By Ajibola Adedoye
A new report commissioned by the Advertising Regulatory Council of Nigeria (ARCON) and funded by colorful assiduity associations has exfoliate light on the advertising sector’s donation to the nation’s Gross Domestic Product (GDP), its value and multiplier effect.
The new report was carried out by PricewaterhouseCoopers (PwC) and presented to stakeholders on Tuesday at a media briefing in Lagos.
Speaking at the unearthing, ARCON Director- General,Dr. Olalekan Fadolapo expressed sanguinity about the assiduity’s recent strides, including the launch of an followership dimension action last week.
Also Read
Fadolapo expressed gratefulness to the sectoral groups, including the Experiential Marketers Association of Nigeria( EXMAN), Association of Advertising Agencies of Nigeria( AAAN), Outdoor Advertising Agencies of Nigeria( OAAN), Media Independent interpreters Association of Nigeria( MIPAN) and the Broadcasting Organisation of Nigeria,( BON) for funding the study.
He underlined the need to quantify the assiduity’s size and impact as an profitable enabler,
” We can not continue to guess and estimate the size of the assiduity. This report lays the foundation for us to assess the advertising space and its multiplier effect on the frugality every time going forward, Fadolapio said.
The D- G added that findings of the report underlined the assiduity’s consummate part as a catalyst for consumer demand, business expansion, employment, and invention across sectors.
As corridor of strides that ARCON has accepted to advance the growth of the assiduity, Fadolapo added that in addition to the followership dimension and the GDP Multiplier effect report, ARCON is also set to hold an event on the audacious rebrand Nigeria design that it had accepted along side other systems as part of judgments from the advertisement of the National Advertising Conference.
Also speaking, Tunji Adeyinka, Chairman of the National Advertising Conference, handed environment on the study’s birth.
He explained that the 2022 conference stressed a gap in understanding the assiduity’s GDP donation, egging the decision to engage PwC for a believable assessment.
He added that the report examined two crucial aspects the advertising assiduity’s direct financial donation to GDP and its multiplier effect – the amplified impact of advertising investment on overall profitable affair.
In his donation,Dr. Femi Adelusi, Chairman of the Multiplier Study Committee, revealed the profound impact of Nigeria’s marketing dispatches assiduity on driving the nation’s profitable growth.
” The marketing dispatches sector has surfaced as a redoubtable profitable hustler. The study estimates that for every ₦ 1 spent on marketing dispatches in Nigeria, the nation’s GDP increases by a stunning ₦16.5 – a multiplier effect that highlights the assiduity’s substantial value donation.”
Representing the report, the total expenditure on marketing dispatches reached an emotional ₦605.2 billion in 2023, having grown at a remarkable emulsion periodic growth rate( CAGR) of18.7 per cent over the once six times, from ₦ 216 billion in 2018.
He said that the line is projected to continue, with spending anticipated to reach ₦ 893 billion by 2028, contributing a significant1.08 per cent to Nigeria’s GDP, over from0.7 per cent in 2023.
anatomizing the assiduity’s parts, he said that the top three contributors to marketing communication spend between 2018 and 2023 were string television(25.5), digital media(18.5), and creative & happy product(13.4).
” The proliferation of string television, driven by its different content immolations and affordable package options, has charmed a wide consumer base.
” also, the swell in digital media spend, fueled by increased internet and mobile penetration, as well as the rise of social media and videotape- on- demand platforms, has reshaped the marketing geography,” Adelusi said
He said that the study also stressed the growing influence of creative and happy product, which recorded a CAGR of15.8 per cent between 2018 and 2023, driven by the fashionability of smartphones, social media engagement, and the appeal of real- time online content.
” The investment by videotape- on- demand platforms like Netflix and Amazon Prime in Nigerian products, particularly in the thriving Nollywood assiduity, has further bolstered this member,” he added.
While admitting challenges similar as profitable pressures, nonsupervisory reforms, and competition from global players, he said that the study underlined the assiduity’s strengths, including rising digital trends, openings for original and transnational hookups.
He said that the study also stressed the capability to work technological inventions like AI and big data analytics, Nigeria’s large and culturally different request, and the eventuality for innovative, locally- acclimatized marketing approaches.
He said that in accelerating the assiduity’s growth and development, the study outlined the following crucial recommendations.
” Creating specific, measurable pretensions for the sector’s GDP donation, establishing a Joint Industry Body( JIB) for functional collaboration among broadcasters, agencies, and advertisers.
” Encouraging strategic alliances among assiduity players, embracing a” global” approach that combines transnational stylish practices with original enterprise, and exercising analytics tools to track spending patterns and consumer geste
strictly.
” The marketing dispatches assiduity is an profitable force that deserves recognition and support.
” By enforcing these recommendations, we can unleash the assiduity’s full eventuality, drive sustainable growth, foster job creation, and cement Nigeria’s position as a leading marketing dispatches mecca in Africa and beyond,” Adelusi quoted the report as recommending.
Assiduity stakeholders have similarly praised the study, hailing it as a move in the right direction.
Among assiduity leaders at the event are Mrs Tolulope Medebem, President, EXMAN; Mrs Brenda Nwagwu, Vice President, MIPAN; Mr Steve Babaeko, President, AAAN, Kenny Ogungbe from BON andMr. Sola Akinsiuku, President, OAAN, among others.
They noted that the study’s findings have indeed transferred ripples of excitement through the assiduity, as stakeholders fete the immense openings that lie ahead.
They argued that with its proven capability to beget profitable exertion, goad invention, and produce employment openings, the marketing dispatches sector is poised to play an decreasingly vital part in shaping Nigeria’s profitable future.
For your Press Conferences/ Adverts/Media Consultancy/Support
Contact the Editor via WhatsApp +2349097600508/+2348032339384 or Email: news@dailyinsight.com.ng & shinaayo110@gmail.com