Out-of-Home Advertising - Nigeria

Ad spending Nigeria's Out-of-Home Advertising market is forecasted to reach US$163.80m in 2024.
The largest market is Traditional Out-of-Home Advertising with a market volume of US$114.30m in 2024.
In a global context, the highest ad spending is expected to be generated United States (US$9.34bn in 2024).
The average ad spending per capita Nigeria's Out-of-Home Advertising market is projected to amount to US$0.71 in 2024.
In Nigeria, the Out-of-Home Advertising market is booming due to the increasing urbanization and growing middle class, attracting both local and international advertisers.

Definition:
Out-of-Home (OOH) Advertising refers to any advertising in public areas. OOH Advertising includes all ad spending on large formats (e.g., billboards), street furniture (e.g., bus shelters), transit and transportation (e.g., bus and commuter rail displays), and place-based media (e.g., traditional ambient media at the point of sale). Out-of-Home Advertising is divided into two markets: Traditional OOH Advertising and Digital OOH Advertising.

Structure:

The Traditional Out-of-Home Advertising market refers to all revenues from advertising in traditional (physical) out-of-home media. The content in this market only refers to non-digital revenues.
Digital Out-of-Home Advertising refers to all revenues generated from internet-connected out-of-home advertisements. The content in this market only refers to digital revenues.

Additional information:
Out-of-Home (OOH) 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. Additional definitions of Traditional Out-of-Home (OOH) Advertising and Digital Out-of-Home (DOOH) Advertising can be found on the respective pages. Key players in Out-of-Home Advertising include JCDecaux, Ströer, Focus Media Information, Hakuhodo, Dentsu, Clear Channel Outdoor, and APG SGA. For more information on the data displayed, use the info button right next to the boxes.

Traditional & digital billboards
Traditional & digital street furniture
Traditional & digital transit & transportation
Traditional & digital place-based media

Movie theater advertising
Event- and promotion-media

The Out-of-Home Advertising market in Nigeria has been experiencing significant growth in recent years, driven by changing customer preferences and the emergence of new trends in the market.

Customer preferences: Nigerian consumers have shown a strong preference for Out-of-Home Advertising as a way to engage with brands and products. This is due to the high visibility and impact of outdoor advertising, which allows brands to reach a large and diverse audience. Additionally, outdoor advertising is seen as a trusted and reliable form of marketing, as it is not easily ignored or blocked like online ads. Nigerian consumers also appreciate the creativity and innovation that outdoor advertising offers, with many campaigns incorporating interactive elements and eye-catching visuals.

Trends in the market: One of the key trends in the Out-of-Home Advertising market in Nigeria is the increasing use of digital signage. Digital billboards and screens have become popular in major cities, offering advertisers the ability to display dynamic and targeted content. This allows for more flexibility in advertising campaigns and enables brands to engage with consumers in real-time. Another trend is the integration of mobile technology into outdoor advertising, with the use of QR codes and NFC tags to provide additional information or interactive experiences. This trend aligns with the growing smartphone penetration in Nigeria and the increasing reliance on mobile devices for information and entertainment.

Local special circumstances: Nigeria's large population and urbanization rate contribute to the growth of the Out-of-Home Advertising market. With over 200 million people, Nigeria offers a vast consumer base for advertisers to target. The country's rapid urbanization has also led to the development of new infrastructure and transportation networks, creating more opportunities for outdoor advertising. Additionally, Nigeria's cultural diversity and vibrant street life make outdoor advertising an effective way to reach a wide range of audiences.

Underlying macroeconomic factors: The growth of the Out-of-Home Advertising market in Nigeria is supported by several macroeconomic factors. The country's GDP growth and rising disposable incomes have led to increased consumer spending, creating a demand for advertising services. Furthermore, Nigeria's improving infrastructure, particularly in major cities, has made it easier for advertisers to install and maintain outdoor advertising displays. Finally, the government's efforts to attract foreign investment and promote economic diversification have also contributed to the growth of the advertising industry as a whole. In conclusion, the Out-of-Home Advertising market in Nigeria is experiencing growth due to changing customer preferences, the adoption of new trends, and favorable macroeconomic factors. With the continued urbanization and economic development of the country, the market is expected to expand further in the coming years. Advertisers in Nigeria should continue to innovate and adapt to the evolving preferences of consumers in order to effectively engage with their target audience.

Data coverage:

Data encompasses enterprises (B2B). Figures are based on out-of-home (OOH) advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers traditional out-of-home advertising (offline out-of-home advertisements) and digital out-of-home advertising (internet-connected out-of-home advertisements).

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. 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) to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as GDP, population, urban population, and internet infrastructure.

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.

When consumers take a break from smartphones, connected TVs, and computer screens, outdoor advertising is often there, promoting products and services on billboards and transit displays. Still, out-of-home (OOH) channels have also gone increasingly digital – today, online and programmatic solutions drive the industry's expansion worldwide. Mid-2023 estimates indicated that static OOH could barely grow half as fast as the digital OOH (or DOOH) subsegment between 2023 and 2025.