Market Insights Advertising & Media Advertising Out-of-Home Advertising

Traditional Out-of-Home Advertising - South Africa

South Africa

Ad spending in South Africa's Traditional Out-of-Home Advertising market is forecasted to hit US$116.60m in 2024.
Ad spending is anticipated to demonstrate an annual growth rate (CAGR 2024-2029) of 0.83%, leading to a projected market volume of US$121.50m by 2029.
The average ad spending per capita in South Africa's Traditional Out-of-Home Advertising market is projected to be US$1.91 in 2024.
Traditional Out-of-Home Advertising in South Africa is experiencing a resurgence, with brands leveraging high-impact formats to reach a diverse audience effectively.

Key regions: France, United Kingdom, Asia, China, Germany

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Analyst Opinion

The Traditional Out-of-Home Advertising market in South Africa is experiencing significant growth and development.

Customer preferences: Customers in South Africa have shown a strong preference for traditional out-of-home advertising methods. This can be attributed to the fact that these methods are highly visible and have a wide reach, allowing advertisers to effectively target a large audience. Additionally, traditional out-of-home advertising allows for creative and eye-catching displays, which can capture the attention of consumers and leave a lasting impression.

Trends in the market: One of the key trends in the Traditional Out-of-Home Advertising market in South Africa is the increasing use of digital billboards. These billboards offer advertisers greater flexibility and the ability to display dynamic and interactive content. This trend is driven by advancements in technology and the growing demand for more engaging advertising experiences. Digital billboards also allow for real-time updates and targeting, enabling advertisers to deliver more relevant and timely messages to their target audience. Another trend in the market is the integration of traditional out-of-home advertising with digital marketing strategies. Advertisers are increasingly using traditional out-of-home advertising as part of a multi-channel marketing approach, combining it with online and mobile advertising to create a cohesive and integrated campaign. This trend is driven by the need for brands to reach consumers across multiple touchpoints and engage them in a consistent and impactful way.

Local special circumstances: South Africa has a diverse population with multiple languages and cultural backgrounds. This presents a unique challenge for advertisers in terms of creating messages that resonate with different segments of the population. Traditional out-of-home advertising offers a solution to this challenge, as it can be easily adapted to different languages and cultural contexts. This allows advertisers to effectively communicate their message to a wide range of consumers and ensure that it is understood and appreciated.

Underlying macroeconomic factors: The development of the Traditional Out-of-Home Advertising market in South Africa is also influenced by underlying macroeconomic factors. The country's growing middle class and urbanization have led to an increase in consumer spending and disposable income. This has created a larger market for advertisers to target and has contributed to the growth of the out-of-home advertising industry. Additionally, South Africa's strong tourism industry has also played a role in driving the demand for out-of-home advertising, as advertisers seek to reach both domestic and international tourists. In conclusion, the Traditional Out-of-Home Advertising market in South Africa is experiencing growth and development due to customer preferences for highly visible and creative advertising methods. The market is also being shaped by trends such as the use of digital billboards and the integration of traditional out-of-home advertising with digital marketing strategies. Local special circumstances, such as the diverse population and underlying macroeconomic factors, further contribute to the growth of the market.

Methodology

Data coverage:

Data encompasses enterprises (B2B). Figures are based on traditional out-of-home advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers offline out-of-home advertisements such as billboards, street furniture, transit and transport displays, and place-based media.

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) 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, urban population, and internet infrastructure.

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.