Brands/Products
The Four Drivers of Nigerian Digital Advertising in 2023
By Brian Abel
Nigeria has long been considered Africa’s largest economy in terms of GDP, this should come as no huge surprise, especially considering its population of over 200 million, making it the largest in the continent, and boasting an abundance of natural resources, as well as strong trade links with its neighbouring countries. However, as vast as the Nigerian economy may appear to be, it is still very much going through stages of growth.
Helping to drive this evolution is the rapid digitalisation of many economic sectors. Consider the financial sector, for example, while Nigeria has been a major centre of African banking for many years, recently, it has also become the leading fintech player in the continent. Moreover, of Africa’s handful of unicorns (start-ups valued at more than $1 billion), the majority are, in fact, headquartered in Nigeria.
Rapid digitalisation has also impacted the world of advertising, with the country’s current digital advertising sphere worth over $179.20 million. And, as we know, digital advertising isn’t static, it’s constantly evolving, driven by ever-shifting trends, a fact that remains as true now, in 2023, then it has ever been. With that in mind, it is beneficial to understand the major trends and recognise which are set to impact Nigerian digital advertising over the course of the year.
Twitter to build on its return
At the start of 2022, the Nigerian government reversed its seven-month ban on Twitter. At first, ordinary Nigerians and advertisers alike were a little cautious when it came to returning to the social network. After all, once a service has been banned, it’s hard to imagine that the same might not happen again.
Fortunately, Twitter and the Nigerian government were able to come to an agreement, developing a Code of Conduct in line with global best practices. Over the months that followed, Twitter continued to make gains and once again proved its worth. The platform is slowly but surely securing its stance as the best location for advertisers to reach mass audiences, enabling them to build brand recognition, whilst developing trust, establishing relationships, increasing sales, and improving the customer’s experience.
While the government is keeping a close eye on the social network, especially following Elon Musk’s acquisition, it is set to remain a valuable digital advertising platform in 2023.
Post-Covid adjustments
During the peak of Covid-19 between 2020 and 2021, came an unexpected shining light for digital marketing and technology companies alike. With strict lockdowns in place globally, people were mostly confined to homes, and it should come as no shock that the need to connect took on new forms as the masses flocked to their online devices to reach loved ones, purchase goods, and seek a sense of normality.
However, as we stepped back into the outside world again, both tech and digital marketing witnessed revenue hits. Nigeria was not spared this cooling-off period, which was exacerbated by internet access issues for people during the year. That said, as connectivity becomes more reliable, ubiquitous, and affordable, digital marketing should continue its rise, with some analysts predicting that the sector will be worth close to $259 million by 2027. Not to mention, once the Pan-African telecommunications service provider, Seacom, launches their West African hub in 2023, that number could be reached even faster.
Marketers leverage entertainment and media
As far back as 2017, PwC predicted that Nigeria would be the world’s fastest-growing entertainment and media market. While Turkey currently holds the top spot, E&M growth in Nigeria remains strong. In fact, analysts predict that spending in the sector will increase by an average of just below 9% in the next five years.
One of the most visible areas of growth can be seen in music streaming. Since its Nigerian launch in February 2021, Spotify has achieved impressive growth in the country. Within a year after launching in Nigeria, music fans in the country had curated some 1.3 million user-generated playlists. Additionally, during the same period, nearly 21,000 songs were added to the platform. In fact, Nigeria was the country with the second most streams after Pakistan, among new markets, with Kenya following behind third in the ranking.
Digital marketers and media platforms have embraced the potential that comes with this advertising growth. Spotify, for example, has a 3D audio feature which allows brands to provide high-quality advertising through an immersive, dynamic, and sensory audio experience. Advertisers around the world have also realised this power, and spend is expected to increase in Nigeria and on a global scale.
Demand for digital marketing skills grows
One of the effects of the accelerated growth in Nigeria’s digital advertising sector has been a growing gap between the available skills and those required to operate effectively. While it’s a figure that applies to more than just digital advertising, research from the International Finance Corporation (IFC) reveals that approximately 230 million jobs across Africa will require digital skills by 2030.
Fortunately, a number of players have stepped forward to try and turn the situation around. Our own Digital Ad Expert Programme, for instance, aims to educate, certify, and connect thousands of Africans with the digital skills they need, enabling them to succeed in this increasingly digitised economy. Whilst these skills will, of course, open the door to an array of career opportunities in digital advertising, they will also accelerate the broader digital economy and provide much-needed jobs on a global scale.
Embracing shifts
Ultimately, whilst at present, we foresee these trends to be the 2023 drivers for the world of digital advertising and marketing, it is important not to dismiss the possible emergence of others throughout the coming year. Thus, the ability to understand and navigate these shifts will be your key. This can, however, be not notoriously difficult, and therefore using a media buying partner with significant experience in Nigeria and across the biggest digital platforms to guide you through the maze can go a long way.
Brian Abel is the Regional Sales Manager for West Africa at Ad Dynamo by Aleph
By Modupe Gbadeyanka
Nigerian shoppers who use one of the world’s largest online retail platforms, AliExpress, can now pay for the items with their Verve cards, Business Post has learned.
This has been made possible because of a partnership between the e-commerce platform and the leading domestic payments card scheme and token brand, Verve International.
It was gathered that the collaboration empowers Verve cardholders, both locally and internationally, to engage in cross-border transactions.
It also reinforces Verve’s unwavering commitment to delivering inclusive, innovative, and secure digital payment solutions that empower individuals and businesses alike, while bridging the gap in global digital commerce.
With AliExpress joining this network and Verve integrated into its payment options, Verve cardholders can easily shop and pay for a wide range of products.
To shop on AliExpress using a Verve card, users need to simply sign in, select the items to buy, and click ‘Buy now.’ When prompted, add a new card and enter the Verve card details. Save the information for future use, confirm the details, and complete the payment seamlessly.
“We are excited to announce that Verve is now accepted on AliExpress, a globally recognised e-commerce leader.
“This marks a significant milestone in our global expansion journey, reflecting our commitment to providing cardholders with access to more possibilities in today’s digital economy.
“The addition of AliExpress to our growing network is just the beginning, there’s much more to come as we continue to innovate, expand, and deliver value to millions of Verve cardholders in Nigeria and beyond,” the Managing Director of Verve International, Mr Vincent Ogbunude, said.
Verve’s expanding global network is bolstered by partnerships with renowned brands such as Google, YouTube, Netflix, Amazon Prime, Facebook, Uber, Spotify, among others, enabling cardholders to conveniently pay for subscriptions in Naira.
These alliances solidify Verve’s position as a trusted leader in the digital payments space, ensuring that consumers can access top-notch services across diverse industries.
By Adedapo Adesanya
The Federal Competition and Consumer Protection Commission (FCCPC) has raised alarm about low-quality sugar from Brazil in the Nigerian markets.
In a statement signed by the Director of Corporate Affairs, Mr Ondaje Ijagwu, the consumer protection agency said it uncovered the availability of substandard and unregistered sugar products in Nigerian markets, particularly smuggled brands from Brazil, including Grupo Moreno, Terous, USI S. Joao, Alvean and Arapora Bionergia.
The products failed to meet mandatory Vitamin A fortification requirements, posing serious health risks to consumers, undermining the integrity of the local sugar industry, and contributing to price manipulation that harms the market.
Acting on a tip-off, FCCPC operatives conducted discreet investigations across the country, particularly in the South-West and the North-East.
The investigations revealed that many of the identified sugar products lacked normal labelling, including production and expiry dates, batch numbers, and the mandatory National Agency for Food and Drug Administration and Control (NAFDAC) registration.
“Even more concerning, most of the products were not fortified with Vitamin A, a critical nutrient essential for good vision, immune health, and overall well-being.
“The absence of this fortification exposes Nigerian consumers to serious health risks, including blindness and increased susceptibility to infections, particularly among vulnerable groups such as children and pregnant women,” the statement added.
The FCCPC also lamented concerns about the economic impact of these products, noting that the influx of smuggled sugar undermines fair competition, placing undue pressure on compliant local producers who adhere to regulatory standards.
The body warned that importers of these substandard products engage in price manipulation to the detriment of genuine producers and consumers while pretending that the products are genuine.
“This jeopardises the sustainability of the Nigerian sugar industry and also erodes consumer trust in the market,” the statement added.
The FCCPC also warned that smuggling, facilitated through porous borders, particularly from neighbouring countries such as Cameroun and the Benin Republic, further complicates enforcement efforts and hampers traceability.
FCCPC also reassured the general public that it is taking decisive steps to address this issue consistent with the provisions of the Federal Competition and Consumer Protection Act (FCCPA) 2018.
“The Commission charged Nigerian consumers to verify the authenticity of sugar products by ascertaining they carry proper labelling, including NAFDAC registration and evidence of Vitamin A fortification.
“The FCCPC is intensifying enforcement and surveillance in collaboration with NAFDAC, the Nigeria Customs Service, and other relevant agencies. These efforts include enhanced surveillance and follow-up market inspections to disrupt the supply chain of smuggled sugar products.
“The FCCPC is also engaging with industry stakeholders to promote compliance with quality standards, protect local producers, and foster fair competition within the sugar market,” it added.
MultiChoice Nigeria, the leading pay-TV service provider, has announced the extension of the Supa Plus Golden Window for the festive season.
Customers can continue to enjoy the GOtv Supa+ package at the discounted price of N13,900 instead of the regular N15,700.
The Executive Head of Marketing for West Africa at MultiChoice, Tope Oshunkeye, stated that the extension of the Golden Window is in line with making entertainment accessible to every home during the festive season.
“By extending the Golden Window, we’re allowing our valued customers to enjoy premium entertainment at a discounted price and create an immersive and delightful experience for families to enjoy together while creating memorable moments”. It’s part of our bigger goal this festive season; to make it a good season for everybody.
In addition to the extension of the Golden Window, GOtv also has an exciting lineup of shows on Africa Magic Showcase to keep viewers entertained throughout the festive season.
Running throughout the festive season, to January 11th, the lineup features captivating titles such as The Jump and 10th Anniversary two new Africa Magic original movies.
The schedule for this season promises something for everyone to enjoy, with the launch of the Holiday channel and the exclusive Bovi Comedy Special – Christmas with Bovi, from December 24th to 26th. Rounding up the entertainment is a feast of football this season.
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