Outdoor agencies raise market/consumer report to drive growth
The Nigeria outdoor advertising industry is responding to its dwindling business situation and changing consumer behaviour by commissioning a marketing report which is expected to improve its value addition to clients’ business and also reverse the industry’s dwindling fortunes.
The market and consumer survey is being undertaken with help from a research agency which OAAN would not name. When concluded, the report would provide insight into emerging consumer trends and lifestyle relevant to the outdoor industry and how these trends can be harnessed by clients to grow their brands.
According to the President of OAAN Tunde Adedoyin, the report which is being done in collaboration with other stakeholders like Association of Advertising Agencies of Nigeria (AAAN), Advertisers Association of Nigeria (ADVAN) and Media Independent Practitioners of Nigeria (MIPAN), will be submitted for final inspection and input at the forthcoming Annual General Meeting of OAAN in Asaba Delta State.
The research which is the first by the association will be used as a veritable marketing tool to combat the slump in revenue and reposition the industry better in the changing marketing communications business landscape and also drive value for outdoor advertisers.
From being the darling of advertisers just a few years ago, the OOH industry has over the years lost its allure as its market has been eroded by the strong growth in digital marketing and a regulation regime that has priced billboard advertising out of the reach SMEs. This has shirked the industry to operating below 50 per cent of its capacity utilization, as evident by the hordes of vacant billboards around the country.
Since 2016, major outdoor spenders like Nestle, Airtel, Guinness, Coca-cola have drastically cut into their billboard budget, some by more than 50 per cent. Others, like Glo, have cancelled out rightly. This has resulted in unprecedented revenue losses running into billions of naira and a consequent industry wide job loss of more than 50 per cent.
One of the narratives by advertisers against the outdoor industry is that, it is expensive and lacks prove of value. OAAN is, however, hopeful that the research will be able to provide answers to some of the questions and douse doubt about its value to brands.
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