A thiving sector evolving to the rapid pace of ai and digital transformation

Since the end of the pandemic, the advertising sector has undergone substantial shifts globally, with a significant surge in digital advertising and online spending. According to the 2023 Annual Report by the World Federation of Advertisers, the global ad market has seen steady growth driven by the shift towards online platforms and the rising utilization of artificial intelligence (AI) for precise audience targeting. Global social media users have surpassed the 5 billion mark, with annual user growth comfortably above 5 percent, as highlighted in the 2024 Meltwater Digital Global Review Report. GroupM’s estimate that global advertising will reach $989.8 billion in 2024.

In Africa, the advertising landscape has rebounded strongly as digital channels, especially social media, have become indispensable for brands. Additionally, the capacity of multi-channel communication to support sustainable behaviors and bring about positive change and inclusiveness is increasingly recognized. As Sir David Attenborough mentions: “What we do in the next ten years will profoundly impact the next few thousand… This is no longer a scientific challenge; it is a communications challenge.”

In Mauritius, the advertising sector has embraced digital transformation and this trend is expected to continue. However, adoption of new tools and technologies comes at a cost which also needs to be taken into consideration whether in terms of investment or in terms of specialized hires or continuous.

In Mauritius, the two top leaders remain unchanged. Circus Advertising Company Limited reported a turnover of Rs 194.4 million with a profit before tax (PBT) of Rs 5.61 million, reflecting significant growth. Touch Point Ltd achieved a turnover of Rs 135.1 million and a PBT of Rs 4.36 million, showcasing a strong performance. In the third place O.X.O LTD posted a turnover of Rs 105.7 million and a PBT of Rs 2.93 million. Vayid Group, specialized in events such as Pure Events, reported a turnover of Rs 101.0 million and a PBT of Rs 30.81 million, demonstrating robust profitability. Event Strategy Ltd recorded a turnover of Rs 85.9 million and a PBT of Rs 31.56 million, highlighting its strong market presence.

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.