intuitive interface and easy access."
Ms Myburgh urged entertainment and media firms to innovate around the product and user experience; develop seamless consumer relationships across distribution channels; and put mobile (and increasingly video) at the centre of the consumer experience.
Media Monitoring Africa director William Bird said the economic climate was not conducive to significant growth in the media sector.
Picture: THINKSTOCK
THE country’s total entertainment and media advertising revenue is expected to rise at a 5.6% compound annual growth rate, from R39.7bn in 2014 to R52.1bn in 2019, a new report by professional services firm PwC shows.
The Entertainment and Media Outlook report released this month says television advertising is the largest contributor to total advertising revenue, followed by newspaper advertising. But their combined 52% share of total advertising in 2014 will fall slightly to 51% in 2019, thanks to the meteoric rise of internet advertising, which has a forecast compound annual growth rate of 21.7% to bring its share of total advertising up from 5% in 2014 to 11% in 2019.
"Internet advertising’s appeal as the most measurable and accountable of advertising media, with advertisers easily able to track expenditure, has driven revenues," the report says. The proliferation of internet-enabled consumers has contributed too, and the direction of travel towards this advertising medium seems clear, it adds.
The future of the media industry in SA is digital, the report says. What will drive consumption of online media is growth in the number of smart devices in SA. The next five years will see a surge in such devices, with smartphone connections more than doubling from 22.8-million in 2014 to 52.3-million in 2019 and active tablet devices rising from 2.6-million to 5.6-million over the same period.
Mobile internet penetration will have risen more than 32 percentage points from 2014 to 2019, reaching 69.1%. Most people who access the internet in SA will use a mobile device, with mobile internet penetration forecast to rise from 37% to 70%.
Yet the distinction between "digital" and "nondigital" is seen as mostly irrelevant by consumers. Instead, their focus is on choosing a convenient and compelling content experience that suits their needs depending on where they are and what they are doing — without caring how it is delivered.
More relevant is what content, services and experiences consumers are willing to pay for.
In the report, Vicki Myburgh, PwC entertainment and media leader, writes that the outlook shows consumer demand for entertainment and media experiences will continue to grow, while migrating towards video and mobile.
"However, it’s increasingly clear that consumers perceive no divide between digital and traditional media. What they want is more flexibility and freedom (for which read choice) in when and how they consume. And they are choosing offerings that combine an outstanding and personalised user experience with an intuitive interface and easy access."
Ms Myburgh urged entertainment and media firms to innovate around the product and user experience; develop seamless consumer relationships across distribution channels; and put mobile (and increasingly video) at the centre of the consumer experience.
Media Monitoring Africa director William Bird said the economic climate was not conducive to significant growth in the media sector.
