The South African online ad industry appears to be quickly shaking off the slump of the early 2000s.
Business site Fin24 reports on new research which indicates that the South African online advertising market could triple in the next three years. This survey, “Online Media in South Africa 2005,” was conducted by independent research house World Wide Worx (which will be offering the report later for sale online) in cooperation with the South African Online Publishers Association.
“It’s looking very positive for online advertising — a medium that has finally come of age,” Fin24 quotes Arthur Goldstuck, head of World Wide Worx. “But this phenomenal growth masks the fact that the numbers would be far higher if the advertising industry woke up to the potential of the medium.”
The survey found that lack of awareness within the traditional advertising industry of the efficiency, measurability and reach of online advertising has held back the growth of the medium. Also, if local advertisers and agencies were better educated about online advertising, the potential for this medium would be greater still.
Fin24 also quoted OPA chairperson Russell Hanly as saying that the South African online advertising industry can “now claim itself to be tracking global growth trends.”
One of the most dramatic findings in terms of type of advertising is the decline of the conventional banner ad — from close to two thirds of all online revenue in 2003 to less than half in 2005. This trend is likely to continue in 2006.
(DISCLOSURE: I am an exco member of the South African OPA and publisher of Mail & Guardian Online, which participated in this survey.)
