Shobanjo urges OOH operators to look beyond Lagos, S/West
In the midst of the economic and regulatory challenges confronting the outdoor advertising industry in Nigeria, Chairman of Troyka Holdings Biodun Shobanjo has challenged practitioners in the industry to pursue growth by expanding their businesses beyond the Lagos and South West markets.
Shobanjo spoke against the backdrop of the overconcentration of outdoor agencies in Lagos, even as prospects of expansion in other states are overlooked by the operators. This lopsidedness, the iconic adman, said is a main reason behind the lack of growth in the outdoor industry.
The imbalance is also reflected in the OOH advertising expenditure, as Lagos State has consistently accounted for about 50 percent of the expenditure, year on year.
According to the recently released Mediafact report for 2015, Lagos State alone was responsible for 48 percent of the outdoor business in Nigeria, which amounted to N9.7billion.
South West and North Central regions accounted for 13 percent of the total expenditure which came to N2.7billion respectively, N2.3 percent was spent on outdoor advertising in the South South, while the South East accounted for N1.9billion or 9 percent of the advertising spend.
The North West region accounted for only 4 percent of the expenditure or N800 000, while the war ravaged North East barely had anything to show.
Going by this report, the Lagos and other South West states account for 61 percent of the outdoor activities, and on the other hand, the South is responsible for 81 percent of the OOH industry expenses. Shobanjo noted that this call for a deep rethink of the OOH business model in Nigeria.
Shobanjo also added that this development is one of the reasons behind the over-regulation of the industry in Lagos by LASAA, and until the operators take their own destiny into their hands by prospecting other markets, then the problem may continue.
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