Market Insights Advertising & Media Advertising TV & Video Advertising

Traditional TV Advertising - South Africa

South Africa

In South Africa, ad spending in the Traditional TV Advertising market is forecasted to reach US$510.20m in 2024.
The market is anticipated to experience an annual growth rate (CAGR 2024-2029) of 1.41%, leading to a projected market volume of US$547.20m by 2029.
The average ad spending per TV Viewer in the Traditional TV Advertising market is estimated to be US$10.79 in 2024.
Within the Traditional TV Advertising market of South Africa, the number of users is expected to reach 49.4m users by 2029.
South Africa's Traditional TV Advertising market is witnessing a shift towards digital platforms due to changing consumer preferences and technological advancements.

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 South Africa has been experiencing significant growth in recent years.

Customer preferences: South African consumers still have a strong preference for traditional TV advertising. This can be attributed to several factors such as the popularity of TV as a primary source of entertainment and information, as well as the limited access to internet and digital platforms in certain areas of the country. Additionally, traditional TV advertising allows for a more immersive and engaging experience, which resonates well with the local audience.

Trends in the market: One of the key trends in the Traditional TV Advertising market in South Africa is the increasing demand for targeted advertising. Advertisers are now leveraging data and analytics to better understand their target audience and deliver personalized messages. This trend is driven by the need to maximize the effectiveness of advertising campaigns and improve ROI. As a result, we are seeing a shift towards more targeted and relevant TV ads in South Africa. Another trend in the market is the integration of digital elements into traditional TV advertising. Advertisers are increasingly using interactive features such as QR codes and social media hashtags to engage with viewers and drive online interactions. This trend is in line with the growing digitalization of the advertising industry globally, and South Africa is no exception.

Local special circumstances: South Africa has a diverse population with multiple languages and cultures. This presents a unique challenge for advertisers who need to create content that resonates with different segments of the population. Advertisers in South Africa need to carefully consider cultural sensitivities and language preferences when creating TV ads. This often requires local market knowledge and expertise to ensure that the message is effectively communicated to the target audience.

Underlying macroeconomic factors: The South African economy has been facing challenges in recent years, with slow economic growth and high unemployment rates. These factors have had an impact on the Traditional TV Advertising market, as advertisers have become more cautious with their spending. However, despite these challenges, the market has remained resilient and continues to grow. Advertisers are recognizing the importance of TV advertising in reaching a wide audience and are investing in this channel to drive brand awareness and sales. In conclusion, the Traditional TV Advertising market in South Africa is experiencing growth due to customer preferences for traditional TV, the demand for targeted advertising, the integration of digital elements, and the unique cultural and linguistic considerations in the country. Despite macroeconomic challenges, advertisers are recognizing the value of TV advertising in reaching a broad audience and are continuing to invest in this channel.

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.