Uganda's Advertising Boom: ATL Spending Surges 30% to UGX 309 Billion Despite Economic Headwinds -Uganda Media Landscape H1 2025

Uganda's advertising industry demonstrated remarkable resilience in the first half of 2025, with total ATL (AboveTheLine) spending reaching UGX 309 billion, a 30% increase from H1 2024. This growth occurred despite significant economic headwinds, political tensions ahead of the 2026 elections, and evolving consumer media habits.

With a population of 45.9 million, the country is remarkably young, where over half the population is under 20 years old. This youth bulge represents both an opportunity and a challenge for brands seeking to build long-term customer relationships.

Understanding the Living Standards Measure (LSM) distribution is critical for realistic market sizing. The affluent and upper-middle segments (approximately 4.6 million people) represent the premium market with significant purchasing power. However, the middle class of 15.6 million people offer the largest addressable market for most mainstream brands.

Economic Factors Creating Market Volatility

The first half of 2025 brought several economic disruptions that marketers cannot ignore:

• USAID funding cuts have reduced foreign assistance, impacting household incomes and potentially affecting consumer spending in health, food, and necessities categories. Brands in these sectors should anticipate tightened consumer budgets.
• World Bank loan resumption after the anti-LBGTQ legislation controversy signals renewed international confidence, though brands must navigate this politically sensitive landscape carefully. Maintaining neutrality while demonstrating social responsibility will be essential.
• US trade policy changes under the Trump administration have introduced tariff uncertainties affecting import-dependent businesses. Consumer goods brands relying on imported inputs should prepare for potential price pressures.
• Government rationalisation and agency mergers are creating job market uncertainty. For marketers, this means the emerging middle class may face income volatility, affecting big-ticket purchases and brand loyalty.

Media Consumption Shifts: Where Are Brands Reaching Audiences

One of the most significant developments in Uganda's advertising landscape is the rapid growth of digital out-of-home (DOOH) advertising. Digital screens, LED billboards, and synchronised displays are transforming urban landscapes in Kampala and other cities.

Advertisers are swapping traditional static billboards for digital out-of-home (DOOH) screens, driven by a demand for greater agility, impact, and accountability. The primary advantage lies in its flexibility, where a printed billboard locks an advertiser into a single campaign for months, a digital screen can rotate variations of advertisements throughout the day. DOOH screens hook consumers' attention with the dynamic, motion-based content on digital displays, whether a short video, animation, is far more effective at cutting through the visual clutter and capturing the glance of a passerby.

Above The Line Advertising Trends: Media Expenditure

Television's Continued Dominance

Television advertising captured 51% of total ATL spend in H1 2025, up from 50% in H1 2024. This growth reflects the impact of digital migration, which improved signal quality and expanded reach beyond urban centres.

Top TV advertisers include MTN, Coca-Cola, and Pepsi, understanding television's unmatched ability to create emotional connections at scale.

Radio Holds Strong At 47%

Radio maintained a 47% share of ATL spending, demonstrating its continued importance despite digital media growth. A continued reflection of radio's unique reach and relevance.

Print's Continued Decline

Print advertising fell to just 2% of total spend, reflecting the broader global trend decline in print circulation. While print shouldn't be entirely abandoned, it still reaches various stakeholders.

Category Performance: Sector By Sector Insights

Telecommunications remained the top advertising category, accounting for 23% of total spend, although its share declined from previous periods following Airtel's significant budget cuts. MTN's dominant spending position (UGX 50.5 billion in H1 2025) demonstrates continued belief in ATL advertising's effectiveness for building and maintaining market leadership in competitive categories.

Corporate & Multi-Sector Campaigns Surge

Government health campaigns, particularly malaria awareness, funded by the Ministry of Health and partners, dominated the total spending. 

Multichoice and Crown Beverages (Pepsi) are particularly aggressive advertisers, maintaining significant expenditure: Pay TV (13%) and Beverages (13%), reflecting the competitive intensity in these categories

Coca-Cola's irregular spending patterns continued to limit overall beverage category performance.

Looking ahead, several factors will likely affect advertising performance in H2 2025. 

• Election spending surge: As the 2026 elections approach, expect increased political advertising to compete for airtime, potentially driving rates higher.
• Economic pressure: Continued government spending constraints and household income uncertainty may affect consumer categories, particularly big-ticket purchases.
• Digital migration completion: Further expansion of television signal quality could drive continued growth in TV advertising effectiveness.
• DOOH infrastructure expansion: Expect more digital screen installations, creating new creative opportunities and modern measurement techniques.
• Competition intensity: Categories with reduced spending from major players (telecommunications following Airtel cuts, beverages with Coca-Cola inconsistency) may see aggressive competitive campaigns.

Uganda's advertising market in H1 2025 demonstrated remarkable growth despite economic challenges, political tensions, and evolving consumer behaviour. This environment demands a strategic understanding of demographic realities, embracing media innovation while maintaining traditional reach, and choosing agency partners wisely.

The 30% growth in ATL spending signals continued confidence in the mass media's effectiveness for brand building and market share gains. Brands that combine this broad reach with targeted digital engagement, an authentic understanding of consumer realities, and agile responses to market dynamics will build the strongest positions in Uganda's evolving marketplace.