Here’s how COVID-19 has impacted ad spend in Kenya

The COVID-19 pandemic has caused a significant drop in advertising expenditure in Kenya, with a new study revealing a staggering $202 million decline in the first half of 2020. This drastic reduction has had far-reaching effects across various industries, leading to job cuts, redundancies, and layoffs. Enock Mokaya, the Head of Business Development at Real Analytics, shed light on the current scenario and provided insights into the strategies that media houses and businesses should adopt to navigate through these challenging times. The interview with CNBC Africa delved into the importance of advertising investment for businesses as they embark on the road to recovery. During the period spanning March to June, there was a notable surge in COVID-19 sensitization campaigns, accounting for around 8 billion impressions. Radio emerged as the most widely utilized medium for disseminating information, owing to its wide reach and regional penetration. Advertisers have been urged to tailor their campaigns to address the sensitivities surrounding the pandemic, with a focus on promoting products like hand sanitizers and soaps to combat the spread of the disease. Traditional advertising sectors, such as the automotive industry, have faced significant setbacks, as sectors like communication and finance have taken the lead in ad spend. Enock Mokaya highlighted the need for media houses to reconsider their advertising rates and opt for the full rate card to ensure a sustainable revenue stream during these trying times. The plunge in ad spending has underscored the importance for businesses to prioritize advertising as part of their recovery strategies. Mokaya emphasized the significance of below-the-line advertising tactics and digital marketing initiatives, which can help businesses maintain top-of-mind awareness among consumers. The reduction in Kenya's VAT from 16% to 14% has been lauded as a positive step by the government, signaling its commitment to supporting the economy amid the crisis. Mokaya suggested that stakeholders leverage this tax relief and explore innovative advertising strategies to thrive in the current environment. When discussing government policies impacting the marketing industry, Mokaya acknowledged the ongoing dialogue between the Marketing Society of Kenya and the government to address key issues affecting the sector. He commended the government's decision to lower the VAT rate and encouraged industry players to collaborate with the authorities to drive industry growth. The conversation shifted towards the evolving landscape of advertising, with a noticeable shift towards digital platforms. While digital advertising offers convenience and effectiveness, traditional media still holds sway due to its credibility and attribution capabilities. Mokaya predicted a dual approach where both digital and traditional media will coexist, with traditional advertising maintaining its stronghold in providing credibility and attribution benefits.