South Africa’s internet advertising industry is growing at a rapid rate, as more people log on consume local digital media.<\/p>\n
This is according to the inaugural Internet Advertising Revenue Report, compiled by PwC for the Internet Advertsing Buereau (IAB) of South Africa.<\/p>\n
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.<\/p>\n
This is because the data is compiled directly from information supplied by companies selling advertisements on the Internet.<\/p>\n
Revenue in 2013 exceeded R1.3 billion for the year, with online advertising (excluding search and mobile) accounting for R452 million.<\/p>\n
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.<\/p>\n
Mobile, while growing rapidly, is the smallest revenue stream, accounting for R172 million in 2013, the IAB said.<\/p>\n
Sector<\/strong><\/td>\n| Revenue<\/strong><\/td>\n<\/tr>\n | Online Search<\/td>\n | R676 million<\/td>\n<\/tr>\n | Online Advertising<\/td>\n | R452 million<\/td>\n<\/tr>\n | Mobile Advertising<\/td>\n | R172 million<\/td>\n<\/tr>\n | Total<\/strong><\/td>\n | R1.3 billion<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n | 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.<\/p>\n Increasing broadband speeds have also led to an increase in consumption of digital media, the group said.<\/p>\n “Internet advertising is maturing as a medium,\u201d Vicki Myburgh, Entertainment and Media Leader, PwC Southern Africa said of the results.<\/p>\n \u201cThis is a growing category owing to ongoing movement of ad spend into all three core categories, display, search and classifieds.”<\/p>\n Myburgh recently noted that South Africa\u2019s 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.<\/p>\n 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.<\/p>\n According to the PwC report, total online adverting revenue (including both IAB and non-IAB) was at R1.58 billion in 2013.<\/p>\n 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.<\/p>\n More on online<\/h3>\nWhy we don\u2019t like shopping online in SA<\/a><\/strong><\/p>\n New code of ethics proposed for SA online media<\/a><\/strong><\/p>\n |