As proof of its resilience and increasing prospects for investors, the recently-released report, by PwC, has predicted a growth in the nation’s marketing communications expenditure, from N605.2billion recorded in 2023, to N893billion in 2028; a remarkable compound annual growth rate (CAGR) of 18.7% over the past six years, from ₦216 billion in 2018.
The new report, commissioned by the Advertising Regulatory Council of Nigeria (ARCON), and funded by various industry associations, also stated that the projected expenditure growth also represents a significant contribution of 1.08% of the sector to the country’s Gross Domestic Product (GDP), as against 0.7% recorded in 2023.
It also revealed that for an estimate of N1 spent on marketing communications in Nigeria, the nation’s GDP increases by a staggering N16.5, representing a multiplier effect that highlights the industry’s substantial value contribution.
Presenting the report to the media, in Lagos, recently, the Chairman of the Multiplier Study Committee, Dr. Femi Adelusi, described the nation’s marketing communications sector as a formidable economic powerhouse.
Quoting the report, Adelusi identified Cable TV (25.5%), digital media (18.5%), and creative & content production (13.4%), as the top three contributors to marketing communication spend between 2018 and 2023.
He noted that the proliferation of cable TV is driven by its diverse content offerings and affordable package options, which has continued to captivate a wide consumer base.
The study also highlighted the growing influence of creative and content production, which recorded a CAGR of 15.8% between 2018 and 2023, driven by the popularity of smart-phones, social media engagement, and the appeal of real-time online content.
While acknowledging challenges such as economic pressures, regulatory reforms, and competition from global players, the study however identified the industry’s strengths, such as rising digital trends, opportunities for local and international partnerships, the ability to leverage technological innovations like AI and big data analytics, Nigeria’s large and culturally diverse market, and the potential for innovative, locally-tailored marketing approaches.
Speaking at the unveiling, Director General, ARCON Dr. Olalekan Fadolapo expressed the council’s gratitude to the sectoral groups: the Experiential Marketers Association of Nigeria (EXMAN), Association of Advertising Agencies of Nigeria (AAAN), Out-of Home Advertising Agencies of Nigeria (OAAN), Media Independent Practitioners Association of Nigeria (MIPAN); and the Broadcasting Organisation of Nigeria, (BON) for funding the study.
“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,” he stated.
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