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Friday, July 8, 2016

Recent Developments in Nigeria Advertising Bazaar

      The economic slow down in the Nigerian economy experienced in the last few years has negatively affected the nation advert industry. As the economy goes into recession so does the advertising market, which depend on the wider economy for it revenue. According to the just released annual report on Nigerian advertising industry in 2015 by Mediafacts, Nigeria recorded advertising spending of N97.9 Billion representing an increase of 5.2% over the previous year total of N93.1 billion, but still below N103.8 billion achieved in 2013. The authors of the report associated last year increased in advertising to the general election of 2015 where political advertising dominate.

      Online advertising  has continued to grow, albeit at a slow phase. One grow area in this particular sector is mobile advertising where Nigeria is leading in Africa with over 95 million mobile subscribers. Smart phone penetration has increased by 30% (Africa Infotech Consulting), Nigeria was ranked 17th in the global ranking of smart phone lovers (Tpulse). The recent resolving of MTN-NCC fine controversy will help bolster the market as MTN is a major player in the Nigerian advertising market. Now MTN will advertise vigorously in order to bring back lost market share taken by it rivals. Already it has appointed a Nigerian as Chief financial officer and hint at trading it shares on the floor of the Nigerian stock exchange. Other sources of growth for the Nigerian advertising market include retail sector and financial industry who traditionally have large advert budgets. 

      An important part of the print media advertising revenue (elite advertising) has declined due to the renew pressure by the current government on corruption and related matters. It is this or what you may call fear of Buhari, that force some elite to put a break on their advertising jamboree. According to the Mediafact 2015 report, television advertising still dominate with some 40% of the total media spending of the period, followed by print media with N23.7 billion (a declined of 4% compared to last year figure). It was the TV and radio advertising that witnessed increases during the period, a pointer to their dominance of the media industry in Nigeria. Hence, the increased in the number of TV and Radio stations across the country.

   The recent liberalization of the Nigerian foreign exchange market, deregulation of the pump price of petroleum, signing of 2016 budget, war on corruption, and increase in security across the country's trouble regions are bound to affect the industry positively. These and other changes in the way the nation's economy is being managed sent signals to foreign investors on the readiness of this government to undertake the needed reforms. The government focus on domestic production will provide media managers with new source of growth as producers in the domestic economy compete to promote their goods and services in the domestic market. Thus, barring unforeseen events, the advertising market is going to do better as we move to 2017.
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1 comment:

  1. I found this is an informative and interesting post so i think so it is very useful and knowledgeable. I would like to thank you for the efforts you have made in writing this article.
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