South Africa’s internet advertising industry is growing at a rapid rate, as more people log on consume local digital media.
This is according to the inaugural Internet Advertising Revenue Report, compiled by PwC for the Internet Advertsing Buereau (IAB) of South Africa.
The report is based on data for the full year ended 31 December 2013, and is considered the most accurate measurement of interactive advertising revenues.
This is because the data is compiled directly from information supplied by companies selling advertisements on the Internet.
Revenue in 2013 exceeded R1.3 billion for the year, with online advertising (excluding search and mobile) accounting for R452 million.
Search, lead in SA by Google (in line with global trends), is the dominant source of revenue in online adverting, accounting for 52% of total earnings.
Mobile, while growing rapidly, is the smallest revenue stream, accounting for R172 million in 2013, the IAB said.
|Online Search||R676 million|
|Online Advertising||R452 million|
|Mobile Advertising||R172 million|
According to the IAB, South Africa’s digital advertising market is showing rapid growth, as more people gain access to the Internet and broadband prices decline.
Increasing broadband speeds have also led to an increase in consumption of digital media, the group said.
“Internet advertising is maturing as a medium,” Vicki Myburgh, Entertainment and Media Leader, PwC Southern Africa said of the results.
“This is a growing category owing to ongoing movement of ad spend into all three core categories, display, search and classifieds.”
Myburgh recently noted that South Africa’s total newspaper publishing market grew at a CAGR of 6.2% in 2013 to generate revenues of almost R11 billion, up from R10.3 billion in 2012.
Most of the growth came from advertising, which rose to R8.2 billion in 2013 from R7.7 billion in 2012, with print still accounting for nearly 98% of the total.
According to the PwC report, total online adverting revenue (including both IAB and non-IAB) was at R1.58 billion in 2013.
The IAB (formerly DMMA) is an independent digital media association that represents over 200 members including online publishers, creative, media and digital agencies and brands.