Weekly Highlight: w/c 16 February 2009

Dear friends and colleagues
 
This week we have a look at the top line 2008 advertising spend according to AdDynamix.
 
The total adspend recorded for January – December 2008 was R34 billion including Self Promotions or R24.5 billion excluding Self Promotions.  We have looked at all adspend and therefore the following information is based on adspend including Self Promotions.
 
Let’s take a look at the spend by media type:

   

Media Type	Expenditure
Cinema	361,036,089
Direct Mail	150,507,518
Internet	375,975,990
Outdoor	1,081,264,767
Print	9,710,456,959
Radio	3,829,403,489
Television	18,679,773,719
Grand Total	34,188,418,531

 
TV and Print were the main media types used for this 12 month period although TV is up some 18% compared to 2007, print is only up by 2%!   The biggest increase was seen in Internet advertising which is up  38% compared to 2007 although this media type still remains only 1% of the total advertising spend pie.


And when we have a look at the percentage split by category, we see that Self Promotion has the largest slice at 29%.  Please note that this reflects the top 10 categories only – excluded are Media Promotion (2% of total adspend), Small Display ads (less than 1% of total adspend) and Tobacco & Related (less than 1% of total adspend).



Incredible to think that across all these categories a total of just over 5 million advertisements were placed! 
 
When we take a look at adspend without the Self Promotion figures included, the following spend by media type is seen:

 

Media Type	2007 Expenditure	2008 Expenditure	Expenditure: Year on Year Difference (Rand terms)	Expenditure : Year on Year Difference %
Cinema	359,538,399	361,036,089	1,497,690	0.42%
Direct Mail	139,900,248	150,501,248	10,601,000	7.58%
Internet	271,998,085	375,932,384	103,934,299	38.21%
Outdoor	1,161,062,950	1,079,927,638	-81,135,312	-6.99%
Print	9,121,584,095	9,273,945,317	152,361,222	1.67%
Radio	2,964,814,070	3,345,249,141	380,435,071	12.83%
Television	9,379,446,058	9,961,572,168	582,126,110	6.21%
Grand Total	23,398,343,905	24,548,163,985	1,149,820,080	4.91%

Considering that many of the media owners have been generous with handing out discounts and added value during 2008 to generate loyalty and ensure business, and on the flip side the cut backs on adspend and revenue lines of some of the bigger media owners, plus we all know that adspend tracking is not 100% accurate - we have to ask ourselves if the 4.91% increase is realistic or if in fact, we had negative growth?
 
With the global recession, the rate increases and all the other challenges facing us, it will be interesting to see what happens during 2009!
 
Should you like a more detailed analysis of your category, please contact your Media Strategist or Media Planner.
  
Warm regards
 
The MediaShop