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Digital Media Revenue to soar

Posted by radio On October - 27 - 2014

Although there is dramatic change in the way consumers spend their money, digital revenues in other segments remain relatively small. Internet access provides the potential for expenditure on digital content, yet outside of Internet access revenue itself, digital revenues will still only account for a fraction of the overall

Digital media background concept

Nevertheless, digital is on the rise both in terms of consumer and advertising revenues. Without Internet access included, digital consumer revenues will increase from 2.1% of total consumer revenue in 2013 to 2.7% in 2018.


Digital consumer revenue will overtake non-digital consumer revenue in 2016 and will account for 55.3% of the market in 2018, helped by dramatic increases in the number of mobile Internet subscribers.


Digital advertising

In 2009, digital advertising revenues comprised just 1.9% of overall E&M advertising revenue. Advertisers have since seized upon the measurability and spending guarantees of Internet advertising, with digital advertising constituting 5.1% of 2013 revenues and forecast to make up 9.7% of revenues in 2018.


Despite dramatic growth, traditional advertising media will still prevail, with the likes of television and radio revenues still guaranteeing the kind of captive mass audiences that the Internet cannot yet offer.


Internet access revenues aside, the tipping point from traditional media to digital media remains a long way off in South Africa, in terms of revenue at least. Companies and advertisers would still do well to focus on the digital consumer, who may well have greater disposable income, but for the time being traditional media will still constitute the majority of revenues.




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[Source: PwC]

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