Kenyan media stares at a Kes14billion loss in ad revenues from betting firms

By Steve Umidha

Kenyan media industry stands to lose an estimated 10 per cent of 2019 advertising expenditure or Kes 14 billion as a result of the suspension of betting firms.

 

A new report by GeoPoll in partnership with Ipsos christened, Unpacking Betting in Kenya shows that the media will be the most affected having benefited the most from the Betting and Gaming sector since the launch of Sportpesa, this despite a slight decline in media value exposure in 2018 due to the tax levy. A similar momentum is expected to carry on into 2019.

 

“Since the upsurge of Betting and Gaming advertising spends, there has been a correlation between this sector, the Communications (driven by telecommunications companies) and Media sectors. Betting firms are major revenue drivers for communications and media companies.

 

Advertisers have a ready consumer base that has disposable income. This means there are opportunities for financial service providers to facilitate saving of this money; FMCG companies and service providers to gain more customers or other betting channels to allow them to transfer their betting habit,” reads in part the survey released Thursday.

 

The anticipated decline in clutter across media as a result of the anticipated decline in betting firms’ advertising expenditure, is however expected to usher in different opportunities for advertisers with the reduction in media budgets, marketing budgets can focus on consumer conversion marketing activities, making use of their disposable income.

 

Gamblers in Kenya had a few days ago allowed time to withdraw their money from betting companies or lose it, as the government intensifies its radical shutdown of the Ksh200-billion ($2 billion)-a-year industry.

 

Mobile operator, Safaricom had asked the Betting Control and Licensing Board (BCLB) to allow gamblers time to withdraw their money from their mobile wallets before complying with the directive. The firm says the directive will affect over 12 million customers, and that blocking them would expose the company to legal action.

 

Numbers:

-Kes1550, The average amount spent on betting by Kenyans aged 18 to 29 years, in a given month

– The profile of the bettor who is aware of the suspension is largely male, 25 to 34 years, with household earnings of up to KES 77,000 and self-employed or unemployed.

-73 per cent of Kenyans are aware of the suspension have engaged in betting.

– 28 per cent of bettors are unemployed, they are more likely to seek alternative betting channels than all other bettors

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