mediaReach OMD puts Outdoor Ad spend in 10 years at N186.5bn

The foremost media Agency in West Africa and Central Af­rica, mediaReach OMD has said that the cu­mulative Outdoor Advertis­ing Expenditure in Nigeria in the past 10 years amounted to N186.5 billion. The agency made the declaration in a newly-released compen­dium, mediafacts Nigeria: 10-Year Trend Review.

mediaReach OMD dis­closed that the Outdoor media spends, which was N7.4 billion in 2006 enjoyed its peak between 2010 and 2011 when the figure rose to N28.6 billion and N28.1 billion; respectively.

The compendium re­vealed that the feat declined slightly from N20.5bn in 2014 to N20.1bn in 2015 ap­parently due to increasing strict government regula­tions and tariff restrictions.

The trend analysis also revealed that Lagos consist­ently attracted the bulk of the Outdoor spend in 2015; as it earned N9.7bn in 2015 while West was in the second position with N5bn.

The report stated that among the Top 15 OOH product categories, Com­munication & Telecoms con­sistently led the pack beating Lager Beer which began its growth trend in 2010 to second position currently. The top spenders that have shown positive growth over the last 10 years are Dental Care 28%, Cocoa beverages 25% and Lager (beer) 22%.

Globacom competed fiercely with MTN ahead of others to dominate the scene for most of the period. Howev­er, it was outstripped by MTN in 2010 and 2013; while Airtel currently strives in a close tie with MTN. With a positive CAGR of 38%, Etisalat topped the list of growing spenders, with Nigerian Breweries and Cadbury following with 37% and 24% respectively.

The report revealed that Print medium spend grew in a wavy pattern, reaching its peak in 2014 with N25.8bn spend and stood at N23.7bn in 2015. It stated that Print medium therefore attracted its highest patronage in the second and third quarters, with exception of 2013 and 2014 which had their highest spend in the fourth quarter of the year. In terms of re­gional print spend during the period under review, the split was between La­gos and North, with Lagos consistently attracting the dominant share of spend, year-after-year.

Consistently among the Top 10, Personal Paid Ad­verts dominated the print media scene, except for 2007 when it was outspent by Banking & Finance adver­tisers. The product analysis however shows that Glo has consistently dominated the list of press advertisers, ris­ing steadily in the last three years to tie with Guaranty Trust Bank ahead of others while MTN currently occu­pies the third position. GTB and Zenith Bank showed remarkable growth rates with 17% and 12% CAGR respectively among the top print advertisers.

Advertising income for newspapers in Nigeria dur­ing the review period hit N143.1bn between 2006 and December 2015, revealing a wavy pattern that reached its peak in 2014 with N25bn; and declined to 23.7bn at the end of 2015.

According to a special edition of mediafacts, the N4.4bn advert income in 2006 moved up to N4.8bn and N4.9bn in 2007 and 2008; respectively. The newspapers got N15.8bn in 2009 and N16.5bn in 2010.

The figure declined to N15.4bn in 2011 and slipped further to N9.0bn in 2012. The downward slope how­ever changed in 2013 with an advert income of N18.5bn and rose to its peak in 2014, hitting N25.8bn. The figure went down by N2.1bn in 2015 when the newspapers earned N23.7bn.

In terms of TV spend in the last decade, Commu­nications and Telecommu­nications mostly towered above others with occasional interruption by Gaming and Entertainment which mostly occupied the second posi­tion in the relative trend review. On TV Advertising spend, there was a consid­erable level of growth in the categories section, topping the list on growth basis was the Noodles/Pasta category as it recorded a CAGR of 28% and was followed closely by the Skin Cleansing category with a CAGR of 24% and then jointly following was the Nutritional Drink, Milk and Dairy products and Dental Care products with each hav­ing a CAGR of 20%.

From its modest figure of N5.7bn in 2006, Radio spends increased haphazardly in the last 10 years reaching its peak in 2012 and wobbled through the years to settle at N15.1bn currently. In the last 10 years, Radio attracted the highest media spend in the second and third quarters of the year mostly. Lagos grew and sustained its lead posi­tion on Radio spend in the last decade.

Among the top 20 spender categories on Radio, Commu­nications and Telecommuni­cations consistently dominat­ed other categories. However, in terms of the compound annual growth rate, cocoa beverage topped the chart list at 23% followed by Noodles/Pasta and soft drinks at 21% and 20% respectively over the last 10 years.

Three telecom radio ad­vertisers, MTN, Airtel and Etisalat, competed inter­changeably for the top 3 po­sitions above others during the period under review. As regards growth over time for radio advertisers, Cadbury topped the list of growing advertisers with 20% with DeUnited Foods and Etisalat following closely with each having 17% CAGR.

Managing Director and Chief Executive Officer, me­diaReach OMD, Tolu Ogun­koya, said in a report: “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.”

mediaReach OMD is the foremost Media Agency in West Africa, having presence in Nigeria, Ghana and Cam­eroon. mediaReach OMD started its operation in Nige­ria 17 years ago and has been consistently ranked No. 1 by RECMA (since report started for Nigeria in 2011). In Feb­ruary 2016, OMD Worldwide was awarded ‘Most the Crea­tive & Innovative Network of the Year’ for the 10th con­secutive time by the Gunn Report for Media, which is the industry standard for evaluating media creativity, innovation and effectiveness.