Market Insights Advertising & Media Advertising

TV & Video Advertising - South Africa

South Africa

Ad spending in the TV & Video Advertising market in South Africa is forecasted to reach US$701.70m in 2024.
The largest market is Traditional TV Advertising, with a market volume of US$510.20m in 2024.
When compared globally, the United States is expected to generate the highest ad spending, reaching US$144.60bn in 2024.
The projected average ad spending per user in the Traditional TV Advertising market in South Africa is US$10.24 in 2024.
By 2029, the number of TV Viewers in South Africa is expected to amount to 52.8m users.
South Africa's TV & Video Advertising market is seeing a shift towards digital platforms, reflecting changing viewer preferences and increasing internet penetration.

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

Definition:
TV & Video Advertising includes advertising in the form of moving visual images instead of traditional broadcast television and all ad formats within digital video channels. Traditional TV Advertising includes non-digital formats and excludes all forms of digital TV advertising. Traditional TV Advertising also covers all ad spending on pay-TV operators and networks, free-to-air networks, and free-to-air spin-off digital channels from terrestrial network operators. In comparison, Digital Video Advertising includes all ad formats within webpage-based videos, app-based video players, social media, or streaming apps that appear on computer screens, smartphones, tablets, and other internet-connected devices.

Structure:

Traditional TV Advertising includes all ad spending on moving image formats broadcasted via traditional transmission channels such as terrestrial and digital terrestrial (DTTV, DTT, DTTB) TV, cable TV, satellite TV, and linear TV delivered via Internet Protocol television (IPTV).
Digital Video Advertising formats are displayed as instream and outstream video ads. Instream video ads include advertising that appears before, during, or after the streamed video (pre-roll, mid-roll, and post-roll video ads) and video overlays (text- or image-based overlays that appear while watching a video). Outstream video ads include video advertising that appears in non-video environments, e.g., in-feed on social media or text-based content (so-called native advertising).

Additional information:
The TV & Video Advertising market comprises advertising spending, users, average revenue per user, and user demographic. The market only displays B2B spending and users for the market. Figures are based on advertising spending and exclude agency commissions, rebates, production costs, and taxes. Additional definitions of Traditional TV Advertising and Digital Video Advertising can be found on the respective pages. For more information on the data displayed, use the info button right next to the boxes.

Market

Region

Region comparison

Currency

Analyst Opinion

The TV & Video Advertising market in South Africa is experiencing significant growth and development, driven by various factors such as changing customer preferences, emerging trends in the market, local special circumstances, and underlying macroeconomic factors. Customer preferences in South Africa are shifting towards digital platforms and online streaming services. With the increasing availability of high-speed internet and the proliferation of smartphones, consumers are now able to access a wide range of video content anytime and anywhere. This has led to a decline in traditional TV viewership and an increase in the consumption of online video content. As a result, advertisers are adapting their strategies to reach consumers through digital channels and platforms. Trends in the TV & Video Advertising market in South Africa reflect the global shift towards programmatic advertising. Programmatic advertising allows advertisers to target specific audiences based on their demographics, interests, and online behavior. This targeted approach ensures that advertisements are delivered to the right audience at the right time, maximizing the effectiveness of advertising campaigns. In addition, the rise of social media platforms has created new opportunities for advertisers to engage with consumers through interactive and personalized content. Local special circumstances in South Africa also contribute to the development of the TV & Video Advertising market. The country has a diverse population with multiple languages and cultures, making it necessary for advertisers to tailor their messages to specific target audiences. Advertisers are increasingly incorporating local languages, cultural references, and themes into their campaigns to resonate with South African consumers. Furthermore, the South African government has implemented regulations to promote the local TV and film industry, which has led to an increase in local content production and advertising opportunities. Underlying macroeconomic factors play a crucial role in the growth of the TV & Video Advertising market in South Africa. The country has a growing middle class with increasing disposable income, which translates into higher consumer spending on products and services. Advertisers are keen to tap into this expanding consumer market by investing in TV and video advertising campaigns. Additionally, South Africa is a popular destination for international companies looking to expand their business in Africa. This presents opportunities for advertisers to target both local and international audiences through TV and video advertising. In conclusion, the TV & Video Advertising market in South Africa is developing rapidly due to changing customer preferences, emerging trends in the market, local special circumstances, and underlying macroeconomic factors. Advertisers are adapting their strategies to reach consumers through digital platforms and online streaming services, while also incorporating local languages and cultural references into their campaigns. The growth of the middle class and the influx of international companies further contribute to the expansion of the market. Overall, the TV & Video Advertising market in South Africa presents lucrative opportunities for advertisers to engage with a diverse and growing consumer base.

Methodology

Data coverage:

Data encompasses enterprises (B2B). Figures are based on TV and video advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers traditional TV advertising (non-digital formats such as terrestrial TV, cable TV, satellite TV, and linear TV) and digital video advertising (video ad formats: web-based, app-based, on social media, and connected devices).

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, web traffic, 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, media consumption, internet users, consumer spending, and digital consumer spending.

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.