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Ad spend jumps 11% to R32bn
Ad spend jumps 11% to R32bn

Ad spend jumps 11% to R32bn


Business Live - Apr 2nd 2012, 09:08

Advertising spend jumped 11% to R32.1-billion last year from R28.9-billion the previous year, according to figures released this week by researcher Nielsen. 

The increase augurs well for the advertising industry, said Nielsen associate director Milton Tshabalala.

"Advertising spend during the Soccer World Cup grew significantly by 18% and the growth post-World Cup remained in double digits at 11%," he said.

The top 10 spenders are: Unilever SA (R1.29-billion), Shoprite (R914-million), SABMiller (R816-million), Pick n Pay, Telkom, Vodacom, MTN, Standard Bank, Distell and FNB.

The retail sector accounts for R8.5-billion of the total, while travel, transport and leisure account for R4.3-billion, business to business for R4.025-billion and banking R4-billion.

In the cellphone industry, Vodacom continues to be the biggest spender at R504.9-million, but this is 5% less than the company spent last year. MTN followed with R469-million, up from the previous year, and Cell C with R196-million - down from R373.3-million the previous year.

Among banks, Standard spent R381.1-million, followed by FNB at R372.4-million and Absa and Nedbank at R260-million. Capitec Bank, the bank making huge inroads at the lower end of the market, spent R77.3-million - down from R83.9-million the year before.

The top 10 advertisers shared 19% of total advertising spend, or R6.2-billion.

For the first time, a single advertiser, Unilever, spent more than R1-billion.

The highest growth in advertising spend year on year was recorded by FirstRand, up 62%, followed by SABMiller, up 49%.

The top 10 advertisers spent 93% of their total advertising spend on TV, radio and print. Of the top 10 biggest spenders, five are in the retail sector: Pick n Pay, Checkers, Shoprite, Spar and Clicks.

TV gets most advertising (46%), followed by newspapers (23%) and radio (14%).

Print ad spend grew 6.4% to R10-billion. Of this, 74% (R7.4-billion) was in newspapers, while magazines had 26% (R2.7-billion).

The top 10 magazines had 26% of all magazine ad spend revenue.

The top 10 radio stations attracted 69% of the total radio revenue spend. 

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