Kenyan papers make more money than Nigerian counterparts

September 27, 2017 in Business, Communications by Editor

September 27– Kenya’s newspaper market was worth $172 million in 2016, up 3.0% on 2015 and generated 10 times more money than that made in the Tanzanian market which topped $16 million according to the PwC Entertainment and Media Outlook (E&M) 2017-2021.

The report was put together by the PricewaterhouseCoopers South Africa and published last week. With a population nearly five times bigger than Kenya’s, the Nigerian market earned $125 million while in South Africa, newspapers made just over $650 million during 2016, but circulation is in decline.

No figures are given for Uganda in the survey that only covers, Nigeria, Kenya, Ghana and Tanzania. E&M Outlook says over the next five years, revenue in Kenya will grow at a 2.2%  compound annual growth rate (CAGR), totaling $192 million in 2021. CAGR can be thought of as the growth rate that gets you from the initial investment value to the ending investment value if you assume that the investment has been compounding over the time period.

Digital newspaper advertising revenue will reach US$10 million in 2021. Standard Group, owner of daily publication The Standard and weekly newspaper The Nairobian, among others, offers a range of online ad packages, which can include banner ads on both homepages and mobile sites, along with social media mentions. Standard Group offers ‘sponsored article’ adverts, which includes four social media posts promoting the brand or product.

Small rises are expected in Nigeria to 2021 with total newspaper revenue reaching $127 million. However, inflation has inhibited advertising growth. High inflation rates have dampened the level of investment in advertising.

Referring to Tanzania, E&M findings show newspapers appear to be largely in good health. Aside from a dip in advertising revenue in 2013, both circulation and advertising have been on an upward curve, albeit beginning from a very low base for a nation of more than 50 million.

The report states in part, ‘Total Tanzanian newspaper revenue in 2016 was $16 million, with a large majority being from advertising. This is forecast to grow at a 7.1% CAGR to 2021 to reach $23 million. Circulation revenue will rise fastest, but from a lower base, seeing an 8.5% CAGR to 2021, while advertising revenue will increase from $12 million in 2016 to $16 million in 2021’.

It goes on to state that the Tanzanian newspaper industry is as yet insulated from trends affecting the wider world. Digital disruption is at a minimum because fixed broadband and mobile Internet penetration is so low, meaning that print is the only possibility for large swathes of the population.

In 2021, the newspaper market in South Africa is expected to be about $110 million smaller than in 2016. Last year total newspaper revenue was worth R8.9 billion,(about $650 million) but this figure will drop to R7.4 billion in 2021.

The Ghanaian market totaled $15 million in 2016, up 1.8% on 2015. Over the next five years, the E&M Outlook says newspaper revenue will increase at a 7.9% CAGR, from $15 million in 2016, to $21 million in 2021. Advertising dominates the market, accounting for 71.2% of total revenue in 2016, despite a slowdown in growth as a result of falling GDP per capita. As the economy recovers, advertising revenue will rise year on year for the rest of the forecast period.