By Princewill Ekwujuru
Advertising expenditure in Nigeria fell by 3.3 percent to N88.1billion in 2017 from N90.9billion in 2016.
This was disclosed by MediaReach OMD in its 2017 Media facts book, an annual advertising review report.
The report stated: “There was reduction in total advertising spend for 2017 over 2016 by 3.3 percent. While the country got over the economic recession in 2017, only spends on TV medium grew amongst all the other media vehicles in 2017.”
The report also showed that advertising expenditure in 2017 was dominated by GSM providers who accounted for 17 percent of total advertising spend, followed by Personal paid adverts with 8 percent and sundry corporate adverts, banking and finance with 7 percent each.
While MTN accounted for 8 percent of total advert spend in 2017, Globalcom accounted for 4 percent followed by Multichoice, Nigerian Breweries, Cadbury and De-United Industries Limited with 3.0 percent each.
The report revealed that TV advertising expenditure stood at N33.5billion in 2017 representing 6.0 percent increase compared to N31.5 billion recorded in 2017.
From N7.5billion in Q1’17, TV advertising spend rose by 4.0 percent to N7.8 billion in Q2’17. In Q3’17, it rose by 18 percent to N9.2 billion but dropped 1.0 percent to N9.1 billion in Q4’17.
According to the report the print advertising spend dropped by 3.0 percent to N17.6 billion in 2017 from N18.1 billion in 2016.
From N3.6 billion in the first quarter (Q1’17), print advert spend rose by 11 percent to N4.0 billion to in Q2’17. In Q3’17 it rose by 18 percent to N4.7billion, and further by 15 percent to N5.4billion in Q4’17.
In 2017, Out-of Home (OOH) advert spend dropped by 15 percent to N24.6 billion revenue, from N28.8billion recorded in 2016. From N7.2 billion in Q1’17, OOH advertising expenditure dropped by 12.5 percent to N6.3 billion in Q2’17. It dropped further by 11.1 percent to N5.6 billion in Q3’17, and further by 3.57 percent to N5.4 billion in Q4’17.
In 2017 the report stated further that radio advert spend dropped by 0.8 percent to N12.4 billion from N12.5billion in 2016.
Advertisers spent N2.8billion on radio advertisement in Q1’17 and the same amount in Q2’17. They however increased their spending to N3.4 billion in Q3’17 and the same amount in Q4’17.
Commending, Ephraim Oghenetebo of Marketing Annex, Owerri, Imo state, said “Marketing is the mostly hit of all companies’ supplies items in times of cost rationalization. So cost is one major reason for the drops in media spend in the last five years.”
Also speaking, Managing Consultant of Brandsway Experience, Max Okuibe said: “The drop have been driven largely by currency volatility, macro-economic shocks and policy issues with big spenders crawling back with consequent squeeze in the economy.”
On likely improvement in 2018, Mezie Oranakwu, a marketing expert opined that, “2018 will shore up the industries as it promises to be brighter and better, given the obvious recovery of the economy and a projected increase in government and political spending being a year before the general elections.”
Mike Igbandu, Team lead, Octopus Marketing had a different view, saying that decline in the various advertising vehicles was as a result of lack of creativity and innovation and innovativeness. “The various medium especially the OOH need increased creativity and innovativeness, pedigree and good track record and clear understanding of clients’ business, especially now a new company has come into the country bringing innovativeness and creativity.”