Ingenious Africa Media

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1.    Industry Overview
The nature of the business falls under the media and advertising industry of South Africa. An understanding of the industry is imperative for Ingenious Africa Media so as to have an appreciation of where the industry has come from, where the industry is now, and where the industry is going. Management is particularly interested in the future growth, growth potential and profitability of the industry.
The media and advertising industry has developed over the years with the improvement of technology particularly with the proliferation of cable and digital channels. In the past, advertising agencies and other players in the industry offered a wide array of marketing services under a single roof. However, with the expansion of the media and advertising industry, more advertising solution providers have moved towards offering more specialised in-house departments - as separate agencies in their own right. Additionally, the number of advertising agencies and other marketing solution providers has increased; ownership of these agencies has ultimately concentrated dramatically.  Major consolidation within the media and advertising industry has led to a huge number of mergers and acquisitions, as well as the creation at top end of the market of a small group of major holding companies, each of whom owns or controls a large number of separate agencies. Currently, there are still independent owner-operated agencies in the region; however, these are in fewer numbers than before. Additionally, most are small as compared to group-owned brands.

The media and advertising industry encompasses a wide array of media and these include the following:

Media Proportion
Television 32%
Newspaper 14.5%
Outdoor 11%
Internet 9.5%
Radio 8%
Magazine 5%
Packaging 4%
SMS 3%
Brochure 3%
Pamphlet 2.5%
POS 2%
Email 2%
Direct mail 1.5%
Cinema 1%
Fax 0.5%
Poster 0.5%
Media and Advertising Industry

The internet and advancements in information communication technology will play a key role in the performance of companies in the media and advertising industry. Contrary to the past when the industry was concentrated and dominated by a few players, the media and advertising industry will be fragmented with many smaller players focusing on specific needs of niche market segments. Lastly, survival in the market will depend on having a better understanding of the target market and ensuring that the content covered in the various media platforms addresses the needs and preferences of the target market. Collaborations amongst players in the value chain will also play a critical role in the survival or failure of companies in the media and advertising industry.

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