An overview of the total advertising industry in Kenya - Jan to May 2022
Despite the high rate of inflation, advertising budget seem to have a minimal change 2021 vs 2022 month on month, with only April 2022 being the month with higher spends than 2021. The rest of the months spent lower than 2022, January and February had the lowest drop;
On Media spending, television spends share was same in the two periods (60%) as radio dropped by 3%. Advertisers seem to appreciate print media in 2022, with a 48% up from 2021
Sector share of Spend
Advertising landscape continues to drop in 2022 compared to the same period in 2021(-8%). With the ever-increasing inflation rate, shopper’s continue to shop with caution only to spend on the most essentials.
|
Sector |
2021 |
2022 |
2022 SOS |
% change Jan-May 2021 and Jan-May 2022 |
|
Communications |
5,185 |
4,746 |
14% |
-8% |
|
Media |
4,620 |
4,740 |
14% |
3% |
|
Financial Services |
2,996 |
3,596 |
11% |
20% |
|
Corporate & Multibrand |
2,541 |
3,420 |
10% |
35% |
|
Betting & Gaming |
2,580 |
2,778 |
8% |
8% |
|
Property & Building & Acc. |
2,181 |
2,391 |
7% |
10% |
|
Beverage |
2,191 |
1,762 |
5% |
-20% |
|
Household |
1,797 |
1,743 |
5% |
-3% |
|
Personal Care |
2,943 |
1,723 |
5% |
-41% |
|
Foods |
2,751 |
1,350 |
4% |
-51% |
|
Pharmaceuticals |
2,715 |
1,293 |
4% |
-52% |
|
Publishing & Education |
973 |
1,015 |
3% |
4% |
|
Veterinary & Agriculture |
1,482 |
833 |
2% |
-44% |
|
Tourism & Entertainment |
284 |
742 |
2% |
162% |
|
Office Equipment & Services |
430 |
631 |
2% |
47% |
|
Retail |
354 |
428 |
1% |
21% |
|
Transport |
347 |
378 |
1% |
9% |
|
Clothing, Fabrics & Footwear |
60 |
40 |
0% |
-32% |
|
Grand Total |
36,429 |
33,610 |
|
-8% |
- Communication has jumped to lead in sector, despite a 8% drop from 2021.The big drop of JTL has heavily contributed to this drop, despite a minimal raise of Airtel and Safaricom.
- Finance is not struggling after registering a 20% growth. Soft loan apps (mainly zenka, Timiza and tala), seems to be thriving in 2022 with loud shouts on unsecured soft loans due to high cost of living, Insurance is strong as well finance firms. 2022 banking category is trading lower than 2021.
- Parastatals seems to be driving corporate sector to gain 35% growth in 2022, thanks to CA, KRA, NEMA, IRA and IEBC. This is projected to be the busiest sector as the election nears.
- Betting and gaming had 8% growth, thanks to the return of shabiki in 2022., betting was the top spender. After resumption of sporting event and being a world cup season, more sport betting firms will be up.
- Inflation is felt in FMCG companies. Advertising spends on Food, Pharmaceuticals, beverage, and personal care have dropped significantly. Effects of the Russia Ukraine war can be felt in the local economy; increased fuel cost, depreciating local currency impacts in the production chain, pushing manufactures to cut budgets.
- Tourism is doing well thanks to viutravel, Kenya tourism board and South Africa airways campaigns in 2022.
Top spenders 2021/ 2022 comparison
Media exposure steadily decline month on month even though perennial top spenders are still dominantly loud owing to their diversified portfolio of products. Safaricom has grown by 14% driven by a CSR activity dumbed “tuungane Pamoja” and MOH vaccination campaigns. Despite the inflation, some FMCG players have diversified campaigns and grown spending from 2021; Coca-Cola has 46% growth in mainly due to Fanta, Sprite, Minute maid and world cup trophy campaign.
