The role of digital transformation in shaping Ghana’s advertising industry (How digital media is changing advertising in Ghana)

In the last decade, the advertising landscape in Ghana has gone through a dramatic transformation, driven largely by the rapid rise and adoption of digital technology. The shift from traditional to digital media has not only changed how brands communicate with their audiences but also how the entire advertising industry operates. This digital transformation is reshaping the future of advertising in Ghana, offering both challenges and opportunities for brands, agencies, suppliers and consumers.

The rise of digital media

Just a few years ago, traditional media—television, radio, and print dominated the advertising space in Ghana. Brands relied heavily on these platforms to reach their target audiences. However, the invasion of the internet and the proliferation of smartphones have now changed the industry dynamics completely. Today, digital media, including social media, websites, and mobile apps, have become integral part of advertising strategies.

The surge in internet penetration has been a game-changer. According to the Digital 2023 Global Overview Report,there are nearly 17 million (16.99 million) internet users in Ghana, representing 53% of the country’s population. This was not the case some 10 to 15 years ago. With this kind of surge in internet usage in Ghana brands now have the opportunity to engage with a broader and more diverse audience than ever before. Social media platforms like Facebook, Instagram, X (Twitter), and TikTok have become essential tools for advertisers, allowing them to connect with consumers in real-time, gather feedback, and create more personalized and targeted advertising messages and campaigns.

The shift in consumer behavior

Digital transformation has also led to significant changes in consumer behavior. Ghanaian consumers are more informed and empowered, with access to a wealth of information at their disposal online. This shift has forced brands to rethink their advertising strategies. No longer can advertisers rely solely on one-way communication; they have had to adapt to engaging their clients/customers and audience in meaningful conversations online.

Consumers today expect more from brands—they demand transparency, authenticity, and value. They are more likely to engage with brands that align with their values and offer content that resonates with them. This change in expectations has pushed advertisers to focus on creating content that is not only promotional but also informative, entertaining, and culturally relevant.

The emergence of data-driven advertising

One of the most significant impacts of digital transformation on the advertising industry in Ghana is the reliance on market and consumer data to drive advertising. With the ability to collect and analyze vast amounts of data, brands can now gain deep insights into consumer behavior, preferences, and trends. This data-driven approach allows advertisers to create more effective and targeted campaigns, optimizing their marketing efforts for better results.

The ability to gain access to accurate data and analyze them digitally now enables advertisers to allocate their budgeted resources more effectively, reducing wasted spend on poorly performing ads or irrelevant audiences. Data enables precise ads placements, reducing the guesswork that was previously common in traditional advertising. As a result, advertisers can improve cost-per-click (CPC), cost-per-acquisition (CPA), or return on ad spend (ROAS) metrics.

In digital advertising, platforms provide advanced analytics that show the performance of each ad in detail. Advertisers can focus spending on high-performing ads and channels, ensuring that every dollar works harder to achieve business goals.

Challenges of digital transformation

The blessing of the digital transformation era is a mixed bag with some daunting challenges too. The shift to digital advertising requires significant investment in technology, skills, and infrastructure. In their well-sought-after book on: Digital Business in Africa: Social Media & Related Technologies, Hinson et al (2022) published that many agencies and brands, especially smaller ones, may struggle to keep up with the rapid pace of change.

The digital landscape is a space that is constantly evolving. New platforms, tools, and trends are emerging all the time. Prof. Hinson, Adeola and Edeh, in their book, firmly state from their research work that staying ahead of the curve requires continuous learning, adaptation and some heavy investments. For advertisers, this means not only embracing new technologies but also understanding how to leverage them effectively to achieve their goals.

Another challenge is the issue of digital literacy among consumers. While internet penetration is high, there is still a significant portion of the population that is not digitally literate. Reaching these consumers requires a balanced approach that combines both digital and traditional media strategies.

The future of advertising in Ghana

Despite these challenges, the future of advertising in Ghana is undoubtedly digital. As more brands and agencies embrace digital transformation, the industry will continue to evolve, becoming more sophisticated and data-driven. The rise of e-commerce, mobile marketing, and artificial intelligence (AI) are just a few of the trends that will shape the future of advertising in the country.

Market research by Agyarkoh (2020) as published in the Journal of African Arts & Culture on Challenges of Electronic Advertising in Ghana, suggests that as internet usage continues to grow, digital platforms will dominate the advertising landscape.

For brands and agencies, the key to success in this new digital era will be adaptability. Those who are willing to invest in the necessary technologies, upskill their teams, and stay attuned to the latest trends will thrive. Collaboration will also be essential—working together to share knowledge, resources, and expertise will help the industry overcome challenges and seize new opportunities.