Direct Messaging Advertising - Nigeria

Ad spending in the Direct Messaging Advertising market in Nigeria is forecasted to reach US$66.07m in 2024.
The anticipated annual growth rate (CAGR 2024-2030) for ad spending is 1.06%, leading to an estimated market volume of US$70.40m by 2030.
Direct Mail Advertising holds the largest market share with a volume of US$45.88m in 2024.
When compared globally, the United States leads in ad spending, reaching US$29.98bn in 2024.
The average ad spending per capita in the Direct Messaging Advertising market is projected to be US$0.29 in 2024.
Nigeria's Direct Messaging Advertising market is experiencing a surge in personalized campaigns to target the country's diverse and tech-savvy population.

Definition:

Direct Messaging Advertising refers to a type of advertising format that involves sending advertisement messages directly to individual audiences or specific target groups through private communication channels. Direct Messaging Advertising includes both traditional and digital advertising methods, such as direct mail, e-mail, SMS, web push, instant messaging, and telemarketing. This form of advertising aims to establish a personalized and direct connection with potential customers.

Structure:

Direct Messaging Advertising typically refers to advertising formats used within various messaging platforms or direct messaging channels. These formats are designed to deliver targeted advertisements directly via private communication channels such as e-mail, SMS, direct mail, web push, telemarketing, and instant messaging.

Additional information:

Direct Messaging Advertising comprises advertising spending and average revenue per user. The market only displays B2B spending. Figures are based on advertising spending and exclude agency commissions, rebates, production costs, and taxes. For more information on the data displayed, use the info button right next to the boxes.

SMS advertising
Direct mail advertising
Web push advertising
Telemarketing
Instant messaging advertising
Traditional direct messaging
Digital direct messaging

Service agencies
Consultant fees
Production costs
Design services

The Direct Messaging Advertising market in Nigeria is seeing significant growth and development.

Customer preferences: In Nigeria, customers are increasingly turning to direct messaging platforms for communication and interaction. With the rise of social media and messaging apps, Nigerians are spending more time on these platforms, making them an ideal target for advertisers. Direct messaging advertising allows for personalized and targeted messaging, which resonates well with Nigerian consumers who value personalized experiences.

Trends in the market: One of the key trends in the Direct Messaging Advertising market in Nigeria is the growing use of chatbots. Chatbots are automated systems that can interact with users in a conversational manner. They are being used by businesses to provide customer support, answer queries, and even make sales. In Nigeria, chatbots are becoming increasingly popular as businesses look for ways to engage with their customers more effectively. This trend is driven by the desire to provide instant and personalized responses to customer inquiries, as well as the need to reduce costs associated with customer support. Another trend in the market is the integration of advertising within messaging apps. Messaging apps such as WhatsApp and Facebook Messenger are now offering advertising options to businesses. This allows advertisers to reach their target audience directly within the messaging app, increasing the visibility and effectiveness of their ads. In Nigeria, where messaging apps are widely used, this trend presents a significant opportunity for advertisers to reach a large and engaged audience.

Local special circumstances: Nigeria has a large and growing population, with a significant portion of the population being young and tech-savvy. This demographic is highly active on social media and messaging apps, making them an attractive target for advertisers. Additionally, Nigeria has a high mobile penetration rate, with a large number of people accessing the internet through their mobile devices. This makes it easier for advertisers to reach their target audience through direct messaging advertising.

Underlying macroeconomic factors: Nigeria is experiencing rapid economic growth, with a growing middle class and increasing disposable income. This has led to an increase in consumer spending and a greater demand for products and services. As a result, businesses are looking for effective ways to reach and engage with consumers, and direct messaging advertising provides a cost-effective and targeted solution. Furthermore, the Nigerian government has been investing in infrastructure development, including improving internet connectivity and expanding access to mobile services. This has led to an increase in internet usage and mobile adoption, creating a favorable environment for direct messaging advertising. In conclusion, the Direct Messaging Advertising market in Nigeria is developing rapidly due to customer preferences for personalized experiences, the use of chatbots, the integration of advertising within messaging apps, a large and tech-savvy population, and underlying macroeconomic factors such as economic growth and infrastructure development. This presents a significant opportunity for businesses and advertisers to effectively reach and engage with their target audience in Nigeria.

Data coverage:

The data encompasses B2B enterprises. Figures are based on Direct Messaging Advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers advertising by businesses via e-mail, SMS, direct mail, messengers, web push, telemarketing, and instant messaging.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on specific predefined factors for each market. As a basis for evaluating markets, we use annual financial reports of the market-leading companies and industry associations, third-party studies and reports, survey results from our primary research (e.g., the Statista Consumer Insights Global survey), as well as performance factors (e.g., user penetration, usage). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, number of internet users, number of smartphone users, internet coverage, and number of urban households. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function is well suited to forecast digital products due to the non-linear growth of technology adoption, whereas exponential trend smoothing (ETS) is more suited for projecting steady growth in traditional advertising markets. The main drivers are GDP per capita, consumer spending per capita, and 4G coverage.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development). Data from the Statista Consumer Insights Global survey is reweighted for representativeness.

This report presents a comprehensive analysis and additional information on the Advertising & Media market, in a PDF format.

All advertising markets across the globe win, yet some win more than others. Ad spending worldwide reached almost 733 billion U.S. dollars in 2023, up less than three percent from the previous year. For comparison, in 2022, Switzerland ranked 20th among the leading economies by gross domestic product (GDP) with a result exceeding 800 billion dollars. Whereas global ad revenues concentrate in areas with either large populations or high purchase power – preferably both – their evolution depends on a larger set of indicators. It was forecast that, in 2024, South Asia will be the world's fastest-growing ad market, and the only out of nine with a double-digit increase rate: 12.1 percent. The second-placed region, comprising the United States and Canada, was projected to see its ad expenditure rise 7.6 percent.