By Brian Abel
Nigeria has long been considered the largest economy in Africa in terms of GDP, this should come as no great surprise, especially considering its population of over 200 million, making it the largest on the continent, and boasting a large amount of natural resources, as well as strong trade links with its neighboring countries. However, as vast as the Nigerian economy may seem, it is still going through growth spurts.
Helping to drive this evolution is the rapid digitization of many economic sectors. Take the financial sector, for example, while Nigeria has been a major center of African banking for many years, it has also recently become the leading fintech player on the continent. Furthermore, of the handful of African unicorns ($1 billion+ start-ups), most are in fact headquartered in Nigeria.
Rapid digitization has also impacted the advertising world, with the country’s current digital advertising sphere valued at over $179.20 million. And as we know, digital advertising is not static, it is constantly evolving, driven by ever-changing trends, a fact that is as true now, in 2023, as it ever has been. With that in mind, it is beneficial to understand the major trends and recognize which ones will affect Nigerian digital advertising in the course of the year.
Twitter will be based on his return
In early 2022, the Nigerian government revoked its seven-month ban on Twitter. At first, both ordinary Nigerians and advertisers were a bit wary of returning to the social network. After all, once a service has been banned, it’s hard to imagine the same thing not happening again.
Fortunately, Twitter and the Nigerian government were able to reach an agreement, developing a Code of Conduct in line with global best practices. Over the months that followed, Twitter continued to turn a profit and once again proved its worth. The platform is slowly but surely securing its position as the best location for advertisers to reach mass audiences, enabling them to build brand awareness, while building trust, establishing relationships, increasing sales and improving the customer experience. customer.
While the social network is closely watched by the government, especially after the Elon Musk acquisition, it will still be a valuable digital advertising platform in 2023.
Post-Covid adjustments
During the peak of Covid-19 between 2020 and 2021, an unexpected bright light appeared for technology and digital marketing companies alike. With strict lockdowns around the world, most people were confined to their homes, and it should come as no surprise that the need to connect took new forms as the masses flocked to their online devices to communicate with their loved ones. , buy goods and look for meaning. of normality.
However, when we went back to the outside world, both technology and digital marketing witnessed an impact on revenue. Nigeria was not spared from this period of reflection, which was exacerbated by Internet access problems for individuals 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 Pan-African telecom service provider, Seacom, launches its West Africa hub in 2023, that number could be reached even faster.
Marketers take advantage of entertainment and media
Back in 2017, PwC predicted that Nigeria would be the fastest growing media and entertainment market in the world. While Turkey currently holds the top spot, E&M growth in Nigeria remains strong. In fact, analysts forecast that spending in the sector will increase by an average of just under 9% over the next five years.
One of the most visible growth areas can be seen in music streaming. Since its launch in Nigeria in February 2021, Spotify has achieved impressive growth in the country. Within a year of the Nigerian launch, music fans in the country had curated around 1.3 million user-generated playlists. Also, during the same period, close to 21,000 songs were added to the platform. In fact, Nigeria was the second most broadcast country after Pakistan, among new markets, with Kenya trailing behind at third in the ranking.
Digital marketers and media platforms have tapped into the potential that comes with this advertising growth. Spotify, for example, has a 3D audio feature that allows brands to deliver high-quality advertising through an immersive, dynamic, and sensory audio experience. Advertisers around the world have also realized this power and investment is expected to increase in Nigeria and globally.
Demand for digital marketing skills is growing
One of the effects of the rapid growth in the Nigerian digital advertising sector has been a widening gap between the skills available and those required to operate effectively. While this is a figure that applies to more than digital advertising, research from the International Finance Corporation (IFC) reveals that approximately 230 million jobs in Africa will require digital skills by 2030.
Fortunately, several players have stepped forward to try to change the situation. Our own Digital Advertising Experts Program, for example, aims to educate, certify and connect thousands of Africans with the digital skills they need, enabling them to succeed in this increasingly digitized economy. While these skills will, of course, open the door to a variety of career opportunities in digital advertising, they will also accelerate the broader digital economy and provide much-needed jobs on a global scale.
embracing the changes
Ultimately, while we currently anticipate these trends to be the drivers of 2023 for the world of digital advertising and marketing, it’s important not to rule out the potential emergence of others over the next year. Therefore, the ability to understand and navigate these changes will be your key. However, this may not be very difficult and therefore using a media buying partner with significant experience in Nigeria and on the larger digital platforms to guide you through the maze can be very helpful.
Brian Abel is Regional Sales Manager for West Africa at Ad Dynamo by Aleph
