Kenyan media companies have suffered a dip in advertisement revenue on account of reduced government and brands spending during the first quarter of the 2023/24 financial year.
Kenya Media Landscape Report by the communications authority covering July and September period shows that ad spent declined by 19pc to stand at Ksh 16.1 billion.
“Overall, media spending has decreased due to government budget cuts, and brands are currently prioritizing market retention by implementing targeted exposure strategies with minimal spending,” said CA.
During the quarter under review, television consumed majority of ad spend at Ksh 10.9 billion equivalent to 67.7pc of total spending by advertisers.
Radio ad spending amounted to Ksh 3.6 billion followed by print at Ksh 1.6 billion.
The report indicates that the share of advertising spends on TV remained constant through the three months.
The total advertising spend on tv, radio and print reached Ksh 5 billion in July, Ksh 5.3 billion in August and Ksh 5.7 billion in September.
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Additionally, brands with a wider product portfolio opt for a range of product campaigns and intermittent exposure. The expenditure on a combination of TV, radio and print declined by 15pc in July and increased by 5pc and 8pc respectively in August and September 2023,” added CAK.
The report also indicates that year-on-year spending in nine months of the year to September experienced a 14pc decline compared to the same period last year due to low consumer purchasing power, anti-government protests and skyrocketing commodity prices.
“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,” the report states.
Top five ad spenders during the period under review are media with Ksh 1.9 billion, financial services Ksh 1.3 billion, property, building and accommodation Ksh 1.2 billion, personal care Ksh 1 billion and communications Ksh 826 million.
Biggest spenders on radio advertising were financial services at Ksh 827 million, followed by communications, betting and gaming and media with Ksh 500 million, Ksh 340 million and Ksh 279 million respectively.
Leading industries with large ad spending budgets on print were corporate and multibrand, media and financial services with Ksh 651 million, Ksh 474 million and Ksh 154 million respectively.
