In the rapidly evolving media landscape of Kenya, television advertising remains a dominant force despite the increasing adoption of digital channels. According to the latest data from the Communications Authority, the overall media industry ad expenditure for the three months ending September 2023 stood at KES 16 billion, with television receiving the highest allocation.
The Media Landscape
Kenya’s media landscape has become highly competitive with the rise of numerous online news platforms and digital channels. This surge in digital media has intensified the battle for audience attention, fragmenting advertising revenue across various platforms. However, television continues to command a significant share of the advertising budget.
Advertising Expenditure Trends
The Communications Authority’s Audience Measurement and Industry Trends report revealed that the quarterly ad spend in the media industry decreased by 19% from KES 19.75 billion in the same period last year to KES 16 billion. Despite this overall reduction, TV advertising’s share remained steady, underscoring its enduring appeal to advertisers.
- July 2023: KES 5 billion
- August 2023: KES 5.3 billion
- September 2023: KES 5.7 billion
This consistent investment highlights the effectiveness of television in reaching a broad and diverse audience, particularly through free-to-air TV channels.
Impact of Government Budget Cuts
The decrease in media spending is attributed to government budget cuts, which have compelled brands to prioritize market retention strategies. These strategies involve targeted exposure with minimal spending, focusing on maintaining a presence in the market rather than extensive new campaigns.
Brands with a diverse product portfolio are adopting a range of product campaigns with intermittent exposure to maximize their reach without overspending. This approach has led to fluctuations in expenditure across various media:
- July 2023: 15% decline in TV, radio, and print spending
- August 2023: 5% increase in spending
- September 2023: 8% increase in spending
Shifts in Media Consumption
The rapid digitization of media consumption in Kenya has significantly impacted traditional media formats. Radio listenership has dropped from 92% of the population in 2014 to 77%, directly affecting advertising revenues. Similarly, newspaper readership has plummeted from 21% of the population in 2014 to just 7%.
Despite these shifts, financial services and communications sectors continue to have the highest advertising spend on radio. Print media spending is predominantly driven by corporate, multi-brand, and media sectors, with financial services trailing behind.
The Digital Future
A report by PricewaterhouseCoopers (PwC) titled ‘The Entertainment and Media (E&M)’ industry report presents a grim outlook for traditional media. By 2026, the digital advertising segment is projected to account for 79.7% of the industry’s total revenue in Kenya, Nigeria, and South Africa. This shift is largely driven by the accelerated uptake of e-commerce during the pandemic.
In Kenya, internet advertising is expected to become the second largest segment by 2026, just KES 175.2 million behind traditional TV and home video. This rapid growth in digital advertising highlights the evolving preferences of consumers and the need for advertisers to adapt to these changes.
Key Takeaways
- Television Advertising: Continues to hold the largest share of ad spend despite the rise of digital channels.
- Government Budget Cuts: Have led to decreased overall media spending, with brands focusing on market retention and targeted exposure.
- Shifts in Media Consumption: Significant declines in radio listenership and newspaper readership due to digitization.
- Digital Future: Digital advertising is set to dominate the industry’s revenue by 2026, driven by e-commerce and changing consumer habits.
As the media landscape continues to evolve, it will be crucial for advertisers to balance their investments across traditional and digital platforms to effectively reach and engage their target audiences.
