Market Insights Advertising & Media Advertising TV & Video Advertising

Traditional TV Advertising - Kenya

Kenya

Ad spending in the Traditional TV Advertising market in Kenya is forecasted to reach US$174.20m in 2024.
The ad spending is anticipated to demonstrate an annual growth rate (CAGR 2024-2029) of 3.77%, leading to a projected market volume of US$209.60m by 2029.
The average ad spending per TV Viewer in the Traditional TV Advertising market is projected to be US$3.46 in 2024.
By 2029, the number of users in the Traditional TV Advertising market in Kenya is expected to reach 54.68m users.
Kenya's Traditional TV Advertising market is seeing a shift towards digital platforms as brands target tech-savvy audiences for higher engagement.

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.

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Analyst Opinion

The Traditional TV Advertising market in Kenya is experiencing significant growth and development due to changing customer preferences and local special circumstances.

Customer preferences: Kenyan consumers still have a strong preference for traditional TV advertising, as it remains one of the most effective ways to reach a large audience. TV advertising offers a wide range of content and reaches a diverse demographic, making it an attractive option for advertisers. Additionally, many Kenyan households still rely on free-to-air TV channels, which further increases the reach and impact of traditional TV advertising.

Trends in the market: One of the key trends in the Traditional TV Advertising market in Kenya is the increasing use of targeted advertising. Advertisers are now able to leverage data and analytics to identify specific audience segments and deliver tailored advertisements. This allows for more effective and efficient advertising campaigns, as advertisers can reach the right audience with the right message at the right time. Furthermore, the rise of digital TV platforms has opened up new opportunities for advertisers to engage with consumers through interactive and personalized advertising experiences. Another trend in the market is the integration of traditional TV advertising with digital platforms. Advertisers are increasingly using social media platforms and online video streaming services to extend the reach of their TV advertisements. By leveraging the popularity of these digital platforms, advertisers can amplify the impact of their TV campaigns and engage with consumers across multiple touchpoints. This integration of traditional TV advertising with digital platforms allows for a more holistic and integrated marketing approach.

Local special circumstances: Kenya has a vibrant and growing media landscape, with a wide range of TV channels catering to different audience segments. This diversity in TV channels provides advertisers with a variety of options to target specific demographics and reach their desired audience. Additionally, the Kenyan government has implemented policies to promote local content production, which has led to an increase in the number of local TV channels. This presents opportunities for advertisers to support and promote local content through their advertising campaigns.

Underlying macroeconomic factors: Kenya's economy has been experiencing steady growth in recent years, which has contributed to an increase in consumer spending power. As consumers have more disposable income, they are more likely to purchase products and services advertised on TV. This creates a positive environment for advertisers, as they can expect a higher return on investment for their TV advertising campaigns. Furthermore, the government's investment in infrastructure development, such as the expansion of digital TV networks, has improved the accessibility and quality of TV programming, further driving the growth of the Traditional TV Advertising market in Kenya.

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) 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.