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Cinema Advertising - Nigeria

Nigeria
  • Ad spending in the Cinema Advertising market market in Nigeria is projected to reach US$5.61m in 2024.
  • Ad spending in Nigeria is expected to show an annual growth rate (CAGR 2024-2029) of 7.71%, resulting in a projected market volume of US$8.13m by 2029.
  • With a projected market volume of US$952.00m in 2024, most revenue in the Cinema Advertising market market will be generated the United States.
  • In Nigeria, the number of viewers in the Cinema Advertising market market is expected to amount to 9.3m users by 2029.
  • The average ad spending per viewer in the Cinema Advertising market market in Nigeria is projected to amount to US$0.71 in 2024.
  • Nigeria's burgeoning cinema advertising sector is increasingly attracting brands seeking to engage a youthful audience through innovative and immersive storytelling experiences.

Definition:

The Cinema Advertising market pertains to the advertising sector within the cinema industry, where businesses and brands utilize various advertising formats, including pre-show ads, in-screen commercials, lobby displays, and interactive promotions, to reach a captive audience of moviegoers within cinema venues. This market offers advertisers a unique opportunity to engage with audiences in a theatrical setting, leveraging the immersive environment and high-quality audiovisual systems to create impactful and memorable brand experiences.

Additional Information:

The market encompasses key metrics such as ad spendings, average ad spending per viewer (ARPU), viewers and viewer penetration with revenues being generated through advertisers' payments for advertising placements within cinemas, including on-screen and off-screen promotions. Key players in the market are companies, such as National CineMedia, Screenvision Media, and Cineplex Digital Media.

In-Scope

  • Ads on or off screen in cinemas, such as ads on screen before a movie
  • Ads inside a cinema, such as on displays

Out-Of-Scope

  • Advertising for movies that are not displayed in the cinema, such as TV spots
  • Advertising from streaming services, such as Freevee
Cinema: market data & analysis - Cover

Market Insights report

Cinema: market data & analysis

Study Details

    Revenue

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

    Most recent update: Nov 2024

    Source: Statista Market Insights

    Notes: The chart “Comparable Estimates” shows the forecasted development of the selected market from different sources. Please see the additional information for methodology and publication date.

    Most recent update: Aug 2024

    Most recent update: Nov 2024

    Source: Statista Market Insights

    Analyst Opinion

    The Cinema Advertising market in Nigeria has been experiencing significant growth in recent years, driven by changing customer preferences and local special circumstances.

    Customer preferences:
    Nigerian consumers have shown a growing interest in cinema advertising due to several factors. Firstly, cinema advertising provides a unique and immersive experience for viewers, allowing brands to engage with their target audience in a captivating way. Secondly, Nigerian consumers are increasingly seeking out entertainment options that offer a break from their daily routines, and going to the cinema has become a popular choice. Lastly, cinema advertising allows brands to reach a diverse audience, as cinemas attract a wide range of demographics.

    Trends in the market:
    One of the key trends in the Nigerian cinema advertising market is the increasing number of cinemas across the country. This growth has been driven by rising disposable incomes, urbanization, and the growing popularity of cinema as a form of entertainment. As more cinemas open, the demand for advertising space within these venues has also increased. Another trend in the market is the adoption of digital technology in cinema advertising. Digital screens and projectors have become more affordable and accessible, allowing cinemas to enhance the viewing experience for their audience. This has opened up new opportunities for advertisers to create dynamic and engaging content that captures the attention of cinema-goers.

    Local special circumstances:
    Nigeria has a large and young population, with a significant portion of the population under the age of 30. This demographic is highly receptive to advertising and is a key target audience for many brands. Additionally, Nigeria has a vibrant film industry, known as Nollywood, which produces a large number of movies each year. This creates a unique opportunity for advertisers to leverage the popularity of Nigerian films and reach a captive audience in cinemas.

    Underlying macroeconomic factors:
    The growth of the cinema advertising market in Nigeria is also influenced by underlying macroeconomic factors. Nigeria has experienced steady economic growth in recent years, leading to an increase in consumer spending power. This has contributed to the growth of the entertainment industry, including the cinema sector. Additionally, the Nigerian government has implemented policies to attract foreign direct investment, which has led to increased investment in the cinema industry. In conclusion, the Cinema Advertising market in Nigeria is experiencing significant growth due to changing customer preferences, local special circumstances, and underlying macroeconomic factors. The increasing number of cinemas, adoption of digital technology, and the popularity of Nigerian films are driving the demand for cinema advertising in the country. With the continued growth of the Nigerian economy and the increasing popularity of cinema as a form of entertainment, the cinema advertising market is expected to continue to expand in the coming years.

    Users

    Most recent update: Nov 2024

    Source: Statista Market Insights

    Global Comparison

    Most recent update: Nov 2024

    Source: Statista Market Insights

    Methodology

    Data coverage:

    The data encompasses B2B enterprises. Figures are based on the Cinema Advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers advertising both on and off screen in cinemas, including ads shown before a movie and those displayed inside a cinema.

    Modeling approach / market size:

    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) to analyze the markets.as well as performance factors (e.g., user penetration, price per product, usage) 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 various macroeconomic indicators, historical developments, current trends, reported performance indicators of key market players as well as performance factors (e.g., user penetration and usage) to analyze the markets.

    Forecasts:

    We apply a variety of forecasting techniques, depending on the behavior of the relevant market. For instance, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption. The main drivers are GDP per capita, consumer spending per capita, and 4G coverage.

    Additional notes:

    The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a 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). Consumer Insights data is reweighted for representativeness.

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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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