Businesses & Financial News

Radio, TV take lion share of ad revenue in first five months of the year

Advertising revenue is the monetary income that individuals and businesses earn from displaying paid advertisements on their websites, social media channels, or other platforms surrounding their internet-based content.

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By Steve Umidha

Television and radio channels in Kenya continue to attract advertising budgets despite the threat posed by the new media platforms competing for ad revenues enjoyed by the conventional media.

New data by Marketing and media intelligence firm Reelanalytics shows that advertising expenditure on mainstream media rose by Sh1 Billion in rate card value over the first five months of the year helped by a rise in joint advertisement campaigns between the government and the private sector.

The report says between the months of January and May this year, government and private sector players spent Sh 52 billion to buy advertisement space on radio, television and print media compared to Sh 51 billion in a similar period in 2019.

Television stations netted Sh 31 billion worth of advertisement revenues between January and May 2020 compared to Sh 24 billion in a similar period last year.

It further projects the ad scene to hit in excess of Sh140 Billion in rate card value by the year end.

“The social industry which has over the years been a subtle industry sprung up to be among the most advanced industries from March to May highly influenced by the shift in advertising strategy as the government and the private sector joined hands to educate the masses to help curb the spread of COVID-19,” said Reelanalytics Senior Researcher, Enock Mokaya.

Corona Virus Awareness, Safaricom Skiza Tunes, Viusasa, GoK Kazi Kwanza and KCB and Ministry of Health (MOH) Komesha Corona were this year’s top five campaign spenders respectively.

The stay at home directive, the report noted, had a direct impact on the Out of Home (OOH) platform that posted over 50 per cent drop in activity in April 2020 compared to March 2020.

Safaricom has consistently remained among the top spenders in the three years spending a whooping Sh 6.7 Billion in the first half of 2020, followed by Royal Media Services with Sh 3.3 billion while Standard Group and KCB both spent 1.9billion. Betting firm, Lotto spent Sh 1.7 billion during that period.

Between April and May 2020, the Ministry of Health emerged the top spender accounting for Sh 1.9 billion pushing exposure of messaging around COVID-19 related publicity.

Finance and betting firms came third and fourth respectively at 13 per cent and 11 per cent respectively while firms in household and personal care segments accounted for a combined 9 per cent share.

Radio continues to be the most preferred platform where Kenyans seek information. Despite the lowered ad spending during this period, advertisers targeting different audiences have capitalized on the relative affordability of radio platforms to churn out messaging.

TV on the other hand, has attracted fewer ad volumes but commands the highest figures due to the cost of rate cards. Campaign exposure on print is the lowest.

“Advertisers will only place their money on extremely unavoidable circumstances. Normalcy that will see a relatively increased spending by advertisers is expected to pick up towards the end of Q2 in 2021,” Mokaya said.

“Looking at the three-year period, betting and gambling has posted significant drop in ad spends highly influenced by a drop in some of the major players in the second half of 2019” Mokaya added.

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