South Africa: Brands Spent R45 Billion On Advertising 2017/18 - Neilsen Study

Nielsen South Africa Watch (Media) has published a study which indicates that in 2018, the South African market experienced an investment of R45-billion from brands spend on advertising and sponsorships.

Managing Director, Nielson Terry Murphy who was speaking at a recent Nielsen Consumer360 event said: “The focus on marketing optimisation is not a new trend yet each year there is the need to get smarter in how the increasing complexities and challenges that arise from changes in consumer behaviour, just so every interaction and rand spent counts.”

Murphy continued: “When we look at the Top 10 advertisers from South Africa in FMCG, Retail, Financial Services and Mobile sectors, it can be observed that four of the players in that group have reduced their advertising investment. It’s not about whether budgets are increasing or decreasing, rather it is that the budget that is available is being used to get maximum returns. This same budget, if deployed strategically, can yield multiple returns.”

Murphy stressed that consumers in SA are particularly enthusiastic as well as early adopters of technology. He revealed that  55 percent of South Africans access the internet from home via smart devices compared to only 3 percent who get online via broadband. Consumers have skipped the second screen and have completely embraced mobile devices. So the smartest way a seller can reach and interact with a consumer is to go where he or she is.

A Nielsen analysis tracked the campaigns of 17 top brands over three years in South Africa and found out that digital advertising return on investment leads the way at an impressive R2.30 per rand spent when compared to Television at R1.30 and three times the power of radio.

However, Murphy said that digital is becoming more influential although television is dominant in South Africa taking close to 57 percent the share. He encouraged brands to incorporate metrics to master their execution and sometimes commit one third if not more of their media budget online adding that adding that brands need to maximise their reach and impact, converting fans to consumers at every opportunity within their broader lifestyle.


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