Digital advertising in South Africa is on the rise, driven by business-oriented trends, according to this year’s IAB South Africa Internet Advertising Revenue Report (‘Online AdSpend Report’). The annual report is conducted in partnership with PwC and seeks to accurately measure the total revenue generated by domestic online media, including mobile advertising.
Paula Hulley, IAB South Africa Advertising Revenue Report Lead, Research & Measurement Council and Managing Director at Digitas Liquorice, notes the 2024 Report confirms the significant expansion of online advertising as forecasted in last year’s report.
DIGITAL GROWTH CONTINUES AS TECHNOLOGY ADVANCES
- This year’s Report shows a remarkable 21.5% year-on-year (YoY) growth — more than double that of the previous year. Revenue during the same period increased to R17.7 billion, up from R14.5 billion in 2022.
- This year also saw an upward growth for Internet advertising, which now accounts for 39.8% of the overall advertising market in 2023, up from 36.1% in the previous year.
- Paid search revenue also increased from R11.14 billion in 2022 to R12.99 billion for the 2023 fiscal year.
Hulley say: “If the digital environment can remain focused on key areas of excellence then we are most likely to see sustainable growth and greater allocation of advertising investment in the years to come.”
“To cement IAB South Africa’s commitment to creating progression and innovation in the industry, the Council has also identified four key trends that will continue to affect internet advertising spend in the foreseeable future,” adds Clare Trafankowska, Chair of the Research & Measurement Council and Head of Digital Media and Marketing at FNB. The four key trends focused on in the report are:
- The impact of AI on digital advertising: AI has become an essential tool for brands and marketers, helping to automate tasks like budget optimisation to generating personalised content and optimising ad campaigns.
- The importance of targeting and personalisation: Third-party cookie deprecation (i.e., the phasing out of third-party cookies) still looms, which has led to companies relying on AI to analyse user data to create highly targeted campaigns.
- The influence of social media communities: Social media communities have become powerful platforms for brands to connect with consumers and drive engagement.
- The rise of retailers as advertising platforms: The growing popularity of online shopping has transformed the digital advertising landscape. Retailers are now using their platforms to reach consumers in new, unexpected ways.
For in-depth data and analysis, the full IAB SA Online Adspend Report, conducted by PwC, is available to IAB South Africa members here.