The annual IAB South African Internet Advertising Revenue Report shows growth of 15% in online advertising revenue from 2013 to 2014.
This provides a clear indication of the rapid growth of both the size and importance of the digital marketing industry in South Africa.
Online advertising revenues rose from R 452 million to R 566 million, while search Internet advertising revenues surged to R 865 million, up from R 680 million.
In terms of publishers, online news and media platforms remain the most popular digital publishing type, raking in close to 80% of advertising spend for both 2013 and 2014.
“According to the PwC report, around 60% of social media spending occurs on Facebook, followed by 18% on Twitter,” says Goosen. “The popularity of these US-based players is a mixed blessing for the SA ad industry.
These brands are leading the push towards substantial investments into online advertising, but the money is not going to local publishers, who are hard-pressed to compete.
Read: How to advertise online