Active advertising boosts earnings of media companies

Standard Group’s share price has moved between Sh35 and Sh45 in this year while NMG rose from Sh107 in January to Sh155 in June.

Mr Musau says while competition has intensified among media firms, robust growth of the economy should help lift profitability across the entire industry.

“Media firms with a presence across all platforms go into this competition with an advantage,” he said.

Strong presence

The Standard Group recently launched Radio Maisha, widening its footprint besides the print and television offerings after investing in a new printing press.

NMG with a strong multi-media presence in Kenya is also present in Uganda and Tanzania.

The group has invested about Sh300 million in a new printing press in Tanzania to enhance the quality of its print titles.

Corporate Kenya has been expanding its marketing budget to woo consumers whose purchasing power is rising, helped by low inflation and better economic prospects.

“Most companies are more confident of getting returns on their marketing efforts as the economy picks up and are therefore pushing for more placements,” Ms Phyllis Kinyanjui, a media director at Scangroup, said in an earlier interview.

The economy grew to 4.4 per cent in the first quarter but the peaceful endorsement of proposed Constitution is expected to help achieve a growth rate of 4.5 per cent for the year.