Kenya’s total entertainment and media expenditure will exceed US$3 billion in 2017, making it one of the fastest growth rates in the world, a new report has revealed.
According to the report by PricewaterhouseCoopers (PwC) titled KENYAN ENTERTAINMENT & MEDIA OUTLOOK: 2013-2017, Kenya’s E&M market will grow at a Compound Annual Growth Rate (CAGR) of 16.3 percent in the next five years. The projected growth will mostly be driven by the country’s emerging middle class, demographic changes, urbanization and innovation.
GROWTH OF MOBILE INTERNET AND ADVERTISING
The report also highlights the growth of mobile Internet access and maintains that the fastest growth area in consumer spending will be Internet access (a CAGR of 52%). As reported, the Internet will be the largest market, worth approximately US$961 million in 2017.
The availability of the entry level Smartphone is said to lead to an increase in mobile data usage thus providing an ideal platform for advertisers to reach a vast number of consumers and engage them directly. The number of Smartphone connections in Kenya is expected to rise by an average of 40 percent, reaching nearly 19 million by the end of 2017.
The report acknowledges that “the growth and influence mobile phones will have on Internet advertising in Kenya will be of the most significant factors in the development of Kenyan entertainment and media in the next ﬁve years” and urges Advertisers to seize the opportunities offered by mobile handsets.
TV STILL MOST EFFECTIVE ADVERTISING PLATFORM
The PwC report indicates that despite the viable advertising platforms that digital media provide, traditional media platforms like television, radio and newspapers will still lead as the most favoured channels of advertising in 2017. TV remains the single most effective channel for advertising in Kenya.
“While digital consumption is becoming increasingly important to consumers, the vast majority of ad revenues will continue to come from the traditional delivery platform” indicates a section of the report.
The PwC report aims to provide an overview of the entertainment and media industry in Kenya as well as deep-dive discussions on sub-sectors like Internet, television, radio, music, publishing, out-of-home advertising, video games and sports.