Advertising is a substantial contributor to Nigeria’s GDP – Ajayi

By Ibidunni Banjoko

John Ajayi, the Publisher of MARKETING EDGE magazine, an ace journalist and marketing/ brand expert, has said that advertising and marketing contribute substantially to the wider Nigerian economy by supporting competitiveness, providing consumers with information on products and services, and helping to increase their choice of goods and services. Marketing communication, he argued, drives innovation by incentivising businesses to create differentiated products and services, allowing them to compete favorably not just in the Nigerian market but around the world.

Mr. Ajayi, who revealed this during a recent programme tagged “Talk to Us”, organised by Star FM 101.5FM, stated that the marketing and advertising sub-sector contributed close to 20% of Nigeria’s GDP in 2021, looking at the total advertising spend of the multinational companies. Sending a persuasive reminder to policymakers, he underscored that advertising, if promoted, will generate economic value and encourage more innovation, support employment and help fund vital services.

“According to the Federal Inland Revenue Service (FIRS), the multinational companies had been the best player in terms of tax payment and Corporate Social Responsibility (CSR). Companies like MTN, Nigerian Breweries, and Guinness Nigeria etc. are in their list. What drives these companies’ profitability is marketing and advertising,” Mr. Ajayi said.

Commenting on the 2023 political campaigns and what should be done, he said: “The political landscape in Nigeria has not been exciting in the real sense of serious political advertising, the gladiators and the players have been busy with some unserious activities. By now, before the campaign fully begins, there should be some kind of teasers wetting the ground, getting the electorate excited about what is going to happen, but Nigerians are used to poor political campaign culture.

“For Nigerian politicians to make sense to the electorate, the political candidates need to sell their brand identity; they need to showcase their unique selling points and do political advertising that touches the heart of the electorate,” he said.

He explained that, marketing creates satisfaction for consumers and also creates awareness for product and services available while advertising builds promotion for the product categorisation and market segmentation.

It would be recalled that, according to Magna, the global adspend in 2021 was expected to rebound, with estimates to reach $710 billion, an increase of 22% from 2020. Magna pointed out the +22% would be the largest growth ever reported, surpassing +12.5% registered in 2020. In addition, the report said global adspend would surpass $700 billion ($709 billion) for the first time as the global economy strengthens. Looking at 2022, Magna sees continued growth at +12.0%.


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