the future of MEDIA - OMD

1 future of MEDIA | 1the future of MEDIABLUEPRINTBLUEPRINT20132 | future of MEDIA MEDIA Facts 2013: 3 The numbers don t lie 3 South African Development Community 4 SADC map 4 SADC countries in the world 4 SADC land area 5 SADC GDP 5 SADC GDP growth 5 SADC population 5 South Africa: key facts 6 Background and geography 6 Telecommunications and online 6SA economic indicators 7 South Africa: provinces and capitals 7 GDP by economic activity 7SA demographics 8 Population profile adults 15+ 8 Population distribution by race 8 Population distribution by age 8 Population distribution by household income 9 Population distribution by home language 9SA demographics 10 Access to MEDIA adults aged 15+ 10 Growth of MEDIA opportunities 10 Above-the-line adspend in R millions 11 Above-the-line adspend by category 11 Key indices 2002 to 2011 11 Television 12 Top 5 programmes 12TV performance 13 Newspapers 13 Local newspapers 13 Daily newspapers 14 Major weekly newspapers 14 Radio 15 Consumer magazines 17 Business to business 18 Cinema 19 Online MEDIA 20 Mobile advertising 20E-newsletters 21 Out of home 21

2 SADC countries 22 Angola 22 Botswana 23 DRC 24 Lesotho 25 Malawi 26 Mauritius 27 Mozambique 28 Namibia 29 Seychelles 30 Swaziland 31 Tanzania 32 Zambia 33 Zimbabwe 34 OMD Contact Information 352013 OMDF uture of MEDIA | 3 The numbers don t lieWelcome to the new format of OMD s SA & SADC MEDIA Facts . We have been publishing this annual summary of the South African MEDIA scene since 1997 and have seen it grow from a small print run with interest limited to an exclusive group of MEDIA and advertising professionals into a widely read and demanded publication. SA MEDIA Facts now finds its way into universities and government departments, as well as on to the desks of marketing and procurement executives at major international advertisers overseas and throughout the African continent.

3 To reach a wider audience, SA & SADC MEDIA Facts will now be distributed in a PDF format available via the OMD SA website ( ) and we are delighted to partner future Publishing to launch the new look in the printed format via this magazine. The digital platform will eventually become the portal for all MEDIA consumption and, as has always been the case with MEDIA of any kind, content is what will drive success and attract the dynamic growth of digital brings many new opportunities for advertisers, together with a degree of measurability that Lord Leverhulme would have envied when he famously said, I know half of my advertising budget is wasted, the problem is I don t know which half. In those days MEDIA planning may have been regarded as an intuitive dark art . However, marketers in the 21st Century require science and will always need the numbers to back up a great idea.

4 Garlick Awards and Cannes MEDIA Lions are recognition of campaigns that first and foremost connect with the target audience in large numbers, and the proof of that is in the measurement (both of the numbers themselves and the consumer take out from the communication).The ability to measure MEDIA consumption on the new digital formats is also bringing a revolution in accountability to advertising across the whole region. OMD has the largest MEDIA network in Africa with ten registered offices covering thirty markets on the African continent. We have seen significant increased demand from advertisers for pan-regional co-ordination that delivers the same research hygiene and accountability that we can offer in South Africa, for their MEDIA plans from other African countries. In a repeat of the success of cellular telephony, this will increasingly be made possible by the growth of the digital platform across the region, wherein we will skip the fixed line notion of broadband penetration and the internet will be accessed via handheld devices.

5 Certainly in the major cities, smartphones will become the default device and the best and most efficient way for consumers to access news and entertainment, as well as social networks and search. If there are any doubters still out there just look at the numbers for internet access from OMD Nigeria. In Lagos it s over 30% and that s not coming off desktops. The story repeats itself across all major population centres on the continent and the pace of development is accelerating. Technology will overcome Africa s vast distances and infrastructure problems, and this opens up significant new markets for savvy advertisers. Go there, or get left behind! CJosh Dovey, Dovey, CEO and Gary Westwater, CFO - OMDA ngolaBotswanaDemocratic Republic of the Congo (DRC) LesothoMalawiMozambiqueTanzaniaZambiaNam ibiaSeychellesSouth AfricaSwazilandMauritiusZimbabweCountry GDP US$ billion 2011 Rank growth Pop millions 2011 Rank GN Income US$ per capita 2011 Rank#LeadersUnited States 15094 1 3 48450 8 China 7298 2 1 4940 77 Japan 5867 3 10 45180 18 Germany 3570 4 16 43980 14 France 2773 5 21 42420 16 United Kingdom 2431 6 22 37780 19 India 1848 9 2 1410 121 AfricaSouth Africa+ 408 27 24 6960 64 Nigeria 236 41 7 1200 126 Egypt 230 42 15 2600 108 Angola+ 101 58 58 4060 87 Kenya 33 83 31 820 139 Tanzania+ 24 94 29 540 152 Zambia+ 19 100 69 1160 128 Botswana+ 18 103 146 7480 59 Congo, Dem.

6 Rep.+ 16 107 20 190 166 Mozambique+ 13 116 50 470 156 Namibia+ 12 117 141 4700 80 Mauritius+ 11 118 155 8240 53 Zimbabwe+ 10 124 71 640 145 Malawi+ 6 139 65 340 163 Swaziland+ 4 143 158 3300 97 Lesotho+ 2 148 143 1220 124 Seychelles+ 1 161 196 11130 45 World Sub-Saharan Africa 1265 1266 World low income 474 566 World middle income 22951 4125 World high income 46643 39783 World 69971 9491 This table reads: According to the World Bank, South Africa s Gross Domestic Product in 2011 was US$408 billion (rank 27) which grew by over 2010, its population million (rank 24) and the average Gross National Income per capita was US$6960 (rank 64).

7 Source: World Bank/World Development Indicators C ountrieS in the WorldLesothoSwazilandNamibiaBotswanaAngo laZambiaMalawiDemocratic Republic of the Congo (DRC)MozambiqueMauritiusSeychellesSouth AfricaTanzaniaZimbabweSADC CountrieS in the World4 | future of MediaSADC COUNTRIES IN THE WORLD OMDF uture of MEDIA | 5 OMD MEDIA FACTS 2013S outH AFriCATelecommunicationsTelephone lines per 100 people subscribers per 100 people covered by mobile 96%OnlineBroadband percent of internet subscribers N/AHouseholds per 100 with computer users per 100 people per 100 with internet access users (000) code .zaSource: World Bank ICTt e L e C o MMuniCAtionS & onlineINTERNET After rule by various Boer republics and the British, the resulting Union of South Africa (1910) and Republic (1961) operated under a policy of the separation of the races.

8 The 1990s brought an end to apartheid politically, and in 1994 black majority Mostly semi-arid; subtropical along east coast; sunny days, cool nights in Vast interior plateau rimmed by rugged hills and nar-row coastal Gold, chromium, antimony, coal, iron, manganese, nickel, phosphates, tin, uranium, diamonds, platinum, copper, vanadium, salt, natural use Arable: ; permanent crops: ; other structure 0-14: ; 15-64: ; +65: groups Black African: 79%; White: ; Coloured: : Indian: Languages Zulu: ; Xhosa: ; Afrikaans: ; Pedi: ; English: ; Tswana: ; Sotho: ; Tsonga: ; Other: 15+ read/write: total: ; male: ; female: Share of income of highest 10%: ; under poverty line: Urban: ; in 1m cities: HIV/Aids Prevalence: growth (2011 est.)

9 Exports FOB US$ billion (2011 est.)Export partners China (16%), USA (10%), Japan (8%), Germany (7%), UK (4%)Exports Gold, diamonds, platinum, other metals and minerals, machinery and FOB US$ billion (2011 est.)Import partners China (13%), Germany (10), USA (7), Saudi Arabia (5)Imports Machinery and equipment, chemicals, fuel, scientific instruments, Rand (ZAR)US$1 (2011)S outH AFriCA K e Y FACtS6 | future of MediaSOUTH AFRICA KEY FACTSF uture of MEDIA | 7SA ECONOMIC INDICATORSP rovince Capital Area Population# GDP+ Sq Km % 000 % %Eastern Cape Bhisho 169580 6830 State Bloemfontein 129480 2760 Johannesburg 17010 11328 Pietermaritzburg 92100 10819 Polokwane 123910 5555 Nelspruit 79490 3657 West Mahikeng 116320 3253 Cape Kimberley 361830 1097 Cape Cape Town 129370 5288 1219090 100 50587 100 This table reads.

10 Eastern Cape has of the area of South Africa, of its population and of its GDP. # Mid 2011 estimates based on 2001 Census with original boundaries. + Regional estimates of GDP : Statistics SA/South Africa Yearbook 2009 millions at constant year 2005 prices Sector & Activity 2001 2011 % R millions % R millions % incPrimary sectorAgriculture, forestry, fishing 33639 41553 , quarrying 98970 99415 sectorManufacturing 229701 289015 , water 27539 34749 27711 58241 sectorWholesale, retail trade, hotels, restaurants 164572 234630 , communication 108944 172733 , real estate, bus. services 234450 400382 services 77438 103601 government services 189552 258405 value at basic prices 1191007 1692724 less subsidies 146201 202944 1336962 100 1895668 100 table reads: Agriculture, forestry and fishing accounted for R33639m ( ) of GDP in 2001.