Nigeria’s advertising industry valued at N605b – ARCON

The Advertising Regulatory Council of Nigeria (ARCON), has released a report on the advertising sector’s contribution to the country’s gross domestic product (GDP), its value and multiplier effect. The report, which was carried out by Pricewaterhouse Coopers (PwC), was presented to stakeholders at a media briefing in Lagos. The chairman of the National Advertising Conference, […]

The Advertising Regulatory Council of Nigeria (ARCON), has released a report on the advertising sector’s contribution to the country’s gross domestic product (GDP), its value and multiplier effect.

The report, which was carried out by Pricewaterhouse Coopers (PwC), was presented to stakeholders at a media briefing in Lagos.

The chairman of the National Advertising Conference, Tunji Adeyinka, while providing context on the study, explained that the 2022 conference highlighted a gap in understanding the industry’s GDP contribution, prompting the decision to engage PwC for a credible assessment. He added that the report examined two key aspects: the advertising industry’s direct monetary contribution to GDP and its multiplier effect – the amplified impact of advertising investment on overall economic output.

The chairman of the Multiplier Study Committee, Dr Femi Adelusi, revealed the profound impact of Nigeria’s marketing communications industry on driving the country’s economic growth.

He said: “The marketing communication sector has emerged as a formidable economic powerhouse. The study estimates that for every N1 spent on marketing communications in Nigeria, the country’s GDP increases by a staggering N16.5 – a multiplier effect that highlights the industry’s substantial value contribution.

According to the study, the total expenditure on marketing communications reached an impressive N605.2 billion in 2023, having grown at a remarkable compound annual growth rate (CAGR) of 18.7 per cent over the past six years from N216 billion in 2018.

The growth  trajectory is projected to continue, with spending expected to reach N893 billion by 2028, contributing a significant 1.08 per cent to Nigeria’s GDP, up from 0.7 per cent in 2023.

Dr Adelusi further revealed that in the industry’s segment, the top three contributors to marketing communication spend between 2018 and 2023 were cable TV (25.5%), digital media (18.5%), and creative & content production (13.4%).

He further said 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, had reshaped the marketing landscape.

The director-general of the ARCON, Dr Olalekan Fadolapo, expressed optimism about the industry’s recent strides, including the launch of an Audience Measurement initiative last week, while restating the need to quantify the industry’s size and impact as an economic enabler.

Dr Fadolapo added that findings of the report underscored the industry’s paramount role as a catalyst for consumer demand, business expansion, employment and innovation across sectors.