Online SA consumers fuelling ad revenue growth

Over 2.6 million South Africans on average per month accessed OPA member sites in Q3 2006, in comparison with 2.4 million in Q2. Total visitor figures (including those accessing SA sites from abroad) were 7.1 million, in comparison with 6.7 million in Q2. These figures reflect a continued pattern of growth.

Comments Russell Hanly, chairman of the OPA and CEO of 24.com, "The continued local growth of online media is part of a significant global trend which has seen the rise of some powerful Internet media brands. While South Africa still has much to do to increase Internet penetration, the latest statistics from Nielsen/Netratings shows a steadily growing core online audience of high income consumers.

"It is these consumers, along with the sharp targeting and measurability available online, that are fuelling the advertising revenue growth and helping to build successful online media businesses in South Africa."

Online ad revenue was estimated at over R183 million* by the end of 2006.

The ongoing research, gathered from visitors to OPA member sites, also shows a clear picture of the demographics of the online population in SA. The profile of local Internet users remains relatively unchanged, with the core user group being young, higher income, office workers.

Online demographics summary

Access strongest in the workplace

Eighty one percent of all respondents to Netratings were in fulltime employment. Sixty two percent of visitors to the Internet did so from their workplace, compared to only 27% from home, 6% from an educational establishment and 3% from an Internet café. Forty one percent of respondents, however, did not have access to the Internet from home.

The relatively low access rates from home reflect the high costs of Internet access for SA consumers, which the OPA suggests are way beneath their potential strength.

Urban user base

Online media consumption is strongest in urban areas: 27% of access takes place from Johannesburg, 12% from Pretoria, 16% from Cape Town and 6% from Durban, with other larger cities also showing higher usage than other areas.

Outside of SA's major cities, the least reported access of online media was in the Northern Province and the Northern Cape, both accounting for 1% of total traffic each.

Young, well-educated and high income users

Fifty nine percent of web users are younger than 35: 18 - 24 year olds make up the largest age group (32%) followed by 25 - 29 year olds (17%) and 30 - 34 year olds (15%). Education levels are high, with 79% having some further education and 34% having a degree or post graduate degree.

Income levels are also high, with 39% of web users having an annual household income of over R150 000 and of these, 18% having an annual household income over R400 000.

The language of the net