The State of Digital and Online Advertising in SA
26th Apr, 2023
South Africa is one of the fastest-growing economies in Africa, with a rapidly expanding digital market. As a result, digital and online advertising has become an essential aspect of marketing for businesses operating in South Africa. In this article, we will explore the current state of digital and online advertising in South Africa and its impact on businesses.
Digital and Online Advertising Market in South Africa
The digital and online advertising market in South Africa has seen significant growth in recent years. According to a report by PwC, the digital advertising market in South Africa was valued at R7.9 billion in 2020, and it is projected to reach R14.8 billion by 2024. This growth can be attributed to the increasing number of internet users in the country, as well as the shift towards online shopping and digital media consumption.
The most significant players in the South African digital advertising market are Google and Facebook, which collectively account for over 80% of digital advertising revenue in the country.
Digital Advertising Formats in South Africa
The most popular formats of digital advertising in South Africa are display advertising, search advertising, and social media advertising. Display advertising is the most widely used form of digital advertising, accounting for over 50% of digital advertising revenue in the country. Search advertising, on the other hand, is the fastest-growing segment, with a projected CAGR of 10.6% between 2020 and 2025.
Social media advertising is also growing rapidly in South Africa, with Facebook and Instagram being the most popular platforms for advertising. According to a report by Hootsuite, there are over 21 million Facebook users in South Africa, making it the most widely used social media platform in the country.
The growth of online users in SA from 2021 to 2023
According to the Digital 2021 report by Datareportal, there were over 38 million internet users in South Africa as of January 2021, representing 62% of the country's population. This is a significant increase from 2019, when there were 31 million internet users in the country, representing 54% of the population.
The report also highlights that mobile devices are the primary means of accessing the internet in South Africa, with over 36 million people using a mobile phone to go online. This has been driven by the increasing affordability of smartphones and the expansion of mobile networks across the country.
Social media usage has also grown significantly in South Africa, with over 25 million people using social media platforms such as Facebook, Instagram, and Twitter. Facebook is the most popular social media platform in the country, with over 21 million users.
As of January 2023, according to Datareportal’s Digital 2023: South Africa report, internet users have grown to 43.48 million internet users in South Africa, and internet penetration is at 72.3% of the total population.
Projected Growth of Online Users in South Africa
The growth of online users in South Africa is expected to continue over the next few years, driven by the increasing availability of affordable internet services and the growth of the digital economy.
By 2025, the number of internet users in the country is expected to reach 50 million, representing 80% of the population.
Mobile devices are expected to remain the primary means of accessing the internet in South Africa, with smartphone penetration projected to reach 80% by 2025. Social media usage is also expected to continue growing, with over 32 million people in the country projected to be using social media platforms by 2025.
The growth of Digital Ad Spend from 2021 to 2023
According to the latest report by Statista, the digital ad spend in South Africa amounted to approximately 8.6 billion South African Rand (ZAR) in 2021. This is a significant increase from the 7.6 billion ZAR spent on digital advertising in the country in 2020.
The report also highlights that search advertising is the most popular form of digital advertising in South Africa, accounting for approximately 43% of the total digital ad spend. Display advertising, including video ads and social media ads, accounts for approximately 37% of the total digital ad spend.
Projected Growth of Digital Ad Spend in South Africa
The growth of digital advertising in South Africa is expected to continue over the next few years, driven by the increasing number of online users and the growing popularity of digital platforms.
According to the latest report by Statista, the digital ad spend in South Africa is projected to reach approximately 10.9 billion ZAR in 2022, representing a growth of 26% compared to 2021. By 2025, the digital ad spend in the country is expected to reach approximately 14.7 billion ZAR.
Search advertising is expected to remain the most popular form of digital advertising in South Africa, accounting for approximately 43% of the total digital ad spend in 2022. Display advertising is expected to grow at a faster rate, with a projected growth rate of 33% in 2022 compared to 2021.
Why do you need trained digital marketing professionals to assist with strategic thinking, technical compliance and to increase digital marketing performance results?
In today's digital age, it is no secret that digital marketing is an essential part of any marketing strategy. With the rise of digital platforms and increasing online activity, businesses need to have a strong digital marketing presence to remain competitive in the market. However, having a strong digital marketing presence requires more than just posting on social media or creating a website. It requires trained digital marketing professionals who can assist with strategic thinking, technical compliance, and increased digital marketing performance results.
Strategic Thinking
One of the key reasons why businesses need trained digital marketing professionals is strategic thinking. Trained professionals have the expertise and knowledge to develop a comprehensive digital marketing strategy that aligns with your business goals and objectives. They can analyse data, conduct research, and identify target audiences to create a customised digital marketing plan that will help your business achieve its goals.
In addition, trained digital marketing professionals can help you stay up to date with the latest digital marketing trends and technologies. They can identify new opportunities for your business to reach its target audience and help you stay ahead of the competition.
Technical Compliance
Another important reason why businesses need trained digital marketing professionals is technical compliance. With increasing regulations and guidelines in the digital marketing industry, it is essential to ensure that your digital marketing campaigns are compliant with these regulations. Trained professionals have the knowledge and expertise to ensure that your digital marketing campaigns comply with these regulations and guidelines.
Furthermore, trained professionals can help you avoid penalties or legal issues that may arise due to non-compliance with digital marketing regulations. They can also ensure that your digital marketing campaigns are ethical and adhere to industry best practices.
Increase Digital Marketing Performance Results
Finally, trained digital marketing professionals can help you increase your digital marketing performance results. They can track and analyse data to identify areas of improvement in your digital marketing campaigns. They can also make adjustments to your digital marketing strategy to improve your campaign's performance and achieve better results.
Trained digital marketing professionals can also help you optimise your campaigns for specific digital platforms, such as social media or search engines. This can help you reach your target audience more effectively and achieve better engagement and conversion rates.
The digital and online advertising market in South Africa is rapidly growing, with increasing investment from businesses and advertisers. Overall, the future looks bright for digital and online advertising in South Africa, and businesses that embrace this trend are likely to reap the benefits.
If you are looking for trained digital marketing professionals to write you an integrated digital marketing strategy backed by strategic thinking, technical compliance and competitor landscape analysis, contact Ideation’s Digital Strategists.
With structured planning and comprehensive reporting, we are geared to increase your digital marketing footprint in size and value.