Influencer Advertising - Nigeria | Statista Market Forecast

Ad spending in the Influencer Advertising market in Nigeria is forecasted to reach US$4.75m in 2024.
The expected annual growth rate (CAGR 2024-2030) for ad spending is 8.09%, leading to a projected market volume of US$7.57m by 2030.
The average ad spending per internet user in the Influencer Advertising market in Nigeria is projected to be US$0.06 in 2024.
Globally, China is anticipated to generate the highest ad spending in 2024, amounting to US$19.16bn.
In Nigeria, Influencer Advertising is rapidly gaining traction among brands seeking to capitalize on the country's diverse and engaged online community.

Definition:
Influencer Advertising refers to advertising that allows marketers to promote products or services by collaborating with influencers on social media. Influencer Advertising allows marketers to reach targeted audiences based on the influencer’s performance and their follower profiles; they also have the ability to measure the performance of campaigns. Influencer Advertising refers to all advertising fees paid directly to influencers (or to their person of trust or representative) for posting or streaming sponsored content (e.g., posts, videos, and/or stories) on social media to promote products or services to their followers. This sponsored content typically includes images, videos, live streams, and/or text.

Additional information:
Influencer Advertising comprises advertising spending, users, 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.

Advertising spending paid directly to influencers to post sponsored content

The values of giveaway products as well as services that influencers receive in exchange for reviews, mentions, or giveaways for their followers
Advertising spending allocated to paid social media campaigns to boost content
Affiliate commissions, i.e., the commissions that are paid to influencers when someone makes a purchase based on their content or links
Gross merchandise volume (GMV) of transactions from sponsored posts or live streams

In recent years, the Influencer Advertising market in Nigeria has experienced significant growth and development, driven by changing customer preferences and the rise of social media platforms.

Customer preferences: Customers in Nigeria have shown a growing interest in influencer advertising as a means to discover new products and make purchasing decisions. Influencers are seen as trustworthy sources of information, and their recommendations hold significant weight among consumers. Additionally, the rise of social media platforms has made it easier for customers to engage with influencers and access their content, further fueling the demand for influencer advertising.

Trends in the market: One of the key trends in the Nigerian influencer advertising market is the increasing use of micro-influencers. These are individuals with a smaller but highly engaged following, often within a specific niche or industry. Brands are recognizing the value of micro-influencers in reaching targeted audiences and are partnering with them to create authentic and relatable content. This trend is driven by the desire for more personalized and niche-focused advertising campaigns. Another trend in the market is the shift towards video content. With the widespread availability of high-speed internet and the popularity of platforms like YouTube and TikTok, video content has become a dominant form of communication. Influencers are leveraging this trend by creating engaging and entertaining video content that captures the attention of their audience. Brands are increasingly incorporating video content into their influencer advertising strategies to effectively convey their brand message.

Local special circumstances: Nigeria has a large and growing population of internet users, with a significant portion of the population accessing the internet through mobile devices. This presents a unique opportunity for influencer advertising, as it allows brands to reach a wide audience through mobile-friendly content. Additionally, Nigeria has a vibrant social media culture, with platforms like Instagram and Twitter being widely used. This social media culture has created a fertile ground for influencer advertising to thrive.

Underlying macroeconomic factors: The Nigerian economy has been experiencing steady growth in recent years, resulting in an expanding middle class with increased purchasing power. This growing middle class is driving consumer spending and creating a demand for new products and services. Influencer advertising plays a crucial role in capturing the attention of this consumer segment and influencing their purchasing decisions. Furthermore, the Nigerian government has been investing in improving internet infrastructure and expanding access to the internet. This has contributed to the growth of the influencer advertising market, as it has made it easier for consumers to engage with influencers and access their content. In conclusion, the Influencer Advertising market in Nigeria is developing rapidly due to changing customer preferences, the rise of social media platforms, and the underlying macroeconomic factors. The increasing use of micro-influencers and video content, coupled with Nigeria's vibrant social media culture and growing middle class, are driving the growth of the market. With continued investment in internet infrastructure and the increasing adoption of social media, the influencer advertising market in Nigeria is expected to continue its upward trajectory.

Data coverage:

Data encompasses enterprises (B2B). Figures are based on influencer advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers advertising fees paid directly to influencers to post sponsored content.

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. We use market data from independent databases, influencer marketing platforms, and third-party reports to analyze and estimate global influencer advertising spending. We start by researching on the average cost per content post on each social media platform, the number of influencers available on advertising platforms (breakdown by tier: nano, micro, macro, and mega), and the average number of posts per year. Then we estimate the market size for each country individually. We use relevant key market indicators and data from country-specific industry associations, such as GDP, social media users, and digital consumer spending. Lastly, we benchmark key countries or regions (global, United States, China, etc.) with external sources.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market. For instance, 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.

Additional notes:

Data is modeled using current exchange rates. The impacts of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice per year in case market dynamics change.

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

Influencer marketing has become one of the most popular and effective forms of online marketing. With millions of internet users browsing social media platforms for entertainment, inspiration, and product recommendations daily, it is no surprise that marketers are harnessing the power of social media’s most recognizable faces for promotion. The global influencer marketing market value stood at 21.1 billion U.S. dollars as of 2023, having more than tripled since 2019. As influencer endorsement continues to mature as an industry, the size and value of influencer marketing platforms also continue to expand every year, making collaborations between brands and creators more profitable than ever.