•In the review period financial service emerged as the highest sector expenditure with Sh2.3billion, despite a four percent drop from the previous quarter.
•Further analysis shows that, the predominant allocation of advertising spending was directed towards free to air TV, highlighting its central role in the advertising landscape.
The amount spent on advertising has dropped by Sh2 billion in nine months as companies grappled to cut costs in a challenging business environment, data from the Communications Authority shows.
The Audience Measurement Industry Trends report shows that the industry's total spending rose from Sh16 billion to 17 billion between the first quarter and second quarter but dropped to Sh15 billion in Q3 2023-24.
In the review period financial service emerged as the highest sector expenditure with Sh2.3billion, despite a four percent drop from the previous quarter.
It was followed by media at Sh2billion, corporate and multi-brand came third with a Sh1.5 billion spend. Others were betting and gaming, personal care and communications
“Specifically, TV has the greatest spending, with radio coming in second. Financial services have the highest spending in TV and radio, while corporate and multi-brand have the highest spending in print,” CA said in the report.
Further analysis shows that, the predominant allocation of advertising spending was directed towards free to air TV, highlighting its central role in the advertising landscape.
“This emphasis on free to air TV underscores its effectiveness in reaching a wide and diverse audience,” CA notes
In the period under review, the fast moving consumer goods sectors struggled with the heavy load of economic inflation, which impacted consumer purchasing power.
Reduced media budget across sectors resulted in increased media house campaigns.
Overall, media spending has decreased due to government budget cuts while brands are currently prioritising market retention by implementing targeted exposure strategies with minimal spending.
Additionally, brands with a wider product portfolio opt for a range of product campaigns and intermittent exposure.
However, despite ads spend dropping, over the course of the three quarters, patterns of consumption remained steady.
Mobile phones account for about one-third of radio listenership, yet traditional radio sets still dominate as the main method for engaging with radio. Television is primarily watched on TV sets.
Social media access predominantly happens through mobile phones and remains a significant part of media consumption.
The data trend shows that during Q3, there was a minor increase in the consumption of multiple media.
Participants on various media platforms increased by 0.7 per cent in Q3 2023/24.
The continued slight increase in multimedia consumption during Q3 2023-24 suggests a continued trend towards a more interconnected media landscape.
With a 0.7 percent rise in respondents engaging with multiple media platforms, it indicates a growing appetite for diverse content across various channels.