Lack of scientific audience measurement system stunting advertising, broadcast industries, says Mohammed
The Minister of Information and Culture, Alhaji Lai Mohammed, has said that lack of scientific audience measurement system in Nigeria is stiffing and stunting the advertising and broadcast industries from reaching its potential and generating the appropriate revenue compared with other African countries.
Mohammed, who spoke at a parley with Association of Advertising Agencies of Nigeria (AAAN) in Lagos, added that lack of authentic and real data poses a great challenge to the advertising industry, resulting in under-investment in the sector, which is necessary to foster the growth of the industry
“The Nigerian media advertising total industry volume has historically performed below the global average benchmark relative to the country’s Gross Domestic Product (GDP) when compared with leading global and African markets despite Nigeria’s position as a leading African economy.
“In 2018, Price Water House reported that Nigeria’s total advertising revenue performed very poorly (0.12 per cent), when compared with South Africa (0.83 per cent), Kenya (0.35 per cent), Ghana (0.29 per cent) and even Tanzania (0.18 per cent). This is attributable directly to a lack of measurement and currency of trading, a most basic requirement in all developed markets for the success of the production industry.
“The current value of the Nigerian television advertising market is estimated at $200 million, despite a population of about 200 million, which translates to $1 per person; in Ghana, it is $3 per person; in South Africa, $18 per person and in Kenya, $7 per person. If Nigeria only reaches Ghana’s level of spend, this would triple the size of the TV advertising market to $600 million yearly, which is an extra $400 million per annum. And 90 per cent or more of this increase would go directly to the businesses and the talents creating the content.”
The minister noted that the advertising community continues to rely on subjective factors when making decisions on the content they want, as opposed to how many viewers the content truly attracts. This, he said, had led to under-investment in the sector, which is necessary to foster the growth of the industry.
To change the tide in favour of Nigeria, the minister has set up a task team of industry experts, with best practices related to Audience Measurement Systems, to work on three objectives: Identify best practice Audience Measurement System that will support the sustainable growth of the Nigeria Creative and
Entertainment Industry; Recommend a framework for supporting the sustainability of the Audience Measurement System, independent of the Federal Government and thirdly, recommend a Payment and Disbursement Framework among the key stakeholders in the industry.