Ad Spend Declined Further, As Nigerian Brands Spent N88bn In 2017


Mediafacts 2017

By Azeez Disu

The total advertising expenditure in the country declined by 3.3 percent in 2017, according to the 2017 Mediafacts released recently. The advertising spends reached N88.0 billion last year compared to N91 billion in 2016.

The decline is due to recession that ended last year. Recall that National Bureau of Statistics (NBS) revealed that the economy grew at 0.55 per cent in the second quarter (Q2) of 2017.
Similarly, recession caused 2016 total advertising expenditure to decline by 7 percent of N91 billion compared to N97.9 billion in 2015.

Meanwhile, industry watchers pointed that many brands have yet to increase their marketing budget after the country’s exit from recession and as such most advertising and media agencies are struggling for survival.

In the year under review (2017), TV advertisement stood at N33.5 billion, Radio at N12.4 billion, Outdoor at N24.6 billion, Press at N17.6 billion while in 2016 the figure stood at N31.5 billion, N12.6 billion, N28.8 billion and N18.1 billion respectively.

The decline has been on since 2016. Recall in 2015, TV advertisement stood at N39 billion, Radio at N15.1 billion, Outdoor at N20.1billion and press at N23.7 billion. The growth industry watchers attributed to the general election that year and the series of political campaigns that were launched. However, Mediafact report shows that 2013 had tremendous growth of N103.8 billion as total Above-The-Line (ATL) advertising spends compared to N97.9 billion in 2015 and N93 billion in 2014.

A comparative analysis of 2016 and 2017 in terms of growth in ATL advertising expenditure in the media shows that TV grew by 6.4% while others declined. Radio declined by -1.7%, Outdoor by -14.8%, and Press by -2.9%.

In the same vein, in terms of reach of media conducted across the country in 2017, Radio had the highest reach. It led with 80 percent ahead of TV at 76 percent, Outdoor/Posters 63 percent, Internet 41 percent, Magazine 27 percent and Newspaper 24 percent.

In addition, fourth quarter of 2017 had the highest spend at N23.3 billion with 26 percent of the total spend, third quarter followed with N22.9 billion, 1st quarter N21 billion and 2nd quarter N20.8 billion.

The report stated that GSM service providers topped the 20 categories that contributed 74% to the total ad spend. “Top 20 categories contribute 74% of the total spend. GSM Service Providers continue to top the chart year in year out, with overall total spend of 15.4billion Naira 17% of total ATL advertising spend in 2017.”

The top 20 categories are: GSM Service Provider (N15.4 billion), Personal Paid (N7.0 billion), Corporate (N6.2 billion), Banking and Finance (N6.1 billion), Cable TV (N3.4 billion), Larger (Beer)-N3.2 billion, Soft Drinks (N3.1 billion), Noodles (N2.5 billion), Online Mall (N2.2 billion), Milk and Dairy (N2.1 billion), Handsets (N2.1 billion), Cocoa Beverages (N2.0 billion),Seasonings (N1.9 billion), Malt ((N1.7 billion), Spirits (N1.4 billion), Public Services (N1.1billion), Nutritional Drinks Ltd (N1.1 billion); Gaming, Entertainment, Leisure & Tourism (N1.0 billion); Education Imparting knowledge and skill (N1.0 billion), and Cooking Oils and fats (N1.0 billion).

According to the report, the top 20 advertisers on Above-the-line (ATL) Advertising Expenditure in 2017 and their value in billion include: Sundry Advertisers (Other inform. Services) – N11.2 billion, MTN (N7.0 billion), Airtel (N3.2 billion), Globcom Nigeria Limited (N2.8 billion), Multichoice Nigeria Limited (N N2.6 billion), Nigerian Breweries (N2.5 billion), Cadbury Nigeria Plc (N2.3 billion), De-United Industries Nigeria Limited (N2.1 billion), Chi Nigeria Limited (N2.0 billion), Guinness Nigeria Plc (N1.9 billion), Nestle Nigeria Plc (N1.9 billion), Coca- Cola Nigeria Limited (N1.8 billion), Sundry Advertisers (service)- N1.8 billion, Etisalat (EMTS)-1.6 billion, Startimes ((N1.5 billion), Reckitt Benckiser Nigeria Plc. (N1.4 billion), Unilever Nigeria Plc (N1.3 billion), Pepsico Nigeria Limited (N1.0 billion), Friesland Campina (N1.0 billion), Samsung (N1.0 billion) and others (N36.0 billion).

On an optimistic note, Industry watchers pointed that there are indication that advertising spend will increase in the fourth quarter of 2018, because of the closeness of the 2019 General election and the political campaigns that will be launched by politicians and Political parties. This, they pointed are likely to boost ad spend and revenue compared to the previous years.

It would be recalled that ad spend increased during the 2015 General Election that saw the emergence of Muhammadu Buhari as the President of the country. Advertising spend recorded a positive growth of about 4.8 per cent over the 2014 total media spend.

It is noteworthy that Mediafacts is a key media resource for marketing professionals in West and Central Africa, which is produced annually by mediaReach OMD, a specialist company that provides media planning, buying, control and inventory management services.

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