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Retail Platform Advertising - Nigeria

Nigeria
  • In Nigeria, ad spending in the Retail Platform Advertising market market is projected to reach US$28.29m in 2024.
  • This ad spending is expected to demonstrate an annual growth rate (CAGR 2024-2030) of 10.07%, leading to a projected market volume of US$50.30m by 2030.
  • The average ad spending per user Nigeria's Retail Platform Advertising market market is anticipated to amount to US$1.60 in 2024.
  • In a global context, the majority of ad spending will be generated the United States, which is projected at US$57.63bn in 2024.
  • In Nigeria, the retail platform advertising segment is increasingly integrating mobile technologies to enhance customer engagement and drive local brand visibility.

Definition:

Retail platform advertising (RPA) refers to digital ads displayed on websites and apps dedicated to retail platforms, such as Amazon, Walmart, eBay, Alibaba, and JD.com. This includes all types of advertising across various devices, e.g., PCs, smartphones, and tablets, and covers formats such as sponsored products, banners, and videos. RPA specifically excludes offline retail ads (e.g., in-store displays and billboards), off-site ads (e.g., ads appearing on non-retail websites or apps), ads on social media platforms (e.g., Facebook or Instagram), and ads on search engines (e.g., Google or Bing).

Additional Information:

It is important not to confuse RPA with retail media networks (RMNs). RMNs involve digital ads that are also displayed on retail e-commerce sites or apps, but these ads are purchased through a retailer’s media network or a demand-side platform (DSP). While RMNs include ads on sites such as Amazon and Walmart, they also cover ads bought through networks such as Amazon DSP, Walmart Connect, and Etsy’s Offsite Ads, and these ads may not necessarily appear directly on the retailer’s e-commerce site or app. Unlike RPA, RMNs represent a broader approach that encompasses a range of ad placements, both on and off the retailer’s own platforms.

In-Scope

  • Digital ads displayed on websites and apps dedicated to retail platforms
  • All types of advertising across various devices, e.g., PCs, smartphones, and tablets
  • All types of sponsored ad formats, such as sponsored products, banners, and videos

Out-Of-Scope

  • Offline retail ads (e.g., in-store displays and billboards)
  • Off-site ads (e.g., ads appearing on non-retail websites or apps)
  • Ads on social media platforms (e.g., Facebook or Instagram)
  • Ads on search engines (e.g., Google or Bing)
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Advertising: market data & analysis

Study Details

    Ad Spending

    Notes: Data was converted from local currencies using average exchange rates of the respective year.

    Most recent update: Oct 2024

    Source: Statista Market Insights

    Notes: Data was converted from local currencies using average exchange rates of the respective year.

    Most recent update: Oct 2024

    Source: Statista Market Insights

    Most recent update: Oct 2024

    Source: Statista Market Insights

    Analyst Opinion

    The Retail Platform Advertising Market in Nigeria is witnessing subdued growth, influenced by factors such as limited digital infrastructure, shifting consumer preferences, and economic challenges that hinder investment in advertising technologies and platforms.

    Customer preferences:
    Consumers in Nigeria are increasingly gravitating towards personalized shopping experiences on digital retail platforms, reflecting a desire for tailored recommendations and convenient access to products. This shift is influenced by a younger demographic that values tech-savvy solutions and social commerce, where influencer marketing plays a significant role. Additionally, the growing preference for local brands and sustainable products highlights a cultural pivot towards supporting homegrown businesses, further reshaping how retailers engage with their audiences in the digital landscape.

    Trends in the market:
    In Nigeria, the Retail Platform Advertising Market is experiencing a surge in the use of data-driven marketing strategies, enabling retailers to deliver personalized ad experiences to consumers. The rise of social commerce is reshaping advertising approaches, as brands collaborate with local influencers to enhance product visibility and drive engagement. Furthermore, there is an increasing focus on mobile-first strategies, as more consumers access retail platforms via smartphones. This trend underscores the importance of agility for retailers in adapting their advertisements to align with consumer preferences, ultimately fostering brand loyalty and community support.

    Local special circumstances:
    In Nigeria, the Retail Platform Advertising Market is shaped by a vibrant youth demographic that drives demand for digital engagement. Cultural diversity influences advertising strategies, as brands tailor their messages to resonate with various ethnic groups and local languages. Additionally, the informal retail sector plays a critical role, with many consumers relying on local markets and social media for product discovery. Regulatory challenges, such as compliance with local advertising standards, further necessitate agility in marketing approaches, ensuring that campaigns are both relevant and culturally appropriate.

    Underlying macroeconomic factors:
    The Retail Platform Advertising Market in Nigeria is significantly impacted by macroeconomic factors such as economic growth rates, consumer spending patterns, and digital adoption trends. Nigeria's economic landscape, characterized by fluctuating oil prices and inflationary pressures, affects disposable income and, consequently, advertising budgets. Furthermore, the rise of e-commerce and mobile internet usage fosters a shift toward digital advertising, attracting both local and international brands. Fiscal policies promoting digital infrastructure investment create a conducive environment for innovative advertising solutions. Meanwhile, global economic trends, including shifts in consumer behavior and increased demand for localized content, further shape advertising strategies, compelling brands to adapt and thrive in this dynamic market.

    Reach

    Most recent update: Oct 2024

    Source: Statista Market Insights

    Global Comparison

    Most recent update: Oct 2024

    Source: Statista Market Insights

    Methodology

    Data coverage:

    Data encompasses enterprises (B2B). Figures are based on Retail platform ad spending and exclude agency commissions, rebates, production costs, and taxes. The market covers advertising by businesses for 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. 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). Next, we use relevant key market indicators and data from country-specific associations, such as GDP, internet users, 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).

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    Key Market Indicators

    Notes: Based on data from IMF, World Bank, UN and Eurostat

    Most recent update: Sep 2024

    Source: Statista Market Insights

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