Director General of the Advertising Regulatory Council of Nigeria, Dr. Olalekan Fadalopo has revealed that activities in the Nigerian advertising industry in 2023 contributed significantly to Nigeria’s Gross Domestic Product (GDP) and expansion of the economy.
Speaking at media parley in Lagos where he unveiled a report commissioned by ARCON, Dr. Fadalopo said findings by the report carried out PricewaterhouseCooper, PWC, highlighted Nigeria’s advertising industry paramount role as a catalyst for consumer demand, business expansion, employment, and innovation across sectors.
He said the report shows that the Nigerian marketing and communications industry has been on an upward trajectory with a compound annual growth rate (CAGR) of 18.7 per cent in six years, from N216 billion in 2018 to N605.2bn in 2023.
Dr. Fadolapo added that in addition to the Audience Measurement and the GDP Multiplier effect report, the apex regulatory body is also set to hold an event on the audacious rebrand Nigeria project that it had undertaken along side other projects as part of resolutions from the communique of the National Advertising Conference.
While emphasizing the need to quantify the industry’s size and impact as an economic enabler, Dr. Fadolapo remarked, “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.”
READ ALSO: ARCON underscores ethical obligation of stakeholders in upholding industry standard
Also reacting to the report, Tunji Adeyinka, Chairman of the National Advertising Conference, said 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.
In his presentation, Dr. Femi Adelusi, Chairman of the Multiplier Study Committee, revealed the profound impact of Nigeria’s marketing communications industry on driving the nation’s economic growth.
He said the study estimates that for every N1 spent on marketing communications in Nigeria, the nation’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 ₦605.2 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.
This 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.
According to him, the top three contributors to marketing communication spend between 2018 and 2023 were cable TV (25.5 per cent), digital media (18.5 per cent), and creative & content production (13.4 per cent).
READ ALSO: ARCON inducts Fadolapo, Adeyinka, 36 others as Fellows
“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 said
The study also recommended creating specific, measurable goals for the sector’s GDP contribution, establishing a Joint Industry Body (JIB) for operational coordination among broadcasters, agencies, and advertisers, and embracing a “global” approach that combines international best practices with local initiatives to further develop the industry.
Among industry leaders at the event are Mrs Tolulope Medebem, President, EXMAN; Mrs Brenda Nwagwu, Vice President, MIPAN; Mr Steve Babaeko, President, AAAN, Kenny Ogungbe from BON and Mr. Sola Akinsiuku, President, OAAN, among others.