south africa - · pdf filegovernment inflation target range is 3-4% ... gradually eroded the...

A BRIEF MARKET OVERVIEWSouth Africa

Contents

• Basic country facts• Key economic trends • Key media trends• Key legislative trends• Overall advertising expenditure• Basic media facts

− TV− Newspapers− Magazines− Radio− Cinema− On line

• Media deadlines and key dates

South Africa

• Language: 11 Official Languages• Population: 46 million individuals• Religions: Wide range of religious faiths;

predominantly Christian• Government: ANC – African National

Congress (Democratic Government)

• Unemployment Level: Mar 04 –27.8% • Inflation: 2004 – 3.7%• SA GDP: 2004 – $456.7 billion• Capital City: 3 Capitals

− Pretoria: Administrative− Cape Town: Legislative− Bloemfontein: Judicial

• Key centers of influence: Johannesburg-Pretoria conurbation, Cape Town, Durban, Bloemfontein, Port Elizabeth

Source: Statistics SA

South Africa Key economic trendsThe South African economy has shown sustained growth over the past decade … annual GDP of 3,5%• Inflation at 3,7%

− Government inflation target range is 3-4%• In 2004 the Rand was globally the strongest performing currency against the US

dollar− Strong Rand is impacting negatively on export market but is underpinning

excellent performances on the JSE (Johannesburg Stock Exchange)• Strong gold and platinum prices have stabilised the mining sectors but many mines

remain marginal in the long term− Unemployment remains at 28% of “economically active - job seeking” adults

• Excellent retail trends and highest car sales in 20 years− Vibrant informal food and clothing retail sector

• Positive impact on adspend with projected growth of 8-9%− Media inflation will increase on the back of demand to 6-7%

South AfricaKey media trendsAfter a decade of democracy, the South African media market has reached a level of maturity in terms of media accessibility and consumption• Very little macro variation in media consumption and media expenditure

patterns • Since the launch of commercial Television in 1978 the medium has

gradually eroded the print media share of adspend− Over 40% of adspend is on TV

• Electrification of middle and lower socio-economic communities will ensure further encroachment of TV into all levels of South African society

• Increased demand for media space ensures that media inflation remains 1 or 2 point ahead of price inflation

• Aggressive discounting of the 90s is slowing down• 2010 World Cup Football will be the catalyst for further economic growth

and investment in the media sector• Increasing resistance from central government to the growing use of

English as the language of commercial communication to the exclusion of the other 10 official languages

South AfricaKey legislative trendsThe general climate is one of increasing interference by government in the advertising and communication sectors• The Media Diversity and Development Agency (MDDA) is a government

agency empowered to collect funds, via a levy on advertising (currently from media owners but eventually from advertisers) and to disperse these funds into “under-invested” media sectors and media owners

• Government set to monitor advertising investment patterns in order to ensure “equitable investment” of media funds across all market sectors

• Any form of tobacco advertising has been banned• Increasing sabre rattling from government with respect to the banning of

alcohol advertising after 2010 World Cup− First health warnings on labels of alcoholic beverages set to appear

some time in 2005 • Advertising to kids restricted in line with international norms• Broadcasters under increasing pressure to meet licensing conditions in

respect of PBS responsibility

South AfricaAdvertising Gross Expenditure 2001 - 2004

12,74213,166

11,328

9,468

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

2001 2002 (+20%) 2003 (+16%) 2004 YTD (-3 %)

Mill

ions

€

Source: Nielson Adex

South Africa: Advertising Gross Expenditure by Medium 2001 – 2004

45%

44%

44%

44%

37%

37%

37%

37%

12%

13%

13%

12%

4%

4%

4%

4%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

2001

2002

2003

2004

Gross Adv. Expenditure (%)

Television Print Radio Outdoor

Source: Nielsen Adex

South Africa: Advertising Gross Expenditure Seasonality 2001 - 2004

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

January

February

March

April

May

June

July

August

Septem

ber

October

Novem

ber

Decem

ber

Gross by Month

Milli

ons

R

2001 2002 2003 2004Source: Nielsen Adex

South Africa Inflation by Medium 2000 – 2004

% COST CHANGE ON PREVIOUS YEAR

NANANANANAINTERNET

8,29,79,78,312,2OUTDOOR

45,115,85,50,92,5CINEMA

16,315,38,811,416,8RADIO

7,17,67,19,511,4MAGAZINES

7,89,18,510,07,6N'PAPERS

16,315,38,811,48,3TV

20042003200220012000MEDIUM*

Source: Media Inflation Watch

10.6

6.2

5.7

5.5

4.1

3.9

2.7

2.7

2.1

1.8Food

Household

Education, Gov Welfare, Health

Beverages

Health & Beauty

Banking

Business to Business

Self Promotion

Travel, Transport & Leisure

Retail

South Africa Top 10 Advertising Categories (Gross) 2004

Billion Rands Evolution 04 vs 03+20.12%

� 3%

18.49%

21.38%

7.29%

18.94%

19.02%

14.1%

26.96%

33.07%

13.3%

8.43%


South AfricaTop 10 Advertisers in 2004


Spending in Mil RADVERTISERS

178Cell C (Cellular Provider)

180Coca Cola (Soft Drink)

193SABMiller (Breweries)

195Standard Bank (Financial)

246Vodacom (Cellular Provider)

247Pick ‘n Pay (Grocery Retailer)

273MTN (Cellular Provider)

297Shoprite Checkers (Grocery)

299Lever Ponds (Unilever)

425Government National

TELEVISION

South AfricaTelevision: Basic facts

• Number of TV households: 8.864 Million• Terrestrial TV penetration: 23.931 Million• Pay TV Penetration: 3.2 Million• Satellite penetration: 1.677 MillionNumber of stations by type:

− Terrestrial: SABC1, SABC2, SABC3 and ETV− Satellite : DSTV (33 Commercial Stations)− Pay TV: MNET

• Minimum spot length: 5 secs• Maximum spot length: 90 sec• Advertising minutage: 8 mins per hour• Key booking deadlines: 1 Week Previous

South Africa: Television: Average Cost/GRP (30”) by Month 2002 – 2004

All Adults (16+)

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Month

Ave

rage

Cos

t/GR

P R

and

2002 2003 2004

Source: Transmit

South Africa Television: Average Monthly Share 2003 – 2004

All Adults 16+

8.48.1

8.88.4 8.4 8.4

8.1

8.48.4

8.18.18.1

8.5

7.8

8.58.5

8.28.58.5

8.2 8.2 8.28.2

8.5

6

7

8

9

10

11

12


Month

Perc

enta

ge

2003 2004

Source: Transmit

Source: AMPS 2004A6

South Africa Television: Key Stations• South Africa TV offers 4 free TV channels • 68.4% of the population receive 37 channels• Most are diffused terrestrial and satellite

(000’s)

410PrivateAdvertising/SubsMoviesSAction TV

413PrivateAdvertising/SubsHistorySHistory Channel

416PrivateAdvertising/SubsGeneralistSBBC Prime

460PrivateAdvertising/SubsSport HighlightsSSupersport 4

468PrivateAdvertising/SubsMoviesSHallmark

522PrivateAdvertising/SubsEnvironmentSNational Geographic

604PrivateAdvertising/SubsSport FootballSSupersport 3

665PrivateAdvertising/SubsSport GeneralSSupersport 2

701PrivateAdvertising/SubsSport GeneralSSupersport 1

3,200PrivateAdvertising/SubsGeneralistT, SMNET

18,122PrivateAdvertisingGeneralistT, SETV

23,931PublicTax/AdvertisingGeneralistT, SSABC

HouseholdpenetrationOwnershipFinancingPositioningDiffusionChannel

South Africa Television: Spot lengths cost index

166

166

166

50"

2001331008060ETV

2001331007050Multichoice

2001331008060SABC

60"40"30"20"10"MEDIUM*

Cost index

South Africa: Top 10 TV Advertisers in 2004



83Glomail (Infomercial)

90Clover (Dairy Product Manufacturer)

94JD Group (Furniture Retailer)




133Coca Cola South Africa (Soft Drink)


146Proctor & Gamble (FMCG Manufacturer)

211Lever Ponds (Unilever: FMCG Manufacturer)

NEWSPAPERS

South Africa Newspapers: Basic facts

• Number of titles: ±38 Major Titles• Number of titles by type:

− National daily: 18 Major Titles− National Sunday: 8 Major Sunday Papers− National weekly: 23 Weekly Titles− Regional weekly: 300 Community Titles

• Major publishers / owners: 8• Weekly reach: 30.4%• Daily reach: 21.0%

− Weeklies = 33.6% among Top End of Market− Dailies = 32.2% among Top End of Market

South Africa Newspaper Readership (Net reach)

0

10

20

30

40

50

60

70

80

90

100

Total 16-19 20-24 25-34 35-44 45-49 50-54 54-64 65+Age

%

Total Men Women Housewives

*Source: AMPS 2004A6

National NewspapersDailies Daily Sun 301,865 Sold/Subs 44,499

Sowetan 118,261 Sold/Subs 54,054The Star 171,542 Sold/Subs 116,640Die Burger 109,513 Sold/Subs 74,415

Sunday newspapers Sunday Times 504,657 Sold/Subs 298,620City Press 177,615 Sold/Subs 130,680Sunday Sun 172,050 Sold/Subs 31,122Soccer Laduma 209,547 Sold/Subs 34,262

Newspaper Sunday Times Lifestyle Free 112,320Supplements Sowetan Timeout 118,261 Free 54,054

Sunday Times Business Times Free 231,120Sunday Times Extra Free 37,800

4c page Net RatecardCategory Title Circulation* Distribution

*Source: AMPS 2004A6 andAudited Bureau of Circulation

South AfricaNewspapers: Top Titles

South AfricaNewspapers: Top Titles

Reach Geographical All Adults (%)* Strength

National NewspapersDailies Daily Sun 8.3% Gauteng

Sowetan 4.5% GautengStar 1.9% GautengBurger 1.8% Western Cape

Sunday newspapers Sunday Times 10.6% Gau, WCape, KZNCity Press 6.5% Gauteng, Eastern CapeSunday Sun 6.1% GautengSoccer Laduma 5.7% Gauteng

Newspaper Sunday Times Lifestyle 7.4% Gau, WCape, KZNSupplements Sowetan Timeout 7.1% Gauteng

Sunday Times Business Times 6.0% Gau, WCape, KZNSunday Times Extra 5.5% Gau, WCape, KZN

TitleGenre

*Source: AMPS 2004A6

South AfricaTop 10 Newspaper Advertisers in 2004



57ETV (TV Media Owner)


61Independent Publishers


67Mass Stores (Mass Retailer)

82Spar South Africa (Grocery)



172Shoprite Checkers (Grocery)

182Pick ‘n Pay (Grocery Retailer)

MAGAZINES

South Africa Magazines: basic facts

• Number of titles: ±350 Consumer Titles• Major publishers / owners: 42• Monthly reach: 35%• Newsstand versus subscription:

− 79 Subscription− 220 Newsstand

South Africa Consumer Magazines: Basic FactsNo. of magazines available*:• 4 Women’s Weeklies• 50 Women’s Monthlies• 10 Men’s Interest• 3 People’s Magazines (Gossip)• 22 General Interest• 27 Business/Financial• 17 Youth• 13 Music• 79 Sports Titles

• 31 Automotive• 35 Health and Fitness• 5 TV Guides• 31 Technology Titles• 34 Home Decoration

Media Manager

South Africa Magazine Readership

35.0

48.751.3

10.7 12.616.1

27.8

20.8

6.74.2

6.6 5.3

0.0

10.0

20.0

30.0

40.0

50.0

60.0

Adults Men WomenHousewives16-19 20-24 25-34 35-44 45-49 50-54 55-64 65+

Audience

%

Source: AMPS 2004A6

South AfricaTop 20 titles by circulation

• Weekly• Weekly• Monthly• Monthly• Monthly• Bi-Weekly• Monthly• Monthly• Monthly• Weekly

FREQUENCY• 353,853• 232,744• 136,953• 136,780• 128,827• 126,116• 121,591• 114,727• 114,640• 113,862

• General Interest• General Interest• Female Interest• Female Interest• Female Interest• General TV Interest• Female Interest• Female Interest• Male Interest• Gossip Interest

• Huisgenoot• You• Sarie• Rooi Rose• True Love• TV Plus• Glamour• Cosmopolitan• FHM• People

CIRCULATIONTYPETITLE

Source: Audited Bureau of Circulation


15.7Daimler Chrysler (Motor)

16.7Standard Bank (Financial)

16.8Ford (Motor)

17.2New Clicks (Pharmacy Group)

17.5Vodacom (Cellular Provider)

18.4Loreal (Hair & Beauty)

19.1Multichoice (TV Media Owner)

19.8Toyota (Motor)

21.7Foschini Group (Fashion)

26Edcon (Fashion Stores)

South AfricaTop 10 Magazine Advertisers in 2004


South Africa Radio: basic facts

• Number of stations: 141• Number of stations by type:

− Commercial: 30− Community: 111

• Major owners: 7• Weekly reach:

− 91.2%

Source: AMPS 20043A6 and AMPS 2004A6

South AfricaRadio Listenership Past 7 Days

8.2% 7.6%

92.6%

48.6%51.4%

12.8% 15.5%

25.1%19.5%

6.6% 4.7%6.9%8.5%

91.2%

50.6%

49.4%

12.1% 15.0%

25.3%19.5%

7.3% 5.4%

Total Men Women 16-19 20-24 25-34 35-44 45-49 50-54 55-64 65+Age Groups

AMPS 2003A6 AMPS 2004A6

South Africa Radio: Top Commercial Stations

PrimaryTarget Audience

KwaZulu/Natal Ukhozi FM African Language Age 25-49National Metro FM Music Age 16-34Eastern Cape Umhlobo Wenene African Language Age 25-49Free State, Gau, NC,EC Lesedi FM African Language Age 25-49NW,NC,Free State, MP Motsweding FM African Language Age 25-49Free State, Gau, Limpopo Thobela FM African Language Age 25-49Gauteng Jacaranda FM Music Age 16-49KwaZulu/Natal East Coast Radio Music Age 16-34National 5FM Music Age 20-30National Radio Sonder Grense Afrikaans Age 25-49Gauteng YFM Music Age 16-24Limpopo, NW, Gau Munghana Lonene African Language Age 25-49Gauteng 94.7 Highveld Stereo Music Age 25-49Mpumalanga,Gauteng Ligwalagwala African Language Age 25-49MP,Gau,Limpopo Ikwekwezi African Language Age 25-49Western Cape KFM Music Age 25-49Gauteng Kaya FM Music Age 25-49Limpopo,Gauteng Phalaphala African Language Age 25-49

Province Name Genre

Source: AMPS 2004A6

Spending in Mil RADVERTISING

29ABSA (Financial Institute)


31Uthingo (National Lottery)



47First Rand Bank (Financial Group)

53Lever Ponds (Unilever)


59Standard Bank (Finance)


South Africa:Top 10 Radio Advertisers in 2004


OUTDOOR

South Africa Outdoor: Basic facts• Key formats

− 96 Sheet− 48 Sheet− 16 Sheet− 12 Sheet

• Key vendors− Primedia− Clear Channel− Nail− Outdoor Network− Ad Adpost− Media Power Solutions

• Campaign periods− Month to Month

South AfricaOutdoor Market split by format

1%

2%2%

0%0%

89%

6% BillboardsCommuterElectronicPremisesRetailTransitWalls/Murals


South AfricaOutdoor National Campaign Weights

Net RatecardRands

Billboards ( 96 Sheet) 832 1 Month R4,335-R7,990

Billboards( 48 Sheet) 2,643 1 Month R 2,180

Billboards( 16 Sheet) 920 1 Month R 950

Billboards( 12 Sheet) 1,181 1 Month R 750

Format No. Sites Duration

Source: SA Media Facts


12.8SABC (Media Owner)

13.6MTN (Cellular Provider)

15.4UBR (Food)

16.1Multichoice Africa (Media Owner)

18ANC (Political Party)

18.2Lever Ponds (Unilever)



23.6Government National

30.4Love Life (AIDS Campaign)

South Africa Top 10 Outdoor Advertisers in 2004


CINEMA

South Africa Cinema: Basic facts

• Total admissions 2004: • Number of screens: 683• Number of cinemas by type:

− 35mm: 591− Digital: 57− Nouveau: 35

• Average ticket price: R20.00• Campaign booking periods: Golden Reel – 12 Months• Other Ad Hoc – Per Requirements

South AfricaMain Cinema Contractors

42

3023

5

0

10

20

30

40

50

60

70

80

Ster Kinekor Nu Metro Independent Cine Centre

Perc

enta

ge

Source: Cinemark

South AfricaTop 20 Films of all time

Source: Cinemark

0

5

10

15

20

25

30

35

40

45

TitanicMr BonesShrek 2Passion of Christ

Lord of the Rings 3

Oh Shucks I'm Gatvol

SpidermanFinding Nemo

Die Another Day

Lord of the Rings

Lord of the Rings 2

Matrix Reloaded

Harry PotterSpiderman 2Harry Potter 3

Johnny English

Ocean's Eleven

Harry Potter 2

My big fat greek wedding

What Women Want

Gro

ss B

ox O

ffice

South AfricaCinema Reach 2004

0%

20%

40%

60%

80%

100%

Total Men Women 16-20 21-29 30-39 40-49

Rea

ch*

Source: TGI SA 2004 A

Age

Source: Cinemark

South AfricaSeasonality of Cinema Admissions

0

1

1

2

2

3

3

4


Month

Tota

l Vis

itors

in M

illion

s

2001 2002 2003 2004


2.9Government National

3.1Telkom SA (Telecommunications)

3.2Multichoice Africa (Media Owner)

3.8Distell (Alcoholic)

4.3KFC (Fast Food)

4.3Edcon (Fashion Store Group)


11.3Pernod Ricard (Alcoholic)

11.6Coca Cola (Soft Drink)

20.2Cell C (Cellular Provider)

South Africa Top 10 Cinema Advertisers in 2004

Source: Cinemark

Internet

South Africa Internet: Basic Facts

• Online penetrations− Work: 56.89%− Home: 35.4%

• Average no. of min spent online per day: 6:59• Average percentage of user accessing the internet daily: 4.4%• Most visited sites (all adults):

− News24.com• Attitude towards internet shopping:

− Ever bought anything on the internet: 12.5% (TGI)

Source: AMPS 2004A6

www.nielson-netratings.com

TGI


South AfricaTop 20 Online Advertisers 2004

Advertiser Budgets / Mil. Rand1 Dial Direct (Insurance) 11.32 Outsurance (Insurance) 7.83 Piggs Peak Casino 7.04 Auto & General (Insurance) 6.25 Google Internet Service (ISP) 5.66 Casino Enterprises 5.27 Standard Bank (Financial Institute) 4.18 UK Lottery 3.59 Nedbank (Financial Institute) 2.5

10 Kalahari.net (Online Mall) 2.311 UpStream Advertising 1.912 South African Airways 1.613 Silversnad Casino 1.514 First Rand Bank (Financial Institute) 1.515 Metropolitan Group (Insurance) 0.9916 Ford (Motor) 0.9817 Vodacom (Cellular Provider) 0.9518 Automart Used Cars 0.9119 Toyota (Motor) 0.9120 Aucor Asset Recovery 0.85

Source: Nielson Net-Ratings

South AfricaInternet Usage and Growth of Penetration 2004

0123456789

10Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

%

% of Population Uniqe Users in Millions

South AfricaInternet Penetration Demographic Breakdown

Source: Nielson Netratings

AMPS 2004A6

10%9%

7%5% 4%

58%

42%

2%

16% 17% 17%

13%11%

10%7%

5%

50% 51%

9%

21%

13%12%

0%

10%

20%

30%

40%

50%

60%

Male Female <18 18-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59

Population Online User 2004

Deadlines

South AfricaBooking Deadlines

Ideal MinimumTerrestrial TV 2 months 1 week

Sattelite TV 2 months 1 week

Newspapers 1 Week 2 Days

Magazines 4 Weeks 2-4 weeks

Magazines Monthlies 8 Weeks 4 Weeks

Radio 2 Days Prior 1 Day

Outdoor 8 Weeks 3 WeeksCinema 3 Weeks 1 Week

Internet 4 Weeks 1 day

Booking Deadlines

All

All

Weeklies

Medium Format

All

All

All

South AfricaCancellation Deadlines

No standard criteria4 WeeksInternet

No costs within 21 Days3 WeeksCinema

No cost within 40 days6 WeeksOutdoor

No cost within 6 weeks6 weeksMonthly Magazines

No costs within 28 days4 WeeksWeekly Magazines

No costs within 7 days1 WeekNewspapers

No costs within 14 days2 WeeksSatellite

No costs within 14 days2 WeeksTerrestrial TV

CriteriaCancellation PeriodMedium

south africa - · pdf filegovernment inflation target range is 3-4% ... gradually eroded the...

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