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According to a recent report, traditional TV and home video will continue to dominate Kenya’s advertising industry, maintaining its stronghold until 2027.
The PricewaterhouseCoopers (PwC) Entertainment & Media (E&A) Outlook report forecasts that the combined value of traditional TV and home video will reach USD 430 million (Sh63.25 billion) in 2026, reflecting a growth of USD 12 million (Sh1.77 billion) from this year’s USD 418 million (Sh61.49 billion).
Nonetheless, the report anticipates that internet advertising will rapidly gain ground and is poised to bridge the gap, reaching USD 429 million (Sh63.11 billion) by 2026.
It suggests that by this time, the margin between traditional TV and home video and internet advertising will narrow to just USD 1.2 million, paving the way for internet advertising to claim the top spot in subsequent years.
In addition, the report predicts a significant shift in advertising trends, with music and radio (valued at Sh21.48 billion) surpassing newspapers and consumer magazines (valued at Sh21.33 billion) in advertising space by 2023. It also foresees video games outperforming newspapers and consumer magazines in the same year.
Despite these shifts, the report underscores that internet access will continue to be the largest segment in Kenya’s E&M market throughout the forecast period.
The growth of the video game sector in Africa, particularly in Nigeria, Kenya, and South Africa, can be attributed to Africa’s youthful and tech-savvy population.
Remarkably, 40% of South Africa’s population engages in gaming, while Nigeria and Kenya follow closely with 23% and 22%, respectively. Notably, the majority of gamers in African markets prefer mobile devices for their gaming experiences.
Furthermore, the report outlines a promising future for the Entertainment and Media (E&M) industry in Africa, highlighting the potential of the metaverse and non-fungible tokens (NFTs).
According to Meta, the metaverse has the potential to make substantial contributions to the economies of Sub-Saharan African countries like Nigeria and Kenya, with estimates suggesting it could generate approximately USD 40 billion (Sh5.8 trillion) in economic activity.
