Impact assessment of a ban on alcohol advertising

Wednesday, 6 July, 2011
Chris Moerdyk,
A preliminary impact assessment on the proposed ban on alcohol advertising in South Africa shows that the loss of above-the-line advertising revenue for mass media would be R1.8billion.
Major impact on SABC: approximately R400 million; DStv and combined: approximately R500 million; the balance - radio, lifestyle magazines, newspapers.

Total loss of revenue, including sponsorship, sports development leveraging, events and below the line activities - R2.6 billion.

Impact on mass media industry: job losses of approximately 2500 low-earner employees, mainly in the print and out of home (outdoor) sectors, as well as sports marketing and management companies. Many media companies believe the figure of 2500 is too low.

Impact on alcohol industry: between 5-8% short-term drop in branded liquor consumption, recovering in the medium term due to direct marketing. Brand leaders would, in fact, benefit from an advertising ban by increasing market share at the expense of lesser-placed brands.

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