Nigerian Telcos Spend N15bn on Advertisement

ICTThe Nigerian Mobile network operators spent a about N15 billion on advertisement in Nigeria in the year 2012. Of this figure, MTN spent more than N4.8 billion ($30 million).

This is according to an annual report by Mediafacts, an entity of MediaReach OMD, a Nigerian media agency.

According to the report, MTN topped telecommunications advertising in the country, which is Africa’s largest mobile market with over 100 million connections.

Meanwhile, Etisalat has ranked second in the telecoms advertising spend category in Nigeria with N4.40 billion while Airtel and Globacom spent N2.99 billion and N2.95 billion respectively during the year under review.

All four mobile brands topped the list of the top 20 brands in terms of advertising spend in Nigeria last year, says the report.

The report has further noted that telecommunication operators in Nigeria also recorded the highest amount of advertising expenditure on their product category in the Above-The-Line (ATL) spend. ATL advertising uses media that is broadcast or published to mass audiences rather than niche audiences.

The telecoms sector advert spending for 2012 was followed by entertainment, leisure and tourism with N4.988 billion, while lager beer was third in the product category with N4.784 billion.

But while telecoms firms have recorded the highest ad spend in Nigeria, the report says N15.562 billion spent by the sector in 2012 represents a decline from N20.118 billion spent in 2011.

This drop comes amid total advertising spend on ATL activities having fallen by 10.6% in the country to N91.846 billion in 2012 as compared to N102.755 billion in 2011, says Mediafacts.

Reasons for the fall in ad spend could be attributed to a reduced media investment in outdoor advertising, says Mediafacts.

Regardless of this trend, Mediafacts says media investment on TV and radio rose by 7.2% and 20.1% respectively in Nigeria.

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