Market Insights Advertising & Media Advertising TV & Video Advertising

Traditional TV Advertising - Eastern Africa

Eastern Africa

Ad spending in the Traditional TV Advertising market in Eastern Africa is forecasted to reach US$510.60m in 2024.
The ad spending is anticipated to demonstrate an annual growth rate (CAGR 2024-2029) of 2.47%, leading to an estimated market volume of US$576.80m by 2029.
The average ad spending per TV Viewer in the Traditional TV Advertising market is projected to be US$2.38 in 2024.
It is expected that the number of users in the Traditional TV Advertising market will reach 245.4m users by 2029.
Traditional TV Advertising in Eastern Africa is experiencing a shift towards digital platforms as viewership habits evolve in the region.

Key regions: Germany, Europe, Japan, United Kingdom, Australia

Definition:
Traditional TV Advertising refers to 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). Terrestrial television uses traditional antennas that transmit analog signals. Analog terrestrial TV has undergone a digital switchover (DSO) to digital terrestrial TV in most parts of the world. For digital terrestrial TV, television broadcasting stations transmit TV content through radio waves to televisions in households in a digital format. Internet Protocol television (IPTV) refers to the delivery of television content via Internet Protocol networks. IPTV is used in subscriber-based telecommunications networks via set-top boxes or other customer-premises equipment (IPTV is included in the cable revenue split here). Traditional TV Advertising covers all ad spending on pay-TV operators and networks as well as free-to-air networks and free-to-air spin-off digital channels from terrestrial network operators. Usually, the distribution of advertising time in television programs is either carried out by the broadcasters themselves or by marketing agencies.

Structure:

Cable TV signals are transmitted through coaxial or fiber-optic cables directly to each household without the need for external antennas.
Satellite TV includes television programming with the use of communication satellites that transmit to satellite dishes. A dedicated satellite receiver (external set-top boxes or built into TV sets) decodes the television program.
Digital Terrestrial Television (DTT), sometimes known as direct-to-terrestrial television, is a type of television reception in which a signal is transmitted directly to a viewer's antenna rather than through a cable or satellite system. As a rule, HDTV signals are available through digital terrestrial television, and this type of television also makes better use of the radio spectrum.

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

Market

Region

Region comparison

Currency

Analyst Opinion

The Traditional TV Advertising market in Eastern Africa has been experiencing significant growth in recent years. Customer preferences in the region have played a key role in driving this growth. Despite the rise of digital advertising, many consumers in Eastern Africa still prefer traditional TV advertising. This can be attributed to several factors. Firstly, TV remains one of the most popular forms of media consumption in the region, with a large portion of the population having access to television sets. Secondly, traditional TV advertising allows for a more immersive and engaging experience compared to digital advertising. Viewers can see and hear the advertisements on a larger screen, which can be more impactful and memorable. Lastly, traditional TV advertising often reaches a wider audience, including those who may not have access to the internet or digital devices. Trends in the market indicate that advertisers in Eastern Africa are recognizing the potential of traditional TV advertising and are investing more in this medium. This is evident in the increasing number of TV ad campaigns being launched in the region. Advertisers are also becoming more creative in their approach, developing innovative and compelling content to capture the attention of viewers. Additionally, there is a growing trend of advertisers targeting specific demographics and niches within the Eastern African market, tailoring their advertisements to resonate with the local audience. Local special circumstances also contribute to the development of the Traditional TV Advertising market in Eastern Africa. One such circumstance is the limited availability and high cost of internet access in some parts of the region. This has resulted in a reliance on traditional media, including TV, for information and entertainment. Furthermore, the cultural significance of television in Eastern African societies cannot be overlooked. TV is often seen as a communal activity, with families and friends gathering to watch their favorite shows together. This communal aspect of TV viewing creates a captive audience for advertisers and enhances the impact of their advertisements. Underlying macroeconomic factors have also played a role in the growth of the Traditional TV Advertising market in Eastern Africa. The region has been experiencing steady economic growth, resulting in an expanding middle class with increased purchasing power. This has attracted the attention of advertisers, who see the potential to reach a growing consumer base through traditional TV advertising. Additionally, the presence of multinational companies in the region has led to increased competition and investment in advertising, further driving the growth of the market. In conclusion, the Traditional TV Advertising market in Eastern Africa is developing due to customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors. As advertisers continue to recognize the potential of traditional TV advertising in the region, we can expect further growth and innovation in this market.

Methodology

Data coverage:

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

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, media consumption, number of households with television, and 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.