The Nigerian advertising industry has been valued at N605.2 billion in 2023, underscoring its substantial contribution to the nation’s Gross Domestic Product (GDP), according to a report commissioned by the Advertising Regulatory Council of Nigeria (ARCON) and funded by various industry associations.
The report, conducted by PricewaterhouseCoopers (PwC) and presented in Lagos on Tuesday, has provided fresh insights into the sector’s economic impact.
During the report’s unveiling, ARCON Director General Olalekan Fadolapo expressed optimism about the industry’s progress, including the recent launch of an Audience Measurement initiative. He 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.
Fadolapo emphasized the necessity of accurately measuring the industry’s size and economic impact. “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 said.
He highlighted the report’s findings, which show the industry’s vital role in driving consumer demand, business growth, employment, and innovation across various sectors.
Femi Adelusi, Chairman of the Multiplier Study Committee, discussed the profound impact of Nigeria’s marketing communications industry on economic growth. Addressing stakeholders and the press, he detailed comprehensive findings, noting that for every ₦1 spent on marketing communications, Nigeria’s GDP increases by ₦16.5, demonstrating the industry’s significant value contribution.
The study revealed that the total expenditure on marketing communications reached ₦605.2 billion in 2023, growing at a compound annual growth rate (CAGR) of 18.7% over six years, from ₦216 billion in 2018. This growth 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 highlighted 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 to the proliferation of cable TV with diverse content offerings, increased internet and mobile penetration, and the rise of social media and video-on-demand platforms.
The report also acknowledged challenges such as economic pressures, regulatory reforms, and global competition. However, it pointed to strengths like rising digital trends, opportunities for local and international partnerships, and technological innovations.
To accelerate growth, the study recommended setting measurable GDP contribution goals, establishing a Joint Industry Body (JIB) for operational coordination, fostering strategic alliances, and using analytics tools to track spending patterns and consumer behaviour.
“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,” the report recommended.
Tunji Adeyinka, Chairman of the National Advertising Conference, explained that the study stemmed from the 2022 conference, which highlighted a gap in understanding the industry’s GDP contribution. The decision to engage PwC aimed to provide a credible assessment. He noted that the report examined both the direct monetary contribution and the multiplier effect of advertising investment on economic output.
Industry stakeholders praised the study as a positive step forward. Notable leaders at the event included Tolulope Medebem, President of EXMAN; Brenda Nwagwu, Vice President of MIPAN; Steve Babaeko, President of AAAN; Kenny Ogungbe from BON, and Sola Akinsiuku, President of OAAN.
They recognized the immense opportunities ahead, with the marketing communications sector poised to play a crucial role in shaping Nigeria’s economic future through its ability to catalyze economic activity, spur innovation, and create employment opportunities.
