Advertising investment projected to grow slower in Nigeria as inflation surges
By Oghale Mafuru
Following the latest report that global media buying business is projected at $79billion, the Nigerian market is expected to witness slower growth as rising inflation continues to shrink the disposable income of consumers amid several socio-economic and political challenges.
Above insight was given by Yinka Adebayo, Director, Buying Services, mediaReach OMD Nigeria in an exclusive interview with MARKETING EDGE.
He stated further that advertising spend will shift to brands that offer the highest return on investment, ROI, as marketers and brand managers seek to optimize the limited marketing budget to get the share of the consumers’ pocket.
“I think the best time for marketing to command some high level of attention is now, during this period where people are challenged. Disposable income is getting reduced by the seconds and now the fight for that share of the pocket by the brands becomes more pronounced.
Meanwhile, he also believes that growth will come but how well the brands are ready for this will be a clear demarcation between those who will succeed and those who will not. “For me, I think one thing people will be looking out for next will be how to engage, interact and give the consumer the sense of ownership, a real value for their spend. That is what people really want. If I have gone through a whole lot to get my disposable income, for me to expend it on you, you must be able to give me justification that it goes beyond just awareness” he said.
He averred that brands’ spending pattern will change as they will only be investing on platforms that are capable of delivering the needed top-of-the-mind awareness, engagements and affinity with them as advertising spend will be more intentional, focused and result oriented.
“Rather than do five or six, the brand might like to do about two, three. If those two, three are delivering value, you can be rest assured that more revenue will be pumped into that direction. So, there might be a kind of shift in terms of allocation and where the direction goes”.
While affirming that marketing activities will increase from the second quarter of 2023, the media practitioner stated that utilizing all consumers’ touchpoints will be a major focus for brand managers this year.
So, it is not just about awareness anymore. You must be able to interact, engage and give them a reason why that share should come to you. That is why brands need to be more creative, be more emotionally attached to their consumers which will command a level of investment from them and marketing should be in a good place”.
Ada Adheke, CEO Peacock Media, who affirmed that the political activities drastically reduced advertising spend in the first quarter of 2023.she however said that activities in the sector will gradually pick up for the remaining part of the year as inflation and other economic challenges continue to influence consumer behaviour.
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