The telecommunications sector retained its lead position as
the highest advertiser in Nigeria in 2015 with a combined total expenditure of
N16.7 billion. This
information is contained in the just-released 2015 Mediafacts, a key media
resource for marketing professionals in West and Central Africa.
According to the report, produced annually by mediaReach OMD, a
specialist media company that provides media planning, buying, control and
inventory management services, the figure represents 17% of the
total advertising spend in Nigeria of N97.9 billion in the same year.
The report also identified Personal Paid (N12.2 billion),
Corporate Communications (N6.3 billion), Banking & Finance (N5.8 billion),
Lager Beer (N4.6 billion), Public Service (N3.8 billion), Soft Drinks (N2.8
billion), Cable TV (N2.5 billion), Milk & Diary (N2.2 billion) and
Broadcast (N2.2 billion) as part of other top advertising product categories
that contributed to the total ad spend. Others are: Noodles (N2.1 billion),
Cocoa Beverages (2.0 billion), Skin Cleansing (N1.8 billion), Nutritional
Drinks (1.8 billion), Dental care (N1.6 billion), Seasonings (N1.5 billion),
Online mall/Education imparting knowledge & Skill/Malt (N1.4 billion), NSD
Powder (N1.3 billion and others (N22.4 billion). Mediafacts stated that these
are the top 20 advertising product categories in 2015.
According to Mediafacts, "The top 10 advertisers in
Communication and Telecommunications sector in 2015 include: Sundry Ad (other
Inform. Service) – N13.5 billion, MTN - N4.7 billion, Airtel - N4.1 billion,
Etisalat - N3.7 billion and Globacom - N3.7 billion. Others are: Nigerian
Breweies – N3.7 billion, The State Government – N3.1 billion, Sundry
Advertisers (Services) – N3 billion, Reckit Benkiser Nigeria – N2.7 billion and
Procter & Gamble – N2.1 billion.
The report stated: “"he top 20 advertisers contributed 64%
of total spend and the top four telecom players contributed 17% of the total
spend in 2015." Mediafacts also revealed that the total advertising
spend recorded in 2015 represented an increase of N4.8 billion above the N93.1
billion documented in 2014.
According to the report, "the 2014/2015 electioneering
campaigns and the successful change in government may have positively impacted
on the advertising spends in 2015 as it records a positive growth of about 4.8%
over 2014 total media spend."
Mediafacts further revealed that the television stations
attracted the highest advertising expenditure of N39 billion in 2015. The
report also put the advertising expenditure attracted by the print media,
outdoor and radio stations at N23.7 billion, N20.1 billion and N15.1 billion;
respectively.
Meanwhile, the advertising expenditure that went to the
Print media last year declined marginally by 4% from N25.8 billion in 2014 to
N23.7 billion in 2015. Also, the Outdoor performed better the previous year when
it attracted N20.5 billion advertising spend against N20.1 billion in 2015.
However, the TV and Radio stations in Nigeria attracted more advertising spends
of 39.0 billion and N15.1 billion in 2015 compared to N34.6 billion and N12.1
billion the previous year.
Mediafacts put the advertising expenditure in the first and
second quarters of 2015 at N23 billion each, while it was N29.8 billion and
N22.1 billion in the third and fourth quarters of the year. "The highest spend
for 2015 was recorded in Quarter 3 (N29.8 billion), which represents 30% of the
total spend," the report stated.
Among the various regions in Nigeria, Lagos state attracted
the highest advertising expenditure of N53.1 billion followed by the North
Central (N12.1 billion), South West (N10.2 billion) and South South (N10
billion). "The highest spend for 2015 was recorded in Lagos, 54%, followed by
North Central (12%), while North East took the rear position. The paltry spend,
less than 1% in the North East was traceable to the space of insurgency in the
region", Mediafacts revealed.
Mr. Tolu
Ogunkoya, Managing Director/CEO of mediaReach OMD, said, "Nigeria’s media is one
of the most vibrant in Africa. State radio and TV have near-national coverage
and operate at federal and regional levels. All 36 states run at least one
radio network and a TV station. There are hundreds of radio stations and
terrestrial TV networks, as well as cable and direct-to-home satellite
offerings."
According
to him, television viewing in Nigeria is concentrated in urban areas. "There
are more than 100 national and local press titles, some of them are
state-owned. They include well-respected dailies, tabloids and publications
which champion ethnic interests. By 2014, 70.3 million Nigerians were online
(Internetworldstats.com). Mobile phones are commonly used to access the web.
Most Internet users are young, educated and urban", he stated.
Ogunkoya
noted that Nigeria’s economy is the largest in Africa while its manufacturing
sector is the third largest on the continent producing a large proportion of
goods and services for the West African sub region.
His words:
“The Nigerian environment which is characterised with many investment
opportunities seems to be the most attractive for foreign investors because of
its liberal economic climate due to the following reasons:
- The economy has been liberalised for full open market
- 100% foreign participation is now allowed in all sectors
- Privatisation programmes and industrial development encouraged
- Profit repatriation allowed
- All laws that inhibit full functioning of a deregulated, free enterprise and market driven economy were removed from stature books.”
Following
the April 2014 statistical “rebasing” exercise, he stated, Nigeria has emerged
as Africa’s largest economy, with 2015 GDP estimated at US$1.1 trillion.
Ogunkoya said: “Oil has been a dominant source of income and government
revenues since the 1970s. Following the 2008-2009 global financial crises, the
banking sector was effectively recapitalised and regulation enhanced. Nigeria’s
economic growth over the last five years has been driven by growth in
agriculture, telecommunications and services.”
He said:
“the report gives in-depth coverage of Nigeria and Ghana’s media markets. Media
practitioners in the West and Central African regions, and companies making
inroads into the markets in these regions would find this publication useful”.
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