New Telegraph

Nigeria’s Internet Advert Revenue To hit $133m By 2023

 

Abolaji Adebayo

Total internet advertising revenue in Nigeria has been projected to grow from $73 million in 2018 to $133 million in 2023.

Internet advertising, also called online marketing or online advertising or web advertising, is a form of marketing and advertising, which uses the Internet to deliver promotional marketing messages to consumers. It includes email marketing, search engine marketing (SEM), social media marketing, many types of display advertising (including web banner advertising) and mobile advertising.

Like other advertising media, Internet advertising frequently involves both a publisher, who integrates advertisements into its online content and an advertiser, who provides the advertisements to be displayed on the publisher’s content. In a chat with New Telegraph, the CEO, Ad Dynamo, a digital advertising company, Sean Riley, said the online advertising market in Nigeria has seen an unprecedented growth between 2015 and 2018, stating that by 2023, online advertising is forecast to generate $133 million in revenue.

According to him, the market’s largest segment is video advertising with a market value of $87.61 million in 2022, adding that 68 per cent of total digital advertising spending will be generated through mobile in 2026.

Just recently, Advertising Practitioners Council of Nigeria (APCON), the regulatory body responsible for advertising in Nigeria, rolled out plans to regulate online advertising in the country in a bid to sanitise the industry and curb inflammatory advertising messages. The recent trends about online advertising and digital marketing in Nigeria, especially the outbreak of COVID-19, has shifted and accelerated consumer behaviours to online trade channels.

The rise of social media apps like TikTok, Instagram and Facebook (Now Meta) is becoming entertainment hotspots for millennial, turning more people to social media influencers and making them crucial to Nigeria’s advertising industry.

Riley said: “Advertising is becoming more data and technology focused, with advertisers working to integrate some form of artificial intelligence or machine learning into the mix.

“Over the past few years, Nigeria has seen significant increases in internet access and activity and that growth comes with the potential for a vibrant digital marketing ecosystem.

“A Federal Communications commissioner is calling on Apple and Google to remove TikTok from their app stores over concerns that user data from the wildly popular social media platform is being accessed in China.”

He said there was need for global enabler of digital advertising, serving as a crucial link at the core of the global digital ecosystem by connecting the largest digital platforms with thousands of advertisers and billions of consumers in emerging and underserved countries.

He added that the the digital media company had to enhance what it is doing in Nigeria and its plans for the near future as well as the comparative advantages it offers in the local digital marketing landscape.

According to him, his company, Ad Dynamo by Aleph, has commercial and, in many cases, exclusive agreements with over 30 of the leading digital platforms, including: Twitter, Meta, LinkedIn, Snapchat, TikTok, Spotify and Twitch.

“Through these relationships, the company provides digital platforms with a sustainable and scalable way to monetise their advertising inventory in emerging countries at little additional cost and complexity.

“They combine these relationships with an extensive global footprint and an endto- end digital advertising solution that enables advertisers in 90 countries to reach close to three billion consumers and maximise their digital advertising potential,” he said.

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