SECTOR 2

2.13 The advertising market is large enough to support
a diversity of media outlets.
Opinions differed on the size of the advertising market, with some panellists
describing it as “average”, and others characterising it as “below average” and
“not big enough to support the full media landscape”. When there are increases
in ad-spend, this is “not well-developed or broad enough to be spread across the
media landscape”.
The biggest advertisers are the telecommunications companies, who spend
a large amount on advertising. However, little information is available on how
much they spend. It is also “hard to find out how much government spends on
advertising, procurement” opportunities and on placing government ads.
There is a greater need for diversification in spending across both public and
private media.
“If a telecoms or beer company is placing 10 full-page colour ads, they should
diversify and spend some in public and some in private media.”
The survival of some state media entities is dependent on the subsidies they receive
from government. Independent media do not receive government subsidies.
Additionally, the political landscape can also affect the sustainability of media.
“Some papers fold up when there is a change of power.”
There has been increased adspend on social media platforms. The level of
spending on these platforms “depends on how many followers you have, how
interactive you are, and your ability to find ways to get some funding from ads.”
Some bloggers have been able to operate blogging businesses based on the
advertising they receive.
Using SMSes as a means of advertising on mobile phones is also increasing.
Advertisers have become “mindful of the public outcry on spending on advertising,
versus their corporate social responsibility spending”, and are diverting more
resources to these social responsibilities.
Smaller media houses are at the greatest disadvantage in terms of attracting
advertising dollars “because in the end, if you want the greater benefit, you need
to be bigger”. Some of these media houses are either “swallowed by bigger
entities”, or are otherwise “on the brink of collapse”.
The strength of most private media houses are tied to their owners, and this
factor may also determine the amount of advertising they attract.

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AFRICAN MEDIA BAROMETER GHANA 2013

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