As Nigeria continues to grapple with rising economic challenges, brands both big and small are rethinking their marketing strategies, with many scaling back on advertising due to mounting financial pressure. Notably, even some of the country’s biggest brands known for their memorable and catchy campaigns have had to cut back on promotional activities. This trend is more pronounced among small and upcoming businesses, making it appear as though they do not fully grasp the value of advertising.

This trend is particularly pronounced among small and emerging businesses, creating the misconception that they do not fully appreciate the value of advertising.

Despite a strong desire to embrace advertising, small businesses in Nigeria are facing significant challenges due to financial difficulties. The current economic climate presents numerous obstacles, including an unfriendly business environment that makes it difficult for these businesses to thrive.

However, an investigation by MARKETING EDGE reveals that these businesses are not avoiding advertising out of ignorance but rather due to prohibitive costs. Conversations with business owners demonstrate that all businesses, regardless of size, recognize the importance of advertising. The primary barrier is the financial burden associated with it.

A marketing strategist,  Munachimso Ibenele urged the government to create initiatives that foster a supportive environment for startups, enabling them to thrive and invest in advertising. “Every business knows advertising is critical for growth, but the current economic climate makes it difficult for small businesses to allocate enough resources.”

Another entrepreneur,   Dapo Oladoye echoed these sentiments, pointing out that small businesses struggle with high media costs. “The problem isn’t a lack of understanding; it’s the high cost of media spaces. With limited capital, it’s hard to prioritize advertising over essentials like payroll and operations.

Business consultant Mrs. Omolara Adeyanju advocated for a more inclusive ecosystem, stating, “Bigger agencies should help nurture some of these smaller businesses. I know that an outdoor agency like Nimbus Media has introduced something like that, the Nimbus Aid Project, aimed at providing over 50 million Naira in advertising and marketing assistance to 33 organizations.

It is  a groundbreaking move to promote gender equality and economic empowerment that supports women-led businesses by providing them advertising value. This support will sure be instrumental in spotlighting and uplifting businesses. I think other agencies can also embrace this kind of gesture, though I know it is not an easy move with the current economic realities of today.  Collaborative advertising or mentorship programs can provide smaller businesses with the visibility they need without excessive costs. Ultimately, this benefits the entire industry.”

Chidumaga Unachukwu, a fintech expert and CEO of EXERGIE Group, highlighted additional issues within the sector.

“Some businesses don’t fully recognize the importance of advertising, and many agencies fail to deliver results, causing doubt among potential clients.” He added that agencies should tailor their services to meet the specific needs of businesses, creating a win-win situation.

Logistics and supply chain expert Olugbenga Ojo noted that small and medium enterprises (SMEs) often deprioritize advertising due to financial constraints. He advised SMEs to balance their priorities and recognize advertising as essential for growth.

“SMEs find it difficult to secure funding, so they prioritize their spending, sometimes overlooking the importance of advertising.”

The respondents jointly agreed that the challenges faced by small businesses in embracing advertising are rooted in financial constraints and a challenging economic environment. The voices of industry experts collectively call for government intervention and industry-wide collaboration to provide affordable advertising opportunities, ensuring that small businesses can effectively promote their products and services despite these hurdles.