Kenya's Adverting Expenditure Drops By KES 41.2 Billion In 2024 Amidst Economic Challenges: Reelanalytics Annual Media Landscape Report
Kenya's economy backpedalled to 5% in 2024, declining from 5.6% in 2023. This economic environment has significantly impacted media investments, with total advertising spending dropping to KSh 84.9 billion in 2024—from KSh 126.1 billion in 2023.
This economic context has significantly impacted advertising decisions:
- Budget Constraints: Rising inflation and increased cost of living have made businesses more cautious with advertising investments.
- Industry Regulations: New government policies have restricted spending, including excise duties on betting/gambling and directives to advertise on national media outlets.
- Digital Acceleration: Economic pressures have accelerated digital transformation in media strategy.
Digital Media Consumption
The digital landscape is distinctly mobile-first-98.6% of users access social media via smartphones: The rapid growth of mobile phones has been responsible for Kenya having amongst the highest internet penetration rates in Africa. This has enabled increased social media consumption for news, entertainment and social connections.
Platform Preferences:
- Facebook: 52% usage.
- WhatsApp: 48.5% usage.
- TikTok: 28.1% usage (showing strongest growth)
- YouTube: 23.3% usage.
Advertising Expenditure Analysis
Traditional media maintains strong audience engagement despite digital growth. TV and radio stations broadcast in multiple local languages, a reflection of the country’s rich cultural and linguistic heritage. Easily accessible and relevant content enables diversity fostering a more inclusive media environment.
Media Allocation
Television continues to capture the lion's share of advertising budgets at KSh 50.39 billion, representing 59% of total media spend. Radio maintains its position as the second most important channel at KSh 27.10 billion (32%), while Out-of-Home advertising accounts for KSh 5.56 billion (7%) and print media receives KSh 1.84 billion (2%) of total advertising investments.
- TV: 76% penetration, with Citizen TV commanding 35.15% viewership
- Radio: 74% penetration, with vernacular stations showing strong audience loyalty
- Print: KSh 1.84 billion (2%)
Leading Industries
Industry analysis shows several sectors dominating the advertising landscape. The betting and gambling sector leads with 17% of total advertising expenditure, followed by media companies at 11.7% and banking institutions at 7.4%. At the corporate level, MultiChoice Kenya emerges as the highest-spending advertiser at KSh 6.4 billion, followed by Safaricom PLC (KSh 4.3 billion) and Royal Media Services (KSh 2.8 billion).
Strategic Implications
Since 2022, advertising investments have declined. Our analysis projects a further 11% decline in mainstream media advertising for 2025. This trajectory indicates continued pressure on media investment budgets.
Data-driven decision-making is the cornerstone of effective media planning in today's complex landscape. The approach implements comprehensive measurement frameworks that track performance across all media channels, followed by diligent benchmarking of category spending patterns to identify competitive gaps and opportunities.
Media strategies should define clear key performance indicators directly aligned with business objectives, moving beyond vanity metrics to focus on meaningful business outcomes.
The implementation of real-time tracking systems enables agile optimization throughout campaigns, allowing for dynamic resource reallocation based on performance data.
Implementing robust cross-platform measurement frameworks that provide clear insights across the media ecosystem. Strategically, marketers should consider:
- Focusing TV investments on high-performance prime-time slots (7 PM-10 PM).
- Leveraging regional radio for targeted demographic reach.
- Developing mobile-first strategies for digital platforms (TikTok growing at 28.1%).
- A consideration of digital OOH opportunities in malls and high-traffic areas.
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This overview highlights just a fraction of the insights available in the Reelanalytics Kenya Media Landscape report. Access comprehensive data including:
- Channel-specific analysis.
- Competitor spending patterns by sector.
- Future projections and trend analysis.
- A case study in budget optimization.
- Actionable media planning frameworks.
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