PricewaterhouseCoopers (PwC) says the value of Nigerias advertising industry rose to N605.2 billion in 2023, from N216 billion in 2018.
PwC made this known in a report compiled on behalf of the Advertising Regulatory Council of Nigeria (ARCON) and various advertising industry associations.
The report, titled: Economic Contribution of the Marketing Communications Industry to the Nigerian Economy was unveiled on Tuesday by ARCON.
The study highlighted the advertising sectors contribution to the nations gross domestic product (GDP), its value, and its multiplier effect.
PwC projected the value will reach N893 billion by 2028.
While presenting the industry report, Femi Adelusi, chairman of the multiplier study committee, said for every N1 spent on marketing communications in Nigeria, the nations GDP increases by N16.5.
The marketing communications sector has emerged as a formidable economic powerhouse. The study estimates that for every N1 spent on marketing communications in Nigeria, the nations GDP increases by a staggering N16.5 a multiplier effect that highlights the industrys substantial value contribution, Adelusi said.
He said the projected N893 billion by 2028 will contribute a significant 1.08 percent to Nigerias GDP, up from 0.7 percent in 2023.
Adelusi said the top three contributors to advertising spend between 2018 and 2023 are cable television (25.5%), digital media (18.5%), as well as creative and content production (13.4%).
The proliferation of cable TV, driven by its diverse content offerings and affordable package options, has captivated a wide consumer base.
Additionally, the surge in digital media spend, fueled by increased internet and mobile penetration, as well as the rise of social media and video-on-demand platforms, has reshaped the marketing landscape, he stated.
According to Adelusi, the popularity of smartphones, social media engagement, and the appeal of real-time online content is improving the influence of creative and content production.
The investment by video-on-demand platforms like Netflix and Amazon Prime in Nigerian productions, particularly in the thriving Nollywood industry, has further bolstered this segment, he added.
The report highlighted economic pressures, regulatory reforms, and competition from global players as challenges faced in the industry.
PwC outlined key recommendations to accelerate the industrys growth and development, some of which are creating specific, measurable goals for the sectors GDP contribution, encouraging strategic alliances among industry players, and utilising analytics tools to track spending patterns and consumer behaviour meticulously.
Commenting on the report, ARCON Director-General (DG), Olalekan Fadolapo, emphasised on the need to quantify the industrys size and impact as an economic enabler.
We cannot continue to guesstimate the size of the industry. This report lays the foundation for us to assess the advertising space and its multiplier effect on the economy every year going forward, he stated.
Fadolapo said the findings of the report underscore the industrys paramount role as a catalyst for consumer demand, business expansion, employment, and innovation across sectors.
