Market Insights Advertising & Media Advertising Out-of-Home Advertising

Digital Out-of-Home Advertising - South Africa

South Africa

In South Africa, ad spending in the Digital Out-of-Home Advertising market is forecasted to reach US$110.90m in 2024.
The market is expected to demonstrate an annual growth rate (CAGR 2024-2029) of 6.18%, leading to a projected market volume of US$149.70m by 2029.
With a projected market volume of US$4,366.00m in 2024, China will account for the majority of ad spending.
The average ad spending per capita in the Digital Out-of-Home Advertising market is estimated to be US$1.82 in 2024.
South Africa's Digital Out-of-Home Advertising market is thriving, with a growing focus on interactive and personalized content to engage consumers effectively.

Key regions: India, France, United States, United Kingdom, China

Market

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Region comparison

Currency

Analyst Opinion

The Digital Out-of-Home Advertising market in South Africa is experiencing significant growth and development.

Customer preferences: South African consumers are increasingly embracing digital technology in their daily lives, which is driving the demand for digital out-of-home advertising. With the rise of smartphones and other digital devices, people are becoming more accustomed to interactive and engaging content. This has led to a shift in customer preferences towards digital advertising formats that offer dynamic and personalized experiences.

Trends in the market: One of the key trends in the South African Digital Out-of-Home Advertising market is the adoption of programmatic advertising. Programmatic advertising allows advertisers to automate the buying and selling of ad space, enabling them to target specific audiences and optimize their campaigns in real-time. This trend is driven by the need for greater efficiency and effectiveness in advertising, as well as the availability of data and technology to support programmatic buying. Another trend in the market is the integration of digital out-of-home advertising with social media platforms. Advertisers are leveraging the power of social media to amplify their campaigns and engage with consumers in a more interactive and social way. This trend is driven by the increasing use of social media among South African consumers, who are actively sharing and engaging with content on platforms like Facebook, Instagram, and Twitter.

Local special circumstances: South Africa has a diverse and multicultural population, which presents both opportunities and challenges for digital out-of-home advertising. Advertisers need to consider the cultural sensitivities and preferences of different communities when designing their campaigns. This requires a deep understanding of the local market and the ability to tailor content to resonate with specific audience segments. Furthermore, South Africa has a large rural population that may not have the same level of access to digital technology as urban areas. Advertisers need to take this into account when planning their campaigns and ensure that they reach consumers in both urban and rural areas.

Underlying macroeconomic factors: The growth of the Digital Out-of-Home Advertising market in South Africa is also influenced by macroeconomic factors. The country has a growing middle class and a relatively high level of urbanization, which provides a large and affluent consumer base for advertisers to target. Additionally, South Africa has a well-developed infrastructure, including a robust telecommunications network and a strong digital media industry, which supports the growth of digital out-of-home advertising. In conclusion, the Digital Out-of-Home Advertising market in South Africa is driven by customer preferences for interactive and personalized content, as well as the adoption of programmatic advertising and integration with social media platforms. Advertisers need to consider the local special circumstances, such as cultural sensitivities and access to digital technology, when planning their campaigns. The growth of the market is also supported by macroeconomic factors, including a growing middle class and a well-developed infrastructure.

Methodology

Data coverage:

Data encompasses enterprises (B2B). Figures are based on digital out-of-home advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers internet-connected out-of-home advertisements such as digital billboards, digital street furniture, digital transit and transportation, and digital place-based media.

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. We use annual financial reports of the market-leading companies and industry associations, third-party reports, and survey results from our primary research (e.g., Consumer Insights Global Survey) to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as GDP, population, urban population, and internet infrastructure.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market. For instance, the S-curve function is well suited to forecast digital products due to the non-linear growth of technology adoption, whereas exponential trend smoothing (ETS) is more suited for projecting steady growth in traditional advertising markets.

Additional notes:

Data is modeled using current exchange rates. The impacts of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice per year in case market dynamics change.