Vicki Myburgh, director of Entertainment & Media for PwC Southern Africa says, "PwC plays a pivotal role in supporting entertainment and media (E&M) across the business world. This outlook provides an in-depth look into the performance and future of E&M industry in South Africa."
Radio is the most popular form of media in South Africa. There are more than 10 million households with radios and approximately 28 million people tune in to listen every week.
In 2009, advertising spend accounted for 82% of the radio market despite experiencing a decline for the first time in five years. According to the outlook, the economic recovery, coupled with spending related to the FIFA World Cup, boosted advertising revenues for the six months ended June 2010 achieving a level of R1.24 billion, compared to R1.05 billion in the same period in 2009.
The radio industry is made up of three categories: public services broadcasting sector, a commercial sector and community radio stations.
Launched in 2008, the Radio Advertising Bureau (RAB) was formed to promote the use of radio as an advertising platform. RAB is focused on educating advertising agencies on the strengths of the media and how radio can be used more effectively.
Public stations rely on advertising and public funding for revenues. Radio advertising has been negatively impacted by the recession and radio advertising declined almost every month in 2009 when compared to the previous year.
For more information go to www.pwc.com/za/outlook.