The Association of Practitioners in Advertising of Kenya (APA) says the standoff between the Government and three leading broadcasters over the digital migration exercise will lead to huge revenue loss.
Lenny Ng’ang’a, the APA Chairman said television advertising sector was valued at KES 41bn in 2014, and a “blackout of the major channels will occasion a large revenue loss with ripple effects to advertisers, the broadcasters, the advertising industry and the economy.”
Mr. Ng’ang’a said advertisers who are unable to drive their marketing campaigns on television effectively will scale down their advertising investment on this medium which in turn could reduce consumer demand and thus slow down the economy.
“The fall in television viewership occasioned by lack of pervasive set top box penetration, will in the coming months have far-reaching ramifications for the broadcast sector as it largely draws revenues from selling audience ratings to advertisers,” said Mr. Ng’ang’a in a statement.
“We wish to state that whilst APA fully supports the efforts by the Government of Kenya to meet its international treaty agreements and deadlines for digital migration, we have held the belief that a phased, well-planned and mutually agreed approach to the benefit of all Kenyans is ideal,” he said.
Mr. Ng’ang’a appealed for moderation and compromise in resolving this crisis as a disorderly migration will not benefit anyone and will come at a huge cost to the economy.