By Carey Finn. Federico De Nardis, CEO of GroupM, Sub-Saharan Africa, tells us what’s making the markets tick, based on insights from the company’s 2024 Global MidYear Forecast report.
Africa’s advertising landscape is being shaped by two key trends: global consolidation and, on the African continent itself, decentralisation. “Consolidation is what we’ve seen for the last ten years or more,” explains De Nardis. “Advertising revenues are consolidating within the top global sellers: Google, Meta, ByteDance, and so on. There’s no stopping.”
Decentralisation: an African opportunity
While consolidation is a global phenomenon, on the African continent, the thriving creator and influencer scene drives decentralisation. “Companies increasingly rely on influencers to deliver brand messages,” explains De Nardis. User-generated content and the influencer economy are gaining rapid relevance.
However, the continent’s complexity sets it apart from other areas of the world. “Consider the 54 markets, many more languages, lots of different currencies, and that most of these creators and influencers are young and unbanked,” says De Nardis. “Managing this ecosystem for global brands is significantly more complex than in Europe, North America, or Asia.”
Despite this complexity, De Nardis notes that Africa is finally being recognized as the “next big opportunity”. The only unknown is: when? “That’s the big question that no one can really answer,” he says.
Fastest growing markets
What is clear is that over the next five years, Africa and Asia will dominate as the fastest-growing markets, linked to the continents’ respective population growth. Africa’s population—described as youthful and growing—is expected to quadruple by the year 2100, generating a robust consumer market.
GroupM forecasts global advertising revenue will grow 7.8% this year to US$989.8 billion, surpassing US$1 trillion in 2025. The United States and China, accounting for 57% of the world’s advertising market, are the main growth drivers. Combined, the two nations account for 57% of the world’s advertising market. GroupM estimates global advertising will achieve a 5.9% compound annual growth rate (CAGR) through 2029.
Excluding the hyper-inflationary markets of Türkiye and Argentina, South Africa will become the second-fastest-growing market over the next five years, with an impressive 17.2% compound annual growth rate (CAGR)—just trailing behind the Philippines.
Worldwide, digital advertising leads as the primary driver of growth. This includes retail and connected TV. The report suggests that Africa could benefit from this trend as digital adoption increases across the continent. Programmatic advertising in particular has gained traction, with the potential to push ad spend higher.
Digital takes 70% of global ad market
Digital pure-play advertising will comprise 70.6% of total advertising revenue in 2024, reaching US$699 billion. This category includes ads on digital-native platforms like search engines and social media, but excludes digital extensions of traditional media such as TV streaming or online newspapers. Five companies—Google, Meta, ByteDance, Amazon, and Alibaba—together account for 77.7% of all of this revenue. “And digital is continuing to grow—it’s unstoppable,” says De Nardis.
“Within digital, retail media is a very interesting space,” adds De Nardis. “It’s the fastest growing segment within digital advertising, skewed by markets. The US and China are driving it, but even in South Africa—especially with Amazon’s launch—the retail space has become contested and competitive.” This shift is set to change the advertising landscape and how FMCG companies invest in the future, De Nardis notes.
Mobile first key future driver
The report highlights several opportunities for African markets. These include increased mobile and social media advertising, reflecting mobile-first consumer behaviour, and potential growth in out-of-home advertising, with South Africa already showing robust growth. The expanding gaming industry offers new in-game advertising opportunities. What’s more, several African countries rank among the fastest-growing economies globally, potentially attracting increased advertising investment.
