Digital Video Advertising - Nigeria

Ad spending in the Digital Video Advertising market in Nigeria is forecasted to reach US$116.10m in 2024.
The ad spending is anticipated to exhibit an annual growth rate (CAGR 2024-2030) of 5.76%, leading to a projected market volume of US$162.60m by 2030.
With a projected market volume of US$85.39bn in 2024, the majority of revenue will be generated the United States.
In Nigeria, 91% of total ad spending in the Digital Video Advertising market will come from mobile in 2030.
The average ad spending per internet user in the Digital Video Advertising market is estimated to be US$1.39 in 2024.
Connected TV ad spending in the Digital Video Advertising market is expected to reach US$2.48m in 2024, with a projected market volume of US$3.20m by 2030, showing an annual growth rate (CAGR 2024-2030) of 4.34%.
Ad spending on short-form videos in the Digital Video Advertising market is projected to reach US$54.99m in 2024, with an annual growth rate (CAGR 2024-2030) of 9.65%, resulting in a projected market volume of US$95.59m by 2030.
Nigeria's Digital Video Advertising market is rapidly growing, driven by increasing internet penetration and a rising demand for engaging online content.

Definition:
Digital Video Advertising includes all ad formats within webpage-based videos, app-based video players, social media, or streaming apps on computer screens, smartphones, tablets, and other internet-connected devices. Videos that seamlessly match the form and function of the environment (e.g., news websites, video platforms) in which they appear (so-called native advertising) are also included in Digital Video Advertising.

Additional information:
Digital Video Advertising comprises advertising spending, connected-TV advertising spending, users, average revenue per user, and user demographic. The market only displays B2B spending. Figures are based on Digital Video Advertising spending and exclude agency commissions, rebates, production costs, and taxes. Key players in Digital Video Advertising include Comcast Corp., The Walt Disney Company, YouTube, TikTok, and Facebook. For more information on the data displayed, use the info button right next to the boxes.

All ad formats within webpage-based videos, app-based video players, social media networks, or social media apps
Pre-roll, mid-roll, and post-roll video ads
Text- or image-based overlays that appear in video players
Native advertising
Connected TV advertising
Ad spending on short-form videos

Traditional TV advertising video formats broadcasted over traditional transmission channels (e.g., DTT, cable, satellite)
Addressable TV ads, targeted advertising to individual households via set-top boxes; including cable and satellite using addressable technologies such as Dynamic Ad Insertion (DAI)

The Digital Video Advertising market in Nigeria is experiencing significant growth and development, driven by various factors such as increasing internet penetration, rising smartphone usage, and a growing digital ecosystem.

Customer preferences: In Nigeria, customers are increasingly turning to digital video advertising as their preferred medium for consuming content. This is due to the convenience and accessibility provided by digital platforms, allowing users to watch videos anytime and anywhere. Additionally, the younger demographic in Nigeria, which constitutes a significant portion of the population, is highly engaged with digital video content and is more likely to respond positively to video advertisements.

Trends in the market: One major trend in the Nigerian Digital Video Advertising market is the shift from traditional television advertising to digital platforms. As more Nigerians gain access to the internet and smartphones, advertisers are recognizing the potential of reaching a larger and more targeted audience through digital video advertising. This trend is further fueled by the increasing popularity of streaming platforms and social media, which provide opportunities for targeted advertising and personalized content. Another trend in the market is the rise of influencer marketing. Nigerian consumers are increasingly influenced by social media personalities and content creators, who have a significant following and can effectively promote products and services through video advertisements. This trend has led to the emergence of a new breed of digital influencers in Nigeria, who collaborate with brands to create engaging video content that resonates with their audience.

Local special circumstances: Nigeria has a large and diverse population, with different cultural and linguistic backgrounds. This diversity presents both opportunities and challenges for digital video advertisers. On one hand, it allows for the creation of localized and culturally relevant content that can better resonate with Nigerian consumers. On the other hand, advertisers need to carefully navigate the cultural nuances and preferences of different regions within Nigeria to ensure their video advertisements are well-received.

Underlying macroeconomic factors: The Nigerian economy has been experiencing steady growth in recent years, which has contributed to the development of the Digital Video Advertising market. This growth has led to an increase in disposable income and consumer spending, driving demand for products and services advertised through digital video platforms. Additionally, the Nigerian government has been making efforts to improve the country's digital infrastructure, including broadband connectivity and mobile network coverage, which has further facilitated the growth of the Digital Video Advertising market. In conclusion, the Digital Video Advertising market in Nigeria is witnessing significant growth and development, driven by customer preferences for digital content consumption, the shift from traditional television advertising to digital platforms, the rise of influencer marketing, and the country's macroeconomic factors. Advertisers in Nigeria need to understand and cater to the unique preferences and circumstances of the local market to effectively engage with Nigerian consumers through digital video advertising.

Data coverage:

Data encompasses enterprises (B2B). Figures are based on digital video advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers video ad formats (web-based, app-based, social media, and connected devices).

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. We use market data from industry reports and survey results from our primary research (e.g., Consumer Insights Global Survey) to analyze the markets. Then we benchmark key countries or regions (United States, China, Europe, Asia, and Africa) results with country-specific advertising organizations or associations. 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, internet users, and digital consumer spending.

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.

From six-second bumper ads to multi-minute compilations, video marketing is constantly evolving, and audiences everywhere never fail to tune in. As the number of digital video viewers keeps rising every year, marketers embrace video as a promotional tool more vividly than ever. In 2023, digital video ad spending amounted to almost 176.63 billion dollars. Unsurprisingly, the United States remains the country with the highest spending on digital video ads, followed by China and the United Kingdom. Connected TV (CTV) and social video are among the most popular content marketing tactics worldwide, and the post-pandemic era has only consolidated companies’ dependency on these tools.