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

Traditional Out-of-Home Advertising - Kenya

Kenya

Kenya's Traditional Out-of-Home Advertising market is forecasted to achieve ad spending of US$18.38m in 2024.
This sector is anticipated to demonstrate an annual growth rate (CAGR 2024-2029) of 1.39%, leading to an estimated market volume of US$19.69m by 2029.
The expected average ad spending per capita in the Traditional Out-of-Home Advertising market is projected to be US$0.33 in 2024.
Traditional Out-of-Home Advertising in Kenya is experiencing a resurgence due to its high impact in reaching diverse and geographically dispersed audiences.

Key regions: Germany, Europe, Asia, France, China

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Analyst Opinion

Traditional Out-of-Home Advertising market in Kenya is witnessing significant growth and development.

Customer preferences: In Kenya, customers still have a strong preference for traditional out-of-home advertising methods. Billboards, posters, and signage continue to be highly effective in capturing the attention of the target audience. The visual impact and large-scale presence of these advertising mediums make them a popular choice among businesses looking to create brand awareness and increase visibility.

Trends in the market: One of the key trends in the traditional out-of-home advertising market in Kenya is the increasing use of digital billboards. These dynamic and interactive billboards offer advertisers the opportunity to display multiple messages and engage with the audience in real-time. The use of digital billboards is gaining popularity due to their ability to grab attention and create a lasting impact. Another trend in the market is the integration of traditional out-of-home advertising with digital marketing strategies. Businesses are leveraging the power of social media and mobile technology to amplify the reach and impact of their out-of-home campaigns. By incorporating QR codes, hashtags, and other digital elements into their traditional advertisements, companies are able to drive online engagement and track the effectiveness of their campaigns.

Local special circumstances: Kenya has a rapidly growing middle class population with increasing disposable income. This has led to a rise in consumer spending and a greater demand for products and services. As a result, businesses are keen to capitalize on this opportunity and are investing in traditional out-of-home advertising to reach and engage with the growing consumer base. Additionally, Kenya has a vibrant and diverse outdoor culture. The country is known for its bustling markets, vibrant street life, and active public spaces. This provides ample opportunities for advertisers to connect with consumers through traditional out-of-home advertising. Whether it's billboards along busy highways, posters in crowded marketplaces, or signage in popular tourist destinations, businesses can effectively target their desired audience in these high-traffic areas.

Underlying macroeconomic factors: Kenya's economy has been growing steadily over the years, with a strong focus on infrastructure development. This has resulted in the expansion of road networks, construction of modern buildings, and the establishment of new commercial centers. These developments have created more opportunities for traditional out-of-home advertising, as businesses seek to capitalize on the increased footfall and visibility in these areas. Furthermore, the rise of tourism in Kenya has also contributed to the growth of the traditional out-of-home advertising market. The country is known for its stunning landscapes, wildlife, and cultural attractions, which attract a large number of domestic and international tourists. Advertisers are leveraging this influx of tourists by strategically placing billboards and signage in popular tourist destinations, airports, and transportation hubs. In conclusion, the traditional out-of-home advertising market in Kenya is experiencing growth and development due to customer preferences for visually impactful advertising methods, trends such as the use of digital billboards and integration with digital marketing strategies, local special circumstances including a growing middle class and vibrant outdoor culture, and underlying macroeconomic factors such as infrastructure development and the rise of tourism.

Methodology

Data coverage:

Data encompasses enterprises (B2B). Figures are based on traditional out-of-home advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers offline out-of-home advertisements such as billboards, street furniture, transit and transport displays, and 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.