EXPERTS in the nation’s marketing communication industry have expressed optimism of a bigger advertising spend in the industry this year despite the decline recorded in the industry in 2017.
A media report, 2017 Mediafacts, released by MediaReach OMD, recently, had shown that despite the country being technically out of economic recession, in early 2017, her total advertising spend for the year was put at N88 billion as against the 2016 figure of N91 billion; showing a 3.3 per cent decline on its performance in 2016.
According to the report, besides TV medium which recorded a growth of 3 per cent in the year under review, with a total spend of N33.5 billion as against the N31.5 billion of 2016, other media vehicles such as radio, outdoor and press recorded a decline in the amount generated during the period.
While the TV medium was able to increase its share of the total advertising spend from 35 per cent of 2016 to 38 per cent in 2017; radio and press only managed to maintain the 14 per cent share of the total ad spend, each of them recorded in the previous year, in 2017.
Of note, however, is the drop in the advertising spend in outdoor in the year under review, a development many have attributed to the myriad of challenges being experienced by operators in the sector last year.
For instance, the sector that was able to muster 32 per cent of the total ad spend in the industry in 2016, ended 2017 with 28 per cent share of same market; an obvious 4 per cent drop for other media vehicles to grab in the year.
But in spite of the seeming odds against the practice in the country, experts in the sector however expect a turnaround in 2018.
Hinging his optimism on the series of key activities on the nation’s calendar, in 2018, especially the nation’s general election which is around the corner, Olumide Akeem believes 2018 will witness a significant improvement over the figures recorded in 2017.
“Remember, we had the World Cup in June, this year. Campaign for the general elections will kick off later in the year, and a lot of funds will be spent on these things. All these can not but have significant impact on the industry in 2018,” he stated.
Another professional, Mr Ladi Akingbule would rather attribute the decline in advertising spend in 2017 to the economic recession, witnessed in the previous year.
“It is a hang-over of that doldrums that the nation’s economy experienced around that period. Besides the hostile business environment outdoor advertising has suddenly found itself is also one of the contributory factors to the poor showing of the sector in the year.
“Spend in that sector has declined significantly due to hostile regulatory framework, which is obviously stifling the practice in Nigeria, especially Lagos. Remember Lagos remains the nerve centre of the nation’s economy, and whatever affects its economy affects the nation’s economy. But I expect things to pick up this year, so the result posted in 2017 in the sector should not give not be a source of worry to us all,” he argued.
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