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A BRIEF MARKET OVERVIEWSouth Africa
Contents
• Basic country facts• Key economic trends • Key media trends• Key legislative trends• Overall advertising expenditure• Basic media facts
− TV− Newspapers− Magazines− Radio− Cinema− On line
• Media deadlines and key dates
South Africa
• Language: 11 Official Languages• Population: 46 million individuals• Religions: Wide range of religious faiths;
predominantly Christian• Government: ANC – African National
Congress (Democratic Government)
• Unemployment Level: Mar 04 –27.8% • Inflation: 2004 – 3.7%• SA GDP: 2004 – $456.7 billion• Capital City: 3 Capitals
− Pretoria: Administrative− Cape Town: Legislative− Bloemfontein: Judicial
• Key centers of influence: Johannesburg-Pretoria conurbation, Cape Town, Durban, Bloemfontein, Port Elizabeth
Source: Statistics SA
South Africa Key economic trendsThe South African economy has shown sustained growth over the past decade … annual GDP of 3,5%• Inflation at 3,7%
− Government inflation target range is 3-4%• In 2004 the Rand was globally the strongest performing currency against the US
dollar− Strong Rand is impacting negatively on export market but is underpinning
excellent performances on the JSE (Johannesburg Stock Exchange)• Strong gold and platinum prices have stabilised the mining sectors but many mines
remain marginal in the long term− Unemployment remains at 28% of “economically active - job seeking” adults
• Excellent retail trends and highest car sales in 20 years− Vibrant informal food and clothing retail sector
• Positive impact on adspend with projected growth of 8-9%− Media inflation will increase on the back of demand to 6-7%
South AfricaKey media trendsAfter a decade of democracy, the South African media market has reached a level of maturity in terms of media accessibility and consumption• Very little macro variation in media consumption and media expenditure
patterns • Since the launch of commercial Television in 1978 the medium has
gradually eroded the print media share of adspend− Over 40% of adspend is on TV
• Electrification of middle and lower socio-economic communities will ensure further encroachment of TV into all levels of South African society
• Increased demand for media space ensures that media inflation remains 1 or 2 point ahead of price inflation
• Aggressive discounting of the 90s is slowing down• 2010 World Cup Football will be the catalyst for further economic growth
and investment in the media sector• Increasing resistance from central government to the growing use of
English as the language of commercial communication to the exclusion of the other 10 official languages
South AfricaKey legislative trendsThe general climate is one of increasing interference by government in the advertising and communication sectors• The Media Diversity and Development Agency (MDDA) is a government
agency empowered to collect funds, via a levy on advertising (currently from media owners but eventually from advertisers) and to disperse these funds into “under-invested” media sectors and media owners
• Government set to monitor advertising investment patterns in order to ensure “equitable investment” of media funds across all market sectors
• Any form of tobacco advertising has been banned• Increasing sabre rattling from government with respect to the banning of
alcohol advertising after 2010 World Cup− First health warnings on labels of alcoholic beverages set to appear
some time in 2005 • Advertising to kids restricted in line with international norms• Broadcasters under increasing pressure to meet licensing conditions in
respect of PBS responsibility
South AfricaAdvertising Gross Expenditure 2001 - 2004
12,74213,166
11,328
9,468
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
2001 2002 (+20%) 2003 (+16%) 2004 YTD (-3 %)
Mill
ions
€
Source: Nielson Adex
South Africa: Advertising Gross Expenditure by Medium 2001 – 2004
45%
44%
44%
44%
37%
37%
37%
37%
12%
13%
13%
12%
4%
4%
4%
4%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
2001
2002
2003
2004
Gross Adv. Expenditure (%)
Television Print Radio Outdoor
Source: Nielsen Adex
South Africa: Advertising Gross Expenditure Seasonality 2001 - 2004
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
January
February
March
April
May
June
July
August
Septem
ber
October
Novem
ber
Decem
ber
Gross by Month
Milli
ons
R
2001 2002 2003 2004Source: Nielsen Adex
South Africa Inflation by Medium 2000 – 2004
% COST CHANGE ON PREVIOUS YEAR
NANANANANAINTERNET
8,29,79,78,312,2OUTDOOR
45,115,85,50,92,5CINEMA
16,315,38,811,416,8RADIO
7,17,67,19,511,4MAGAZINES
7,89,18,510,07,6N'PAPERS
16,315,38,811,48,3TV
20042003200220012000MEDIUM*
Source: Media Inflation Watch
10.6
6.2
5.7
5.5
4.1
3.9
2.7
2.7
2.1
1.8Food
Household
Education, Gov Welfare, Health
Beverages
Health & Beauty
Banking
Business to Business
Self Promotion
Travel, Transport & Leisure
Retail
South Africa Top 10 Advertising Categories (Gross) 2004
Billion Rands Evolution 04 vs 03+20.12%
� 3%
18.49%
21.38%
7.29%
18.94%
19.02%
14.1%
26.96%
33.07%
13.3%
8.43%
Source: Nielsen Adex
South AfricaTop 10 Advertisers in 2004
Source: Nielsen Adex
Spending in Mil RADVERTISERS
178Cell C (Cellular Provider)
180Coca Cola (Soft Drink)
193SABMiller (Breweries)
195Standard Bank (Financial)
246Vodacom (Cellular Provider)
247Pick ‘n Pay (Grocery Retailer)
273MTN (Cellular Provider)
297Shoprite Checkers (Grocery)
299Lever Ponds (Unilever)
425Government National
TELEVISION
South AfricaTelevision: Basic facts
• Number of TV households: 8.864 Million• Terrestrial TV penetration: 23.931 Million• Pay TV Penetration: 3.2 Million• Satellite penetration: 1.677 MillionNumber of stations by type:
− Terrestrial: SABC1, SABC2, SABC3 and ETV− Satellite : DSTV (33 Commercial Stations)− Pay TV: MNET
• Minimum spot length: 5 secs• Maximum spot length: 90 sec• Advertising minutage: 8 mins per hour• Key booking deadlines: 1 Week Previous
South Africa: Television: Average Cost/GRP (30”) by Month 2002 – 2004
All Adults (16+)
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Month
Ave
rage
Cos
t/GR
P R
and
2002 2003 2004
Source: Transmit
South Africa Television: Average Monthly Share 2003 – 2004
All Adults 16+
8.48.1
8.88.4 8.4 8.4
8.1
8.48.4
8.18.18.1
8.5
7.8
8.58.5
8.28.58.5
8.2 8.2 8.28.2
8.5
6
7
8
9
10
11
12
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Month
Perc
enta
ge
2003 2004
Source: Transmit
Source: AMPS 2004A6
South Africa Television: Key Stations• South Africa TV offers 4 free TV channels • 68.4% of the population receive 37 channels• Most are diffused terrestrial and satellite
(000’s)
410PrivateAdvertising/SubsMoviesSAction TV
413PrivateAdvertising/SubsHistorySHistory Channel
416PrivateAdvertising/SubsGeneralistSBBC Prime
460PrivateAdvertising/SubsSport HighlightsSSupersport 4
468PrivateAdvertising/SubsMoviesSHallmark
522PrivateAdvertising/SubsEnvironmentSNational Geographic
604PrivateAdvertising/SubsSport FootballSSupersport 3
665PrivateAdvertising/SubsSport GeneralSSupersport 2
701PrivateAdvertising/SubsSport GeneralSSupersport 1
3,200PrivateAdvertising/SubsGeneralistT, SMNET
18,122PrivateAdvertisingGeneralistT, SETV
23,931PublicTax/AdvertisingGeneralistT, SSABC
HouseholdpenetrationOwnershipFinancingPositioningDiffusionChannel
South Africa Television: Spot lengths cost index
166
166
166
50"
2001331008060ETV
2001331007050Multichoice
2001331008060SABC
60"40"30"20"10"MEDIUM*
Cost index
South Africa: Top 10 TV Advertisers in 2004
Source: Nielsen Adex
Spending in Mil RADVERTISERS
83Glomail (Infomercial)
90Clover (Dairy Product Manufacturer)
94JD Group (Furniture Retailer)
103Vodacom (Cellular Provider)
105MTN (Cellular Provider)
120SABMiller (Breweries)
133Coca Cola South Africa (Soft Drink)
137Government National
146Proctor & Gamble (FMCG Manufacturer)
211Lever Ponds (Unilever: FMCG Manufacturer)
NEWSPAPERS
South Africa Newspapers: Basic facts
• Number of titles: ±38 Major Titles• Number of titles by type:
− National daily: 18 Major Titles− National Sunday: 8 Major Sunday Papers− National weekly: 23 Weekly Titles− Regional weekly: 300 Community Titles
• Major publishers / owners: 8• Weekly reach: 30.4%• Daily reach: 21.0%
− Weeklies = 33.6% among Top End of Market− Dailies = 32.2% among Top End of Market
South Africa Newspaper Readership (Net reach)
0
10
20
30
40
50
60
70
80
90
100
Total 16-19 20-24 25-34 35-44 45-49 50-54 54-64 65+Age
%
Total Men Women Housewives
*Source: AMPS 2004A6
National NewspapersDailies Daily Sun 301,865 Sold/Subs 44,499
Sowetan 118,261 Sold/Subs 54,054The Star 171,542 Sold/Subs 116,640Die Burger 109,513 Sold/Subs 74,415
Sunday newspapers Sunday Times 504,657 Sold/Subs 298,620City Press 177,615 Sold/Subs 130,680Sunday Sun 172,050 Sold/Subs 31,122Soccer Laduma 209,547 Sold/Subs 34,262
Newspaper Sunday Times Lifestyle Free 112,320Supplements Sowetan Timeout 118,261 Free 54,054
Sunday Times Business Times Free 231,120Sunday Times Extra Free 37,800
4c page Net RatecardCategory Title Circulation* Distribution
*Source: AMPS 2004A6 andAudited Bureau of Circulation
South AfricaNewspapers: Top Titles
South AfricaNewspapers: Top Titles
Reach Geographical All Adults (%)* Strength
National NewspapersDailies Daily Sun 8.3% Gauteng
Sowetan 4.5% GautengStar 1.9% GautengBurger 1.8% Western Cape
Sunday newspapers Sunday Times 10.6% Gau, WCape, KZNCity Press 6.5% Gauteng, Eastern CapeSunday Sun 6.1% GautengSoccer Laduma 5.7% Gauteng
Newspaper Sunday Times Lifestyle 7.4% Gau, WCape, KZNSupplements Sowetan Timeout 7.1% Gauteng
Sunday Times Business Times 6.0% Gau, WCape, KZNSunday Times Extra 5.5% Gau, WCape, KZN
TitleGenre
*Source: AMPS 2004A6
South AfricaTop 10 Newspaper Advertisers in 2004
Source: Nielsen Adex
Spending in Mil RADVERTISERS
57ETV (TV Media Owner)
59Vodacom (Cellular Provider)
61Independent Publishers
65Cell C (Cellular Provider)
67Mass Stores (Mass Retailer)
82Spar South Africa (Grocery)
95MTN (Cellular Provider)
120Government National
172Shoprite Checkers (Grocery)
182Pick ‘n Pay (Grocery Retailer)
MAGAZINES
South Africa Magazines: basic facts
• Number of titles: ±350 Consumer Titles• Major publishers / owners: 42• Monthly reach: 35%• Newsstand versus subscription:
− 79 Subscription− 220 Newsstand
South Africa Consumer Magazines: Basic FactsNo. of magazines available*:• 4 Women’s Weeklies• 50 Women’s Monthlies• 10 Men’s Interest• 3 People’s Magazines (Gossip)• 22 General Interest• 27 Business/Financial• 17 Youth• 13 Music• 79 Sports Titles
• 31 Automotive• 35 Health and Fitness• 5 TV Guides• 31 Technology Titles• 34 Home Decoration
Media Manager
South Africa Magazine Readership
35.0
48.751.3
10.7 12.616.1
27.8
20.8
6.74.2
6.6 5.3
0.0
10.0
20.0
30.0
40.0
50.0
60.0
Adults Men WomenHousewives16-19 20-24 25-34 35-44 45-49 50-54 55-64 65+
Audience
%
Source: AMPS 2004A6
South AfricaTop 20 titles by circulation
• Weekly• Weekly• Monthly• Monthly• Monthly• Bi-Weekly• Monthly• Monthly• Monthly• Weekly
FREQUENCY• 353,853• 232,744• 136,953• 136,780• 128,827• 126,116• 121,591• 114,727• 114,640• 113,862
• General Interest• General Interest• Female Interest• Female Interest• Female Interest• General TV Interest• Female Interest• Female Interest• Male Interest• Gossip Interest
• Huisgenoot• You• Sarie• Rooi Rose• True Love• TV Plus• Glamour• Cosmopolitan• FHM• People
CIRCULATIONTYPETITLE
Source: Audited Bureau of Circulation
Spending in Mil RADVERTISERS
15.7Daimler Chrysler (Motor)
16.7Standard Bank (Financial)
16.8Ford (Motor)
17.2New Clicks (Pharmacy Group)
17.5Vodacom (Cellular Provider)
18.4Loreal (Hair & Beauty)
19.1Multichoice (TV Media Owner)
19.8Toyota (Motor)
21.7Foschini Group (Fashion)
26Edcon (Fashion Stores)
South AfricaTop 10 Magazine Advertisers in 2004
Source: Nielsen Adex
RADIO
South Africa Radio: basic facts
• Number of stations: 141• Number of stations by type:
− Commercial: 30− Community: 111
• Major owners: 7• Weekly reach:
− 91.2%
Source: AMPS 20043A6 and AMPS 2004A6
South AfricaRadio Listenership Past 7 Days
8.2% 7.6%
92.6%
48.6%51.4%
12.8% 15.5%
25.1%19.5%
6.6% 4.7%6.9%8.5%
91.2%
50.6%
49.4%
12.1% 15.0%
25.3%19.5%
7.3% 5.4%
Total Men Women 16-19 20-24 25-34 35-44 45-49 50-54 55-64 65+Age Groups
AMPS 2003A6 AMPS 2004A6
South Africa Radio: Top Commercial Stations
PrimaryTarget Audience
KwaZulu/Natal Ukhozi FM African Language Age 25-49National Metro FM Music Age 16-34Eastern Cape Umhlobo Wenene African Language Age 25-49Free State, Gau, NC,EC Lesedi FM African Language Age 25-49NW,NC,Free State, MP Motsweding FM African Language Age 25-49Free State, Gau, Limpopo Thobela FM African Language Age 25-49Gauteng Jacaranda FM Music Age 16-49KwaZulu/Natal East Coast Radio Music Age 16-34National 5FM Music Age 20-30National Radio Sonder Grense Afrikaans Age 25-49Gauteng YFM Music Age 16-24Limpopo, NW, Gau Munghana Lonene African Language Age 25-49Gauteng 94.7 Highveld Stereo Music Age 25-49Mpumalanga,Gauteng Ligwalagwala African Language Age 25-49MP,Gau,Limpopo Ikwekwezi African Language Age 25-49Western Cape KFM Music Age 25-49Gauteng Kaya FM Music Age 25-49Limpopo,Gauteng Phalaphala African Language Age 25-49
Province Name Genre
Source: AMPS 2004A6
Spending in Mil RADVERTISING
29ABSA (Financial Institute)
30Cell C (Cellular Provider)
31Uthingo (National Lottery)
32Vodacom (Cellular Provider)
42SABMiller (Breweries)
47First Rand Bank (Financial Group)
53Lever Ponds (Unilever)
54MTN (Cellular Provider)
59Standard Bank (Finance)
130Government National
South Africa:Top 10 Radio Advertisers in 2004
Source: Nielsen Adex
OUTDOOR
South Africa Outdoor: Basic facts• Key formats
− 96 Sheet− 48 Sheet− 16 Sheet− 12 Sheet
• Key vendors− Primedia− Clear Channel− Nail− Outdoor Network− Ad Adpost− Media Power Solutions
• Campaign periods− Month to Month
South AfricaOutdoor Market split by format
1%
2%2%
0%0%
89%
6% BillboardsCommuterElectronicPremisesRetailTransitWalls/Murals
Source: Nielson Adex
South AfricaOutdoor National Campaign Weights
Net RatecardRands
Billboards ( 96 Sheet) 832 1 Month R4,335-R7,990
Billboards( 48 Sheet) 2,643 1 Month R 2,180
Billboards( 16 Sheet) 920 1 Month R 950
Billboards( 12 Sheet) 1,181 1 Month R 750
Format No. Sites Duration
Source: SA Media Facts
Spending in Mil RADVERTISING
12.8SABC (Media Owner)
13.6MTN (Cellular Provider)
15.4UBR (Food)
16.1Multichoice Africa (Media Owner)
18ANC (Political Party)
18.2Lever Ponds (Unilever)
19.3Vodacom (Cellular Provider)
23SABMiller (Breweries)
23.6Government National
30.4Love Life (AIDS Campaign)
South Africa Top 10 Outdoor Advertisers in 2004
Source: Nielsen Adex
CINEMA
South Africa Cinema: Basic facts
• Total admissions 2004: • Number of screens: 683• Number of cinemas by type:
− 35mm: 591− Digital: 57− Nouveau: 35
• Average ticket price: R20.00• Campaign booking periods: Golden Reel – 12 Months• Other Ad Hoc – Per Requirements
South AfricaMain Cinema Contractors
42
3023
5
0
10
20
30
40
50
60
70
80
Ster Kinekor Nu Metro Independent Cine Centre
Perc
enta
ge
Source: Cinemark
South AfricaTop 20 Films of all time
Source: Cinemark
0
5
10
15
20
25
30
35
40
45
TitanicMr BonesShrek 2Passion of Christ
Lord of the Rings 3
Oh Shucks I'm Gatvol
SpidermanFinding Nemo
Die Another Day
Lord of the Rings
Lord of the Rings 2
Matrix Reloaded
Harry PotterSpiderman 2Harry Potter 3
Johnny English
Ocean's Eleven
Harry Potter 2
My big fat greek wedding
What Women Want
Gro
ss B
ox O
ffice
South AfricaCinema Reach 2004
0%
20%
40%
60%
80%
100%
Total Men Women 16-20 21-29 30-39 40-49
Rea
ch*
Source: TGI SA 2004 A
Age
Source: Cinemark
South AfricaSeasonality of Cinema Admissions
0
1
1
2
2
3
3
4
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Month
Tota
l Vis
itors
in M
illion
s
2001 2002 2003 2004
Spending in Mil RADVERTISING
2.9Government National
3.1Telkom SA (Telecommunications)
3.2Multichoice Africa (Media Owner)
3.8Distell (Alcoholic)
4.3KFC (Fast Food)
4.3Edcon (Fashion Store Group)
6.9Vodacom (Cellular Provider)
11.3Pernod Ricard (Alcoholic)
11.6Coca Cola (Soft Drink)
20.2Cell C (Cellular Provider)
South Africa Top 10 Cinema Advertisers in 2004
Source: Cinemark
Internet
South Africa Internet: Basic Facts
• Online penetrations− Work: 56.89%− Home: 35.4%
• Average no. of min spent online per day: 6:59• Average percentage of user accessing the internet daily: 4.4%• Most visited sites (all adults):
− News24.com• Attitude towards internet shopping:
− Ever bought anything on the internet: 12.5% (TGI)
Source: AMPS 2004A6
www.nielson-netratings.com
TGI
Source: Nielson Adex
South AfricaTop 20 Online Advertisers 2004
Advertiser Budgets / Mil. Rand1 Dial Direct (Insurance) 11.32 Outsurance (Insurance) 7.83 Piggs Peak Casino 7.04 Auto & General (Insurance) 6.25 Google Internet Service (ISP) 5.66 Casino Enterprises 5.27 Standard Bank (Financial Institute) 4.18 UK Lottery 3.59 Nedbank (Financial Institute) 2.5
10 Kalahari.net (Online Mall) 2.311 UpStream Advertising 1.912 South African Airways 1.613 Silversnad Casino 1.514 First Rand Bank (Financial Institute) 1.515 Metropolitan Group (Insurance) 0.9916 Ford (Motor) 0.9817 Vodacom (Cellular Provider) 0.9518 Automart Used Cars 0.9119 Toyota (Motor) 0.9120 Aucor Asset Recovery 0.85
Source: Nielson Net-Ratings
South AfricaInternet Usage and Growth of Penetration 2004
0123456789
10Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
%
% of Population Uniqe Users in Millions
South AfricaInternet Penetration Demographic Breakdown
Source: Nielson Netratings
AMPS 2004A6
10%9%
7%5% 4%
58%
42%
2%
16% 17% 17%
13%11%
10%7%
5%
50% 51%
9%
21%
13%12%
0%
10%
20%
30%
40%
50%
60%
Male Female <18 18-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59
Population Online User 2004
Deadlines
South AfricaBooking Deadlines
Ideal MinimumTerrestrial TV 2 months 1 week
Sattelite TV 2 months 1 week
Newspapers 1 Week 2 Days
Magazines 4 Weeks 2-4 weeks
Magazines Monthlies 8 Weeks 4 Weeks
Radio 2 Days Prior 1 Day
Outdoor 8 Weeks 3 WeeksCinema 3 Weeks 1 Week
Internet 4 Weeks 1 day
Booking Deadlines
All
All
Weeklies
Medium Format
All
All
All
South AfricaCancellation Deadlines
No standard criteria4 WeeksInternet
No costs within 21 Days3 WeeksCinema
No cost within 40 days6 WeeksOutdoor
No cost within 6 weeks6 weeksMonthly Magazines
No costs within 28 days4 WeeksWeekly Magazines
No costs within 7 days1 WeekNewspapers
No costs within 14 days2 WeeksSatellite
No costs within 14 days2 WeeksTerrestrial TV
CriteriaCancellation PeriodMedium
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