BREAKING NEWS, Business
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MediaReach OMD, in its new report says the telecommunications sector is the highest spender on advertisement compared to other sectors, doling out N16.7billion of the overall N97.9 billion expenditure in advertising in the country in 2015
THE telecommunications sector is still dominating the nature of advert expenditure in Nigeria. According to the latest edition of the 2015 Mediafact report, the sector retained its position as the highest advertiser in Nigeria in 2015 with a combined total expenditure of N16.7 billion. The figure represents 17 per cent of the total advertising spend in the country which is N97.9 billion in the same year
The annual report, which is a key media resource for marketing professionals in West and Central Africa is published by the MediaReach OMD, a specialist media company, that provides media planning, buying, control and inventory management services.
It also identified other top advertising product categories that contributed to the total advert spend to include: Personal Paid (N12.2billion), Corporate Communications (N6.3billion), Banking and Finance (N5.8billion), Lager Beer (N4.6billion), Public Service (N3.8billion), Soft Drinks (N2.8billion), Cable TV (N2.5billion), Milk and Diary (N2.2billion) and Broadcast (N2.2billion).
The others are: Noodles (N2.1billion), Cocoa Beverages (2.0billion), Skin Cleansing (N1.8billion), Nutritional Drinks (1.8billion), Dental care (N1.6billion), Seasonings (N1.5billion), Online mall/Education imparting knowledge and Skill/Malt (N1.4billion), NSD Powder (N1.3billion) and others (N22.4billion). 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) –N13.5billion, MTN – N4.7billion, Airtel – N4.1billion, Etisalat – N3.7billion and Globacom – N3.7billion. Others are: Nigerian Breweries – N3.7billion, The State government – N3.1billion, Sundry Advertisers (Services) – N3billion, Reckit Benkiser Nigeria – N2.7billion and Procter & Gamble – N2.1billion.
“The top 20 advertisers contributed 64 percent of total spend and the top four telecom players contributed 17 percent of the total spend in 2015,” it said. Mediafacts also revealed that the total advertising spend recorded in 2015 represented an increase of N4.8billion above the N93.1billion documented in 2014. “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 percent over 2014 total media spend,” the report also said.
Mediafacts further revealed that the television stations attracted the highest advertising expenditure of N39billion in 2015. The advertising expenditure attracted by the print media, outdoor and radio stations at N23.7billion, N20.1billion and N15.1billion, respectively.
Meanwhile, the advertising expenditure that went to the print media last year declined marginally by four percent 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 N39billion and N15.1billion in 2015 compared to N34.6billion and N12.1billion the previous year.
Mediafacts put the advertising expenditure in the first and second quarters of 2015 at N23billion each, while it was N29.8billion and N22.1billion in the third and fourth quarters of the year. “The highest spend for 2015 was recorded in Quarter three (N29.8billion), which represents 30 percent of the total spend,” the report stated.
Among the various regions in Nigeria, Lagos state attracted the highest advertising expenditure of N53.1billion followed by the North Central (N12.1billion), South West (N10.2billion) and South-South (N10billion). “The highest spend for 2015 was recorded in Lagos, 54 percent, followed by North Central, 12 per cent while North East took the rear position. The paltry spend, less than 1 per cent in the North East was traceable to the space of insurgency in the region”, Mediafacts revealed.
Tolu Ogunkoya, managing director/CEO, 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,” Ogunkoya said.
— Jul 25, 2016 @ 01:00 GMT
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