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Here’s what 2022 has in store for Africa’s advertising landscape
The coronavirus pandemic caused a considerable drop in advertising spend in most parts of the world. The industry has traditionally followed GDP and the pandemic plunged many countries, including those in Africa, into recession. But as economies have started to recover and reopen, what will this mean for Africa’s advertising landscape in 2022. Joining CNBC Africa are Dashni Vilakazi , Managing Director at MediaShop Johannesburg ; Razia Pillay, CEO at The Interactive Advertising Bureau South Africa and Tendai Luwo , Head of Strategy at David & Langton Digital Advisory.
Fri, 14 Jan 2022 11:19:12 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- Shift towards digital platforms driven by consumer behavior changes during the pandemic
- Importance of omni-channel advertising blending traditional and digital approaches for success
- Diversification in pricing and dynamic rate cards reflecting changing audience behaviors
The coronavirus pandemic caused a considerable drop in advertising spend globally, including in Africa. As economies start to recover, the advertising landscape on the continent is undergoing significant changes. Digital platforms are playing a crucial role in shaping the future of the industry. More consumers are shifting online, necessitating businesses to follow suit. Razia Pillay, CEO at The Interactive Advertising Bureau South Africa, highlighted the growth of digital advertising, which saw an 18% increase in revenue, accounting for 4.7 billion in 2021. She emphasized the shift brought on by the pandemic, where consumers were forced online due to restrictions. This move catalyzed the growth of digital advertising, even as traditional platforms faced pressure. The trend towards digital is expected to continue, with a focus on omni-channel advertising and blending traditional and digital platforms for maximum impact. While there are challenges in internet penetration in Africa, the growth in digital consumption presents opportunities for the industry. Dashni Villagazi, Managing Director at MediaShop Johannesburg, echoed the sentiments of digital growth. Despite concerns over internet penetration, there has been a significant rise in online users, especially during the pandemic. Television viewership saw an increase as families spent more time together, reflecting a shift in consumer behavior. Dashni emphasized the need to adapt to the changing landscape and trends, with a focus on insights and innovation to align strategies with consumer preferences. Tendai Luwo, Head of Strategy at David & Langton Digital Advisory, emphasized the greater adoption of digital by clients and the need to combine traditional and digital approaches for success. While digital offers agility and cost-effective solutions, traditional platforms like TV and radio still hold relevance in Africa, where mobile penetration is moderate. Luwo highlighted the importance of leveraging traditional platforms alongside digital to maximize impact and ensure a return on investment. Pricing in the advertising landscape has witnessed diversification, with digital channels offering affordability for businesses of all sizes. The shift towards omni-channel advertising has enabled businesses to reach consumers both online and offline. Consumer behavior changes, accelerated by the pandemic, have led to advancements in e-commerce and data-driven strategies. The importance of data in understanding consumer preferences and engaging with clients online has become paramount. Dynamic rate cards have emerged as a response to changing audience behaviors, with pricing adapting to reflect shifts in viewing patterns. Despite uncertainties post-COVID-19, the industry anticipates continued digital dominance and the need for adaptive strategies to cater to evolving consumer needs. The blend of traditional and digital platforms is key to success, offering a comprehensive approach to advertising in Africa's evolving landscape.
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