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Advertisers benefit from print, digital

Sep 13 2012 13:13 Sapa

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Cape Town - Advertisers are benefiting from both print and digital marketing, Print and Digital Media South Africa (PDMSA) said on Thursday.

This allowed them to target audiences more effectively.

"Print and digital media remain a strong proposition for advertisers as they continue to reap the benefits from campaigns in the sector," PDMSA CEO Ingrid Louw said in a statement.

She was commenting on a PwC media and entertainment report published this week.

Print media readers were loyal - particularly to newspapers - and diverse audiences could be easily segmented.

Print could also reach consumers every day, in the communities where they lived.

This resulted in one of the most effective ways to target specific markets.

"The synergistic relationship between print and digital media is a vital component of communication strategies, from both an advertising and PR [public relations] perspective," she said.

"Advertisers are clearly getting solid returns on their investments, with all signs indicating that this will continue."

According to PwC, revenue from advertising in newspapers and print media increased by 5.7% last year, the equivalent of R11.4bn.

The sector was expected to grow at an annual rate of 5.1%.

Digital media accounted for 20.4% of the overall advertising spend during this period.

Advertising for this sector was expected to increase to 52% over the next five years.

South Africa's entertainment and media industry had reached the "end of the digital beginning," PwC said.

Digital activities had become the new norm for traditional media companies.

Digital spending would comprise 32.6% of the total entertainment and media market in South Africa by 2016.

The increase in digital spending would be driven by expanding internet and broadband penetration, and consumer spending on television subscriptions and video games.

"The PwC study confirms that digital products and delivery is moving to the hearts of many media companies, and beginning to present the greatest opportunities for growth in the immediate future," said spokesperson Vicky Myburgh.

"The core challenge for entertainment and media companies lies in how to remain relevant to their consumers and business customers in a way that differentiates them from their competitors."

Long-term structural and organisational changes were needed across the industry.

Newspapers and print media were being eclipsed by tablets, mobile phones, and new digital and online communications media.

This was led by internet and television advertising and video games.

"Despite the recent economic uncertainty, the past year has seen global and South African global sales of tablets and smart devices reach record levels," she said.

This underlined growing revenue opportunities for digital delivery of entertainment and media, as well as advertising.

During 2011, the entertainment and media sector grew by 0.7%, compared with 27.6% the year before.

Advertising increased by 7.9% during the year, down from a 14.7% increase in 2010.

The fastest growing sectors in 2011 were the internet at 27.3% and television at 13.4%.

Out-of-home advertising at 11.6% was the only other category to increase by more than 10%.

Consumer magazine publishing rose 7.8% in 2011, followed by radio at 6.6% and newspaper publishing by 5.7%.

Consumer magazines were propelled by a jump in print advertising, largely due to stronger economic growth, the launch of several new titles, and growth in readership and rising circulation.

Improvements in the economy had boosted radio and newspaper advertising.

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pwc  |  digital  |  advertising  |  media



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