Banks and other financial institutions increased their spending on advertising by 26 per cent to Sh2.9 billion in the three months to June, a new report by the Communications Authority has revealed.
The ad spends by the financial institutions posted the largest value increase of Sh591 million in the three-month period leading to an overall industry spending increase of 21 per cent.
The total spending on advertising in the quarter surged to Sh18 billion, with the greatest growth seen in the Property, Building, and Accommodation sectors.
Amount institutions and individuals are spending in publicity grew from Sh16 billion in the first quarter of the 2023-24 financial year to Sh17 billion in the second quarter.
However, it fell to Sh15 billion in the Q3 and by the fourth quarter of the review period it had rebound to Sh18billion.
“Specifically, TV has the greatest spending, with radio coming in second. Media have the highest spending in TV while Financial Services on radio. Corporate & Multi-brand have the highest spending in print,” reads the report.
The Audience Measurement Industry Trends Report by Communications Authority of Kenya says that While electronic media showed positive trends, media purchasing witnessed a 12 percent drop by the end of the fourth quarter.
Stringent measures to tame betting and gambling in the country, has seen the companies in this space cut down on advertising by 24 per cent in the three months.
This saw the amount spent by the betting firms drop to Sh1.1billion from Sh1.4 billion in the three months ended march.
Publishing & Education, Tourism & Entertainment, Transport and Retail are the other sectors that recorded a drop in ad spend in the period.
Tourism & Entertainment recorded a 17 per cent drop equivalent to Sh81 million, despite the review period falling within Kenya’s peak tourism period.
“The predominant allocation of advertising spending is directed towards free to air TV, highlighting its central role in the advertising landscape. This emphasis on free to air TV underscores its effectiveness in reaching a wide and diverse audience,” reads the report in part.
The Property & Building & Accommodation sector also witnessed the second highest increase in media spend after the financial institutions.
The sectors spending increased by Sh504 million in the quarter, from Sh831 million to Sh1.34 billion
Despite tough economic times the industry continues to face, fast moving consumer goods (FMCGs) and service brands remain strong, as government reduced their media buying.
The report further shows that Mobile phones account for about one-third of radio listenership, yet traditional radio sets still dominate as the main method for engaging with radio. Television is primarily watched on TV sets.
Social media access predominantly happens through mobile phones and remains a significant part of media consumption.
The data trend shows that during Q3, there was a minor increase in the consumption of multiple media.
The traditional media still continue to dominate local advertising scene despite PricewaterhouseCoopers predicting that digital advertising will be the new frontier in the media and entertainment industry as companies slash budgets, follow audiences online.
The Entertainment and Media (E&M) industry report by PwC shows the segment will account for 79.7 per cent of the industry's total revenue by 2026 in Kenya, Nigeria and South Africa.