Advertising / Events / Communication Sector
Keys to success: Creativity, Sustainability and Verticality
The advertising and events sector was one for the worst affected business sectors during the pandemic. Client dependent, it is a sector which has learnt to dance with uncertainty of revenues in a highly competitive context. During the pandemic, customer behaviour has evolved also, making assumptions on the “buy-in” less predictable. A Mc Kinsey analysis, titled: ‘The world of ‘Ands’: Customers set the tone’, explores the statement that “consumer behaviours are diverging in sometimes paradoxical directions”, alternately “trading down and splurging selectively.” In this highly volatile context, advertisers and event managers have to up their game and align with proposals which resonate properly with consumers.
In Mauritius, the leader remains Circus Advertising with a 20% increasing in turnover, reaching Rs 150 M. However, its profits before tax have gone down from Rs 4.9 million in 2021 to Rs 2.8 million in 2022. The company is a reference in the advertising world with creations which spark engagement and leave an enduring impression on customers. Furthermore, Circus Advertising has now obtained the ‘Made in Moris’ label which ascertains that its products and services are sourced from local suppliers and provided by local employees. Operating in Mauritius for the past 20 years, the company can boast of sustainable development as part of its own branding strategy, a buy-in factor for prospective clients seeking partners aligned to sustainability practices.
Furthermore, Circus Advertising is also part shareholder of Touch Point Ltd, which ranks second in this sector and which is a company which offers media space for advertising. The latter’s turnover has increased by 18%, from Rs 119 M to Rs 140 M, with profits shooting up from Rs 3 M in 2021 to Rs 5.7 M in 2022. Vertical development in the sector of expertise is yet another good investment choice, given that fair competition practices are maintained with regards to other companies.
Overall, the sector’s turnover and profits before tax have risen, and should stabilize over the coming years with the need for visibility and transparency being stressed for ESG-compliant companies. Companies such as Blast BCW and Beyond Communications offering a wide range of corporate communication services have continued growing.
As for event management, resilience and expertise and the pickup of the tourism sector are bound to stabilize the activities and profitability of the companies engaged in this sector. The success of major concerts both for local and foreign artists as well as the steady resumption of end-of-year celebrations by corporates are positive signals which will be confirmed by the end of 2023.
|Turnover 2022 (Rs/Million)
|Profit before tax (Rs/Million)
|CIRCUS ADVERTISING COMPANY LIMITED
|TOUCH POINT LTD
|MEDIA COMPETE LTD
|Javed Vayid Holdings Ltd
|ORANGE COMMUNICATIONS (MAURITIUS) LIMITED