Getting a realistic gauge on how much money is spent on digital advertising in South Africa is no easy task. Aside from some people on both client and agency side occasionally refusing to share numbers, digital’s encroachment into every sphere of advertising means it’s become increasingly difficult to know where to draw the line.
But it’s also an important one. It allows the local industry to gauge its growth against the rest of the world. It’s worth noting then that IAB SA, in collaboration with PwC, has launched its third study on digital adspend in South Africa.
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“As the champions of the digital industry in South Africa, we are excited to drive a project that gives the media and marketing industry an accurate view on online spend,” says IAB CEO Josephine Buys. “The report will enable the local advertising industry, particularly digital buyers and sellers, to compare the size and growth trajectory of internet revenues to other media in our market.”
With the study now in it’s third year, the IAB is encouraging all its members to participate. As it points out, a larger dataset results in richer, more precise insights that the industry stands to benefit from.
“Every company that participates in our study is guaranteed complete confidentiality,” Buys adds. “All data is directly supplied to PwC with no IAB staff or industry volunteers coming into contact with it. The reported data is made available as aggregate data only. The result is an extensive snapshot of today’s digital advertising industry whilst maintaining the confidentiality of individual responses.”
Since the study began in South Africa in 2013, it has tracked some notable trends. The 2014 study reported that online advertising revenues increased 25% from 2013 to 2014, and online search advertising revenues increased by 28%. This was reflected in other survey data, as online search has grown from a 52% to a 58% market share.
“The more we accurately and comprehensively track trends in adspend, the more we can effectively predict which approach is more effective,” says Buys. “It empowers our advertisers, publishers and agencies to operate in tandem with the most impactful practices in advertising.”
One trend that is on the IAB’s radar is programmatic buying, which is only just beginning to have an impact on the advertising industry in South Africa. IAB Europe saw an increase in the market of 70.5% between 2013 and 2014, so it will be interesting to note if the data shifts in South Africa’s 2015 survey.
“We have already seen an increase in interest in the survey this year and call on the whole industry to participate to ensure the report is as substantive as possible,” says Buys. “We look forward to communicating the results and contributing to a vibrant digital industry in South Africa.”
