Nigeria’s TV stations earn N357.9b advert revenue
Television stations in Nigeria realised a cumulative income amounting to N357.9 billion from advert placements generated across the country between 2006 and 2015.
This information is contained in the just-released Mediafacts Nigeria: 10-Year Trend Review by MediaReach OMD, a specialist media company that provides media planning and buying. According to the compendium, the TV advertising spends in the last 10 years rose gradually from N15 billion in 2006, and reached its peak in 2012 (N49.4 billion) and dropped to N39 billion in 2015.
It was also revealed that the advertising expenditure that went to the different TV stations throughout the first quarter of the 10-year period was the least compared to the figures recoded for other quarters. The cumulative ad spends for the first, second, third, and fourth quarters for the period were N82.2 billion, N87.6 billion, N92.7 billion and N95.2 billion respectively.
Also, it was disclosed that communications and telecommunications sector mostly towered above others with occasional interruption by Gaming and Entertainment, which mostly occupied the second position in the relative trend review. In TV Advertising spend, there was a considerable level of growth in the categories, topping the list on growth basis was the noodles category as it recorded a CAGR of 28 per cent and was followed closely by the Skin Cleansing category with a CAGR of 24 per cent and then jointly following was the nutritional drink, milk and dairy products and dental care products with each having a CAGR of 20 per cent.
The publication disclosed that from its modest figure of N5.7bn in 2006, radio spends increased haphazardly in the last 10 years reaching its peak in 2012 and wobbled through the years to settle at N15.1 billion currently.
Mediafacts Nigeria: 10-Year Trend Review stated that among the top 20 spender categories on radio, communications and telecommunications consistently dominated other categories. However, in terms of the composite aggregate growth rate, cocoa beverage topped the chart list at 23 per cent followed by Noodles/Pasta and soft drinks at 21 per cent and 20 per cent respectively over the last 10 years.
Three telecom radio advertisers, MTN, Airtel and Etisalat, competed interchangeably for the top three positions above others during the period under review. As regards growth over time for radio advertisers, Cadbury topped the list of growing advertisers with 20 per cent with DeUnited Foods and Etisalat following closely with each having 17 per cent CAGR.
The Outdoor media spend enjoyed its peak between 2010 and 2011 but declined slightly from N20.5 billion to N20.1 billion in 2015 apparently due to increasing strict government regulations and tariff restrictions. The trend analysis revealed that the OOH maintained its peak patronage in the second and third quarters like the other media. Lagos consistently attracted the bulk of the outdoor spend while the west struggles in the second position with other regions.
Globacom competed fiercely with MTN ahead of others to dominate the scene for most of the period. However, it was outstripped by MTN in 2010 and 2013, while Airtel currently strives in a close tie with MTN. With a positive CAGR of 38 per cent, Etisalat topped the list of growing spenders, with Nigerian Breweries and Cadbury following with 37 per cent and 24 per cent respectively.
Managing Director and Chief Executive Officer, MediaReach OMD, Mr. Tolu Ogunkoya, said: “Nigeria’s media is one of the most dynamic in Africa. Each of the 36 states has at least a TV station and one radio. There are hundreds of radio stations and terrestrial TV stations, as well as cable and direct-to-home satellite offerings.”
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