As the range of media outlets continues to diversify both in terms of form and content, Gabon’s advertising sector is seeing steady growth. Despite the relatively small population, rising incomes and the increasing competition in specific sectors such as telecommunications and finance are leading companies to pay more attention to their communication strategies, working to customise them to specific audiences.
Spaces on the country’s airwaves and in print media are bringing in comparatively high revenues, although not to the same extent as the expanding network of billboards. Online advertising is still growing at a relatively slow pace, as traditional advertising vehicles remain the focus point for communications expenditure. Governmental efforts to diversify economic growth away from its high dependence on the oil industry will definitely affect the sector by encouraging the establishment of new sources of advertising spend.
MARKET STRUCTURE: The main players operating in the Gabonese advertising sector include the state-owned broadcaster Radiodiffusion Télévision Gabonaise (RTG), with several television channels and a network of radios, and Publicom for print advertising. Gabonaise d’Édition et Communication (GEC) and Médiaffiche are the biggest players in the outdoor market.
Not long ago, as with many African markets, most activity would come from in-house development campaigns by advertisers and subsequent dissemination through different media vehicles. This still happens to an extent, especially in small to medium-sized companies. But over the years the local advertising sector has been transformed by the arrival of creative agencies. A range of services is now offered by communications companies in the sector: multiple-platform advertising campaigns, events marketing, brand creation and complete communication strategy development.
Several international companies, such as McCann Erickson, Ogilvy, Delfia, Havas Media, Rackkham and AG Partners, have established themselves to take advantage of the growing market. International groups are increasing their footprint in sub-Saharan Africa, either through direct acquisition of local communications firms or by leveraging stakes in companies.
THE MAIN MARKETS: The main advertising vehicles in the market remain print media, radio and television. A growing network of outdoor panels in the country’s urban areas has also attracted increasing amounts of investment. In recent years market prices have experienced a momentary upsurge during special events, which, as in markets elsewhere on the continent, enhance the competition for space. The 2012 African Cup of Nations, for example, saw price increases of around 20-30% across all media.
The two established daily newspapers, Gabon Matin, are attractive poles for most spending on print media, largely because of their established readerships and regular distribution. Prices for advertisements in print tend to be higher for the main two daily newspapers, and are considerably lower for a host of smaller publications with unreliable periodicity. The leading daily newspaper, L’Union, charges around CFA245,000 (€368) for a quarter-page advertisement in black and white in the inside of the paper, and up to CFA2m (€3000) for the back cover colour ad.
ON THE AIRWAVES: Given the country’s challenging terrain and insufficient road connections and regular transport networks, radio has also established itself as a relevant tool for advertisers wanting to reach rural populations. Advertisers are finding that radio is an increasingly efficient way to target the youth as well as providing opportunities to communicate with specific audiences. “Radio is more geared towards the young people these days, because they are the ones in tune with musical trends,” said Guy Noel Nkoulou, senior media planner at Affinités McCann Erickson.
Due to its role as the country’s main broadcaster, RTG has traditionally attracted the majority of advertising spend on television, but the arrival and establishment of international channels and satellite or premium packages has changed the landscape of the segment. The growth in demand for these types of services has, as in many other African countries, dramatically limited the scope and impact of television ad purchases. Conversely, however, the increased supply of quality programming is now putting pressure on local chains to create innovative content.
“It used to be a small part of the population that had access to international television, but the lowering of prices for cable TV changed everything,” Louis Edgar Mayila, director of Emergence, a Libreville-based communications firm, told OBG. “There is openness to the world, and this makes consumers compare everything with what is coming from abroad, be it in advertising or in terms of the products themselves.”
OUTDOOR ADVERTISING: The expansion of billboard advertising has had a visible impact in urban areas. Proven as an efficient method of establishing brand awareness, several companies now offer billboards across different parts of cities and main roads. The growth of outdoor communication platforms is especially prominent in Libreville, prompting brands to compete for the most visible spaces.
Publicom manages the oldest network of outdoor panels, with over 40 public signage surfaces around Libreville and the international airport. Médiaffiche, part of the BO Communications group, has the largest outdoor structure, with over 200 billboards and ad spaces. GEC also offers a network of billboard surfaces in conjunction with its other marketing and advertising services in Libreville, Franceville, Mouilla, Lambaréné and Port-Gentil. On top of its network of about 150 traditional billboards, the company has been developing new 30- to 60-sq-metre LED screen billboards.
INNOVATIVE WAYS TO COMMUNICATE: The emergence of online platforms is starting to change the limited online advertising arena. Online news platforms such as Gabonews, Gabon Review, Gabon Eco or Agence Gabonaise de Presse, the state news agency, are succeeding in attracting a steady flow of regular visitors, and are increasingly able to monetise this. Gabonews charges €750 for a banner per month, for example.
But investment in internet advertising is still weak, according to market operators. “Demand for web content and web advertising is minimal, because there is also no parallel web commerce in Gabon, which usually helps to drive up the online media outlets, and, consequently, advertising,” said Laurent Pintault, general manager at Ediprint, the group that owns Sonapresse, publishers of L’Union newspaper.
A big obstacle is the average internet penetration and connection speeds. Furthermore, the lack of immediate measurability standards for the effectiveness of online campaigns further encourages companies to communicate through more traditional media. Advertisers themselves are sometimes more willing to invest in established media where the audience figures are somewhat predictable, than to start betting on an online presence with potentially slower returns.
More than establishing an online presence, some companies are rather betting their money on event-focused marketing as a way to get their messages across. Street campaigns, generally involving activities for the whole family, have proved an effective way to increase brand awareness and to allow brands to interact with more consumers.
COSTS: The market is still affected by a relatively high cost structure. “Most communication materials need to be brought from abroad, and due to import duties, certain materials and props become automatically more expensive,” Mayila said. This is especially relevant for printed materials, which are expensive because of imported paper and ink. This has prompted some companies to prepare the design and layout in-house, but use printing houses overseas, especially in neighbouring Cameroon. This helps to cut costs, but on the downside leads to quality-control issues.
REGULATION: Similarly to the oversight of the general media sector, the advertising business is overseen by the National Communications Council (Conseil National de Communications, CNC). Although the CNC maintains general supervision of the advertising sector, especially in terms of advertising messages and determining what types of products can be advertised, specific aspects fall within different levels of government jurisdiction. Regulation of outdoor advertising, for example, is in the hands of municipal authorities, who determine where billboards can be placed.
Certain issues have raised attention from the CNC. The council has implemented some restrictions on the advertising of pharmaceuticals through television and radio. Other limitations were the advertising of food products targeted at children. This has included the banning of food billboard ads next to schools.
As with the broader media sector, the advertising business is currently awaiting the implementation of the new communications code, which has been under discussion since 2011. Specific provisions or new advertising restrictions might be included within the new law, although there is no clear deadline regarding when the code is expected to be finalised and implemented.
OUTLOOK: Traditional media, such as press, television, radio and outdoors advertising spaces, will continue to drive the sector. But in a market where some smaller outlets have trouble maintaining regular publication, advertisers will be increasingly looking for stable and credible outlets that can deliver quality content on a regular basis. A better educated and technologically savvy population will eventually open the door for innovative communication platforms and pave the way for increased interaction through online content. On the other hand, greater access to international media is also making audiences more demanding in terms of content, which will put added pressure on advertisers to use more creative ways to communicate.
From a market that used to be driven by soft drinks and other fast-moving consumer goods, advertising expenditure is now distributed through a wider variety of sectors. This has diversified investment sources for media outlets, but it has also increased the competition for space, as telecommunications operators, financial services and consumer goods brands now fight to access consumers over an extended period of time.
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