By Princewill Ekwujuru
Advertising income for newspapers in Nigeria hit N143.1 billion between 2006 and December 2016, revealing a pattern that reached its peak in 2014 with N25 billion; and declined to 23.7 billion at the end of 2015.
According to a special edition of mediafacts in the last ten years, by MediaReach OMD entitled: Mediafacts Nigeria 10 Year Trend Review (2006 to 2016), the N4.4 billion advert income in 2006 moved up to N4.8 and N4.9 billion in 2007 and 2008 respectively. The newspapers got N15.8 billion in 2009 and N16.5 billion in 2010.
The figure declined to N15.4 in 2011 and slipped further to N9.0 billion in 2012. The downward slope however changed in 2013 with an advert income of N18.5 billion and rose to its peak in 2014, hitting N25.8. The figure went down by N2.1billion in 2015 when the newspapers received N23.7 billion.
MediaReach OMD explained that newspapers tend mostly to attract their highest advert patronage in the second and third quarters, with exception of 2013 and 2014 which had their highest spending in the fourth quarters of the year.
In terms of regional spending in the last ten years, the split is between Lagos and North, with Lagos constantly attracting the dominant share of advert spending year after year. The product analysis however shows that Glo has consistently dominated the list of press advertising, rising steadily in the last three years to tie with Guaranty Trust Bank ahead of others while MTN currently occupies the third position.
But in terms of advertising expenditure across board, the TV medium consistently enjoyed the lion share of advert budget over the years. It is followed by the Out of Home (OOH) medium except for 2014 and 2015, when the print medium followed the leading TV medium. The newspapers had however experienced the highest growth rate in terms of advert spends especially in the last three years.
For total advertising expenditure, the year 2013 enjoyed the highest spending with N103.8 billion, representing a marginal increase over 2011 spending of N 102.8 billion. There was however a decline in 2014 as compared to the high level spending in 2013.
The general economic outlook during the period under review showed a Gross Domestic Product, GDP growth estimated at 6.1 per cent in 2014, owing to continued strong performance mainly in services, but also in industry.
The oil sector was in decline, albeit at a slower rate than in the previous year. Also in 2014, oil and gas GDP was estimated to have declined by 1.3 per cent, relative to a decline of 13.1 per cent in 2013. Managing Director and Chief Executive Officer, mediaReach OMD, Mr. Tolu Ogunkoya, said: “Nigeria’s media is one of the most dynamic in Africa. Each of the 36 states has at least a TV station and one radio. There are hundreds of radio stations and terrestrial TV stations, as well as cable and direct-to-home satellite offerings.”
Analysts however, have said that the newspaper industry in Nigeria is caught in the web of recession. It has fallen victim to a combination of intertwined factors. The first is the tough economic environment, which has reduced advertising revenue, as well as the purchasing power of the reading public, and driven up the cost of production to an almost unmanageable level.
With a foreign exchange regime that is unstable, and virtually every input required for production imported from abroad, or sourced locally at cut-throat prices, an average newspaper which used to cost almost nothing in the 70s, is now priced beyond the reach of many Nigerians. The mediafacts Nigeria 10 Year Trend Review is a ten year review and trend analyses of year on year mediafacts, with key insights into annual statistical performance and the dynamics of key players on critical indices of the media, advertising and marketing industry in Nigeria. mediaReach OMD has since 2001 through its publication; mediafacts been giving insights into the Media and Marketing industry of Nigeria, Ghana, West and Central Africa regions. It also provides marketing media professionals with evidence based information that has become a veritable tool for practitioners and companies to compete for market space in these markets.