Advertising income for Newspapers in Nigeria hit N143.1
billion between 2006 and December 2015, revealing a wavy pattern that reached
its peak in 2014 with N25 billion; and declined to 23.7 billion at the end of
2015.
According to a special edition of mediafacts in the last ten years, by
mediaReach OMD titled:mediafacts Nigeria 10 Year Trend Review (2006 to 2016), the
N4.4 billion advert income in 2006 moved up to N4.8 and N4.9 billion in 2007
and 2008 respectively. The newspapers got N15.8 billion in 2009 and N16.5
billion in 2010.
The figure declined to N15.4 in 2011 and slipped further to
N9.0 billion in 2012. The downward slope however changed in 2013 with an advert
income of N18.5 billion and rose to its peak in 2014, hitting N25.8. The figure
went down by N2.1billion in 2015 when the newspapers received N23.7 billion.
mediaReach OMD explained that the newspapers tend to mostly
attract their highest advert patronage in the second and third quarters, with
exception of 2013 and 2014 which had their highest spending in the fourth
quarters of the year.
In terms of regional spending in the last ten years, the
split is between Lagos and North, with Lagos constantly attracting the dominant
share of advert spending year after year. The product analysis however shows
that Glo has consistently dominated the list of press advertising, rising
steadily in the last three years to tie with Guaranty Trust Bank ahead of
others while MTN currently occupies the third position.
But in terms of advertising expenditure across board, the TV
medium consistently enjoyed the lion share of advert budget over the years. It
is followed by the Out of Home (OOH) medium except for 2014 and 2015, when the
print medium followed the leading TV medium. The newspapers had however
experienced the highest growth rate in terms of advert spends especially in the
last three years.
For total advertising expenditure, the year 2013 enjoyed the
highest spending with N103.8 billion, representing a marginal increase over
year 2011 spending of N 102.8 billion. There was a decline in 2014 as compared
to the high spending in 2013.
The general economic outlook during the period under review
showed a Gross Domestic Product, GDP estimated at 6.1 per cent in 2014, owing
to continued strong performance mainly in services, but also in industry. The
oil sector was in decline, albeit at a slower rate than in the previous year.
Also in 2014, oil and gas GDP was estimated to have declined by 1.3 per cent,
relative to a decline of 13.1 per cent in 2013.
Managing Director and Chief Executive Officer, mediaReach
OMD, Mr. Tolu Ogunkoya, said: "Nigeria’s media is one of the most dynamic in
Africa. Each of the 36 states has at least a TV station and one radio. There
are hundreds of radio stations and terrestrial TV stations, as well as cable
and direct-to-home satellite offerings."
Not a few analysts however agree that the newspaper industry
in Nigeria is caught in the web of great depression and recession. It has
fallen victim to a combination of intertwined factors. The first is the tough
economic environment, which has reduced advertising revenue, as well as the
purchasing power of the reading public, and driven up the cost of production to
an almost unmanageable level.
With a foreign exchange regime that is unstable, and
virtually every input required for production imported from abroad, or sourced
locally at cut-throat prices, an average newspaper which used to cost almost
nothing in the 70s, is now priced beyond the reach of many Nigerians.
The mediafacts Nigeria 10 Year Trend Review is
a ten year longitudinal review and trend analyses of year on year mediafacts,
with key insights into annual statistical performance and the dynamics of key
players on critical indices of the media, advertising and marketing industry in
Nigeria.
mediaReach OMD has since 2001 through its publication; mediafacts been
giving insights into the Media and Marketing industry of Nigeria, Ghana, West
and Central Africa regions. It also provides marketing media professionals with
evidence based information that has become a veritable tool for practitioners
and companies to compete for market space in these markets.
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