SA internet advertising grows at breakneck speed

Cape Town - The South African internet advertising market is growing at breakneck speed, with R1.3bn in total revenues reported in 2013.

This is according to an inaugural Internet Advertising Revenue Report, which was prepared by PwC SA and released by the Interactive Advertising Bureau (IAB) South Africa. The report is regarded as a landmark for the maturing South African digital industry.

The IAB is an independent, voluntary, non-profit association focused on growing and sustaining a vibrant and profitable digital industry in South Africa.

According to the IAB and PwC the SA digital industry has a growing need for reliable market intelligence in order to position itself as globally competitive.

READ: SA online classifieds shift focus to mobile

Highlights

- Online advertising revenues, excluding search and mobile, amounted to R452m in 2013;
 
- Search dominance of internet advertising was proven as it accounts for 52% of the total internet advertising revenue. In line with the rest of the world, Google dominates the South African search market;
 
- As a result of the rapidly rising mobile and smartphone penetration in South Africa, mobile internet advertising revenues amounted to R172m in 2013. Mobile remains the smallest medium within digital advertising.
   
Growth fuelled by variety of factors:

- Growing internet penetration;

- Declining broadband prices;
 
- Faster broadband;
 
- Increased consumption;
 
- The rise of targeted advertising as a preferred advertising medium.

READ: Online shopping 'tiny' in SA - survey

Long term goals

The IAB SA will be working with PwC in the coming weeks to launch the submissions phase of the second annual study.

The study has two overarching long term goals. The first is to increase the frequency of the report as soon as practically feasible.

Secondly, IAB SA wants to contribute SA data into the IAB’s global data set to ensure the SA market insights reach a world audience.

"This would ensure our market is adequately represented and reflected on a global stage,” said Gustav Goosen of the IAB.

"Internet advertising is maturing as a medium,” according to Vicki Myburgh, entertainment and media leader at PwC Southern Africa.

“This is a growing category owing to ongoing movement of ad spend into all three core categories, namely display, search and classifieds."

ALSO READ: Alibaba drives into 'internet car' industry


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