21 Dec What is the Black Agencies’ slice of digital marketing economy in South Africa?
In my latest blog, I gave myself a task of determining the size of the digital marketing economy in South Africa.
According to my estimations, where I identify the 7 drivers of the digital marketing economy that are led by digital advertising and content development, the value of this sector of the economy is R13.45 billion in 2021.
To find out how I arrived at the valuation above, click here to check out my blog.
The total value of the South African economy, measured in nominal GPD terms, is R6.5 trillion.
Therefore, the digital marketing economy is only 0.2% of the South African economy.
Compare the contribution above with the top 10 sectors in the pie chart below.
But despite its size as a percentage of the total economy, my bet is that the digital marketing economy is still much bigger than all of the Black Agencies imagined. Right?
$million question 1
What has been the Black Agencies’ combined slice of the digital marketing economy in 2021?
Anyone of the Black Agencies willing to do this exercise to find out what portion of the total market value came our way? Is it 20% (2.69 billion), 10% (1.345 billion), or 5% (672.5 million)? It would be an interesting exercise, would it not?
My guess? The slice of digital marketing business owned by Black Agencies in 2021 is between 5% and 10%. We are lucky if it is closer to the upper band of this range.
Clearly, we still have some way to go.
$million question 2
What and how long is it going to take Black Agencies to own a minimum of 50% of the digital marketing economy in South Africa? Any thoughts? Anybody?