Media industry set to lose Ksh. 14 Billion as war on betting rages


Just days after the Betting Control and Licensing Board (BCLB) ordered Safaricom to suspend Mpesa paybills and SMS short codes for 27 betting firms thus bringing their operations to halt. Ipsos and GeoPoll have released a report that indicates that the media industry stands to lose up to 10% of the 2019 advertising expenditure which is a projected loss of Ksh. 14 Billion.

According to the report, the betting and gaming sector has been growing since the launch of Sportpesa. Consequently, money spent on advertising the has sector has also increased over time with only a slight decline in media value exposure in 2018 due to the tax levy. In 2019, there is also an expected dip in advertising spend with the current tribulations facing the sector.

In as much as the spend on advertising by the betting industry is expected to go down, it is not all doom and groom for the media houses. This is because a majority of those who were interviewed in the survey indicated that they are willing to save the funds that would otherwise have been spend on betting. Advertisers can partner with financial services providers to target this consumer base that has a disposable income.

The anticipated decline in clutter across media as a result of the anticipated decline in betting firm advertising expenditure will also yield other opportunities for advertisers which includes;

  • Greater visibility of their communication.
  • Potential reduction of media budget needed to cut through media clutter.
  • With the reduction in media budgets, marketing budgets can focus on consumer conversion activities making use of their disposable income.

The report also indicated that 73% of the individuals in the survey were aware of the current tussle between the government and betting companies and have engaged in betting. It also indicated that the average spend on betting by Kenyans aged 18 to 29 years was Ksh. 1,550 in a given month.

It also indicated that those who earn less than Ksh. 77,000 were the ones who were most likely to save the funds that would have otherwise been spent on betting.

You can download the report here.

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