Nigerian online advertising outlook
The digitization of Nigeria’s entertainment and media businesses is paying off with online advertising revenues showing double-digit year-on-year growth.According to new data about Nigeria entertainment and media outlook advertising spend has grown more than 20% in 2013, and is forecast to continue growing at an average of nearly 12% a year for the next four years to reach revenues of $1.6b in 2019.Nigeria’s entertainment and media businesses are figuring out how to further engage their audiences online, from high quality content that consumers are willing to pay for to advertisers embracing the marketing value. In simple terms, the online space is starting to be a profitable channel, and will become the second biggest medium for advertising, after radio, by 2017. This change has a deep effect on Nigeria media and entertainment industries as they have been regularly reviewing their strategy and market approach. Mobile advertising is taking off in Nigeria and has grown a massive 149% in 2013 as more Nigerians carry smart phones, while local broadcasters are successfully monetizing online catch-up TV content by selling advertising.
The explosive use of smart devices, such as tablets and smart phones, is creating new and multiple ways for entertainment and media brands to interact with their consumers and offer more value to advertisers and consumers. For example, advertising campaigns can now be richer and interactive while social TV and ‘second-screen’ activity is becoming a popular way to engage with entertainment and media content.The researchers analysis also finds the rise of online advertising comes as money continues to move away from traditional newspaper publishing, which will lose its number one spot to TV advertising revenues for the first time next year.The long-term decline in newspaper advertising revenues means newspaper brands must urgently monetize their digital channels. Pleasingly, Nigerian newspaper publishers are following global trends seen in mature markets are piloting building digital paywalls. Paying for our online news content will become the new normal in Africa’s largest economy in the future.The report predicts total newspaper publishing revenues will decline at an average annual rate of 8%, yet digital advertising revenues will increase 16%, while digital circulation spend will increase 53% until 2019.
Bucking African trends, Nigeria’s printed consumer book industry remains robust with revenues predicted to decrease just 3.4% in 2019, with electronic book revenues increasing 31.2% on average each year. Importing books into Nigeria is still relatively expensive, yet consumers are still buying. This may be due to our slow adoption of e-books and the fact that largest proportion of consumers are well over the age of 35. Or maybe, it’s Nigeria’s enduring love affair for the printed page that was popularized by its globally known authors like the late China Achebe, Wole Soyinka and even retired Nigerian President Olesegun Obasanjo who launched his book in Kenya capital recently after it was banned in Nigeria by recently defeated government of Goodluck Jonathan.Nigeria’s outlook predicts the total entertainment and media industry in the country will grow a respectable average annual rate of 7.5% until 2019, increasing from $3.5bn in 2013 to a predicted $8.9bn in 2019. On the whole, the future looks promising for Nigeria’s entertainment and media businesses, and Nigeria trends are consistent with other main markets in Africa trends like South Africa and Kenya.The winners include the internet advertising industry and providers and the TV and video game markets. Nigeria magazine, film, radio and music industries are holding their ground, while the newspaper industry is showing signs it is better understanding how to monetize its digital content.