Advertising - Nigeria | Statista Market Forecast

Ad spending in the Advertising market in Nigeria is forecasted to reach US$995.60m in 2024.
The largest market is TV & Video Advertising with a market volume of US$506.00m in 2024.
When compared globally, the United States leads in ad spending, projected to reach US$425.90bn in 2024.
Within the Advertising market, 40% of total ad spending will come from digital channels in 2030.
The average ad spending per capita in the TV & Video Advertising sector is expected to be US$2.21 in 2024.
Additionally, in the Advertising market, Advertising market of the 74% revenue will be generated through programmatic advertising in 2030.
Nigeria's Advertising market is experiencing a surge in digital ad spending, reflecting the shift towards online platforms for targeted marketing strategies.

Definition:
Advertising spending refers to expenses for promotional strategies with which brands or businesses purchase advertising space to promote products or services. The primary purposes of advertising include creating awareness, generating interest, and persuading consumers to take a particular action such as purchasing a product, visiting a website, or supporting brands. Advertisers use advertising to reach their target audience while media companies and advertising agencies use it as a source of income.

Structure:
The advertising spending consists of two main channels (traditional advertising and digital advertising). Traditional Advertising refers to above-the-line media that delivers commercial messages to broad audiences. This includes mass media such as traditional TV, traditional radio, printed newspapers, printed magazines, and traditional out-of-home (OOH) advertising formats. Digital Advertising uses the internet to deliver marketing messages to internet users in various forms. This includes digital video, search engine, social media, digital out-of-home, digital banner, digital audio, digital classifieds, and influencer advertising.

Additional information:
The market comprises advertising spending, share by advertising channel, users, average revenue per user, advertising share by industry, ad spending by medium, and digital ad spending share (programmatic and non-programmatic). The market only displays B2B spending and users for the above-mentioned channels. Figures are based on advertising spending and exclude agency commissions, rebates, production costs, and taxes. Additional definitions for each market can be found on the respective pages. For more information on the data displayed, use the info button right next to the boxes.

Traditional advertising such as non-digital ads for TV and radio, as well as out-of-home advertising and print advertising
Digital advertising such as online ads for video, banner, audio, classifieds, and search engines, as well as digital out-of-home, social media, in-app, and connected TV advertising
Influencer advertising

Sponsorships/events and promotion
Product placement
Commission-based affiliate systems

The Advertising market in Nigeria has been experiencing significant growth in recent years.

Customer preferences: Nigerian consumers are increasingly embracing digital media, which has led to a shift in advertising preferences. Traditional forms of advertising such as print and television are still popular, but digital advertising is gaining traction. This is mainly due to the growing number of internet users in the country, as well as the increasing popularity of social media platforms. Nigerian consumers are now more likely to engage with advertisements on their smartphones or computers rather than through traditional media channels.

Trends in the market: One of the key trends in the Nigerian advertising market is the rise of influencer marketing. Influencers, particularly on social media platforms such as Instagram and YouTube, have gained a significant following in Nigeria. Brands are now partnering with these influencers to promote their products or services, as they have a strong influence on consumer purchasing decisions. This trend is driven by the desire to reach a younger demographic, who are more likely to trust recommendations from influencers rather than traditional advertisements. Another trend in the Nigerian advertising market is the increasing use of mobile advertising. With the rise in smartphone penetration and internet usage, brands are now focusing on mobile advertising to reach their target audience. Mobile advertising offers the advantage of being able to target consumers based on their location, interests, and demographics, making it a highly effective marketing tool. As a result, mobile advertising spending in Nigeria has been on the rise.

Local special circumstances: One of the unique aspects of the Nigerian advertising market is the diversity of languages and cultures in the country. Nigeria is home to over 250 ethnic groups, each with its own language and cultural practices. This presents a challenge for advertisers who need to tailor their campaigns to specific regions and demographics. Advertisers must take into consideration the cultural nuances and preferences of different ethnic groups in order to effectively reach their target audience.

Underlying macroeconomic factors: The growth of the Nigerian advertising market can be attributed to several macroeconomic factors. Nigeria has the largest economy in Africa, and its middle class is expanding rapidly. This has led to increased consumer spending and a greater demand for products and services. As a result, advertisers are investing more in marketing and advertising to capture this growing market. Furthermore, Nigeria has a young and tech-savvy population, with a high rate of internet and smartphone penetration. This presents a huge opportunity for digital advertising, as more Nigerians are accessing the internet through their mobile devices. Advertisers are capitalizing on this trend by investing in online platforms and social media advertising. In conclusion, the Advertising market in Nigeria is experiencing growth due to changing customer preferences, such as the shift towards digital media and the rise of influencer marketing. The local special circumstances, such as the diversity of languages and cultures, pose a challenge for advertisers but also provide an opportunity to tailor campaigns to specific regions and demographics. The underlying macroeconomic factors, including the expanding middle class and high internet penetration, are driving the growth of the advertising market in Nigeria.

Data coverage:

Data encompasses enterprises (B2B). Figures are based on advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers advertising by businesses for traditional and digital advertisements.

Modeling approach:

Market sizes are determined by a combined top-down and bottom-up approach, based on a specific rationale for each market market. As a basis for evaluating markets, we use annual financial reports of the market-leading companies and industry associations, third-party reports, and survey results from our primary research (e.g., Consumer Insights Global Survey). Next, we use relevant key market indicators and data from country-specific associations, such as GDP, internet users, consumer spending, and digital consumer spending. 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 particular 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.

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 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).

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.