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www.frankmaina.com www.frankmaina.com Kenya Media Landscape (2016)

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Page 1: Kenya media landscape (2016)   fmc group

www.frankmaina.com

www.frankmaina.com

Kenya Media Landscape (2016)

Page 2: Kenya media landscape (2016)   fmc group

www.frankmaina.com

Population/Economic landscape

Page 3: Kenya media landscape (2016)   fmc group

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Population overview

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Kenya demographic (age)

Source: Kenya National Bureau of Statistics

0-19 54%

20-24 10%

25-34 15%

35-44 9%

45-54 6%

55+ 7%

37%

Potential

business

people.

Page 5: Kenya media landscape (2016)   fmc group

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Source: Jumia

Page 6: Kenya media landscape (2016)   fmc group

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Domestic economy

6Source: Kenya National Bureau of Statistics

Page 7: Kenya media landscape (2016)   fmc group

www.frankmaina.comSource: KNBS

Inflation rate overview

The overall inflation rate in April 2016 stood at 5.27 per cent. The annual inflation rate as measured by the Consumer Price Index (CPI) decelerated marginally from 6.9 per cent in 2014 to 6.6 per cent

in 2015. – The easing of inflation was largely due to reduced costs of petroleum products, electricity and tightening of the monetary policy.

Page 8: Kenya media landscape (2016)   fmc group

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International scene

Source: Kenya National Bureau of Statistics

Page 9: Kenya media landscape (2016)   fmc group

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Public finance

Source: Kenya National Bureau of Statistics

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International trade

Source: Kenya National Bureau of Statistics

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Media trends

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Media Growth

218

1716

766

151613

100140 140

2012 2013 2014

No. TV ChannelsKTN News and Inooro TV are the new TV stations in 2015 that were introduced by

Standard Media and Royal Media Services respectively. The vast growth in number of TV channels during 2014 was attributed to digital

migration.

No. Radio StationsNew radio stations introduced in 2015 were only

two; KISIMA FM and Mwanendu FM

No. Weekly PublicationsNMG’s withdrawal of “SportOn” publications

was a reason to drop in 2014 weekly publications.

No. Daily PublicationsXNEWS was the latest daily publication introduced

in 2014.

220

142

7

15

2015

Source: Reelforge

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What are the top media in Kenya?

64.8%

30.6%

1.9% 1.6% 0.8% 0.1% 0.1% 0.05%0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

Radio Television Internet/other online

sources

Newspapers Social media Onlinenewspapers

Magazines Onlinemagazines

Inci

den

ce

Radio and television are the most preferred media against total population.

Base population: 24 million

Source: KARF 2015 Establishment Survey

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Who is the consumer of each medium – by gender?

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

Radio Television Internet/ otheronline sources

Newspapers Social media Onlinenewspapers

Onlinemagazines

Magazines

% in

cid

ence

Male Female

Radio and TV are the most consumed media by both genders.

Source: KARF 2015 Establishment Survey

Page 15: Kenya media landscape (2016)   fmc group

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Industry trends (2015 ad spends)

Page 16: Kenya media landscape (2016)   fmc group

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Industry Trends (ad spends – 2012 to 2015)

Source: Ipsos

2012 2013 2014 2015

INDUSTRY SPENDS KES 90,499 94,467 100,594 106,416

80,000

85,000

90,000

95,000

100,000

105,000

110,000

SP

EN

DS

KE

S (

Mil

lio

ns)

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Industry Exposure : Jan - Dec 2015ATL Totals, figures in Kshs: 106,416,073,821 (US $ 1,064,160,738 )

CORPORATE & MULTIBRANDS, 16%

COMMUNICATION, 15%

FINANCIAL SERVICES, 9%

PUBLISHING and EDUCATION, 8%

MEDIA, 8%

BEVERAGE, 7%

HOUSEHOLD, 7%

FOODS, 6%

TOURISM and ENTERTAINMENT, 6%

PERSONAL CARE, 5%

PHARMACEUTICALS, 4%

TRANSPORT, 3%

VETERINARY and AGRICULTURE, 2%

RETAIL, 2% OFFICE EQUIPMENT & SERVICES, 1%

CLOTHING,FABRICS & FOOTWEAR, 1%

Source: Ipsos

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2015 advertising spends distribution by media (total spends KES 106.4B)

Source: Reelforge

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Industry Exposure : Jan - Dec 2015

SECTION TELEVISION RADIO PRINT CINEMA TOTAL KES

CORPORATE & MULTIBRANDS 7,162,503,173 6,911,804,303 3,406,712,738 1,600,767 17,482,620,981

COMMUNICATION 8,102,885,003 7,887,883,965 393,987,646 16,384,756,614

FINANCIAL SERVICES 3,576,596,634 4,710,319,828 1,144,998,170 9,431,914,632

PUBLISHING and EDUCATION 4,279,490,465 2,805,638,642 1,547,764,677 422,344 8,633,316,128

MEDIA 3,468,114,035 3,665,788,433 1,088,651,524 8,222,553,991

BEVERAGE 3,564,691,988 3,857,128,959 92,991,080 7,514,812,027

HOUSEHOLD 3,760,006,999 3,166,139,475 270,933,759 422,344 7,197,502,577

FOODS 3,728,305,958 2,977,582,331 153,290,427 6,859,178,716

TOURISM and ENTERTAINMENT 3,148,264,337 2,955,688,938 716,675,742 6,820,629,017

PERSONAL CARE 4,575,328,916 862,084,457 65,548,683 5,502,962,056

PHARMACEUTICALS 2,331,703,425 2,001,528,806 105,838,583 4,439,070,814

TRANSPORT 1,212,788,893 1,402,865,839 513,324,152 3,128,978,884

VETERINARY and AGRICULTURE 372,932,923 1,442,368,621 22,608,900 1,837,910,444

RETAIL 757,016,537 758,168,129 144,564,407 1,659,749,073

OFFICE EQUIPMENT & SERVICES 396,010,014 267,141,209 102,124,003 547,625 765,822,851

CLOTHING,FABRICS & FOOTWEAR 365,920,260 119,899,427 46,524,965 532,344,652

SUPPLEMENTS and CONGRATULATIONS 41,667 1,908,700 1,950,367

TOTAL SPENDS KES 50,802,559,560 45,792,073,026 9,818,448,155 2,993,080 106,416,073,821

Source: Ipsos

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Industry Exposure : Jan - Dec 2012-2015

SECTION 2012 2013 2014 2015 TOTAL KES

COMMUNICATIONS 15,233,576,448 19,382,153,282 16,749,822,042 16,384,756,614 67,750,308,386

CORPORATE and MULTIBRAND 14,712,084,589 14,337,856,737 14,629,425,109 17,482,620,981 61,161,987,416

FINANCIAL SERVICES 9,701,990,358 11,688,742,221 12,884,530,111 9,431,914,632 43,707,177,322

MEDIA 10,789,520,756 7,502,715,070 8,116,641,516 8,222,553,991 34,631,431,333

HOUSEHOLD 7,166,365,396 8,391,475,135 9,074,240,320 7,197,502,577 31,829,583,428

PERSONAL CARE 5,464,162,026 6,083,386,377 6,751,251,800 5,502,962,056 23,801,762,259

BEVERAGES 5,553,987,844 6,399,786,765 5,901,835,166 7,514,812,027 25,370,421,802

PHARMACEUTICALS 5,901,221,971 4,869,860,288 5,608,224,204 4,439,070,814 20,818,377,277

FOODS 5,754,410,720 3,998,966,148 5,365,148,440 6,859,178,716 21,977,704,024

PUBLISHING and EDUCATION 3,591,838,173 3,975,306,681 5,020,235,552 8,633,316,128 21,220,696,534

TOURISM and ENTERTAINMENT 2,095,071,056 1,974,658,700 2,165,531,412 6,820,629,017 13,055,890,185

TRANSPORT 1,459,661,649 1,649,924,160 2,420,758,613 3,128,978,884 8,659,323,306

VETERINARY and AGRICULTURE 1,211,217,035 2,003,635,491 2,126,319,072 1,837,910,444 7,179,082,042

RETAIL 1,065,964,431 1,086,210,187 2,610,638,640 1,659,749,073 6,422,562,331

OFFICE EQUIPMENT and SERVICES 404,081,801 362,485,934 380,452,217 765,822,851 1,912,842,803

SUPPLEMENTS and

CONGRATULATIONS 204,304,134 556,841,111 298,936,875 1,950,367 1,062,032,487

CLOTHING, FABRICS and

FOOTWEAR 189,223,910 202,408,687 489,597,367 532,344,652 1,413,574,616

TOBACCO 706,192 703,000 394,092 - 1,803,284

TOTAL SPENDS KES 90,499,388,489 94,467,115,974 100,593,982,548 106,416,073,821 391,976,560,832

Source: Ipsos

Page 21: Kenya media landscape (2016)   fmc group

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Top Companies & brands

863

865

877

922

952

970

1,109

1,187

1,211

1,295

1,353

1,397

1,398

1,423

1,724

1,837

2,327

4,673

6,061

6,812

STARTIMES MEDIA

SAMSUNG

MABATI ROLLING MILLS

BROOKSIDE DAIRY LTD

KCB

PROCTER AND GAMBLE

ORANGE PHARMA KENYA…

TELKOM ORANGE LIMITED

POPULATION SERVICES…

EQUITY GROUP HOLDING…

JAMII TELECOM

UNILEVER KENYA LIMITED

PWANI OIL LIMITED

MULTICHOICE

KENYA BREWERIES LTD

RECKITT BENCKISER EAST…

AIRTEL KENYA

COCA COLA

GOVERNMENT OF KENYA

SAFARICOM

COMPANY SPENDS KES (Millions)

578

658

666

667

711

731

774

783

824

828

879

952

1,102

1,268

1,295

1,297

1,720

2,309

4,423

6,698

YOUTH AVIATION

DETTOL

TUSKER

LOTTO

KENYA POWER

SONA MOJA PAIN KILLERS

JAMII MILLING

STARTIMES

SAMSUNG

SMS 29299 ZINDUA CHAPAA

GOTV

KCB

TELKOM ORANGE

MINISTRY OF HEALTH

EQUITY BANK

FAIBA

BAMBA TV

AIRTEL

COCA COLA

SAFARICOM

BRAND SPENDS KES (Millions)

Source: Ipsos

Page 22: Kenya media landscape (2016)   fmc group

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TV

Page 23: Kenya media landscape (2016)   fmc group

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TV ad spends 2012 - 2015

Source: Reelforge

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Citizen TV continues to dominate TV Spends.

Source: Reelforge

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TV revenues

25Source: PWC

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TV prime time ratings

Citizen maintains the highest ratings throughout prime time followed by KTN then NTV. NTV ratings are highest at 19:00 and 21:00, when the Swahili and English news shows are aired respectively. KTN has its highest average rating at 21:00 each evening.The highest overall ratings recorded are at 19:00, 20:30 and 21:00 on Citizen Television. These times correspond with Citizen News’ airing of Swahili news at 19:00 and English news airing at 21:00 on Citizen.

Source: Geopoll data, Q4 2015

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What are the differences between analogue and digital broadcasting?

Analogue Platform

• An analogue (or analog) broadcast signal directly represents the transmitted sound and picture through deliberate variations in signal voltage and radio frequencies

Digital Platform

• Digital broadcasting works by translating sound and picture into digital data rather than analogue waveforms.

• Digital links have more efficient bandwidth usage than analog links, which gives a content provider more room to provide a higher-quality signal.

Page 28: Kenya media landscape (2016)   fmc group

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Set top box penetration (May – Dec 2015)

In December, 71% of those with TV sets owned a set top box, up 8% from the 63% who owned a set top box in July. In Nairobi, which was the first area to transition to digital signal, 79% now own a set top box, which is a 7% increase from July.

Source: Geopoll data, Q4 2015

Page 29: Kenya media landscape (2016)   fmc group

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STB free to air versus pay TV (Mar – Dec 2015)

An increase is seen in the number of people paying a monthly fee to access services from 62% in March 2015 to 70% in December 2015.

Source: Geopoll data, Q4 2015

Page 30: Kenya media landscape (2016)   fmc group

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Favourite channels versus new channels (Mar – Dec 2015)

The digital migration increased the number of channels available from the analogue platform. Surfing for new channels has dropped from a high of 67% in March 2015. In December, 55% of respondents indicated that they are still exploring new channels.

Source: Geopoll data, Q4 2015

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Reasons for not owning a set top box (Mar – Dec 2015)

In December, 45% of those who have not yet switched to digital indicated they had not made the switch because it was too expensive. This percentage has declined since March, possibly due to increasingly affordable set top boxes.

Source: Geopoll data, Q4 2015

Page 32: Kenya media landscape (2016)   fmc group

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RADIO

Page 33: Kenya media landscape (2016)   fmc group

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Radio…

Source: PWC

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Radio ad spends 2012 - 2015

Source: Reelforge

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Spends distribution by top 15 radio stations

Source: Reelforge

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Spends distribution by dialect

Source: Reelforge

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Radio revenues

37Source: PWC

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PRINT

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Newspapers…

Source: PWC

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Newspaper revenues

Source: PWC

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Magazines…

Source: PWC

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Print ad spends 2012 - 2015

Source: Reelforge

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Spends distribution by publication

Source: Reelforge

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Spends distribution by circulation (2014 – 2015)

Source: Reelforge

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Magazines revenues

Source: PWC

Page 46: Kenya media landscape (2016)   fmc group

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Kenya Digital Landscape

Page 47: Kenya media landscape (2016)   fmc group

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Overview

Source: Jumia

Page 48: Kenya media landscape (2016)   fmc group

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Emerging trends (internet metrics)

Broadband Internet subscriptions which are still 99% mobile are at 6.3

million for a penetration of 14.7%

Equitel has 5% mobile Internet market share with 1 million

subscriptions

Orange has 13.4% mobile Internet market share with 2.8 million

subscriptions

Airtel has 17.5% mobile Internet market share with

3.7 million subscriptions

Safaricom has 64.1% mobile Internet market

share as a result of having 13.8 million

subscribers

Internet subscriptions in Kenya is at 21.6

million meaning a

penetration of 74.2%

Page 49: Kenya media landscape (2016)   fmc group

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Internet Penetration

23.2mn 6.2mnhours of YouTube

watchtime per

month

Internet Users in Kenya

27%smartpho

ne

penetratio

n

4.2mn

Active

Facebook

Users

Kenyans

online that

use search.

Google

Display

Network

penetration:

98%

99%

97%

source: internal Google Data, TNS, CCK

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45% Internet Penetration in Kenya

TNS/Google (2014): Connected

Consumer Study – Results Kenya

Q6: How often do you access the Internet for personal reasons?

Base (weighted): all respondents, n= 1,070

Online usage by age group

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65% use Search Engines, 40% use Online video

TNS/Google (2014): Connected

Consumer Study – Results Kenya

Online activities (once per month)

Q16_1-_4 aggregated: Frequency of Internet usage for personal reasons per

device Category

Base (weighted): online users, n=483

See full list of items in local language here.

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THANKS

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