Market Insights Advertising & Media Advertising TV & Video Advertising

Traditional TV Advertising - Africa

Africa

Ad spending in the Traditional TV Advertising market in Africa is forecasted to reach US$2,188.00m in 2024.
The ad spending is anticipated to demonstrate an annual growth rate (CAGR 2024-2029) of 1.91%, leading to a projected market volume of US$2,405.00m by 2029.
The average ad spending per TV Viewer in the Traditional TV Advertising market in Africa is projected to be US$3.05 in 2024.
By 2029, the number of users in the Traditional TV Advertising market in Africa is expected to reach 804.20m users.
Amid the rise of digital advertising, traditional TV advertising in South Africa is adapting by incorporating more data-driven strategies to target specific audience segments.

Key regions: India, United States, France, Australia, China

Definition:
Traditional TV Advertising refers to ad spending on moving image formats broadcasted via traditional transmission channels such as terrestrial and digital terrestrial (DTTV, DTT, DTTB) TV, cable TV, satellite TV, and linear TV delivered via Internet Protocol television (IPTV). Terrestrial television uses traditional antennas that transmit analog signals. Analog terrestrial TV has undergone a digital switchover (DSO) to digital terrestrial TV in most parts of the world. For digital terrestrial TV, television broadcasting stations transmit TV content through radio waves to televisions in households in a digital format. Internet Protocol television (IPTV) refers to the delivery of television content via Internet Protocol networks. IPTV is used in subscriber-based telecommunications networks via set-top boxes or other customer-premises equipment (IPTV is included in the cable revenue split here). Traditional TV Advertising covers all ad spending on pay-TV operators and networks as well as free-to-air networks and free-to-air spin-off digital channels from terrestrial network operators. Usually, the distribution of advertising time in television programs is either carried out by the broadcasters themselves or by marketing agencies.

Structure:

Cable TV signals are transmitted through coaxial or fiber-optic cables directly to each household without the need for external antennas.
Satellite TV includes television programming with the use of communication satellites that transmit to satellite dishes. A dedicated satellite receiver (external set-top boxes or built into TV sets) decodes the television program.
Digital Terrestrial Television (DTT), sometimes known as direct-to-terrestrial television, is a type of television reception in which a signal is transmitted directly to a viewer's antenna rather than through a cable or satellite system. As a rule, HDTV signals are available through digital terrestrial television, and this type of television also makes better use of the radio spectrum.

Additional information:
Traditional TV Advertising comprises advertising spending, users, average revenue per user, and user demographic. The market only displays B2B spending and users. Figures are based on Traditional TV Advertising spending and exclude agency commissions, rebates, production costs, and taxes. For more information on the data displayed, use the info button right next to the boxes.

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Analyst Opinion

Traditional TV Advertising in Africa is experiencing significant growth and development, driven by changing customer preferences, emerging trends in the market, local special circumstances, and underlying macroeconomic factors. Customer preferences in Africa are shifting towards traditional TV advertising due to its wide reach and effectiveness in targeting a mass audience. Despite the rise of digital platforms, many Africans still rely on traditional TV as their primary source of entertainment and information. This preference for TV creates a lucrative market for advertisers to reach a large and diverse audience. Trends in the market further contribute to the growth of traditional TV advertising in Africa. Advertisers are increasingly investing in TV commercials and sponsorships to create brand awareness and engage with consumers. Additionally, the rise of local content production has led to an increase in advertising opportunities within African TV shows and movies. This trend not only attracts local advertisers but also international brands looking to tap into the African market. Local special circumstances also play a significant role in the development of traditional TV advertising in Africa. Many African countries have limited internet penetration and unreliable internet connectivity, making TV the most accessible and reliable medium for advertisers to reach their target audience. Furthermore, cultural factors and language diversity across the continent create a need for localized advertising campaigns that can effectively resonate with different African cultures and languages. Underlying macroeconomic factors contribute to the growth of traditional TV advertising in Africa. The continent's rising population and expanding middle class present a vast consumer market for advertisers to target. As disposable incomes increase, more Africans have access to TV and are exposed to advertising messages. Additionally, economic growth in Africa has led to increased investments in infrastructure, including the expansion of TV networks and channels, providing advertisers with more advertising spaces and opportunities. In conclusion, the Traditional TV Advertising market in Africa is developing due to changing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors. As Africans continue to rely on traditional TV for entertainment and information, advertisers are capitalizing on this preference by investing in TV commercials and sponsorships. The rise of local content production and the need for localized advertising campaigns further contribute to the growth of traditional TV advertising in Africa. Additionally, limited internet penetration, cultural factors, and economic growth in the continent play a significant role in the development of the market. Overall, traditional TV advertising in Africa presents a promising opportunity for advertisers to reach a large and diverse audience.

Methodology

Data coverage:

Data encompasses enterprises (B2B). Figures are based on traditional TV advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers non-digital formats such as terrestrial TV, cable TV, satellite TV, and linear TV.

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, media consumption, number of households with television, and consumer spending.

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.