The scramble for the advertising cake

/ / Business, Think, TOP NEWS

By Abel Kabiru

More than Ksh100 billion is spent in Kenya every year to place adverts in the print media and run commercials on TV and radio. This figure does not include online, outdoor advertising and classifieds. Ipsos Kenya gathers information from all media houses and computes their income from advertising. The trend analysis gives an insight into advertisers’ preferences within a particular period. Potential and existing advertisers can then determine which is the best media to use to connect with their demographics.

Notably, the continuing media proliferation is altering the advertising landscape in Kenya. There are more media houses scrambling for the cake, but it seems major advertisers are keen on playing safe.

The number of TV stations exploded from 85 stations before the full advent of digital migration to over 300 channels by the end of first half of 2016, while radio stations grew from 126 to 228 in one year. While a good number of these channels are fledgling startups, their eyes are trained on landing the big advertisers. “The important observation to make here is that the space for English radio has shrunk considerably as Vernacular and Swahili stations dominate the radio media scene with select and appealing niches,” notes the report. Further, “newspaper readership has declined nationally over the years to about 18 percent. Existing print suppliers continue to innovate to remain relevant through creation of Tabloids, Free publications and Inserts.”

In the first half of 2016, AdSpend value in Kenya increased by 20 percent from Ksh44.4billion in the previous year to Ksh53.4 billion within the same period.

Fast Moving Consumer Goods is fueling this growth with Coca-Cola more than doubling its exposure, thanks to the brand’s ‘Share the Feeling’ and ‘Taste the Feeling’ campaigns. Safaricom registered an impressive 59% growth in media by spending over Ksh 2 billion between January and June 2016. Kenya Lotto equally had a great campaign season that delivered over Ksh 1.8 billion worth of expenditure.

Radio used to be the most preferred media for major advertisers, but TV is claiming its stake of the cake almost on equal basis. “Whereas all the main channels have upped their game in Jan-Jun 2016, the new vernacular craze led by Inooro and Kass TV Channels cannot escape our reflection. Radio could be headed to hard times in as far as exposure is concerned as leading TV Channels capitalize on Radio’s fragmentation to sell their Rate cards and Cost Per Thousand offering,” notes Neema Wamai, director Ipsos MediaCT for Sub-Saharan Africa.

Interestingly, print media despite shrinking readership still maintained at 11% share for both Jan-Jun 2015 and 2016 seasons with spoils distributed across 34 Daily, Weekly and Monthly publications.

Interestingly, the share of Adspend for Vernacular media has shown increase of 40 percent in the first half of 2016; from Ksh9.5 billion to Ksh13.3 billion. This happens as exposure on Swahili media decreases but with no effect on English media at the moment. Vernacular Radio registered a 32 percent growth to reach Ksh10.8 billion while TV grew by 92 percent over the review period to reach Ksh 2.5 billion. Some of the Brands that have shown great interest in accessing vernacular audiences include Jamii Milling, Faiba, Maclik, ‘ADN’ decoder, Mid-Level colleges such as IAT, NIBS, TIBS, Mabati Rolling Mills, Amaco Insurance and Orange.

Number of Stations
Q2 2015 Q2 2016
Radio 126 228
Television 85 306

Who are the big spenders?

The Ipsos Report shows that the Soft Drink category, powered mostly by Coca Cola surprised the Telecoms sector by raising the CSD exposure to the top of the chart.

Non-traditional Categories that made a mark in advertising in Jan-Jun 2016 included Lottery, Real Estate and Video Equipment (Read Decoders).

Reckitt Benckiser, Unilever and Pwani Oil pushed a strong case for Toilet soaps as their brands supremacy battles intensified.

Television as a category has lost to Radio probably signifying an attempt by Media house(s) to cement relationships with their radio audiences and hopefully counter the possible effects of digital migration proliferation that is likely to affect viewership of their flagship Channels

Coca Cola Brand dominated exposure in both years followed by Safaricom. Airtel maintains a respectable fourth position over the 2 seasons. Bamba TV campaign have scaled down this year. On the rise is ADN decoders fronted by major Free to Air (FTA) media players in the market.

The rise of gaming and gambling brands is evident in half-year 2016 with Lotto, Cheza and Sport Pesa finding their way into the top 10 arena. In the banking sector, Equity and BOA banks made their way to the top 20 list of highest spenders joining KCB

 Jan-June’ 2015   Jan-June’ 2016
PUBLIC SECTOR 3,292,103,063 SOFT DRINK 4,178,314,275
TELECOMMUNICATION 2,428,791,659 TELECOMMUNICATION 3,973,811,715
EDUCATION 2,376,021,539 PUBLIC SECTOR 2,794,763,299
TELEVISION 2,278,877,054 LOTTERY 2,786,440,552
INTERNET 2,112,554,667 FINANCE 2,496,523,978
SOFT DRINK 1,682,027,673 BANKING 2,343,638,328
PHARMACEUTICAL PRODUCTS 1,657,374,590 EDUCATION 2,326,713,528
BANKING 1,590,724,093 RADIO 1,751,557,820
EXHIBITION & EVENTS 1,179,193,049 PUBLISHING & CATALOG 1,548,829,193
SERVICING COMPANIES 1,075,408,344 SERVICING COMPANIES 1,312,861,478
PUBLISHING & CATALOG 1,072,901,078 INTERNET 1,303,794,850
VIDEO EQUIPMENTS 1,019,542,461 SOCIAL & CIVIC SERVICE 1,254,629,504
FINANCE 994,000,504 REAL ESTATE 1,228,084,490
RADIO 976,989,401 MEDIA & PUBLISHING & ADVERTISING 1,218,543,280
LOTTERY 909,437,491 EXHIBITION & EVENTS 1,141,986,686
SOCIAL & CIVIC SERVICE 849,476,869 TELEVISION 1,093,797,436
CELLULAR PHONES & ACCESSORIES 830,323,838 GARDENING (FARMING ACTIVITIES) 1,045,611,818
REAL ESTATE 770,079,356 PHARMACEUTICAL PRODUCTS 970,244,987
CONSTRUCTION 749,829,772 VIDEO EQUIPMENTS 901,171,311
INSURANCE and ASSURANCE 545,329,040 TOILET SOAP 845,078,642

Top brands review Jan-June 2015 and Jan-June 2016

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