Market Insights Advertising & Media Advertising

Social Media Advertising - Nigeria

Nigeria

In Nigeria, ad spending in the Social Media Advertising market is projected to reach US$130.60m in 2024.
The ad spending in this sector is expected to demonstrate an annual growth rate (CAGR 2024-2029) of 10.68%, leading to a projected market volume of US$216.90m by 2029.
In a global context, the majority of ad spending will be generated China, which is expected to reach US$84,650.00m in 2024.
Within the Social Media Advertising market, it is anticipated that 71% of total ad spending in Nigeria will be generated through mobile by 2029.
Additionally, the number of users in the Social Media Advertising market in Nigeria is expected to amount to 46,490.0k users by 2029.
In Nigeria, the rising youth population is driving innovative social media advertising strategies, as brands increasingly seek to engage this digitally savvy demographic.

Key regions: United States, France, Japan, Europe, Germany

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Analyst Opinion

The Social Media Advertising market in Nigeria is experiencing significant growth and development.

Customer preferences: Nigerian consumers have shown a strong preference for social media platforms as a means of communication and entertainment. With a large and growing population of internet users, social media has become an integral part of daily life for many Nigerians. This has created a fertile ground for advertisers to reach their target audience through social media advertising.

Trends in the market: One of the key trends in the Nigerian Social Media Advertising market is the increasing adoption of mobile devices. With the majority of Nigerians accessing the internet through their smartphones, advertisers are focusing on creating mobile-friendly content and advertisements to effectively reach their audience. Additionally, there is a growing trend of influencer marketing in Nigeria, with brands partnering with popular social media personalities to promote their products or services. This form of advertising has proven to be highly effective in capturing the attention and trust of Nigerian consumers.

Local special circumstances: Nigeria has a vibrant and diverse social media landscape, with various platforms being popular among different demographic groups. Facebook remains the dominant social media platform in Nigeria, with a large user base across different age groups. However, other platforms such as Instagram, Twitter, and TikTok are also gaining popularity, especially among younger Nigerians. Advertisers need to understand the unique characteristics and preferences of each platform to effectively engage with their target audience.

Underlying macroeconomic factors: The growing Nigerian economy is also contributing to the development of the Social Media Advertising market. As more Nigerians enter the middle class and disposable incomes increase, there is a greater demand for products and services. This presents an opportunity for advertisers to leverage social media platforms to promote their offerings and capture a share of the growing consumer market. Additionally, the increased internet penetration and access to affordable smartphones have made social media more accessible to a larger segment of the population, further fueling the growth of the market. In conclusion, the Social Media Advertising market in Nigeria is experiencing significant growth and development due to customer preferences for social media platforms, the increasing adoption of mobile devices, the trend of influencer marketing, the diverse social media landscape, and the underlying macroeconomic factors. Advertisers in Nigeria need to understand the preferences and characteristics of different social media platforms to effectively engage with their target audience and capitalize on the opportunities presented by the growing Nigerian economy.

Methodology

Data coverage:

Data encompasses enterprises (B2B). Figures are based on social media advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers social media advertising generated by social networks or business networks such as Facebook, Tiktok, Instragram, Pinterest, and LinkedIn.

Modeling approach:

A combined top-down and bottom-up approach determines the market size. Starting with the top-down approach, we calculate global social media advertising by aggregating revenues from key players (Meta Platforms (Facebook and Instagram), ByteDance (Tiktok and Douyin), Twitter, Snapchat, and Microsoft (LinkedIn)). Followed by the bottom-up approach, we justify global, country, and region results using web traffic and the number of app downloads. Lastly, we distribute the results to each country individually with relevant indicators such as GDP, internet users, social media users, and digital consumer spending by country.

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.