Market Insights Advertising & Media Advertising TV & Video Advertising

Traditional TV Advertising - Southern Africa

Southern Africa

In Southern Africa, the ad spending in the Traditional TV Advertising market is forecasted to reach US$568.30m in 2024.
The ad spending is anticipated to demonstrate an annual growth rate (CAGR 2024-2029) of 1.46%, leading to a projected market volume of US$611.00m by 2029.
The average ad spending per TV Viewer in the Traditional TV Advertising market is estimated to be US$10.67 in 2024.
The number of users in the Traditional TV Advertising market is expected to reach 55.7m users by 2029.
Southern Africa's Traditional TV Advertising market is seeing a shift towards digital platforms due to changing consumer viewing habits.

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

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Analyst Opinion

The Traditional TV Advertising market in Southern Africa is experiencing significant development and growth.

Customer preferences: Customers in Southern Africa have a strong preference for traditional TV advertising. Despite the rise of digital platforms and streaming services, traditional TV remains a popular choice for entertainment and information. This is due to several factors, including the wide availability of TV channels, the affordability of TV sets, and the cultural significance of television in the region. Additionally, many households in Southern Africa do not have access to high-speed internet, making traditional TV the primary source of entertainment for a large portion of the population.

Trends in the market: One of the key trends in the Traditional TV Advertising market in Southern Africa is the increasing investment from local and international advertisers. As the region's economy continues to grow, businesses are seeking to reach a larger audience through TV advertising. This has led to a rise in the number of TV commercials and sponsorships, as well as an increase in the production quality of TV advertisements. Advertisers are also targeting specific demographics and tailoring their messages to resonate with the local audience. Another trend in the market is the emergence of regional TV networks and channels. With the growing demand for local content, several TV networks have been established to cater to the unique preferences and interests of the Southern African audience. These regional networks are not only broadcasting local content but also attracting advertisers who want to reach a targeted audience. This trend has created new opportunities for both advertisers and content creators in the region.

Local special circumstances: The Traditional TV Advertising market in Southern Africa is influenced by several local special circumstances. One of these is the linguistic diversity of the region. Southern Africa is home to multiple languages, and advertisers need to consider this diversity when creating TV commercials. Advertisements that are culturally sensitive and use local languages are more likely to resonate with the target audience. Another special circumstance is the popularity of live events and sports in Southern Africa. Sports events, such as football matches and rugby games, attract large viewership and provide advertisers with an opportunity to reach a captive audience. Advertisers often sponsor these events or create commercials specifically for sports broadcasts to maximize their reach and impact.

Underlying macroeconomic factors: The development of the Traditional TV Advertising market in Southern Africa is supported by several underlying macroeconomic factors. The region has been experiencing steady economic growth, which has led to an increase in disposable income and consumer spending. This has created a favorable environment for advertisers, as consumers are more willing to purchase products and services that are advertised on TV. Furthermore, the infrastructure for TV broadcasting has improved in recent years. Southern African countries have invested in upgrading their TV transmission systems and expanding their coverage areas. This has resulted in better signal quality and increased access to TV channels, allowing advertisers to reach a larger audience. In conclusion, the Traditional TV Advertising market in Southern Africa is developing and growing due to customer preferences for traditional TV, increasing investment from advertisers, the emergence of regional TV networks, local special circumstances such as linguistic diversity and the popularity of live events, and underlying macroeconomic factors such as economic growth and improved infrastructure.

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.