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I am pleased to share with you our publication, Kenyan entertainment and media outlook (the Outlook). This publication provides an overview of the entertainment and media industry in Kenya as well as deep-dive discussions on sub-sectors like Internet, television, radio, music, publishing, out-of-home advertising, video games and sports. While the report itself makes for a fascinating read, I am even more impressed with the online toolkit accompanying it.By visiting www.pwc.co.za/outlook you can mine industry data for the last
ve years and forecast data for the next
ve years on consumer and advertising spending. Data is available for 12 industry segments in local currency for three countries: Kenya, Nigeria and South Africa. The site’s intuitive functionality is touch-enabled for tablets and smartphones; search and charting functions allow you to export custom data sets to Excel and PDF. The toolkit is designed for decision makers; please do get in touch and we can explore how its functionality is speci
cally relevant to your business.The key highlights of this publication are:
• Total entertainment and media expenditure in Kenya will exceed US$3 billion in 2017, representing a 16.3% CAGR between 2013 and 2017 – one of the fastest growth rates in the world.
Demographic changes, urbanisation and innovation as well as an expanding middle class will contribute most signi
cantly to this growth. But by far one of the most interesting trends for the industry is the growth of mobile Internet access and how that growth will impact advertising and consumer spending.
• There are risks to the entertainment and media industry’s outlook as well.
Our report shows that entertainment and media companies can offer better services together with education, enforcement and regulation to combat piracy. Affordable access to broadband Internet would have a transformative impact on Kenya’s already high-growth entertainment and media industry, but slow adoption and limited availability – not to mention high cost – are limiting growth for the sector and in some cases, contributing to piracy.
• One of the other trends that the report brings to light is how the availability of entry-level smartphones (generally understood to be less than US$100) leads to an increase in mobile data usage.
This has a signi
cant impact on the ability of advertisers to engage directly with more consumers; the number of smartphone connections is expected to rise by an average of 40% per year between now and 2017. Advertisers know that the most effective campaigns now integrate mobile with other forms of advertising. Consumers, after all, almost always have their mobile devices with them.For all the talk about mobile’s bright future, our report shows that the majority of advertising spending in 2017 will still be through traditional media platforms like television, radio and newspapers. Advertisers are loyal to media whose effectiveness – as measured by established metrics – they know and trust. At the end of the day, the most valuable data is about what consumers will do next and measuring engagement is about who sees an ad and how they react to it.