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TREND.Facts: July 8

TRENDAFRiCA July 8, 2013

With the number of unique browsers (not users) in South Africa increasing from 9.5 million to 20.3 million between June 2011 and March 2013 according to Effective Measure, the online market is one that few brands can ignore. Yet digital ad spending patterns are still poorly understood. What’s more, these stats are largely based on display advertising and do not take the full impact of search, social and mobile media spending into account.

Nielsen’s Ad Dynamix estimates digital accounts for circa R800 million (3%) of the circa R30 billion that South African brands spend on advertising each year. Yet this stat is misleading because it does not take discounts on card rates into account – the higher level of discounting in digital, makes it hard to make meaningful comparisons with spending on traditional media types. Based on his discussions with agencies and advertisers, Attila Bernariusz, Kagiso Digital divisional head estimates that digital advertising’s slice of total ad spend could actually be closer to 5%.

Source: Kagiso Digital

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Comments (1)

  1. Does that figure exclude ad spend on Google Ads? (Since Google won’t disclose this)
    Previous studies have assumed that the additional spend on Google doubles the figures.
    It’s still way too low though.

    Reply

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