Companies spend Sh85 billion in TV, radio and print ads

Kenya’s leading corporations increased their advertising spend by a tenth last year, led by Safaricom which finished as the biggest spender for the third year in a row.

The companies splurged Sh85.8 billion on advertising last year compared to Sh79.2 billion in 2013, according to fresh data from media monitoring firm Reelforge.

The media firm said the increase in spending was partly linked to an increase in rate cards. “The number of companies advertising also increased,” said Fred Otieno, the analysis manager at Reelforge.

Mr Otieno spoke at a forum that brought together advertisers, research firms and media buyers to explore opportunities and challenges presented by digital migration.

Safaricom topped the list of the top 10 spenders, having pumped Sh8.05 billion into the battle for consumers’ hearts and pockets.

The figures are based on advertising rate cards for radio, television and print publications. Reelforge said the actual figures may be different because of factors such as discounts and premium charged by the various media houses. 

Consumer goods firm Reckitt Benckiser was second with Sh2.9 billion followed by non-profit organisation Population Services (PS), which spent Sh2.8 billion on media campaigns, Samsung (Sh2.1 billion), East African Breweries Ltd (Sh2.09 billion) and Unilever (Sh1.9 billion).

Other big spenders were Airtel Kenya, ranked seventh having spent Sh1.6 billion, followed by Multichoice Kenya (Sh1.36 billion), OLX Kenya (Sh1.31 billion) and KCB (Sh1.3 billion).

TV stations raked in Sh41.8 billion in advertising revenue last year, nearly half the industry spend followed by radio Sh36.3 billion and print Sh7.7 billion.

The top 10 Kenyan corporate advertisers accounted for Sh25.5 billion or a third of total ad spend last year – underlining the importance that deep-pocketed firms put on marketing and publicity campaigns.

READ: Agencies build buzz around companies, products on social media

Safaricom maintained the pole position despite its ad spend shrinking by a fifth to Sh8.05 billion in 2014 from Sh9.7 billion the previous year.

The Nairobi bourse-listed telecommunications firm has been aggressively advertising consumer promotions such as Tetemesha na Safaricom, Bonyeza Ushinde and Lipa Na M-PESA Shinda a Home across radio, TV and newspapers.

READ: Lipa na M-Pesa merchants hit 32,000

Safaricom has positioned itself as a home-grown Kenyan brand with long TV adverts and full-page ads that capture picturesque scenes from around Kenya and uses green and white colours of the national flag.

The firm is owned 40 per cent by British operator Vodafone.

Safaricom says in its annual report that it uses “stimulation campaigns and product reselling, to drive average revenue per user and revenue growth”.

Reckitt, the maker of goods such as Dettol, Jik bleaches, Air Wick, Mortein Doom and Harpic, is fighting for a bigger market share with rivals in the personal care products market such as Haco Tiger Brands, Unilever, SC Johnson & Sons and PZ Cussons.

The Anglo-Dutch firm also manufactures Durex condoms, putting it in a head-to-head battle with PS Kenya, which distributes Trust condoms.

PS Kenya’s ad spend grew by half to Sh2.8 billion in 2014 from a year earlier, as the Washington-based non-profit firm pushed for increased uptake of health and hygiene products it distributes, including the Femiplan range of family planning products, WaterGuard, PUR water purifier and Supanet insecticide treated mosquito nets.

Samsung nearly quadrupled its advertising spend to Sh2.1 billion last year from Sh576.4 million in 2013, on the back of aggressive marketing of products such as smartphones, TVs, cameras, printers, refrigerators, laptops and washing machines.

The electronics giant has been partnering with telecommunications operators such as Safaricom and Airtel to publicise special offering on its smart devices which come bundled with data.

It was a different ballgame for EABL which cut its ad spend by a fifth last year, dropping to position five from three in 2013, despite increased competition in the local beverage market from Keroche Breweries, Heineken and Carlsberg.

“Kenya rated as the third largest alcohol consuming country, but many foreign players are entering into the market, such as South African wine maker KWV, Bacardi and Orange River Cellars among others,” says Euromonitor.

Unilever, the maker of Omo, Vaseline, Blue Band, Lifebuoy, Sunlight, Geisha, Rexona, Fair & Lovely and Royco, also reduced its spending on advertisement last year by 13 per cent to Sh1.9 billion from Sh2.2 billion in 2013.

London-based market intelligence firm Euromonitor says Unilever enjoys the biggest market share in the beauty and personal care segment in Kenya.

“Unlike Reckitt Benckiser whose only brand is Dettol, Unilever has a variety of brands which are all mass and are widely distributed in outlets, hence the best overall value share,” says a research report by Euromonitor.

MultiChoice, the company behind pay-TV service DStv and GOtv, grew its advertising spend by Sh400 million to Sh1.36 billion from Sh934 million in 2013, on the back of heavy spending on publicity campaigns to market its set-top boxes and decoders during the ongoing digital migration.

OLX, an online portal offering free local classified ads, doubled its advertising spend to Sh1.3 billion last year to try to woo Kenyans to list their products and services on the site to meet buyers.

KCB is the only bank which made it to the top 10 advertisers list, having run promotions to encourage use of its Visa-branded cards and an interest-free mortgage campaign.