• Wednesday, July 17, 2024
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Advertising spend on digital, grows surpasses other media platforms

Advertising spend on digital, grows surpasses other media platforms

Latest industry research by PwC has revealed that marketing communication spend on digital platforms hit N443.3 billion between 2018 and 2023.

The report, commissioned by the Advertising Regulatory Council of Nigeria (ARCON) and funded by various industry associations was presented to journalists and stakeholders recently in by Femi Adelusi, chairman, GDP Multiplier Study Committee set up to calculate the value of the advertising industry and its contribution to the economy.

He said the surge in digital media spend, fuelled by increased internet and mobile penetration, as well as the rise of social media and video-on-demand platforms, has reshaped the marketing landscape,” he said.

Analysis of marketing communication expenditure on other media platforms, according to report as presented by Femi shows that a total of N274 billion was spent in creative and content production while a total of N253 billion was spend by advertisers for experiential marketing within the same period of 2018 and 2023.

The report further said that N148.2 billion was spent on- out- of home advertising, a total of N114.2 billion was spend on terrestrial TV advertising, radio segment of communication received N122.8 billion which is 33.6 percent growth and a total of N19.6 billion was spent on print medium within the same period.

According to the study, the total expenditure on marketing communications reached an impressive ₦605.2 billion in 2023, having grown at a remarkable compound annual growth rate (CAGR) of 18.7% over the past six years, from ₦216 billion in 2018. This trajectory is projected to continue, with spending expected to reach ₦893 billion by 2028, contributing a significant 1.08% to Nigeria’s GDP, up from 0.7% in 2023.

Dissecting the industry’s segments, Femi revealed that the top three contributors to marketing communication spend between 2018 and 2023 were cable TV (25.5%), digital media (18.5%), and creative & content production (13.4%).

“The proliferation of cable TV, driven by its diverse content offerings and affordable package options, has captivated a wide consumer base”

Femi Adelusi further revealed the profound impact of Nigeria’s marketing communications industry on driving the nation’s economic growth.

“The marketing communications sector has emerged as a formidable economic powerhouse. The study estimates that for every ₦1 spent on marketing communications in Nigeria, the nation’s GDP increases by a staggering ₦16.5 – a multiplier effect that highlights the industry’s substantial value contribution.”

Speaking at the unveiling of the report, Olalekan Fadolapo, ARCON Director General who emphasised the need to quantify the industry’s size and impact as an economic enabler,remarked, “We cannot continue to guesstimate the size of the industry. This report lays the foundation for us to assess the advertising space and its multiplier effect on the economy every year going forward.”