LAGOS/Nigeria: A recent report commissioned by the Advertising Regulatory Council of Nigeria (ARCON) and funded by various industry associations reveals the substantial contribution of the advertising sector to Nigeria’s Gross Domestic Product (GDP). Conducted by PricewaterhouseCoopers (PwC), the findings were unveiled to stakeholders at a media briefing in Lagos.
ARCON Director-General, Dr. Olalekan Fadolapo, expressed optimism about the industry’s progress, highlighting the launch of an Audience Measurement initiative. Fadolapo thanked sectoral groups such as the Experiential Marketers Association of Nigeria (EXMAN), Association of Advertising Agencies of Nigeria (AAAN), Outdoor Advertising Agencies of Nigeria (OAAN), Media Independent Practitioners Association of Nigeria (MIPAN), and the Broadcasting Organisation of Nigeria (BON) for funding the study. He emphasized the necessity of accurately quantifying the industry’s size and economic impact, stating, “We cannot continue to guess and estimate 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.”
The report underscores the advertising industry’s critical role as a catalyst for consumer demand, business expansion, employment, and innovation. In addition to the Audience Measurement and GDP Multiplier Effect report, ARCON plans to host an event on the ambitious rebranding of Nigeria, reflecting resolutions from the National Advertising Conference.
Tunji Adeyinka, Chairman of the National Advertising Conference, provided context for the study’s inception, noting a gap in understanding the industry’s GDP contribution identified during the 2022 conference. This prompted the engagement of PwC for a credible assessment, which examined both the direct monetary contribution and the multiplier effect of advertising investment on the economy.
Dr. Femi Adelusi, Chairman of the Multiplier Study Committee, highlighted the profound impact of Nigeria’s marketing communications industry. “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,” Adelusi stated, emphasizing the sector’s significant value contribution.
The report revealed that total expenditure on marketing communications reached ₦605.2 billion in 2023, with a compound annual growth rate (CAGR) of 18.7% from ₦216 billion in 2018. This trajectory is expected to continue, with spending projected to reach ₦893 billion by 2028, contributing 1.08% to Nigeria’s GDP, up from 0.7% in 2023.
Adelusi detailed the top contributors to marketing communication spending between 2018 and 2023: cable TV (25.5%), digital media (18.5%), and creative & content production (13.4%). He attributed the growth in cable TV to its diverse content and affordable packages, and the surge in digital media to increased internet and mobile penetration alongside social media and video-on-demand platforms. Creative and content production also saw significant growth, driven by smartphones, social media engagement, and real-time online content, further bolstered by investments from platforms like Netflix and Amazon Prime in the Nollywood industry.
While acknowledging challenges such as economic pressures, regulatory reforms, and competition from global players, the study highlighted the industry’s strengths, including rising digital trends, opportunities for local and international partnerships, and the potential to leverage technological innovations like AI and big data analytics. The study recommended setting measurable goals for GDP contribution, establishing a Joint Industry Body (JIB) for coordination, encouraging strategic alliances, combining international best practices with local initiatives, and utilizing analytics tools to track spending patterns and consumer behavior.
“The marketing communications industry is an economic force that deserves recognition and support. By implementing these recommendations, we can unlock the industry’s full potential, drive sustainable growth, foster job creation, and cement Nigeria’s position as a leading marketing communications hub in Africa and beyond,” Adelusi concluded.
Industry leaders at the event, including EXMAN President Mrs. Tolulope Medebem, MIPAN Vice President Mrs. Brenda Nwagwu, AAAN President Mr. Steve Babaeko, Kenny Ogungbe from BON, and OAAN President Mr. Sola Akinsiuku, praised the study. They acknowledged the immense opportunities ahead and affirmed the sector’s proven ability to stimulate economic activity, spur innovation, and create employment opportunities, positioning it as a vital driver of Nigeria’s economic future.
